Interim report
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- 1 - English Translation of a Report and Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND 2024 Notice to Readers The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.
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- 2 - Independent Auditors’ ReviewReport Translated from Chinese To ITE Tech. Inc. Introduction We have reviewed the accompanying consolidated balance sheets of ITE Tech. Inc. and its subsidiaries (“the Group”) as of September 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2025 and 2024 and consolidated statements of changes in equity and cash flows for the nine-month periods ended September 30, 2025 and 2024, and notes to the consolidated financial statements, including the summary of material accounting policies (together “the consolidated financial statements”). Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard No.34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on these 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 Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. 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 conducted in accordance with the Standards on Auditing of the Republic of China 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.
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- 3 - Basis for Qualified Conclusion As explained in Note 4(3), the financial statements of certain insignificant subsidiaries were not reviewed by independent auditors. Those statements reflect total assets of NT$9,638 thousand and NT$14,674 thousand, constituting 0.11% and 0.18% of the consolidated total assets, and total liabilities of NT$7,112 thousand and NT$11,894 thousand, constituting 0.33% and 0.62% of the consolidated total liabilities as of September 30, 2025 and 2024 , respectively; and total comprehensive income (loss) of NT$108 thousand, NT$(379) thousand, NT$145 thousand and NT$613 thousand, constituting 0.03%, (0.08)%, 0.01% and 0.05% of the consolidated total comprehensive income for the three-month and nine-month periods ended September 30, 2025 and 2024, respectively. And as explained in Note 6(8), the financial statements of certain associates and joint ventures accounted for under the equity method were not reviewed by independent auditors. Those associates and joint ventures under equity method amounted to NT$16 ,524 thousand and NT$10 ,840 thousand as of September 30, 2025 and 2024, respectively. The related shares of profit or loss from the associates and joint ventures under the equity method amounted to NT$1,197 thousand, NT$ 109 thousand, NT$1,229 thousand and NT$ (964) thousand for the three-month and nine-month periods ended September 30, 2025 and 2024, respectively. The information related to above subsidiaries and the associate accounted for under the equity method disclosed in Note 13 was also not reviewed by independent auditors. Qualified Conclusion Based on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain insignificant subsidiaries and the associate accounted for using the equity method and the information disclosed in the footnotes been reviewed by independent auditors described in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of ITE Tech. Inc. and its subsidiaries as of September 30, 2025 and 2024, and their consolidated financial performance for the three-month and nine-month periods ended September 30, 2025 and 2024, and their consolidated cash flows for the nine-month periods ended September 30, 2025 and 2024, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard No. 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China.
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- 4 - Hu, Shen-Chieh Chiu, Wan-Ju Ernst & Young, Taiwan November 12, 2025 Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations 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 accepted and applied in the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of the Republic of China, and their applications in practice. As the consolidated financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
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Amount % Amount % Amount % Current assets Cash and cash equivalents 6(1) $3,278,858 37.28 $3,512,546 39.91 $3,102,091 37.27 Financial assets at fair value through profit or loss-current 6(2) 965,518 10.98 756,350 8.60 554,016 6.66 Notes receivables, net 6(5), 6(16) 4,898 0.05 - - 6,678 0.08 Trade receivables, net 6(6), 6(16) 1,140,583 12.97 1,044,140 11.86 1,253,033 15.05 Trade receivables from related parties, net 6(6), 6(16), 7 990 0.01 1,087 0.01 1,567 0.02 Other receivables 6,066 0.07 8,961 0.10 5,555 0.07 Inventories, net 6(7) 822,079 9.34 900,430 10.23 716,431 8.61 Prepayments 79,911 0.91 82,705 0.94 84,831 1.02 Other current assets 102 - 86 - 76 - Total current assets 6,299,005 71.61 6,306,305 71.65 5,724,278 68.78 Non-current assets Financial assets at fair value through profit or loss-noncurrent 6(2) 271,441 3.09 254,199 2.89 224,725 2.70 Financial assets at fair value through other comprehensive income-noncurrent 6(3) 1,085,279 12.34 1,115,201 12.67 1,229,996 14.78 Financial assets measured at amortized cost-noncurrent 6(4), 8 4,230 0.05 4,230 0.05 4,230 0.05 Investments accounted for using the equity method 6(8) 16,524 0.19 15,295 0.17 10,840 0.13 Property, plant and equipment 6(9) 648,372 7.37 646,120 7.34 654,596 7.87 Right-of-use assets 6(17) 74,574 0.85 84,253 0.96 86,281 1.04 Intangible assets 6(10) 271,923 3.09 283,114 3.22 285,988 3.44 Deferred tax assets 4, 6(21) 118,150 1.34 91,049 1.03 100,239 1.20 Other non-current assets 6,571 0.07 2,187 0.02 1,056 0.01 Total non-current assets 2,497,064 28.39 2,495,648 28.35 2,597,951 31.22 Total assets $8,796,069 100.00 $8,801,953 100.00 $8,322,229 100.00 English Translation of Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, 2025, December 31, 2024 and September 30, 2024 (Expressed in Thousands of New Taiwan Dollars) September 30, 2025 December 31, 2024 September 30, 2024 (The accompanying notes are an integral part of the consolidated financial statements.) NotesASSETS - 5 -
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Amount % Amount % Amount % Current liabilities Contract liabilities-current 6(15) $3,601 0.04 $12,935 0.15 $5,523 0.07 Trade payables 505,344 5.75 434,158 4.93 437,348 5.26 Trade payables to related parties 7 291,036 3.31 312,621 3.55 235,192 2.83 Other payables 643,460 7.32 600,721 6.82 595,631 7.16 Other payables to related parties 7 15,896 0.18 33,223 0.38 5,840 0.07 Current tax liabilities 4, 6(21) 187,717 2.13 266,433 3.03 193,487 2.32 Lease liabilities-current 6(17) 7,402 0.08 7,758 0.09 7,709 0.09 Other current liabilities 6(11) 364,273 4.14 247,699 2.81 245,796 2.95 Total current liabilities 2,018,729 22.95 1,915,548 21.76 1,726,526 20.75 Non-current liabilities Lease liabilities-noncurrent 6(17) 71,102 0.81 80,059 0.91 81,978 0.98 Net defined benefit liabilities-noncurrent 4, 6(12) 44,311 0.50 49,532 0.56 71,521 0.86 Deposits received 28,290 0.32 28,290 0.33 28,290 0.34 Total non-current liabilities 143,703 1.63 157,881 1.80 181,789 2.18 Total liabilities 2,162,432 24.58 2,073,429 23.56 1,908,315 22.93 Equity attributable to owners of the parent Share capital 6(13) Common stock 1,660,351 18.88 1,660,351 18.86 1,660,351 19.95 Capital surplus 6(13) 1,655,799 18.82 1,738,817 19.76 1,738,817 20.89 Retained earnings 6(13) Legal reserve 1,049,908 11.94 876,184 9.95 876,184 10.53 Undistributed earnings 2,387,962 27.15 2,739,349 31.12 2,406,459 28.92 Other equity 6(14) (120,383) (1.37) (286,177) (3.25) (267,897) (3.22) Total equity 6,633,637 75.42 6,728,524 76.44 6,413,914 77.07 Total liabilities and equity $8,796,069 100.00 $8,801,953 100.00 $8,322,229 100.00 ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, 2025, December 31, 2024 and September 30, 2024 (Expressed in Thousands of New Taiwan Dollars) LIABILITIES AND EQUITY Notes September 30, 2025 December 31, 2024 September 30, 2024 (The accompanying notes are an integral part of the consolidated financial statements.) English Translation of Consolidated Financial Statements Originally Issued in Chinese - 6 -
