Interim report
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Greatek Electronics Inc. and Subsidiaries Consolidated Financial Statements for the Six Months Ended June 30 , 2026 and 2025 and Independent Auditors ' Review Report
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- 1 - INDEPENDENT AUDITORS’ REVIEW REPORT The Board of Directors and Shareholders Greatek Electronics Inc. Introduction We have reviewed the accompanying consolidated balance sheets of Greatek Electronics Inc. and its subsidiaries (the “Corporation”) as of June 30, 2026 and 2025, the related consolidated statements of comprehensive income for the three months ended June 30, 2026 and 2025 and for the six months ended June 30, 2026 and 2025, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively refe rred to as the consolidated financial statements). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review Except as explained in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Basis for Qualified Conclusion As stated in Note 1 2 to the consolidated financial statements, we did not review the financial statements of some immaterial subsidiaries, which included in the consolidated financial statements, as of and for the six months ended June 30, 2026 and 2025, which represented total assets of 0.35% $119,004 thousand and 0.46% $127,315 thousand of the consolidated assets; and total liabilities of 0.83% $ 51,247 thousand and 1.03% $57,003 thousand of the consolidated liabilities. These statements also reflected these subsidiaries’ comprehensive income of 0.01% $324 thousand, 0.09% $588 thousand, 0.02% $ 890 thousand and (0.41)% $(5,069) thousand of the consolidated comprehensive income for the three months ended June 30, 2026 and 2025 and six months ended June 30, 2026 and 2025, respectively. These investment amounts, as well as related information disclosed in Note 30 to the consolidated financial statements, were based on unreviewed financial statements of the investees for the same reporting periods as those of the Corporation and subsidiaries.
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- 2 - Conclusion Based on our reviews, except for the consolidated financial statements of subsidiaries and investees as well as related inform ation disclosed referred to in preceding paragraph, were based on unreviewed financial statements of the investees for the same reporting periods as those of the Corporation and subsidiaries, if those consolidated financial statements had been reviewed and any adjustments were determined to be necessary, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the financial position of the Corporation as of June 3 0, 2026 and 2025, its consolidated financial performance for the three months ended June 30, 2026 and 2025, and its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2026 and 2025 in accordance with the Re gulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The engagement partners on the reviews resulting in this independent auditors’ review report are Ming-Yuan Chung and Su-Li Fang. Deloitte & Touche Taipei, Taiwan Republic of China July 31, 2026 Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ review report and the accompanyi ng consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. The English version have not reviewed by Deloitte & Touche. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.
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- 3 - GREATEK ELECTRONICS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) June 30, 2026 (Reviewed) December 31, 2025 (Audited) June 30, 2025 (Reviewed) June 30, 2026 (Reviewed) December 31, 2025 (Audited) June 30, 2025 (Reviewed) ASSETS Amount % Amount % Amount % LIABILITIES AND EQUITY Amount % Amount % Amount % CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents (Note 6) $ 7,061,176 21 $ 5,9800,845 21 $ 6,547,176 24 Financial liabilities at fair value through profit or loss Financial assets at fair value through profit or loss - current - current (Note 7) $ - $ 1,623 - $ - - (Note 7) - - 29 - 12,211 - Contract liabilities - current (Note 21) 321,657 1 254,823 1 175,799 1 Contract assets - current (Notes 21 and 27) 1,168,739 3 1,049,723 4 880,896 3 Notes payable 4,525 - 3,199 - 3,632 - Notes receivable (Notes 10 and 21) 48,351 - 36,909 - 61,083 - Accounts payable 1,106,829 3 963,598 4 925,786 3 Accounts receivable (Notes 10 and 21) 3,643,260 11 3,127,767 11 3,058,552 11 Payables to equipment suppliers (Note 27) 335,018 1 306,575 1 398,177 2 Receivables from related parties (Notes 21 and 27) 455,436 1 346,156 1 385,113 1 Dividend payable (Note 20) 1,706,538 5 - - 1,706,538 6 Inventories (Note 11) 1,019,265 3 842,070 3 701,901 3 Accrued compensation to employees and remuneration to Prepaid expenses and other current assets (Notes 16 and 27) 196,401 1 171,382 1 151,006 1 directors (Note 22) 604,809 2 396,742 1 514,421 2 Current income tax liabilities 499,493 1 316,067 1 362,181 1 Total current assets 13,592,628 40 11,474,881 41 11,797,938 43 Lease liabilities - current (Note 14) 12,764 - 12,671 - 12,426 - Accrued expenses and other current liabilities (Notes 4, 17 NON-CURRENT ASSETS and 27) 1,230,336 4 1,261,695 5 1,085,803 4 Financial assets at fair value through other comprehensive Guarantee deposits - current (Note 18) 73,209 - 72,266 - 68,655 - income - non-current (Note 8) 6,908,125 21 3,560,550 13 2,716,025 10 Financial assets at amortized cost - noncurrent (Note 9) 500,002 2 500,002 2 500,002 2 Total current liabilities 5,895,178 17 3,589,259 13 5,253,418 19 Property, plant and equipment (Notes 13 and 27) 12,409,190 37 12,236,056 44 12,186,491 44 Right-of-use assets (Note 14) 20,502 - 26,439 - 32,392 - NON-CURRENT LIABILITIES Intangible assets (Note 15) 80,094 - 85,552 - 90,118 - Deferred income tax liabilities 10,332 - 13,462 - 9,986 - Deferred income tax assets (Note 23) 8,822 - 12,669 - 350 - Lease liabilities - noncurrent (Note 14) 9,303 - 15,693 - 22,067 - Net defined benefit assets - noncurrent (Notes 4 and 19) 6,978 - 6,981 - 5,628 - Guarantee deposits - noncurrent (Note 18) 259,908 1 256,560 1 243,742 1 Other noncurrent assets (Notes 16 and 28) 135,942 - 125,872 - 126,319 1 Total non-current liabilities 279,543 1 285,715 1 275,795 1 Total non-current assets 20,069,655 60 16,554,121 59 15,657,325 57 Total liabilities 6,174,721 18 3,874,974 14 5,529,213 20 EQUITY (Notes 20) Equity attributable to shareholders of the parent Capital stock Common stock 5,688,459 17 5,688,459 20 5,688,459 21 Capital surplus 2,775 - 2,775 - 2,666 - Retained earnings Legal reserve 4,992,326 15 4,747,272 17 4,747,272 17 Unappropriated earnings 12,084,744 36 12,343,801 44 10,960,308 40 Other equity 4,717,462 14 1,369,887 5 525,362 2 Total equity attributable to shareholders of the Parent 27,485,766 82 24,152,194 86 21,924,067 80 Non-controlling interests 1,796 - 1,834 - 1,983 - Total equity 27,487,562 82 24,154,028 86 21,926,050 80 TOTAL $33,662,283 100 $ 28,029,002 100 $ 27,455,263 100 TOTAL $ 33,662,283 100 $ 28,029,002 100 $ 27,455,263 100 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated July 31, 2026)
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- 4 - GREATEK ELECTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited) For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Amount % Amount % Amount % Amount % NET SALES (Notes 21 and 27) $ 5,283,601 100 $ 4,321,062 100 $ 10,005,945 100 $ 8,217,500 100 OPERATING COSTS (Notes 11, 19, 22 and 27) 4,002,586 76 3,376,126 78 7,609,096 76 6,463,482 79 GROSS PROFIT 1,281,015 24 944,936 22 2,396,849 24 1,754,018 21 OPERATING EXPENSES (Notes 19, 22 and 27) Selling and marketing expenses 17,893 - 14,192 - 34,606 - 28,963 - General and administrative 83,119 2 60,609 2 171,007 2 137,416 2 Research and development 96,765 2 72,212 2 184,382 2 146,269 2 Total operating expenses 197,777 4 147,013 4 389,995 4 312,648 4 OPERATING INCOME 1,083,238 20 797,923 18 2,006,854 20 1,441,370 17 NONOPERATING INCOME AND EXPENSES (Note 22) Interest income 32,122 1 31,419 1 58,218 1 63,417 1 Other income 16,444 - 9,764 - 34,638 - 30,531 - Other gains and losses (22,000 ) - (216,440 ) (5 ) 18,678 - (185,047 ) (2 ) Total nonoperating income and expenses 26,566 1 (175,257 ) (4 ) 111,534 1 (91,099 ) (1 ) INCOME BEFORE INCOME TAX 1,109,804 21 622,666 14 2,118,388 21 1,350,271 16 INCOME TAX EXPENSE (Notes 4 and 23) 215,236 4 148,296 3 425,891 4 283,421 3 NET INCOME 894,568 17 474,370 11 1,692,497 17 1,066,850 13 OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss: Unrealized (loss) gain on investments in equity instruments designated as at fair value through other comprehensive income (Note 20) 3,062,675 58 214,014 5 3,347,575 33 182,246 2 TOTAL COMPREHENSIVE INCOME $ 3,957,243 75 $ 688,384 16 $ 5,040,072 50 $ 1,249,096 15 NET INCOME ATTRIBUTABLE TO Shareholders of the Parent $ 894,590 17 $ 474,386 11 $ 1,692,535 17 $ 1,067,046 13 Non-controlling interests (22 ) - (16 ) - (38 ) - (196 ) - $ 894,568 17 $ 474,370 11 $ 1,692,497 17 $ 1,066,850 13 (Continued)
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- 5 - GREATEK ELECTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited) For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Amount % Amount % Amount % Amount % TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO Shareholders of the Parent $ 3,957,265 75 $ 688,400 16 $ 5,040,110 50 $ 1,249,292 15 Non-controlling interests (22 ) - (16 ) - (38 ) - (196 ) - $ 3,957,243 75 $ 688,384 16 $ 5,040,072 50 $ 1,249,096 15 EARNINGS PER SHARE (Note 24) Basic $ 1.57 $ 0.83 $ 2.98 $ 1.88 Diluted $ 1.57 $ 0.83 $ 2.96 $ 1.86 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated July 31, 2026) (Concluded)
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- 6 - GREATEK ELECTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited) Equity Attributable to Shareholders of the Corporation Other Equity Unrealized Gain (Loss) on Investments in Equity Instruments at Share Capital Issued and Fair Value Outstanding Retained Earnings Through Other Share Unappropriated Comprehensive Noncontrolling Shareholders' (Thousands) Amount Capital Surplus Legal Reserve Earnings Income Total Interest Equity BALANCE, JANUARY 1, 2025 568,846 $ 5,688,459 $ 2,666 $ 4,497,145 $ 11,849,927 $ 343,116 $ 22,381,313 $ 2,179 $ 22,383,492 APPROPRIATION OF 2024 EARNINGS Legal reserve - - - 250,127 (250,127) - - - - Special reserve - - - - - - - - Cash dividends to shareholders - NT$3.0 per share - - - - (1,706,538) - (1,706,538) - (1,706,538) Capital surplus - donations from shareholders - - - - - - - - - Net income (loss) for the six months ended June 30, 2025 - - - - 1,067,046 - 1,067,046 (196) 1,066,850 Other comprehensive income (loss) for the six months ended June 30, 2025, net of income tax - - - - - 182,246 182,246 - 182,246 Total comprehensive income (loss) for the six months ended June 30, 2025 - - - - 1,067,046 182,246 1,249,292 (196) 1,249,096 BALANCE, JUNE 30, 2025 568,846 $ 5,688,459 $ 2,666 $ 4,747,272 $ 10,960,308 $ 525,362 $ 21,924,067 $ 1,983 $ 21,926,050 BALANCE, JANUARY 1, 2026 568,846 $ 5,688,459 $ 2,775 $ 4,747,272 $ 12,343,801 $ 1,369,887 $ 24,152,194 $ 1,834 $ 24,154,028 APPROPRIATION OF 2025 EARNINGS Legal reserve - - - 245,054 (245,054) - - - - Special reserve - - - - - - - - Cash dividends to shareholders - NT$3.0 per share - - - - (1,706,538) - (1,706,538) - (1,706,538) Capital surplus - donations from shareholders - - - - - - - - - Net income (loss) for the six months ended June 30, 2026 - - - - 1,692,535 - 1,692,535 (38) 1,692,497 Other comprehensive income (loss) for the six months ended June 30, 2026, net of income tax - - - - - 3,347,575 3,347,575 - 3,347,575 Total comprehensive income (loss) for the six months ended June 30, 2026 - - - - 1,692,535 3,347,575 5,040,110 (38) 5,040,072 BALANCE, JUNE 30, 2026 568,846 $ 5,688,459 $ 2,775 $ 4,992,326 $ 12,084,744 $ 4,717,462 $ 27,485,766 $ 1,796 $ 27,487,562 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated July 31, 2026)
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- 7 - GREATEK ELECTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited) For the Six Months Ended June 30 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Current income before income tax $ 2,118,388 $ 1,350,271 Adjustments to reconcile income before income tax to net cash provided by operating activities: Depreciation 1,485,348 1,453,963 Amortization 9,298 8,443 Net loss on fair value change of financial instruments designated as at fair value through profit or loss (1,594) (13,206) Finance costs (decrease) increase 298 445 Interest income increase (decrease) (58,218) (63,417) Net loss on disposal of property, plant and equipment 174 - Recognition as expense of property, plant and equipment - 34 Net loss on foreign currency exchange 6,227 166,011 Changes in operating assets and liabilities: Increase in contract assets (119,016) (11,501) Increase in notes receivable (11,442) (25,435) Increase in accounts receivable (527,544) (394,114) Increase in accounts receivable from related parties (109,280) (39,877) Increase (decrease) in inventories (177,195) 100,237 Increase in prepaid expenses and other current assets (29,082) (17,957) Increase in contract liabilities 66,834 34,471 Increase in notes payable 1,326 639 Increase in accounts payable 141,609 194,456 Increase in accrued compensation to employees and remuneration to directors 208,067 104,550 Decrease in accrued expenses and other accounts payable (31,359) (189,677) Decrease (increase) in net defined benefit liability 3 (2,341) Cash generated from operations 2,972,842 2,655,995 Interest received 62,281 66,020 Interest paid (298) (445) Income tax paid (241,748) (351,229) Net cash provided by operating activities 2,793,077 2,370,341 (Continued)
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- 8 - GREATEK ELECTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited) For the Six Months Ended June 30 2026 2025 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial instruments designated as at fair value through other comprehensive $ - $ (947,779) Purchase of financial assets at amortized cost - (200,001) Acquisition of property, plant and equipment (1,623,427) (1,190,507) Proceeds from disposal of property, plant and equipment 516 - Increase in refundable deposits (70) (451) Increase in intangible assets (3,840) (18,651) Increase in other noncurrent assets (10,000) - Net cash used in investing activities (1,636,821) (2,357,389) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of the principal portion of lease liabilities (6,297) (6,049) Donations from shareholders - - Net cash (used) provided in financing activities (6,297) (6,049) EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES 10,372 (74,742) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 1,160,331 (67,839) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 5,900,845 6,615,015 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 7,061,176 $ 6,547,176 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated July 31, 2026) (Concluded)
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- 9 - GREATEK ELECTRONICS INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited) 1. GENERAL INFORMATION Greatek Electronics Inc. (the “Corporation” or “Greatek”) was incorporated in the Republic of China (“ROC”) on March 7, 1983 . The Corporation m ainly provides semiconductor assembly and testing services on a turnkey basis. The Corporation’s shares have been listed on the Taiwan Stock Exchange (TSE) on October 26, 2000. Powertech Technology Inc. (PTI) acquired Greatek’s 44.09% ownership, pursuant to Greatek’s board approval on December 21, 2011. On the reelection of the directors and supervisors of Greatek, PTI holds a majority of the directors seats and become parent. PTI has 42.91% ownership of Greatek as of June 30, 2026 and 2025. The consolidated financial statements are presented in the Greatek’s functional currency, the New Taiwan dollar. 2. APPROVAL OF FINANCIAL STATEMENTS The financial statements were approved to the Board of Directors and issued on July 31, 2026. 3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) The application of the amendments to the International Financial Reporting Standards (IFRS) endorsed and issued into effect by the FSC did not have a material impact on the Group’s accounting policies. b. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” To be determined by IASB IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note2) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (include amendment for 2025) January 1, 2027 IFRS 20 “Regulatory Assets and Regulatory Liabilities” January 1, 2029 Amendments to IAS21 “The Effects of Changes in Foreign Exchange Rates” January 1, 2027 Amendments to IAS28 “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures” January 1, 2027 (Note3)
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- 10 - Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for a nnual reporting periods beginning on or after their respective effective dates. Note 2: On September 25,2025,the Financial Supervisory Commission (FSC) announced that Taiwanese enterprises should apply IFRS 18 from January 1, 2028. They may also choose to apply IFRS 18 earlier after the FSC approves it. Note 3: An entity must apply the consequential amendments at the same time it applies IFRS 18. IFRS 18 “Presentation and Disclosure in Financial Statements” and Amendments to IAS28 “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures” IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise: The company should assess whether it has specific key operating activities involving investing in particular types of assets and providing financing to customers,and according to that items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories. The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss. Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other ev ents and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label. Disclosures on Management -defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to th e financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non -controlling interests effects of related reconciliation items. In addition, IAS 7”The cash flow statement “has been revised as follows: When preparing cash flows from operating activities using the indirect method, the Company should use operating profit or loss as the starting point for adjustment. Interest and dividends received by the Company should be classified as investing activities, while interest and dividends paid should be classified as financing activities. If the Company is assessed to have specific principal operating activities, the types of dividend income, interest income, and interest expense reported in the income statement must be considered to determine the classification of dividends received, interest received, and interest paid in the cash flow statement ,however,each of the above cash flows can only be classified into a single activity in the cash flow statement. Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.