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Amount % Amount % Amount % Amount % Operating revenues 6(15), 7 $1,794,385 100.00 $1,863,470 100.00 $5,440,004 100.00 $4,992,599 100.00 Operating costs 6(7), 6(14), 6(17), 6(18), 7 (841,831) (46.91) (814,647) (43.72) (2,462,969) (45.28) (2,212,988) (44.33) Gross profit 952,554 53.09 1,048,823 56.28 2,977,035 54.72 2,779,611 55.67 Operating expenses 6(14), 6(16), 6(17), 6(18), 7 Selling expenses (116,488) (6.49) (106,978) (5.74) (347,459) (6.39) (308,023) (6.17) Administrative expenses (77,401) (4.32) (98,562) (5.29) (239,383) (4.40) (242,938) (4.87) Research and development expenses (313,119) (17.45) (271,139) (14.55) (949,540) (17.45) (775,516) (15.53) Expected credit losses - - (46) - - - (46) - Total operating expenses (507,008) (28.26) (476,725) (25.58) (1,536,382) (28.24) (1,326,523) (26.57) Operating income 445,546 24.83 572,098 30.70 1,440,653 26.48 1,453,088 29.10 Non-operating income and expenses Interest income 6(19) 11,161 0.62 12,143 0.65 37,402 0.69 38,721 0.78 Other income 6(19) 14,506 0.81 33,045 1.77 15,223 0.28 43,630 0.87 Other gains and losses 6(19) 12,905 0.72 (848) (0.05) (18,544) (0.34) 38,901 0.78 Finance costs 6(19) (374) (0.02) (407) (0.02) (1,164) (0.02) (1,109) (0.02) Share of profit or loss of associates and joint ventures accounted for using the equity method 6(8) 1,197 0.07 109 0.01 1,229 0.02 (964) (0.02) Total non-operating income and expenses 39,395 2.20 44,042 2.36 34,146 0.63 119,179 2.39 Net income before income tax 484,941 27.03 616,140 33.06 1,474,799 27.11 1,572,267 31.49 Income tax expense 4, 6(21) (92,884) (5.18) (120,301) (6.45) (247,024) (4.54) (276,746) (5.54) Net income 392,057 21.85 495,839 26.61 1,227,775 22.57 1,295,521 25.95 Other comprehensive income (loss) 6(20) Items that may not be reclassified subsequently to profit or loss Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income 39,731 2.21 (41,493) (2.23) 15,762 0.29 (81,339) (1.63) Income tax relating to those items not to be reclassified to profit or loss (1,764) (0.10) 268 0.02 (184) (0.01) 1,708 0.03 Items that may be reclassified subsequently to profit or loss Exchange differences resulting from translating the financial statements of foreign operations 122 0.01 29 - (113) - 100 - Other comprehensive income (loss), net of tax 38,089 2.12 (41,196) (2.21) 15,465 0.28 (79,531) (1.60) Total comprehensive income $430,146 23.97 $454,643 24.40 $1,243,240 22.85 $1,215,990 24.35 Net income for the periods attributable to: Owners of the parent $392,057 $495,839 $1,227,775 $1,295,521 Total comprehensive income for the periods attributable to: Owners of the parent $430,146 $454,643 $1,243,240 $1,215,990 Earning per share (in New Taiwan Dollars) 6(22) Basic earnings per share (in New Taiwan Dollars) $2.43 $3.08 $7.62 $8.04 Diluted earnings per share (in New Taiwan Dollars) $2.39 $3.05 $7.46 $7.97 English Translation of Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three-month and nine-month periods ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share) (The accompanying notes are an integral part of the consolidated financial statements. ) Description Notes For the nine-month periods ended September 30,For the three-month periods ended September 30, 2025 2024 2025 2024 - 7 -
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Balance as of January 1, 2024 $1,610,801 $1,229,824 $710,912 $2,375,480 $(247) $499,523 $- $6,426,293 $6,426,293 Appropriation and distribution of 2023 earnings: Legal reserve - - 165,272 (165,272) - - - - - Cash dividends - - - (1,208,101) - - - (1,208,101) (1,208,101) Changes in other capital surplus Cash dividends distributed from capital surplus - (80,540) - - - - - (80,540) (80,540) Profit for the nine-month period ended September 30, 2024 - - - 1,295,521 - - - 1,295,521 1,295,521 Other comprehensive income (loss) for the nine-month period ended September 30, 2024 - - - - 100 (79,631) - (79,531) (79,531) Total comprehensive income (loss) for the nine-month period ended September 30, 2024 - - - 1,295,521 100 (79,631) - 1,215,990 1,215,990 Share-based payment transactions 49,550 589,533 - - - - (578,811) 60,272 60,272 Disposal of equity instruments measured at fair value through other comprehensive income - - - 108,831 - (108,831) - - - Balance as of September 30, 2024 $1,660,351 $1,738,817 $876,184 $2,406,459 $(147) $311,061 $(578,811) $6,413,914 $6,413,914 Balance as of January 1, 2025 $1,660,351 $1,738,817 $876,184 $2,739,349 $(171) $240,742 $(526,748) $6,728,524 $6,728,524 Appropriation and distribution of 2024 earnings: Legal reserve - - 173,724 (173,724) - - - - - Cash dividends - - - (1,411,299) - - - (1,411,299) (1,411,299) Changes in other capital surplus Cash dividends distributed from capital surplus - (83,018) - - - - - (83,018) (83,018) Profit for the nine-month period ended September 30, 2025 - - - 1,227,775 - - - 1,227,775 1,227,775 Other comprehensive income (loss) for the nine-month period ended September 30, 2025 - - - - (113) 15,578 - 15,465 15,465 Total comprehensive income (loss) for the nine-month period ended September 30, 2025 - - - 1,227,775 (113) 15,578 - 1,243,240 1,243,240 Share-based payment transactions - - - - - - 156,190 156,190 156,190 Disposal of equity instruments measured at fair value through other comprehensive income - - - 5,861 - (5,861) - - - Balance as of September 30, 2025 $1,660,351 $1,655,799 $1,049,908 $2,387,962 $(284) $250,459 $(370,558) $6,633,637 $6,633,637 Undistributed earnings Exchange differences resulting from translating the financial statements of foreign operations Unearned employee compensation Equity attributable to owners of the parent Total equity (The accompanying notes are an integral part of the consolidated financial statements.) English Translation of Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Share capital Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income For the nine-month periods ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) Retained earnings Other equity Equity attributable to owners of the parent Description Capital surplus Legal reserve - 8 -
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Cash flows from operating activities: Cash flows from investing activities: Profit before tax $1,474,799 $1,572,267 Acquisition of financial assets at fair value through other comprehensive income - (37,500) Adjustments for: Proceeds from disposal of financial assets at fair value through other comprehensive income 7,638 135,202 The profit or loss items which did not affect cash flows: Proceeds from capital return of financial assets at fair value through other comprehensive income 38,046 50,000 Depreciation 54,258 49,034 Acquisition of financial assets at fair value through profit or loss (58,437) (35,913) Amortization 12,587 10,079 Proceeds from disposal of financial assets at fair value through profit or loss 30,982 - Expected credit losses - 46 Acquisition of property, plant and equipment (50,712) (35,402) Gains on financial assets at fair value through profit or loss (1,210) (27,037) Acquisition of intangible assets (1,287) (18,367) Interest expenses 1,164 1,109 Increase in other non-current assets (911) - Interest income (37,402) (38,721) Decrease in other non-current assets - 845 Dividend income (8,516) (18,505) Dividends received 8,516 18,505 Share-based payment expenses 156,190 16,197 Net cash (used in) provided by investing activities (26,165) 77,370 Share of (profit) loss of associates and joint ventures accounted for using the equity method (1,229) 964 Changes in operating assets and liabilities: Financial assets mandatorily measured at fair value through profit or loss (199,245) (148,803) Notes receivables (4,898) 616 Trade receivables (96,443) (385,153) Trade receivables from related