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- 11 - 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICY a. Statement of compliance These interim financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IAS 34 “Interim Financial Reporting” as endorsed by the FSC. Disclosure information included in the financial statements is less than those required in a complete set of annual financial statements. b. Basis of preparation The financial statements have been prepared on the historical cost basis except for the financial instruments which are measured at fair value, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets. The fair value measurements are grouped into Levels 1 to 3 based on the de gree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and 3) Level 3 inputs are unobservable inputs for the asset or liability. c. Basis of consolidation The consolidated financial statements incorporate the financial statements of Greatek and the entities controlled by Greatek (i.e. its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by Greatek. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total com prehensive income of subsidiaries is attribu ted to the owners of Greatek and to the non - controlling interests even if this results in the non-controlling interests having a deficit balance. See Notes 12 and 31 for detailed information on subsidiaries (including the percentages of ownership and main businesses). d. Other significant accounting policies Except for the following, for the summary of other significant accounting policies, refer to the consolidated financial statements for the year ended December 31, 2025.
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- 12 - 1) Retirement benefits Pension cost for an interim period is calculated on a year -to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, ad justed for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one- off events. 2) Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Interim per iod income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre - tax income the tax rate that would be applicable to expected total annual earnings. 5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The critical accounting judgments and key sources of estimation uncertainty followed in these consolidated financial statements refer to the consolidated financial statements for the year ended December 31, 2025. 6. CASH June 30, 2026 December 31, 2025 June 30, 2025 Bank deposits $ 7,061,176 $ 5,900,845 $ 6,547,176 The market rate intervals of cash in bank at the end of the reporting period were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Bank deposits 0.72%-1.66% 0.68%-1.66% 0.72%-4.40% 7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS June 30, 2026 December 31, 2025 June 30, 2025 Financial assets at FVTPL - current Financial assets held for trading - current Derivative financial assets (not under hedge accounting) Foreign exchange forward contracts $ - $ 29 $ 12,211 Financial liabilities at FVTPL - current Financial liabilities held for trading - current Derivative financial liabilities (not under hedge accounting) Foreign exchange forward contracts $ - $ 1,623 $ -
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- 13 - At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows: Currency Maturity Date Contract Amounts (In Thousands) December 31, 2025 Sell forward exchange contracts USD to NTD 2026.01.05-2026.02.12 USD10,000/NTD 312,178 June 30, 2025 Sell forward exchange contracts USD to NTD 2025.07.11-2025.09.11 USD15,300/NTD 455,800 The Corporation entered into foreign exchange forward contracts to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities. However, those contracts did not meet the criteria of hedge effectiveness and therefore were not accounted for by using hedge accounting. 8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Investments in equity instruments at FVTOCI June 30, 2026 December 31, 2025 June 30, 2025 Non-current Domestic investments Listed shares Ordinary shares - Powertech Technology Inc. $ 6,868,125 $ 3,520,550 $ 2,676,025 Unlisted shares Ordinary shares - Daypower Energy Co., Ltd. 40,000 40,000 40,000 $ 6,908,125 $ 3,560,550 $ 2,716,025 These investments in equity instruments are not held for trading. Instead, they are held for medium to long- term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI. 9. FINANCIAL ASSETS AT AMORTIZED COST June 30, 2026 December 31, 2025 June 30, 2025 Noncurrent Domestic investments Corporate bonds - P13 Taiwan Power Company 2A Bond $ 200,001 $ 200,001 $ 200,001 Corporate bonds - P14 Taiwan Power Company 1B Bond 200,001 200,001 200,001 Corporate bonds - P13 CPC Corporation 2A Bond 100,000 100,000 100,000 $ 500,002 $ 500,002 $ 500,002
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- 14 - On April 25, 2024, the Corporation bought corporate bonds issued by Taiwan Power Company with an effective interest rate of 1.66% at par value $200,000 thousand, and maturity dates of April 25, 2028 and 2029, at par value of $160,000 thousand and $40,000 thousand, respectively. On May 14, 2024, the Corporation bought corporate bonds issued by CPC Corporation with an effective interest rate of 1.73% at par value $100,000 thousand, and maturity dates of May 14, 2028 and 2029, at par value of $50,000 thousand, respectively. On April 30, 2025, the Corporation bought corporate green bonds issued by Taiwan Power Company with an effective interest rate of 1.96% at par value $200,000 thousand, and maturity dates of April 30, 2032. Refer to Note 26 for information relating to their credit risk management and impairment. 10. NOTES AND ACCOUNTS RECEIVABLE, NET June 30, 2026 December 31, 2025 June 30, 2025 Notes receivable At amortized cost Gross carrying amount $ 48,351 $ 36,909 $ 61,083 Accounts receivable At amortized cost Gross carrying amount $ 3,703,760 $ 3,188,267 $ 3,119,052 Less: Allowance for impairment loss (60,500) (60,500) (60,500) $ 3,643,260 $ 3,127,767 $ 3,058,552 The average credit period of sales of goods was 60-90 days. No interest was charged on accounts receivables. In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover over due debts. In addition, the Corporation reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Corporation’s credit risk was significantly reduced. The Corporation applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all accounts receivables. The expected credit losses on accounts receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Corporation’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Corporation’s different customer base. The Corporation writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For accounts receivables that have been written off, the Corporation continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.
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- 15 - The following table details the loss allowance of accounts receivables based on the Corporation’s provisio n matrix. June 30, 2026 Not Past Due Less than 60 Days 61 to 90 Days 91 to 120 Days Over 120 Days Total Gross carrying amount $ 3,643,285 $ 52,210 $ 2,758 $ 2,427 $ 3,080 $ 3,703,760 Loss allowance (Lifetime ECL) (7,441 ) (44,794 ) (2,758 ) (2,427 ) (3,080 ) (60,500 ) Amortized cost $ 3,635,844 $ 7,416 $ - $ - $ - $ 3,643,260 December 31, 2025 Not Past Due Less than 60 Days 61 to 90 Days 91 to 120 Days Over 120 Days Total Gross carrying amount $ 3,109,658 $ 73,476 $ 2,261 $ 412 $ 2,460 $ 3,188,267 Loss allowance (Lifetime ECL) (6,200 ) (49,167 ) (2,261 ) (412 ) (2,460 ) (60,500 ) Amortized cost $ 3,103,458 $ 24,309 $ - $ - $ - $ 3,127,767 June 30, 2025 Not Past Due Less than 60 Days 61 to 90 Days 91 to 120 Days Over 120 Days Total Gross carrying amount $ 3,074,188 $ 35,381 $ 5,413 $ 1,452 $ 2,618 $ 3,119,052 Loss allowance (Lifetime ECL) (15,636 ) (35,381 ) (5,413 ) (1,452 ) (2,618 ) (60,500 ) Amortized cost $ 3,058,552 $ - $ - $ - $ - $ 3,058,552 The movements of the loss allowance of accounts receivables were as follows: For the Six Months Ended June 30 2026 2025 Balance at January 1 and June 30 $ 60,500 $ 60,500 11. INVENTORIES June 30, 2026 December 31, 2025 June 30, 2025 Raw materials $ 878,070 $ 696,153 $ 582,286 Supplies 141,195 145,917 119,615 $ 1,019,265 $ 842,070 $ 701,901 The costs of inventories recognized as cost of goods sold were as follows: For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Sales of scrapes $ (23,038) $ (17,899) $ (42,315) $ (35,241) Operating Costs $ 4,002,586 $ 3,376,126 $ 7,609,096 $ 6,463,482
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- 16 - 12. SUBSIDIARIES a. Subsidiaries included in the consolidated financial statements Proportion of Ownership June 30, December 31, June 30, Investor Investee Main Business 2026 2025 2025 Remark Greatek Electronics Inc. Get-Team Tech Corporation (Get- Team) Metal plating on semiconductor lead frame 97.46% 97.46% 97.46% Notes 1 Note: It is a non -significant subsidiary, its financial statements for six months ended June 30, 2026 have not been reviewed. 13. PROPERTY, PLANT AND EQUIPMENT For the Six Months Ended June 30, 2025 Land Building Machinery and Equipment Transportation Equipment Office Equipment Other Equipment Equipment under Installation Construction in Progress Spare Parts Total Cost Balance, beginning of period $ 1,981,352 $ 7,563,264 $ 12,825,974 $ 25,239 $ 130,975 $ 709,880 $ 830,139 $ 25,248 $ 234,506 $ 24,326,577 Additions - 43,825 382,250 - 21,679 16,323 618,662 3,657 215,936 1,302,332 Disposals - - - - - - - - (215,791 ) (215,7911 ) Reclassified 7,200 685,813 - 108 1,711 (688,537 ) (8,334 ) (34 ) 2,073 ) Balance, end of period 1,981,352 7,614,289 13,894,037 25,239 152,762 727,914 760,264 20,571 234,617 25,411,045 Accumulated deprecation Balance, beginning of period - 3,354,225 8,129,302 19427 66,962 422,489 - - - 11,992,405 Depreciation expense - 239,932 943,858 1,059 11,439 35,861 - - 215,791 1,447,940 Disposals - - - - - - - - (215,791 ) (215,791 ) Balance, end of period - 3,594,157 9,073,160 20,486 78,401 458,350 - - - 13,224,554 Net book value, beginning of period $ 1,981,352 $ 4,209,039 $ 4,696,672 $ 5,812 $ 64,013 $ 287,391 $ 830,139 $ 25,248 $ 234,506 $ 12,334,172 Net book value, end of period $ 1,981,352 $ 4,020,132 $ 4,820,877 $ 4,753 $ 74,361 $ 269,564 $ 760,264 $ 20,571 $ 234,617 $ 12,186,491 For the Six Months Ended June 30, 2026 Land Building Machinery and Equipment Transportation Equipment Office Equipment Other Equipment Equipment under Installation Construction in Progress Spare Parts Total Cost Balance, beginning of period $ 2,150,709 $ 7,641,202 $ 13,717,211 $ 28,486 $ 142,151 $ 749,897 $ 658,087 $ 3,642 $ 229,036 $ 25,320,421 Additions - 56,767 288,993 845 12,313 13,853 1,018,306 61,375 200,783 1,653,235 Disposals - - (1,670 ) - - (190 ) - - (219,206 ) (221,066 ) Reclassified 942 523,589 - - 99 (523,688 ) (942 ) - - Balance, end of period 2,150,709 7,698,911 14,528,123 29,331 154,464 763,659 1,152,705 64,075 210,613 26,752,590 Accumulated deprecation Balance, beginning of period - 3,835,644 8,671,793 20,148 72,456 484,324 - - - 13,084,365 Depreciation expense - 237,603 973,566 1,291 11,368 36,377 - - 219,206 1,479,411 Disposals - - (980 ) - - (190 ) - - (219,206 ) (220,376 ) Balance, end of period - 4,073,247 9,644,379 21,439 83,824 520,511 - - - 14,343,400 Net book value, beginning of period $ 2,150,709 $ 3,805,558 $ 5,045,418 $ 8,338 $ 69,695 $ 265,573 $ 658,087 $ 3,642 $ 229,036 $ 12,236,056 Net book value, end of period $ 2,150,709 $ 3,625,664 $ 4,883,744 $ 7,892 $ 70,640 $ 243,148 $ 1,152,705 $ 64,075 $ 210,613 $ 12,409,190 The above items of property, plant and equipment were depreciated on a straight -line basis at the following rates per annum: Buildings Main plants 26 years Mechanical and electrical power equipment 2-11 years Others 2-51 years Machinery and equipment 2-10 years Transportation equipment 3-6 years Office equipment 3-7 years Other equipment 2-16 years Spare parts 0.5 year For the six months ended June30 2026 and 2025, no impairment loss was recognized or reversed.
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- 17 - 14. LEASE ARRANGEMENTS a. Right-of-use assets June 30, 2026 December 31, 2025 June 30, 2025 Carrying amounts Building $ 12,272 $ 17,181 $ 22,090 Machinery and Equipment 7,344 7,930 8,532 Transportation Equipment 886 1,328 1,770 $ 20,502 $ 26,439 $ 32,392 For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Depreciation charge for right- of-use asset Building $ 2,455 $ 2,454 $ 4,909 $ 4,909 Machinery and Equipment 293 335 586 671 Transportation Equipment 221 222 442 443 $ 2,969 $ 3,011 $ 5,937 $ 6,023 b. Lease liabilities June 30, 2026 December 31, 2025 June 30, 2025 Carrying amounts Current $ 12,764 $ 12,671 $ 12,426 Non-current $ 9,303 $ 15,693 $ 22,067 Range of discount rate for lease liabilities was as follows: June 30, 2026 December 31, 2025 June 30, 2025 Building 2.400%-2.525% 2.400%-2.525% 2.400%-2.525% Machinery and equipment 2.400%-2.525% 2.400%-2.525% 2.400%-2.525% Transportation Equipment 2.300% 2.300% 2.300% c. Material lease-in activities and terms Get-Team leases certain buildings for the use of production line with lease terms of 3~5 years. Get-Team has no options to purchase the buildings for a nominal amount at the end of the lease terms. It is stipulated that Get-Team shall not sublease or assign all or any part of the leased asset without the lessor’s consent. Grtatek leases certain machinery equipment for the use of assembly and testing service with lease terms of 14 years. Grtatek has no options to pur chase the equipment for a nominal amount at the end of the lease terms.
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- 18 - 15. INTANGIBLE ASSETS For the Six Months Ended June 30, 2025 Goodwill Trade secret Computer Software Total Cost Balance, beginning of period $ 17,896 $ 41,383 $ 57,981 $ 117,260 Additions - - 18,651 18,651 Reclassified - - 2,039 2,039 Balance, end of period $ 17,896 $ 41,383 $ 78,671 $ 137,950 Accumulated amortization Balance, beginning of period $ - $ 9,313 $ 30,076 $ 39,389 Amortization - 2,067 6,376 8,443 Balance, end of period $ - $ 11,380 $ 36,452 $ 47,832 Net book value, beginning of period $ 17,896 $ 32,070 $ 27,905 $ 77,871 Net book value, end of period $ 17,896 $ 30,003 $ 42,219 $ 90,118 For the Six Months Ended June 30, 2026 Goodwill Trade secret Computer Software Total Cost Balance, beginning of period $ 17,896 $ 41,383 $ 73,514 $ 132,793 Additions - - 3,840 3,840 Balance, end of period $ 17,896 $ 41,383 $ 77,354 $ 136,633 Accumulated amortization Balance, beginning of period $ - $ 13,449 $ 33,792 $ 47,241 Amortization - 2,070 7,228 9,298 Balance, end of period $ - $ 15,519 $ 41,020 $ 56,539 Net book value, beginning of period $ 17,896 $ 27,934 $ 39,722 $ 85,552 Net book value, end of period $ 17,896 $ 25,864 $ 36,334 $ 80,094 Trade secrets acquired through business combinations are amortized over their useful lives as identified in the valuation report.
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- 19 - The above items of intangible assets are amortized on a straight-line basis over their estimated useful lives as follows: Trade secret 10 years Computer Software 5 years 16. OTHER ASSETS June 30, 2026 December 31, 2025 June 30, 2025 Current Tax overpaid $ 54,753 $ 26,635 $ 13,623 Inventory of supplies 42,762 45,376 40,475 Other receivables 24,436 25,653 16,321 Temporary debits 22,602 608 528 Tax refund receivables 17,380 33,948 42,052 Payment on behalf of others 13,627 10,886 - Interest receivable 6,685 10,748 8,006 Prepaid insurances 2,378 10,564 20,626 Others (a) 11,778 6,964 9,375 $ 196,401 $ 171,382 $ 151,006 Non-current Pledged deposits (b) $ 128,700 $ 118,700 $ 118,700 Refundable deposits 7,242 7,172 7,619 $ 135,942 $ 125,872 $ 126,319 a. Other current assets include tax refund receivables , prepaid insurances, prepayments in advance, and prepaid rents. b. Pledge deposits are guarantee deposits for domestic sales, gas volume in CPC Corporation, and environmental protection of lease buildings. 17. OTHER LIABILITIES June 30, 2026 December 31, 2025 June 30, 2025 Current Accrued expenses Bonus $ 597,886 $ 714,937 $ 537,695 Utilities 125,884 86,122 98,084 Indemnification payable (a) 62,746 56,122 57,502 Labor and health insurance 61,681 73,817 56,440 Others (b and c) 320,806 275,672 273,812 1,169,003 1,206,670 1,023,533 (Continued)
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- 20 - June 30, 2026 December 31, 2025 June 30, 2025 Other current liabilities Behalf of the collection $ 36,546 $ 33,980 $ 44,225 Temporary receipts 24,787 21,045 18,045 61,333 55,025 62,270 $ 1,230,336 $ 1,261,695 $ 1,085,803 (Concluded) a. Indemnification payable are measured at the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. b. Other accrued expenses include accrued spare parts, benefit retirement, services, and utilization of the foreign employment security. c. Starting from 2026, the Corporation recognizes the carbon fee provision in accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC. For certain plants, the carbon fee provision was calculated based on the standard rate. For other plants, the carbon fee provision was originally estimated based on the preferential rate. Due to changes in circumstances , the carbon fee provision was estimated based on the standard rate on January 1,2026. For the six months ended June 30, 2026 and 2025, the Corporation recognized a total provision for carbon fees in the amount of $10,440 thousand and $4,178 thousand, respectively. 18. GUARANTEE DEPOSITS June 30, 2026 December 31, 2025 June 30, 2025 Capacity guarantee $ 333,101 $ 328,810 $ 312,381 Others 16 16 16 $ 333,117 $ 328,826 $ 312,397 Current $ 73,209 $ 72,266 $ 68,655 Non-current $ 259,908 $ 256,560 $ 243,742 19. RETIREMENT BENEFIT PLANS a. Defined contribution plans The Corporation adopted a pension plan under the Labor Pension Act (the “LPA”), which is a state - managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages. Employee benefit expenses in respect of the Corporation’s defined contribution retirement plans were $37,366 thousand, $34,719 thousand, $75,123 thousand and $69,323 thousand for the three months and six months ended June 30, 2026 and 2025, respectively. b. Defined benefit plans The defined benefit plan adopted by the Corporation in accordance with the Labor Standards Law is operated by the government . Pension benefits are calculated on the basis of the length of service and
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- 21 - average monthly salaries of the six months before retirement. The Corporation contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retir ement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Corporation has no right to influence the investment policy and strategy. Employee benefit expenses in respect of the Corporation’s defined benefit retirement plans were $32 thousand, $116 thousand, $65 thousand and $231 thousand for the three months and six months ended June 30, 2026 and 2025, respectively, and were calculated using the actuarially determined pension cost discount rate as of December 31, 2025 and 2024. 20. EQUITY a. Ordinary shares June 30, 2026 December 31, 2025 June 30, 2025 Numbers of shares authorized (in thousands) 1,000,000 1,000,000 1,000,000 Shares authorized $ 10,000,000 $ 10,000,000 $ 10,000,000 Number of shares issued and fully paid (in thousands) 568,846 568,846 568,846 Shares issued $ 5,688,459 $ 5,688,459 $ 5,688,459 Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends. There are 20,000 thousand shares reserved for employee stock options. b. Capital surplus June 30, 2026 December 31, 2025 June 30, 2025 May be used to offset a deficit, distributed as cash dividends or transferred to share capital Share premium $ 1,647 $ 1,647 $ 1,647 May be used to offset a deficit only Donations from shareholders 1,128 1,128 1,019 $ 2,775 $ 2,775 $ 2,666 The premium from shares issued in excess of par may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to capital (limited to a certain percentage of the Corporation’s capital surplus and once a year). The capital surplus from employee share options and share warrants may not be used for any purpose.