parties 97 (720) Inventories 78,351 88,049 Cash flows from financing activities: Prepayments (775) (9,389) Cash payment for the principal portion of the lease liabilities (5,943) (5,876) Other current assets (16) 28 Cash dividends (1,494,317) (1,288,641) Contract liabilities (9,334) (2,511) Issuance of restricted share for employees - 49,550 Trade payables 71,186 52,963 Net cash used in financing activities (1,500,260) (1,244,967) Trade payables to related parties (21,585) 58,090 Other payables 42,739 43,944 Other payables to related parties (17,327) (4,725) Other current liabilities 116,574 60,569 Net defined benefit liabilities (5,221) (6,826) Cash generated from operating activities 1,604,744 1,311,565 Interest received 41,797 43,730 Effect of exchange rate changes on cash and cash equivalents 385 1 Interest paid (1,164) (1,109) Net decrease in cash and cash equivalents (233,688) (194,978) Income tax paid (353,025) (381,568) Cash and cash equivalents at the beginning of period 3,512,546 3,297,069 Net cash provided by operating activities 1,292,352 972,618 Cash and cash equivalents at the end of period $3,278,858 $3,102,091 English Translation of Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES For the nine-month periods ended September 30, 2025 and 2024 2025 2024 CONSOLIDATED STATEMENTS OF CASH FLOWS Description Description2025 2024 (The accompanying notes are an integral part of the consolidated financial statements.) (Expressed in Thousands of New Taiwan Dollars) For the nine-month periods ended September 30 For the nine-month periods ended September 30 - 9 -
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- 10 - English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Nine-Month Periods Ended September 30, 2025 and 2024 (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) 1. Organization and Operation ITE Tech. Inc. (“the Company”) was incorporated in Hsinchu Science Park on May 29, 1996. The Company’s main products are Super I/O control (SIO) ICs for desktop computers, embedded control (EC) ICs for notebook computers, high-speed audio-video interface related ICs, system on a chip (SoC), and other customized application chips. The Company’s shares are traded in Taiwan Stock Exchange. The Company’s registered office and the main business location is at 3F, No.13, Innovation Road I, Hsinchu Science Park, Hsinchu City. 2. Date and Procedures of Authorization of Financial Statements for Issue The consolidated financial statements of the Company and its subsidiaries (“the Group”) were authorized for issue by the Board of Directors on November 12, 2025. 3. Newly Issued or Revised Standards and Interpretations (1) Changes in accounting policies resulting from applying for the first time certain standards and amendments. The Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are endorsed by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after January 1, 2025. The application of these new amendments had no material effect on the Group. (2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which have been endorsed by FSC, and not yet adopted by the Group as at the date when the Group’s financial statements were authorized for issue, are listed below. Items New, Revised or Amended Standards and Interpretations Effective Date issued by IASB a IFRS 17 “Insurance Contracts” January 1, 2023 b Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 January 1, 2026 c Annual Improvements to IFRS Accounting Standards – Volume 11 January 1, 2026 d Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 January 1, 2026
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 11 - The abovementioned standards and amendments are applicable for annual periods beginning on or after January 1, 2026 and have no material impact on the Group. (3) Standards or interpretations issued, revised, or amended, by IASB which have not been endorsed by FSC, and not yet adopted by the Group as at the date when the Group’s financial statements were authorized for issue, are listed below. Items New, Revised or Amended Standards and Interpretations Effective Date issued by IASB a IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures To be determined by IASB b IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note) c Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19) January 1, 2027 Note: On September 25, 2025, the FSC announced in a press release that Taiwan will adopt IFRS 18 in 2028. IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as below: I. Improved comparability in the statement of profit or loss (income statement) IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities. II. Enhanced transparency of management-defined performance measures IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 12 - III. Useful grouping of information in the financial statements IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need. The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Group’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Group is still currently determining the potential impact of the new or amended standards and interpretations listed under (b), it is not practicable to estimate their impact on the Group at this point in time. The remaining new or amended standards and interpretations have no material impact on the Group. 4. Summary of Material Accounting Policies (1) Statement of compliance The consolidated financial statements of the Group for the nine-month periods ended September 30, 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and IAS 34 Interim Financial Reporting as endorsed and became effective by FSC. (2) Basis of preparation The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated. (3) Basis of consolidation Preparation principle of consolidated financial statements Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has: (a) power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 13 - (b) exposure, or rights, to variable returns from its involvement with the investee, and (c) the ability to use its power over the investee to affect its returns When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: (a) the contractual arrangement with the other vote holders of the investee (b) rights arising from other contractual arrangements (c) the Company’s voting rights and potential voting rights The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Subsidiaries are fully consolidated from the acquisition date, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full. A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. Total comprehensive income of the subsidiaries is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. If the Company loses control of a subsidiary, it: (a) derecognizes the assets (including goodwill) and liabilities of the subsidiary; (b) derecognizes the carrying amount of any non-controlling interest; (c) recognizes the fair value of the consideration received; (d) recognizes the fair value of any investment retained; (e) reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss, or transfers directly to retained earnings if required by other IFRSs ; and (f) recognizes any resulting difference in profit or loss.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 14 - The consolidated entity is listed as follows: Percentage of ownership Investor Subsidiary Main businesses September 30, 2025 December 31, 2024 September 30, 2024 ITE Tech. Inc. ITE Tech. (Shenzhen) Inc. Technological consultation services for ICs products, sales of IC chips and products. 