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- 22 - c. Retained earnings and dividend policy Under the dividend policy as set in the Corporation’s Articles of Incorporation , the Corporation should make appropriations from its net income in the following order: 1) Deducted for accumulated deficits. (include current year’s adjusted undistributed earnings). 2) Appropriate the 10% as the legal reserve. However when the legal reserve amounts to the authorized capital, this shall not apply. 3) Appropriate or reverse the special reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. 4) The board of directors will draft a resolution declaring a dividend equaling the sum of previous years’ surpluses and current year’s adjusted undistributed earnings, less previous expense balances. The shareholders will ultimately decide whether the amount should be distributed as dividends or retained within the Corporation. For information on the accrued employees’ compensation and remuneration to directors and the actual appropriations, please refer to the employee benefit expense shown in Note 22 (f). Dividends are distributed in the form of cash , common shares or a combination of cash and common shares. In consideration of the Corporation’s being in a capital-intensive industry as well as the long-term development, overall environment, industrial growth characteristics, capital demand, capital bu dget, shareholders’ interests, balanced dividend considerations and long-term financial plans, the Corporation’s Articles of Incorporation provide that the total of cash dividends paid in any given year should be at least 30% of total dividends distributed. Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Corporation’s capital surplus. Legal reserve may be used to offset deficit. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s capital surplus, the excess may be transferred to capital or distributed in cash. The appropriations of earnings for 2025 and 2024 had been approved in the shareholders’ meetings on May 26, 2026 and May 27, 2025, respectively. The appropriations and dividends per share were as follows: Appropriation Appropriation of Earnings of Earnings Dividends Per Share ($) For Year 2025 For Year 2024 For Year 2025 For Year 2024 Legal reserve $ 245,054 $ 250,127 $ - $ - Cash dividends 1,706,538 1,706,538 3.0 3.0 d. Other equity items Unrealized gain (loss) on financial assets at FVTOCI For the Six Months Ended June 30 2026 2025 Balance at January 1 $ 1,369,887 $ 343,116 Other comprehensive income recognized during the period 3,347,575 182,246 Balance at June 30 $ 4,717,462 $ 525,362
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- 23 - e. Non-controlling interests For the Six Months Ended June 30 2026 2025 Balance at January 1 $ 1,834 $ 2,179 Share in loss for the period (38) (196) Balance at June 30 $ 1,796 $ 1,983 21. REVENUE a. Contract information For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Revenue from contracts with customers Revenue from assembly service $ 4,429,093 $ 3,650,128 $ 8,361,119 $ 6,932,371 Revenue from testing service 854,508 670,934 1,644,826 1,285,129 $ 5,283,601 $ 4,321,062 $ 10,005,945 $ 8,217,500 When the Corporation fulfilled the assembly service contract, the customer controls the goods when they are created or enhanced, the Corporation has the right to perform the collection if partial of the assembly service contract have been fulfilled, and the revenue from assembly service is recognized over time. When the Corporation fulfilled the testing service contract, the customer simultaneously receives and consumes the benefits provided by the Corporation’s performance, the Corporation has the right to perform the collection if partial of the testing service contract have been fulfilled, and the revenue from testing service is recognized over time. b. Contact balances June 30, 2026 December 31, 2025 June 30, 2025 January 1, 2025 Notes and accounts receivables (included related parties) (Note 10) $ 4,147,047 $ 3,510,832 $ 3,504,748 $ 3,177,423 Contract assets-current Revenue from services $ 1,168,739 $ 1,049,723 $ 880,896 $ 869,395 Less: Allowance for impairment loss - - - - $ 1,168,739 $ 1,049,723 $ 880,896 $ 869,395 Contract liabilities- current Revenue from services $ 321,657 $ 254,823 $ 175,799 $ 141,328
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- 24 - The changes in the contract asset and the contract liability balances primarily result from the timing difference between the Corporation’s performance and the customer’s payment. Revenue of the reporting period recognized from the beginning contract liability and from the performance obligations satisfied in previous periods is as follows: For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 From the beginning contract liability Revenue from services $ 33,074 $ 24,616 $ 167,338 $ 71,183 c. Disaggregation of revenue For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Primary geographical markets Taiwan (The location of the Corporation) $ 3,046,741 $ 2,659,193 $ 5,810,207 $ 5,016,497 Asia 1,075,404 664,297 1,948,567 1,276,662 America 603,059 568,478 1,136,054 1,102,382 Europe 558,391 429,089 1,111,111 820,206 Africa 6 5 6 1,753 $ 5,283,601 $ 4,321,062 $ 10,005,945 $ 8,217,500 22. NET PROFIT FROM CONTINUING OPERATIONS a. Interest income For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Bank deposits $ 29,876 $ 29,381 $ 53,751 $ 60,124 Financial assets measured at amortized cost 2,236 2,029 4,448 3,274 Others 10 9 19 19 $ 32,122 $ 31,419 $ 58,218 $ 63,417 b. Other income For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Rental income $ 733 $ 221 $ 955 $ 433 Others 15,711 9,543 33,683 30,098 $ 16,444 $ 9,764 $ 34,638 $ 30,531
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- 25 - c. Other gains and losses For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Net gain (loss) arising on financial instruments classified as held for trading $ - $ 33,386 $ (1,186) $ 31,955 Financial costs (140) (214) (298) (445) Net (loss) gain on foreign currency exchange (994) (249,448) 43,784 (216,263) Others (20,866) (164) (23,622) (294) $ (22,000) $ (216,440) $ 18,678 $ (185,047) d. Depreciation and amortization For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 An analysis of depreciation by function Operating costs $ 727,001 $ 717,280 $ 1,454.633 $ 1,426,113 Operating expense 15,817 14,341 30,715 27,850 $ 742,818 $ 731,621 $ 1,485,348 $ 1,453,963 An analysis of amortization by function Operating costs $ 2,880 $ 2,944 $ 5,855 $ 5,572 Selling and marketing expenses - - - General and administrative 966 834 1,989 1,417 Research and development 727 727 1,454 1,454 $ 4,573 $ 4,505 $ 9,298 $ 8,443 e. Employee benefits expense For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Post-employment benefits (Note 19) Defined contribution plans $ 37,366 $ 34,719 $ 75,123 $ 69,323 Defined benefit plan 32 116 65 231 37,398 34,835 75,188 69,554 Other employee benefits 1,359,499 1,071,787 2,642,168 2,126,198 Total employee benefits expense $ 1,396,897 $ 1,106,622 $ 2,717,356 $ 2,195,752 (Continued)
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- 26 - For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 An analysis of employee benefits expense by function Operating costs $ 1,246,015 $ 1,003,374 $ 2,417,399 $ 1,965,624 Operating expenses 150,882 103,248 299,957 230,128 $ 1,396,897 $ 1,106,622 $ 2,717,356 $ 2,195,752 (Concluded) f. Employees’ compensation and remuneration to directors The Corporation stipulate to distribute employees’ compensation and remuneration of directors at the rates between 9% to 15% and no higher than 3%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company expect to resolve the amendments to the Company’s Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of no less than 60% of the compensation of employees as compensation distributions for non-executive employees. For the three months and six months ended June 30, 2026 and 2025, the employees’ compensation and the remuneration of directors were as follows: Accrual rate For the Six Months Ended June 30 2026 2025 Employees’ compensation 10% 10% Remuneration of directors 2% 2% Amount For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Employees’ compensation $ 120,770 $ 62,340 $ 228,492 $ 144,051 Remuneration to directors $ 24,153 $ 12,809 $ 45,698 $ 28,811 If there is a change in the proposed amounts after the annual consolidated financial statements were authorized for issue, the differences are recorded as a change in accounting estimate and adjusted for in the following financial year. The appropriations of employees’ compensation and remuneration of directors for 2025 and 2024 having been resolved by the board of directors on March 6, 2026 and February 14, 2025, respectively, were as below: For the Year Ended December 31 2025 2024 Cash Share Cash Share Employees’ compensation $ 330,618 $ - $ 341,559 $ - Remuneration of directors 66,124 - 68,312 -
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- 27 - There was no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2025 and 2024. Information on the employees’ compensation and remuneration of directors resolved by the Corporation’s board of directors in 2026 and 2025 is available at the Market Observation Post System website of the Taiwan Stock Exchange. g. Gain or loss on foreign currency exchange For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Foreign exchange gains $ 17,060 $ 26,120 $ 86,209 $ 74,897 Foreign exchange losses (18,054) (275,568) (42,425) (291,160) $ (994) $ (249,448) $ 43,784 $ (216,263) 23. INCOME TAXES a. Income tax recognized in profit or loss The major components of tax expense were as follows: For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Current tax In respect of the current period $ 230,496 $ 139,674 $ 430,873 $ 293,374 Adjustments for prior periods (6,301) 1,874 (6,301) (12,254) Deferred tax In respect of the current period (8,959) 6,748 1,319 2,301 Income tax expense recognized in profit or loss $ 215,236 $ 148,296 $ 425,891 $ 283,421 b. Income tax assessments Income tax returns through 2024 have been examined and cleared by the tax authorities. 24. EARNINGS PER SHARE Unit: NT$ Per Share For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Basic earnings per share $ 1.57 $ 0.83 $ 2.98 $ 1.88 Diluted earnings per share $ 1.57 $ 0.83 $ 2.96 $ 1.86
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- 28 - The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share from continuing operations were as follows: Net Profit for the Periods For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Net profit attributable to owners of the Corporation $ 894,590 $ 474,386 $ 1,692,535 $ 1,067,046 Effect to dilutive potential ordinary shares: Employees’ compensation - - - - Net profit in computation of diluted earnings per share $ 894,590 $ 474,386 $ 1,692,535 $ 1,067,046 Weighted average number of ordinary shares outstanding (in thousand shares): For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Weighted average number of ordinary shares outstanding in computation of basic earnings per share 568,846 568,846 568,846 568,846 Effect to dilutive potential ordinary share: Employees’ compensation 1,674 2,497 3,001 3,808 Weighted average number of ordinary shares outstanding in computation of dilutive earnings per share 570,520 571,343 571,847 572,654 Since the Corporation offered to settle compensation paid to employees in cash or shares, the Corporation assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive . Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year. 25. CAPITAL MANAGEMENT The Corporation manages its capital to ensure its ability to continue as going concerns while maximizing the return to stakeholders. The Corporation’s overall strategy has no significant variations. The capital structure of the Corporation consists of comprising issued capital, reserves and retained earnings. Key management personnel of the Corporation review the capital structure on a annual basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Corporation may adjust the amount of dividends paid to shareholders, the number of new shares issued or repurchased, and/or the amount of new debt issued or existing debt redeemed.
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- 29 - 26. FINANCIAL INSTRUMENTS a. Fair value of financial instruments that are not measured at fair value Except as detailed in the following table, the management considers that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values or their fair values cannot be reliably measured. June 30, 2026 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets Financial assets at amortized cost Domestic corporate bonds $ 500,002 $ - $ 498,992 $ - $ 498,992 December 31, 2025 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets Financial assets at amortized cost Domestic corporate bonds $ 500,002 $ - $ 500,204 $ - $ 500,204 June 30, 2025 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets Financial assets at amortized cost Domestic corporate bonds $ 500,002 $ - $ 498,882 $ - $ 498,882 The fair value of level 2 mentioned above was used quoted price from Taipei Exchange (Taiwan GreTai Securities Market). b. Fair value of financial instruments that are measured at fair value on a recurring basis 1) Fair value hierarchy June 30, 2026 Level 1 Level 2 Level 3 Total Financial assets at FVTOCI Investments in equity instruments -Domestic listed shares $ 6,868,125 $ - $ - $ 6,868,125 -Domestic unlisted shares - - 40,000 40,000 $ 6,868,125 $ - $ 40,000 $ 6,908,125
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- 30 - December 31, 2025 Level 1 Level 2 Level 3 Total Financial assets at FVTOCI Investments in equity instruments -Domestic listed shares $ 3,520,550 $ - $ - $ 3,520,550 -Domestic unlisted shares - - 40,000 40,000 $ 3,520,550 $ - $ 40,000 $ 3,560,550 Financial assets at FVTPL Forward exchange contracts $ - $ 29 $ - $ 29 Financial liabilities at FVTPL Forward exchange contracts $ - $ 1,623 $ - $ 1,623 June 30, 2025 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Forward exchange contracts $ - $ 12,211 $ - $ 12,211 Financial assets at FVTOCI Investments in equity instruments -Domestic listed shares $ 2,676,025 $ - $ - $ 2,676,025 -Domestic unlisted shares - - 40,000 40,000 $ 2,676,025 $ - $ 40,000 $ 2,716,025 There were no transfers between Level 1 and 2 in the current and prior periods. 2) Valuation techniques and inputs applied for the purpose of measuring Level 2 fair value measurement Financial Instruments Valuation Techniques and Inputs Derivatives - foreign currency forward contracts Discounted cash flow. Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
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- 31 - 3) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement Some domestic unlisted equity investments adopt the market approach,it is based on the transaction price of comparable targets, and on the financial data of the target company and its market peers,use market multipliers such as price -to-earnings ratio, price -to-book ratio, or other financial ratios for analysis and evaluation. c. Categories of financial instruments June 30, 2026 December 31, 2025 June 30, 2025 Financial assets Fair value through profit or loss (FVTPL) Held for trading $ - $ 29 $ 12,211 Financial assets at amortized cost (Note 1) 11,875,288 10,073,952 10,702,572 Financial assets at FVTOCI Equity instruments 6,908,125 3,560,550 2,716,025 Financial liabilities Fair value through profit or loss (FVTPL) Held for trading - 1,623 - Amortized cost (Note 2) 1,984,950 1,781,936 1,836,232 Note 1: The balances include financial assets measured at amortized cost, which comprise cash, debt investments, notes and accounts receivables (included related parties), other receivables, other assets, and refundable deposits. Note 2: The balances included financial liabilities measured at amortized cost, which comprise notes and accounts payable, payables to equipment suppliers, other payables, and guarantee deposits. d. Financial risk management objectives and policies The Corporation’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Corporation through internal risk re ports which analyze exposures by degree and magnitude of risks. These risks include foreign currency risk, interest rate risk, credit risk and liquidity risk. The Corporation sought to minimize the effects of these risks by using derivative financial inst ruments to hedge risk exposures . The use of financial derivatives was governed by the Corporation's policies approved by the Board of Directors, which provided written principles on foreign exchange risk, interest rate risk, credit risk, the use of financi al derivatives and non -derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Corporation did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. 1) Market risk The Corporation’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
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- 32 - There had been no change to the Corporation’s exposure to market risks or the manner in which these risks were managed and measured. a) Foreign currency risk The Corporation had foreign currency sales and purchases, which exposed the Corporation to foreign currency risk. Approximately 75% and 72% of the Corporation’s sales were denominated in currencies other than the functional currency of the Corporation entity making the sale, whilst almost 23% and 19% of costs were denominated in the Corporation entity’s functional currency for the six months ended June 30, 2026 and 2025. Exchange rate exposures were managed within approved policy parameters utilizing forward foreign exchange contracts. The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 30. The Corporation use forward exchange contracts to eliminate currency exposure . It is the Corporation’s policy to negotiate the terms of the hedge derivatives to match the terms of the hedged item to maximize hedge effectiveness. Sensitivity analysis The Corporation was mainly exposed to the currency USD . The sensitivity analysis included currency USD deno minated monetary items at the end of the reporting period . For a 1% strengthening and weakening of New Taiwan dollars against US dollars, the Corporation’s pre - tax profit for the six months ended June 30, 2026 and 2025 would decrease/increase by $24,441 thousand and $20,353 thousand. b) Interest rate risk The Corporation’s interest rate risk also comes from borrowings at both fixed and floating interest rates. The carrying amount of the Corporation's financial assets and financial liabilities with expos ure to interest rates at the end of the reporting period were as follows. June 30, 2026 December 31, 2025 June 30, 2025 Fair value interest rate risk Financial assets $ 6,533,150 $ 5,732,150 $ 6,295,551 Cash flow interest rate risk Financial assets 656,626 287,395 370,325 Sensitivity analysis If interest rates had been 0.5% higher/lower and all other variables were held constant, the Corporation’s pre -tax profit for the six months ended June 30 , 2026 and 2025 would increase/decrease by $ 1,642 thousand and $926 thousand, respectively, which was mainly attributable to the Corporation’s exposure to interest rates on its variable-rate net assets. c) Other price risk The Corporation was exposed to equity price risk through its investments in financial assets classified as fair value through profit or loss (i.e. FVTPL) and fair value through other comprehensive income (i.e. FVTOCI).