100.00% 100.00% 100.00% The financial statements of the consolidated subsidiary listed above had not been reviewed by independent auditors. As of September 30, 2025 and 2024, the related asset of the subsidiary is NT$9,638 thousand and NT$14,674 thousand, respectively, and the related liability is NT$7,112 thousand and NT$11,894 thousand, respectively. The comprehensive income (loss) of the subsidiary is NT$108 thousand, NT$(379) thousand, NT$145 thousand and NT$613 thousand for the three-month and nine-month periods ended September 30, 2025 and 2024, respectively. (4) Except for the accounting policies listed in Note 4(5) to 4(6), the same accounting policies have been followed in the consolidated financial statements for the nine-month period ended September 30, 2025 as were applied in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2024. For the summary of other material accounting policies, please refer to the consolidated financial statements for the year ended December 31, 2024. (5) Post-employment 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, adjusted and disclosed for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. (6) Income taxes Interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 15 - 5. Significant Accounting Judgments, Estimates and Assumptions The same significant accounting judgments, estimates and assumptions have been followed in the consolidated financial statements for the nine-month periods ended September 30, 2025 and 2024 as were applied in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2024. Please refer to the consolidated financial statements for the year ended December 31, 2024. 6. Contents of Significant Accounts (1) Cash and cash equivalents As of September 30, 2025 December 31, 2024 September 30, 2024 Cash on hand $331 $327 $322 Checking and saving accounts 377,992 264,851 349,009 Time deposits 2,900,535 3,247,368 2,752,760 Total $3,278,858 $3,512,546 $3,102,091 (2) Financial assets at fair value through profit or loss As of September 30, 2025 December 31, 2024 September 30, 2024 Mandatorily measured at fair value through profit or loss: Funds $965,518 $790,646 $590,163 Capital 271,441 219,903 188,578 Total $1,236,959 $1,010,549 $778,741 Current $965,518 $756,350 $554,016 Non-current 271,441 254,199 224,725 Total $1,236,959 $1,010,549 $778,741 Financial assets at fair value through profit or loss were not pledged.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 16 - (3) Financial assets at fair value through other comprehensive income, non-current As of September 30, 2025 December 31, 2024 September 30, 2024 Equity instrument investments measured at fair value through other comprehensive income-non-current: Listed company stocks $102,241 $113,320 $141,110 Unlisted company stocks 983,038 1,001,881 1,088,886 Total $1,085,279 $1,115,201 $1,229,996 Financial assets at fair value through other comprehensive income were not pledged. The Group’s dividend income related to equity instrument investments measured at fair value through other comprehensive income is as follows: For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Related to investments held at the end of the reporting period $8,516 $9,458 $8,516 $18,505 Related to investments derecognized during the period - - - - Dividends income recognized during the period $8,516 $9,458 $8,516 $18,505 In consideration of the Group’s investment strategy, the Group disposed and derecognized certain equity instrument investments measured at fair value through other comprehensive income. Details on derecognition of such investments are as follows: For the nine-month periods ended September 30, 2025 2024 The fair value of the investments at the date of derecognition $7,638 $135,202 The cumulative gain on disposal reclassified from other equity to retained earnings $5,861 $108,831
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 17 - (4) Financial assets measured at amortized cost, non-current As of September 30, 2025 December 31, 2024 September 30, 2024 Time deposits $4,230 $4,230 $4,230 The Group classified certain financial assets as financial assets measured at amortized cost. Since credit risk is low, expected credit losses during the duration are not significant. Please refer to Note 8 for more details on financial assets measured at amortized cost under pledge and Note 12 for more details on credit risk. (5) Notes receivables As of September 30, 2025 December 31, 2024 September 30, 2024 Notes receivables arising from operating activities $4,898 $- $6,678 Less: loss allowance - - - Total $4,898 $- $6,678 Notes receivables were not pledged. The Group follows the requirement of IFRS 9 to assess the impairment. Please refer to Note 6(16) for more details on loss allowance and Note 12 for more details on credit risk. (6) Trade receivables and trade receivables from related parties As of September 30, 2025 December 31, 2024 September 30, 2024 Trade receivables $1,140,583 $1,044,140 $1,253,079 Less: loss allowance - - (46) Subtotal 1,140,583 1,044,140 1,253,033 Trade receivables from related parties 990 1,087 1,567 Less: loss allowance - - - Subtotal 990 1,087 1,567 Total $1,141,573 $1,045,227 $1,254,600
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 18 - Trade receivables and trade receivables from related parties were not pledged. Trade receivables are generally on 30-90 day terms. The total carrying amounts of trade receivables were NT$1,141,573 thousand, $1,045,227 thousand and NT$1,254,646 thousand as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively. Please refer to Note 6(16) for more details on impairment of trade receivables and Note 12 for more details on credit risk. (7) Inventories As of September 30, 2025 December 31, 2024 September 30, 2024 Raw materials $8,963 $11,166 $8,205 Work in progress 548,015 485,689 377,930 Finished goods 265,101 403,575 330,296 Total $822,079 $900,430 $716,431 The cost of inventories recognized in expenses amounted to NT$841,831 thousand and NT$814,647 thousand for the three-month periods ended September 30, 2025 and 2024, respectively, including the inventory valuation loss of NT$10,573 thousand and the inventory valuation gain (reversal of decline in market value, obsolete and slow-moving inventories) of NT$4,262 thousand for the three-month periods ended September 30, 2025 and 2024, respectively. The cost of inventories recognized in expenses amounted to NT$2,462,969 thousand and NT$2,212,988 thousand for the nine-month periods ended September 30, 2025 and 2024, respectively, including the inventory valuation loss of NT$25,434 thousand and NT$11,407 thousand for the nine-month periods ended September 30, 2025 and 2024, respectively. Inventories were not pledged.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 19 - (8) Investments accounted for using the equity method The detail of investments accounted for using the equity method is as follows: As of September 30, 2025 December 31, 2024 September 30, 2024 Investee Carrying amount Percentage of ownership Carrying amount Percentage of ownership Carrying amount Percentage of ownership Investments in an associate: Emright Technology Co., Ltd. $16,524 30.15% $15,295 30.15% $10,840 30.15% Although the Group is the largest shareholder of the aforementioned associate; after comprehensive assessment, the Group does not own the major voting rights as the remaining voting rights holders are able to align and prevent the Group from ruling the relevant operation. Therefore, the Group does not control but owns significant influence over the aforementioned associate. The aggregate amount of the Group’s share of the aforementioned immaterial associate that is accounted for using the equity method is as follows: For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Income (loss) from continuing operations $1,197 $109 $1,229 $(964) Other comprehensive income (net of tax) - - - - Total comprehensive income (loss) $1,197 $109 $1,229 $(964) The Group did not have contingent liabilities or capital commitments to the aforementioned associate and the investment was not pledged as of September 30, 2025, December 31, 2024 and September 30, 2024. The carrying amount of the associate under equity method amounted to NT$16,524 thousand and NT$10,840 thousand as of September 30, 2025 and 2024, respectively. The related shares of profit or loss from the associate under the equity method amounted to NT$1,197 thousand, NT$109 thousand, NT$1,229 thousand and NT$(964) thousand for the three-month and nine- month periods ended September 30, 2025 and 2024, respectively. The information related to above associate accounted for under the equity method was not reviewed by independent auditors.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 20 - (9) Property, plant and equipment Land Buildings Machinery and equipment Research and development equipment Office equipment Other equipment Total Cost: As of January 1, 2025 $311,450 $391,108 $41,084 $120,025 $8,599 $25,846 $898,112 Additions - 28,351 - 18,039 912 3,506 50,808 Disposals - (3,582) - (21,880) (180) (1,869) (27,511) Reclassifications - - - - - (170) (170) Exchange differences - - - - (297) - (297) As of September 30, 2025 $311,450 $415,877 $41,084 $116,184 $9,034 $27,313 $920,942 As of January 1, 2024 $311,450 $387,143 $41,084 $99,713 $7,763 $28,451 $875,604 Additions - 2,097 - 27,186 780 5,339 35,402 Disposals - (1,981) - (3,779) - (6,866) (12,626) Exchange differences - - - - 263 - 263 As of September 30, 2024 $311,450 $387,259 $41,084 $123,120 $8,806 $26,924 $898,643 Depreciation and impairment: As of January 1, 2025 $- $155,758 $24,331 $52,179 $6,220 $13,504 $251,992 Depreciation - 15,100 5,135 22,653 716 4,789 48,393 Disposals - (3,582) - (21,880) (180) (1,869) (27,511) Reclassifications - - - - - (46) (46) Exchange differences - - - - (258) - (258) As of September 30, 2025 $- $167,276 $29,466 $52,952 $6,498 $16,378 $272,570 As of January 1, 2024 $- $141,598 $17,484 $33,253 $5,423 $15,704 $213,462 Depreciation - 12,043 5,135 20,453 582 4,757 42,970 Disposals - (1,981) - (3,779) - (6,866) (12,626) Exchange differences - - - - 241 - 241 As of September 30, 2024 $- $151,660 $22,619 $49,927 $6,246 $13,595 $244,047 Net carrying amount as of: September 30, 2025 $311,450 $248,601 $11,618 $63,232 $2,536 $10,935 $648,372 December 31, 2024 $311,450 $235,350 $16,753 $67,846 $2,379 $12,342 $646,120 September 30, 2024 $311,450 $235,599 $18,465 $73,193 $2,560 $13,329 $654,596 (a) Components of buildings with different useful lives are main building structure and air conditioning units, which are depreciated over 41 years and 3 years, respectively. (b) Property, plant and equipment were not pledged.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 21 - (10) Intangible assets Software Goodwill Others Total Cost: As of January 1, 2025 $14,799 $2,674,827 $97,272 $2,786,898 Additions－ acquired separately 1,287 - - 1,287 Disposals (1,771) - - (1,771) Reclassifications 170 - - 170 Exchange differences (135) - - (135) As of September 30, 2025 $14,350 $2,674,827 $97,272 $2,786,449 As of January 1, 2024 $12,558 $2,674,827 $81,191 $2,768,576 Additions－ acquired separately 2,286 - 16,081 18,367 Disposals (190) - - (190) Exchange differences 130 - - 130 As of September 30, 2024 $14,784 $2,674,827 $97,272 $2,786,883 Amortization and impairment: As of January 1, 2025 $9,143 $2,468,504 $26,137 $2,503,784 Amortization 2,939 - 9,648 12,587 Disposals (1,771) - - (1,771) Reclassifications 46 - - 46 Exchange differences (120) - - (120) As of September 30, 2025 $10,237 $2,468,504 $35,785 $2,514,526 As of January 1, 2024 $6,302 $2,468,504 $16,090 $2,490,896 Amortization 2,692 - 7,387 10,079 Disposals (190) - - (190) Exchange differences 110 - - 110 As of September 30, 2024 $8,914 $2,468,504 $23,477 $2,500,895 Net carrying amount as of: September 30, 2025 $4,113 $206,323 $61,487 $271,923 December 31, 2024 $5,656 $206,323 $71,135 $283,114 September 30, 2024 $5,870 $206,323 $73,795 $285,988
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 22 - Amortization expenses of intangible assets under the statement of comprehensive income are as follows: For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Selling expenses $72 $49 $235 $157 Administrative expenses $36 $34 $102 $106 Research and development expenses $3,802 $3,550 $12,250 $9,816 (11) Other current liabilities As of September 30, 2025 December 31, 2024 September 30, 2024 Refund liabilities $349,656 $233,846 $232,191 Others 14,617 13,853 13,605 Total $364,273 $247,699 $245,796 (12) Post-employment benefits plans Defined contribution plan For the three-month periods ended September 30, 2025 and 2024, the pension expenses recognized under the defined contribution plan are NT$8,875 thousand and NT$8,532 thousand, respectively. For the nine-month periods ended September 30, 2025 and 2024, the pension expenses recognized under the defined contribution plan are NT$26,236 thousand and NT$25,257 thousand, respectively. Defined benefit plan For the three-month periods ended September 30, 2025 and 2024, the pension expenses recognized under the defined benefit plan are NT$354 thousand and NT$725 thousand, respectively. For the nine-month periods ended September 30, 2025 and 2024, the pension expenses recognized under the defined benefit plan are NT$1,331 thousand and NT$2,176 thousand, respectively.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 23 - (13) Equity (a) Common stock The Company’s authorized capital as of September 30, 2025, December 31, 2024 and September 30, 2024 was NT$2,500,000 thousand divided into 250,000,000 shares (including 30,000,000 shares reserved for exercise of employee stock options at each period), each at a par value of NT$10. The Company’s issued capital was NT$1,660,351 thousand divided into 166,035,124 shares as of September 30, 2025, December 31, 2024 and September 30, 2024. Each share has one voting right and a right to receive dividends. On June 16, 2023, the general shareholders’ meeting approved to issue restricted shares for employees. As of September 30, 2025, 4,955,000 shares of restricted shares for employees were issued. Relevant regulators’ approvals have been obtained and related registration processes have been completed. (b) Capital surplus As of September 30, 2025 December 31, 2024 September 30, 2024 Premium from merger $573,859 $656,877 $656,877 Restricted shares for employees 781,297 781,297 781,297 Employee stock options 112,008 112,008 112,008 Treasury share transactions 19,238 19,238 19,238 Premium from issuance of common stock 16,424 16,424 16,424 Change in subsidiaries’ ownership 1,977 1,977 1,977 Share of changes in net assets of associates and joint ventures accounted for using equity method 14,299 14,299 14,299 Others 136,697 136,697 136,697 Total $1,655,799 $1,738,817 $1,738,817 According to the Company Act, the capital surplus shall not be used except for offset a deficit of the company. When a company incurs no loss, it may distribute the capital surplus derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 24 - (c) Retained earnings and dividend policies According to the Company’s Articles of Incorporation, current year’s earnings, if any, shall be distributed in the following order: I. Income tax obligation; II. Offsetting accumulated deficits, if any; III. Legal reserve at 10% of net income after tax; IV. Allocation or reverse of special reserves as required by law; V. After deducting the respective amount specified from item I to IV, at least 50% of the remaining earnings will be distributed, together with the undistributed earnings at the beginning of the period, and the capital surplus. However, if the total distribution divided by all the issued shares is less than NT$0.1 per share, all the remaining and surplus shall not be distributed. According to Article 240, Paragraph 5, and Article 241, Paragraph 2 of the Company Act, the Company authorizes the distributable dividends, legal reserve, and capital surplus in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting. The distribution of dividends to shareholders of the company can be paid in cash or shares. The policy of dividend distribution should reflect factors such as the current and future investment environment, fund requirements, domestic and international competition and capital budgets. And the dividends in cash shouldn’t less than 30% of the distributable earnings, as well as the