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- 33 - Sensitivity analysis The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period. If equity prices had been 1% higher/lower, the Corporation’s other comprehensive income for the six months ended June 30, 2026 and 2025 would increase/decrease by $69,081 thousand and $27,160 thousand, respectively, as a result of the changes in fair value of financial instruments classified as FVTOCI. 2) Credit risk Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Corporation. As at the end of the reporting period, the Corporation’s maximum exposure to credit risk which will cause a financial loss to the Corporation due to failure to discharge an obligation by the counterparties is arising from the carrying amount of the respective recognized financial assets as stated in the condensed balance sheets. In order to minimize credit risk, the management of the Corporation has set credit and accounts receivable management approach to ensure that fo llow-up action is taken to recover overdue debts . In addition, the Corporation reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors of the Corporation consider that the Corporation’s credit risk was significantly reduced. The credit risk on liquid funds and derivatives was limited because the counterparties are banks with good credit. Credit risk management for investments in debt instruments classified as at amortized cost was as follow. The Corporation only invests in debt instruments that are rated the equivalent of investment grade or higher and have low credit risk for the purpose of impairment assessment. The credit rating information is supplied by independent rating agencies. The Corporation's exposure and the external credit ratings are continuously monitored. The Corporation reviews changes in bond yields and other public information and makes an assessment whether there has been a significant increase in credit risk since the last period to the reporting date. The Corporation considers the historical default rates of each credit rating supplied by external rating agencies, the current finan cial condition of debtors, and industry forecast to estimate 12 -month or lifetime expected credit losses . The Corporation’s current credit risk grading framework comprises the following categories: Category Description Basis for Recognizing Expected Credit Losses Expected Loss Rate Performing The counterparty has a low risk of default and a strong capacity to meet contractual cash flows 12m ECL 0% 3) Liquidity risk The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed, high liquidity securities and reserve borrowing facilities adequate to finance the Corporation’s operations and mitigate the effects of fluctuations in cash flows.
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- 34 - a) Liquidity of non-derivative financial liabilities The following table details the Corporation’s remaining contractual maturity for its non - derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Corporation can be required to pay. June 30, 2026 On Demand or Less than 3 Month 3-6 Months 6 Months to 1 Year 1-5 Years 5+ Years Non-derivative financial liabilities Notes and accounts payable $ 1,111,354 $ - $ - $ - $ - Lease liabilities 3,298 3,298 6,535 6,774 3,080 Payables to equipment suppliers 335,018 - - - - Dividend payable 1,706,538 - - - - Guarantee deposits 18,302 18,302 36,605 259,892 16 Other payables 205,461 - - - - $ 3,379,971 $ 21,600 $ 43,140 $ 266,666 $ 3,096 Additional information about the maturity analysis for financial liabilities: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Guarantee deposits $ 73,209 $ 259,892 $ - $ - $ - $ 16 Lease liabilities 13,131 6,774 3,040 40 - - $ 86,340 $ 266,666 $ 3,040 $ 40 $ - $ 16 December 31, 2025 On Demand or Less than 3 Month 3-6 Months 6 Months to 1 Year 1-5 Years 5+ Years Non-derivative financial liabilities Notes and accounts payable $ 966,797 $ - $ - $ - $ - Lease liabilities 3,298 3,298 6,595 12,829 3,560 Payables to equipment suppliers 306,575 - - - - Guarantee deposits 18,067 18,066 36,133 256,544 16 Other payables 179,738 - - - - $ 1,474,475 $ 21,364 $ 42,728 $ 269,373 $ 3,576 Additional information about the maturity analysis for financial liabilities: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Guarantee deposits $ 72,266 $ 256,544 $ - $ - $ - $ 16 Lease liabilities 13,191 12,829 3,280 280 - - $ 85,457 $ 269,373 $ 3,280 $ 280 $ - $ 16
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- 35 - June 30, 2025 On Demand or Less than 3 Month 3-6 Months 6 Months to 1 Year 1-5 Years 5+ Years Non-derivative financial liabilities Notes and accounts payable $ 929,418 $ - $ - $ - $ - Lease liabilities 3,217 3,282 6,596 18,946 4,040 Payables to equipment suppliers 398,177 - - - - Dividend payable 1,706,538 - - - - Guarantee deposits 17,164 17,164 34,327 243,726 16 Other payables 196,240 - - - - $ 3,250,754 $ 20,446 $ 40,923 $ 262,672 $ 4,056 Additional information about the maturity analysis for financial liabilities: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Guarantee deposits $ 68,655 $ 243,726 $ - $ - $ - $ 16 Lease liabilities 13,095 18,946 3,520 520 - - $ 81,750 $ 262,672 $ 3,520 $ 520 $ - $ 16 b) Liquidity of derivative financial liabilities The following table detailed the Corporation’s liquidity analysis for its derivative financial instruments. The table was based on the undiscounted gross inflows and outflows on those derivatives that require gross settlement. December 31, 2025 On Demand or Less than 3 Month 3-6 Months 6 Months to 1 Year 1-5 Years 5+ Years Gross settled Forward exchange contracts Inflows $ 312,178 $ - $ - $ - $ - Outflows (314,200) - - - - $ (2,022) $ - $ - $ - $ - June 30, 2025 On Demand or Less than 3 Month 3-6 Months 6 Months to 1 Year 1-5 Years 5+ Years Gross settled Forward exchange contracts Inflows $ 455,800 $ - $ - $ - $ - Outflows (447,831) - - - - $ 7,969 $ - $ - $ - $ -
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- 36 - 27. TRANSACTIONS WITH RELATED PARTIES The Corporation’s parent is PTI, which held 42.91% of common shares of the Corporation as of June 30, 2026, December 31, 2025 and June 30, 2025, respectively. Balances and transactions between Greatek and its subsidiaries, which were related parties of Greatek, had been eliminated on consolidation and are not disclosed in this note. Details of transactions between Greatek and other related parties are disclosed below. a. Related party name and relationship Related Party Name Relationship with the Corporation Powertech Technology Inc. Parent entity Realtek Semiconductor Corp. Other related parties Realtek Singapore Private Limited Other related parties Raymx Microelectronics Corp. Other related parties TeraPower Technology Inc. Fellow subsidiary Tera Probe Inc. Fellow subsidiary Daypower Energy Co., Ltd. Other related parties XingWang Energy Co., Ltd. Other related parties b. Revenue For the Three Months Ended For the Six Months Ended Related Parties June 30 June 30 Account Items Types 2026 2025 2026 2025 Subcontract revenue Other related parties $ 346,088 $ 345,617 $ 650,774 $ 661,329 Parent entity 92,752 31,228 147,005 61,816 Fellow subsidiary 16 - 94 - $ 438,856 $ 376,845 $ 797,873 $ 723,145 Sales transactions with related parties were made at the Corporation’s usual list prices. The selling prices and collection terms for products sold to related parties were similar to those for products sold to third parties. c. Purchase For the Three Months Ended For the Six Months Ended Related Parties June 30 June 30 Account Items Types 2026 2025 2026 2025 Subcontract revenue Parent entity $ 1,750 $ - $ 1,750 $ - d. Contract assets Related Parties Types June 30, 2026 December 31, 2025 June 30, 2025 Other related parties $ 46,648 $ 39,203 $ 46,517 Parent entity 13,045 6,917 5,042 $ 59,693 $ 46,120 $ 51,559
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- 37 - For the six months ended June 30, 2026 and 2025, and for the year ended December 31, 2025, no impairment loss was recognized for contract assets from related parties. e. Manufacturing and operating expenses Related For the Three Months Ended June 30 For the Six Months Ended June 30 Account Items Parties Types 2026 2025 2026 2025 Manufacturing Parent entity $ 31,267 $ 20,947 $ 35,035 $ 36,988 expenses Other related parties - - 8,717 - $ 31,267 $ 20,947 $ 43,752 $ 36,988 Operating expenses Parent entity $ 317 $ - $ 518 $ 37 Manufacturing expenses and operating expenses with related parties, the ransaction terms are based on the price agreed upon by both parties. f. Account receivables from related parties Account Items Related Parties Types June 30, 2026 December 31, 2025 June 30, 2025 Account Other related parties $ 349,066 $ 306,928 $ 345,223 receivables Parent entity 106,370 39,228 39,890 from related parties $ 455,436 $ 346,156 $ 385,113 g. Payables to equipment suppliers Account Items Related Parties Types June 30, 2026 December 31, 2025 June 30, 2025 Payables to Other related parties $ 630 $ - $ - equipment suppliers h. Other receivables Account Items Related Parties Types June 30, 2026 December 31, 2025 June 30, 2025 Prepaid expenses Other related parties $ 1,087 $ - $ - and other Parent entity - 198 - current assets $ 1,087 $ 198 $ -
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- 38 - i. Accrued expenses and other current liabilities Account Items Related Parties Types June 30, 2026 December 31, 2025 June 30, 2025 Accrued expenses Parent entity $ 33,414 $ 1,946 $ 22,126 and other current liabilities j. Acquisition of property, plant and equipment For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Fellow subsidiary $ - $ - $ 1,898 $ 4,930 Other related parties 600 - 600 - Parent entity - - - 1,161 $ 600 $ - $ 2,498 $ 6,091 k. Compensation of key management personnel For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Short-term benefits $ 34,105 $ 20,948 $ 75,779 $ 58,346 Post-employment benefits 156 155 311 334 $ 34,261 $ 21,103 $ 76,090 $ 58,680 The remuneration of directors and key executives was determined by the remuneration committee having regard to the performance of individuals and market trends. 28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY The following assets had been pledged as collateral mainly for guarantee deposits for domestic sales, gas volume in CPC Corporation, and environmental protection of lease buildings. June 30, 2026 December 31, 2025 June 30, 2025 Pledge deposits (classified as other asset - noncurrent) $ 128,700 $ 118,700 $ 118,700 29. SIGNIFICANT SUBSEQUENT EVENTS To facilitate overall operational layout and enhance the resilience of the regional supply chain, the Board of Directors of the Company resolved on July 3, 2026, to acquire all issued and outstanding shares of ON Semiconductor SSMP Philippines Corporation using self-owned funds, with the total investment amount not to exceed USD 45 million.