interest of the shareholders, share bonus equilibrium and long-term financial planning etc. The Board of Directors shall make the distribution proposal annually and present it at the shareholders’ meeting. According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total paid-in capital. The legal reserve can be used to offset the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal reserve, which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders. When the Company distributing distributable earnings, it shall set aside to special reserve, an amount equal to other net deductions from shareholders’ equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements for the adoption of IFRS, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 25 - shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed from the special reserve. On March 31, 2021, FSC issued Order No. Financial-Supervisory-Securities-Corporate- 1090150022, which sets out the following provisions for compliance: On a public company’s first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders’ equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent use, disposal or reclassification of related assets, the Company can reverse the special reserve by the proportion of the special reserve first appropriated and distribute it. The amount of special reserve provided by the Company for the first time in adopting IFRS is nil. The appropriations of earnings for 2024 and 2023 were resolved by the Board of Directors’ meeting on February 21, 2025 and February 23, 2024, respectively. The details of distribution are as follows: Appropriation of earnings Dividend per share (NT$) Years Ended December 31, 2024 2023 2024 2023 Legal reserve (Note) $173,724 $165,272 Common stock– cash dividends 1,411,299 1,208,101 $8.5 $7.5 Note: The amount of legal reserve in 2024 and 2023 was approved by the shareholders at the regular shareholders' meeting held on May 26, 2025 and May 28, 2024, respectively. In addition, the Board of Directors’ meeting on February 21, 2025 and February 23, 2024 resolved to distribute the capital surplus by cash in the amount of NT$83,018 thousand and NT$80,540 thousand, each share at NT$0.5. Please refer to Note 6(18) for more details on employees’ compensations and the remunerations to directors. (14) Share-based payment plans Certain employees of the Group are entitled to share-based payment as part of their remunerations; services are provided by the employees in return for the equity instruments granted. These plans are accounted for as equity-settled share-based payment transactions.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 26 - Restricted shares plans for employees On June 16, 2023, a compensation plan was approved by the shareholders’ meeting to issue 5,000,000 restricted shares to qualified employees, each share was subscribed at par value, and the plan was approved by the competent authority on October 12, 2023. There were 4,955,000 restricted shares issued on September 3, 2024. The fair value of the restricted shares issued was NT$135 per share. The estimated compensation expenses amounted to NT$595,008 thousand in total based on the vesting conditions and will be recognized during the vesting period. As of September 30, 2025, the Company had recognized NT$224,450 thousand as compensation expense and NT$370,558 thousand as unearned employee compensation, which were recognized as salary expense and other equity, respectively. Share-based compensation expenses recognized were shown in the following table: For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Restricted shares for employees $52,063 $16,197 $156,190 $16,197 The issuance of restricted shares for employees before October 10, 2024, shall be handled in accordance with the "Question and Answer Sets on the Retrospective Application of the IFRS Question and Answer Sets on the Treatment of restricted shares for employees, by Accounting Research and Development Foundation" issued by the Securities and Futures Bureau of the Financial Supervisory Commission. Restrictions on the rights and vesting conditions of restricted shares for employees are as follows: These employee restricted shares are common shares, the relevant shareholder rights on such shares are subject to restrictions under securities issuance regulations. That is, such shares shall be kept while the vesting period has not been fulfilled, but can have other rights including (but not limited to) dividends and allocation rights of legal reserves and capital surplus (the distributions are not involved in custody), the rights to subscription of new shares and voting rights are all the same as the common shares issued by the Company. Such shares shall also be subject to restrictions on any right to dispose of shares, including (but not limited to) trading and transfer, pledge, mortgaging, gifting, contingent inheritance, etc.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 27 - Vesting conditions after issuance and allotment of shares to employees, employees still employed during the vesting period and achieved the personal performance criteria of ”good” (or above) with no violation of work rules are eligible to receive the vesting shares by the portion of: After 2 years of employee’s continuous employment: 30% After 3 years of employee’s continuous employment: 30% After 4 years of employee’s continuous employment: 40% For those employees who fail to fulfil the vesting conditions, the Company can reacquire their shares at par value. Non-employment includes (but is not limited to) resignation, layoff, dismissal, self-appointed early retirement, and furlough. (15) Operating revenues For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Revenue from contracts with customers Sale of goods $1,791,982 $1,846,526 $5,435,582 $4,973,204 Other operating revenues 2,403 16,944 4,422 19,395 Total $1,794,385 $1,863,470 $5,440,004 $4,992,599 Revenue recognition point of the Group is at a point in time. Analysis of revenue from contracts with customers for the nine-month periods ended September 30, 2025 and 2024 is as follows: (a) Contract balances Contract liabilities – current As of September 30, 2025 December 31, 2024 September 30, 2024 January 1, 2024 Sale of goods $3,601 $12,935 $5,523 $8,034
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 28 - The significant changes in the Group’s balances of contract liabilities for the nine-month periods ended September 30, 2025 and 2024 are as follows: For the nine-month periods ended September 30, 2025 2024 The opening balance transferred to revenue $(12,934) $(8,031) Increase in receipts in advance during the period (deducting the amount incurred and transferred to revenue during the period) 3,600 5,520 Total $(9,334) $(2,511) (b) Transaction price allocated to unsatisfied performance obligations As of September 30, 2025 and 2024, it was not required to disclose relevant information of the unsatisfied performance obligations as the contract terms with customers about the sales of goods are all shorter than one year. (c) Assets recognized from costs to fulfil a contract None. (16) Expected credit losses For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Operating expenses – expected credit losses Notes receivables $- $- $- $- Trade receivables - 46 - 46 Total $- $46 $- $46 Please refer to Note 12 for more details on credit risk. The Group measures the loss allowance of its trade receivables (including notes receivables, trade receivables and trade receivables from related parties) at an amount equal to lifetime expected credit losses. The assessments of the Group’s loss allowance as of September 30, 2025, December 31, 2024 and September 30, 2024 are as follows:
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 29 - The trade receivables loss allowance is measured by using a provision matrix, details are as follows: September 30, 2025 Not past due Past due (Note) Within 30 days 31-120 days After 121 days Total Gross carrying amount $1,129,606 $15,202 $1,663 $- $1,146,471 Loss ratio - - - 1%-100% Lifetime expected credit losses - - - - - Carrying amount of trade receivables $1,129,606 $15,202 $1,663 $- $1,146,471 December 31, 2024 Past due Not past due Within 30 days 31-120 days After 121 days Total Gross carrying amount $1,039,297 $5,884 $46 $- $1,045,227 Loss ratio - - - 1%-100% Lifetime expected credit losses - - - - - Carrying amount of trade receivables $1,039,297 $5,884 $46 $- $1,045,227 September 30, 2024 Not past due Past due (Note) Within 30 days 31-120 days After 121 days Total Gross carrying amount $1,256,786 $4,183 $198 $157 $1,261,324 Loss ratio - - - 1%-100% Lifetime expected credit losses - - - (46) (46) Carrying amount of trade receivables $1,256,786 $4,183 $198 $111 $1,261,278 Note: All of the Group’s notes receivables are not yet due. (17) Leases Group as a lessee The Group leases various properties, including real estate such as land and buildings, and furniture and fixtures. The lease terms range from 3 to 33 years.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 30 - The Group’s leases effect on the financial position, financial performance and cash flows are as follows: (a) Amounts recognized in the balance sheet I. Right-of-use assets The carrying amount of right-of-use assets As of September 30, 2025 December 31, 2024 September 30, 2024 Land $66,121 $71,430 $72,267 Buildings 8,209 12,424 13,695 Furniture and fixtures 244 399 319 Total $74,574 $84,253 $86,281 During the nine-month period ended September 30, 2024, the additions to right-of-use assets of the Group amounted to NT$12,400 thousand. II. Lease liabilities As of September 30, 2025 December 31, 2024 September 30, 2024 Current $7,402 $7,758 $7,709 Non-current 71,102 80,059 81,978 Total $78,504 $87,817 $89,687 Please refer to Note 6(19)(d) for the interest on lease liabilities recognized during the nine-month periods ended September 30, 2025 and 2024, and refer to Note 12(5) Liquidity Risk Management for the maturity analysis for lease liabilities. (b) Amounts recognized in the statement of comprehensive income Depreciation charge for right-of-use assets For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Land $804 $838 $2,410 $2,512 Buildings 1,076 1,163 3,300 3,358 Furniture and fixtures 49 64 155 194 Total $1,929 $2,065 $5,865 $6,064
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 31 - (c) Income and costs relating to leasing activities For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 The expensesrelating to short-term leases $428 $448 $1,358 $1,342 The expenses relating to leases of low-value assets (Not including the short- term leases) 35 42 81 88 The expenses relating to variable lease payments not included in the measurement of lease liabilities 492 340 1,174 1,058 Total $955 $830 $2,613 $2,488 Income from subleasing right-of-use assets $158 $158 $475 $475 (d) Cash outflow relating to leasing activities During the nine-month periods ended September 30, 2025 and 2024, the Group’s total cash outflows for leases amounted to NT$9,876 thousand and NT$9,409 thousand, respectively. (e) Extension options Some of the Group’s property rental agreements contain extension options. In determining the lease terms, the non-cancellable period for which the Group has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option. The option is used to maximize operational flexibility in terms of managing contracts. The majority of extension option held is exercisable only by the Group. After the commencement date, the Group reassesses the lease term upon the occurrence of a significant event or a significant change in circumstances that is within the control of the lessee and affects whether the Group is reasonably certain to exercise an option not previously included in its determination of the lease term.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 32 - (18) Summary statement of employee benefits, depreciation and amortization expenses by function: For the three-month periods ended September 30, 2025 2024 Operating costs Operating expenses Total Operating costs Operating expenses Total Employee benefits expense Salaries $11,766 $342,857 $354,623 $11,974 $336,751 $348,725 Labor and health insurance 855 15,289 16,144 820 14,705 15,525 Pension 516 8,713 9,229 522 8,735 9,257 Other employee benefits 321 4,591 4,912 301 4,187 4,488 Total $13,458 $371,450 $384,908 $13,617 $364,378 $377,995 Depreciation $2,127 $16,327 $18,454 $2,035 $14,983 $17,018 Amortization $- $3,910 $3,910 $- $3,633 $3,633 For the nine-month periods ended September 30, 2025 2024 Operating costs Operating expenses Total Operating costs Operating expenses Total Employee benefits expense Salaries $35,274 $1,051,359 $1,086,633 $35,223 $911,996 $947,219 Labor and health insurance 2,510 44,370 46,880 2,564 42,641 45,205 Pension 1,552 26,015 27,567 1,563 25,870 27,433 Other employee benefits 957 13,562 14,519 910 12,490 13,400 Total $40,293 $1,135,306 $1,175,599 $40,260 $992,997 $1,033,257 Depreciation $6,325 $47,933 $54,258 $6,099 $42,935 $49,034 Amortization $- $12,587 $12,587 $- $10,079 $10,079
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 33 - According to the Articles of Incorporation, between 8% to 20% of profit of the current year is distributable as employees’ compensation (at least 50% of which shall be allocated to non- managerial employees) and no higher than 1% of profit of the current year is distributable as remuneration to directors. However, the Company’s accumulated losses shall have been covered (if any). The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees’ compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders’ meeting. Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors can be obtained from the “Market Observation Post System” on the website of the Taiwan Stock Exchange (TWSE). Based on a specific rate of profit of current year, the Company estimated the amounts of the employees’ compensation and remuneration to directors for the three-month period ended September 30, 2025 to be NT$54,487 thousand and NT$5,449 thousand, respectively. The amounts of the employees’ compensation and remuneration to directors for the three-month period ended September 30, 2024 were NT$69,109 thousand and NT$5,861 thousand, respectively. The amounts of the employees’ compensation and remuneration to directors for the nine-month period ended September 30, 2025 were NT$165,705 thousand and NT$16,571 thousand, respectively. The amounts of the employees’ compensation and remuneration to directors for the nine-month period ended September 30, 2024 were NT$176,541 thousand and NT$16,604 thousand, respectively. The employees’ compensation and remuneration to directors recognized as salary expense. If the board of directors resolved to distribute employees’ compensation in the form of shares, then the number of shares distributed as employees’ compensation was calculated based on the closing price one day earlier than the date of resolution. If the estimated amounts differ from the actual distribution resolved by the board of directors, the Company will recognize the change as an adjustment to income of next year. The distributions of the employees’ compensation and remuneration to directors in cash for 2024 and 2023 were approved through the Board of Directors’ meeting on February 21, 2025 and February 23, 2024, respectively. There were no differences between the aforementioned approved amounts and the actual distribution of the employees’ compensation and remuneration to directors. Information relevant to the aforementioned employees’ compensation and remuneration to directors can be obtained from the “Market Observation Post System” on the website of the TWSE.