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- 39 - 30. EXCHANGE RATE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES The following information was aggregated by the foreign currencies other than functional currencies of the Corporation entities and the exchange rates between foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows: June 30, 2026 Foreign Currencies Exchange Rate Carrying Amount Financial assets Monetary items USD $ 104,937 31.83 (USD:NTD) $ 3,340,152 Financial liabilities Monetary items USD 28,151 31.83 (USD:NTD) $ 896,059 JPY 281,394 0.1965 (JPY:NTD) 55,294 $ 951,353 December 31, 2025 Foreign Currencies Exchange Rate Carrying Amount Financial assets Monetary items USD $ 81,723 31.42 (USD:NTD) $ 2,567,736 Non-monetary items Derivative instruments USD 1,700 31.377 (USD:NTD) $ 29 Financial liabilities Monetary items USD 24,768 31.42 (USD:NTD) $ 778,199 JPY 199,750 0.2009 (JPY:NTD) 40,130 $ 818,329 Non-monetary items Derivative instruments USD 8,300 31.377 (USD:NTD) $ 1,623
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- 40 - June 30, 2025 Foreign Currencies Exchange Rate Carrying Amount Financial assets Monetary items USD $ 93,223 29.85 (USD:NTD) $ 2,782,704 Non-monetary items Derivative instruments USD 15,300 28.993 (USD:NTD) $ 12,211 Financial liabilities Monetary items USD 25,038 29.85 (USD:NTD) $ 747,384 JPY 187,106 0.2076 (JPY:NTD) 38,843 EUR 16 35.06 (EUR:NTD) 565 $ 786,792 For the three and six months ended June 30, 2026 and 2025, realized and unrealized net f oreign exchange (losses)gains were $(994) thousand, $(249,448) thousand, $43,784 thousand and $(216,263) thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the Corporation entities. 31. SEPARATELY DISCLOSED ITEMS Information about significant transactions and investees: a. Loans provided to other parties: None. b. Endorsement/guarantee provided: None. c. Marketable securities held: Table 1 (attached). d. Total purchases from or sales to related parties of at least $100 million or 20% of the paid -in capital: Table 2 (attached). e. Receivables from related parties amounting to at least NT$100 million or 20% of the paid -in capital: Table 3 (attached). f. Information of intercompany relationships and significant intercompany transactions: Table 4 (attached). g. Names, locations, and related information of investees over which the Corporation exercises significant influence: Table 5 (attached). h. Information on investment in mainland China: None.
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- 41 - 32. SEGMENT INFORMATION The revenues, operating results and financial information of each plant presented to the chief operating decision maker are consistent with the information in the financial statements . The segment revenues and operating results for the six months ended June 30, 2026 and 2025 are shown in the consolidated income statements for six months ended June 30, 2026 and 2025. The segment assets as of June 30, 2026, December 31, 2025 and June 30, 2025 are shown in the consolidated balance sheets as of June 30, 2026, December 31, 2025 and June 30, 2025.
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- 42 - TABLE 1 GREATEK ELECTRONICS INC. AND SUBSIDIARIES MARKETABLE SECURITIES HELD JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Holding Company Name Marketable Securities Type and Issuer Relationship with the Holding Company Financial Statement Account June 30, 2026 Note Shares (Thousands) Carrying Value % of Ownership Fair Value Greatek Electronics Inc. Bond P13 Taipower 2A - Financial assets at amortized cost - noncurrent 200 $ 200,001 - $ 198,861 Note 1 P14 Taipower 1B - Financial assets at amortized cost - noncurrent 200 200,001 - 199,995 Note 1 P13 CPC Corporation 2A - Financial assets at amortized cost - noncurrent 100 100,000 - 100,136 Note 1 Stock Powertech Technology Inc. Parent entity Financial assets at fair value through other comprehensive profit or loss - noncurrent 20,350 6,868,125 3 6,868,125 Note 2 Daypower Energy Co.,Ltd. Other related parties Financial assets at fair value through other comprehensive profit or loss - noncurrent 2,000 40,000 8 40,000 Note 3 SAMHOP Microelectronics Corp. - Financial assets at fair value through profit or loss - noncurrent 268 - 3 - Note 3 Terawins Inc. - Financial assets at fair value through profit or loss - noncurrent 643 - 2 - Note 3 Airwave Technologies Inc. - Financial assets at fair value through profit or loss - noncurrent 93 - 1 - Note 3 Note 1: The fair value was based on trading market in hundreds of new Taiwan dollars as of June 30, 2026. Note 2: The fair value of common shares was based on stock closing price as of June 30, 2026. Note 3: The fair value was based on the carrying value as of as of June 30, 2026. Note 4: As of June 30, 2026, the above marketable securities had not been pledged or mortgaged.
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- 43 - TABLE 2 GREATEK ELECTRONICS INC. AND SUBSIDIARIES TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Company Name Related Party Nature of Relationship Transaction Details Abnormal Transaction Notes/Accounts (Payable) Receivable Note Purchase/ Sale Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total Greatek Electronics Inc. Realtek Semiconductor Corp. Parent company of the corporate director Sale $ 453,492 5 Net 60 days from monthly closing dates Note - $ 256,722 6 - Realtek Singapore Private Limited Same parent company with the corporate director Sale 195,797 2 Net 60 days from monthly closing dates Note - 92,080 2 - Powertech Technology Inc. Parent entity Sale 147,005 1 Net 90 days from monthly closing dates Note - 106,370 3 - Note: Sales transactions with related parties were made at the Corporation’s usual list prices.
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- 44 - TABLE 3 GREATEK ELECTRONICS INC. AND SUBSIDIARIES RECEIVABLE FROM RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Company Name Related Party Nature of Relationship Ending Balance Turnover Rate Overdue Amounts Received in Subsequent Period Allowance for Bad Debts Amount Action Taken Greatek Electronics Inc. Realtek Semiconductor Corp. Parent company of the corporate director $ 256,722 3.78 $ - - $ 69,875 $ - Powertech Technology Inc. Parent entity 106,370 4.04 - - 14,810 -
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- 45 - TABLE 4 GREATEK ELECTRONICS INC. AND SUBSIDIARIES INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Company Name Counterparty Transaction Flow (Note 1) Intercompany Transactions Financial Statement Item Amount Terms Percentage to Consolidated Total Gross Sales or Total Assets Greatek Electronics Inc. Get-Team Tech Corporation 1 Subcontract costs $ 104,028 Note 2 1% Get-Team Tech Corporation 1 Accounts payables 23,165 Note 2 - Note 1: No. 1 - from the parent company to the subsidiary. Note 2: The transactions for related parties were negotiated and thus not comparable with those in the market.
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- 46 - TABLE 5 GREATEK ELECTRONICS INC. AND SUBSIDIARIES NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE CORPORATION EXERCISES SIGNIFICANT INFLUENCE JUNE 30, 2026 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Investor Investee Location Main Businesses and Products Investment Amount Balance as of June 30, 2026 Net Income (Loss) of the Investee Investment Gain (Loss) Note June 30, 2026 June 30, 2025 Number of Shares % of Ownership Carrying Value Greatek Electronics Inc. Get-Team Tech Corporation Hsinchu Metal plating on semiconductor lead frame $ 171,523 $ 171,523 7,796,498 97.46 $ 112,695 $ 890 $ (1,473) Subsidiary