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 34 - (19) Non-operating income and expenses (a) Interest income For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Financial assets measured at amortized cost $11,161 $12,143 $37,402 $38,721 (b) Other income For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Rental income $158 $158 $475 $475 Dividend income 8,516 9,458 8,516 18,505 Others 5,832 23,429 6,232 24,650 Total $14,506 $33,045 $15,223 $43,630 (c) Other gains and losses For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Foreign exchange gains (losses), net $2,029 $(6,438) $(14,434) $11,869 Gains on financial assets at fair value through profit or loss (Note) 10,877 5,595 1,210 27,037 Others (1) (5) (5,320) (5) Total $12,905 $(848) $(18,544) $38,901 Note: Balances were arising from financial assets mandatorily measured at fair value through profit or loss, including valuation adjustment, dividend income and exchange difference, etc.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 35 - (d) Finance costs For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Interest expenses on lease liabilities $374 $407 $1,164 $1,109 (20) Components of other comprehensive income (loss) For the three-month period ended September 30, 2025 Arising during the period Reclassification adjustments during the period Other comprehensive income (loss), before tax Income tax relating to components of other comprehensive income Other comprehensive income (loss), net of tax Items that may not be reclassified subsequently to profit or loss: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income $39,731 $- $39,731 $(1,764) $37,967 Items that may be reclassified subsequently to profit or loss: Exchange differences resulting from translating the financial statements of foreign operations 122 - 122 - 122 Total $39,853 $- $39,853 $(1,764) $38,089
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 36 - For the three-month period ended September 30, 2024 Arising during the period Reclassification adjustments during the period Other comprehensive income (loss), before tax Income tax relating to components of other comprehensive income Other comprehensive income (loss), net of tax Items that may not be reclassified subsequently to profit or loss: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income $(41,493) $- $(41,493) $268 $(41,225) Items that may be reclassified subsequently to profit or loss: Exchange differences resulting from translating the financial statements of foreign operations 29 - 29 - 29 Total $(41,464) $- $(41,464) $268 $(41,196) For the nine-month period ended September 30, 2025 Arising during the period Reclassification adjustments during the period Other comprehensive income (loss), before tax Income tax relating to components of other comprehensive income Other comprehensive income (loss), net of tax Items that may not be reclassified subsequently to profit or loss: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income $15,762 $- $15,762 $(184) $15,578 Items that may be reclassified subsequently to profit or loss: Exchange differences resulting from translating the financial statements of foreign operations (113) - (113) - (113) Total $15,649 $- $15,649 $(184) $15,465
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 37 - For the nine-month period ended September 30, 2024 Arising during the period Reclassification adjustments during the period Other comprehensive income (loss), before tax Income tax relating to components of other comprehensive income Other comprehensive income (loss), net of tax Items that may not be reclassified subsequently to profit or loss: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income $(81,339) $- $(81,339) $1,708 $(79,631) Items that may be reclassified subsequently to profit or loss: Exchange differences resulting from translating the financial statements of foreign operations 100 - 100 - 100 Total $(81,239) $- $(81,239) $1,708 $(79,531) (21) Income tax (a) The major components of income tax expense are as follows: Income tax expense (income) recognized in profit or loss For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Current income tax expense (income): Current income tax charge $100,483 $130,198 $329,028 $331,365 Adjustments in respect of current income tax of prior periods - - (54,719) (42,923) Deferred tax expense (income): Deferred tax income relating to origination and reversal of temporary differences (7,599) (9,897) (27,285) (11,696) Total income tax expense $92,884 $120,301 $247,024 $276,746
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 38 - Income tax relating to components of other comprehensive income For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Deferred tax expense (income): Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income $1,764 $(268) $184 $(1,708) (b) The assessment of income tax returns As of September 30, 2025, the assessment of the income tax returns of the Company and its subsidiaries is as follows: The assessment of income tax returns ITE Tech. Inc. Assessed and approved up to 2023 Subsidiary- ITE Tech.(Shenzhen) Inc. Assessed to 2024 (22) Earnings per share Basic earnings per share are calculated by dividing net profit for the period attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 39 - For the three-monthperiods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 (a) Basic earnings per share Profit attributable to ordinary equity holders of the parent company $392,057 $495,839 $1,227,775 $1,295,521 Weighted average number of ordinary shares outstanding for basic earnings per share (share) 161,080,124 161,080,124 161,080,124 161,080,124 Basic earnings per share(NT$) $2.43 $3.08 $7.62 $8.04 (b) Diluted earnings per share Profit attributable to ordinary equity holders of the parent company after dilution $392,057 $495,839 $1,227,775 $1,295,521 Weighted average number of ordinary shares outstanding for basic earnings per share (share) 161,080,124 161,080,124 161,080,124 161,080,124 Effect of dilution: Employees’ compensation- stock (share) 1,241,237 1,252,064 1,504,626 1,503,085 Restricted shares for employees (share) 1,801,446 115,623 1,900,948 38,822 Weighted average number of ordinary shares outstanding after dilution(share) 164,122,807 162,447,811 164,485,698 162,622,031 Diluted earnings per share (NT$) $2.39 $3.05 $7.46 $7.97
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 40 - 7. Related Party Transactions Information of the related parties that had transactions with the Group and significant transactions during the financial reporting period is as follows: Name and nature of relationship of the related parties Names of related parties Nature of relationship of the related parties United Microelectronics Corp. Director of the Group HeJian Technology (Suzhou) Co., Ltd. Other related party Wavetek Microelectronics Corp. Other related party Emright Technology Co., Ltd. Associate Significant transactions with the related parties (1) Sales For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Associate $931 $3,219 $931 $3,219 The sales price to the above related party was determined through mutual agreement in reference to market conditions. The payment term for the related party was 30 days after month-end. (2) Purchases For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 United Microelectronics Corp. $296,218 $290,360 $792,877 $719,679 HeJian Technology (Suzhou) Co., Ltd. 94,117 83,719 270,067 256,636 Other related party 817 144 1,105 144 Total $391,152 $374,223 $1,064,049 $976,459
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 41 - The purchase prices to the above related parties were not comparable to the market due to differentiation of manufacturing process and product specification. Payment terms to related parties were 45 days after month-end. (3) Trade receivables from related parties As of September 30, 2025 December 31, 2024 September 30, 2024 Associate $990 $1,087 $1,567 (4) Trade payables to related parties As of September 30, 2025 December 31, 2024 September 30, 2024 United Microelectronics Corp. $224,200 $220,613 $179,171 HeJian Technology (Suzhou) Co., Ltd. 66,280 92,008 55,880 Other related party 556 - 141 Total $291,036 $312,621 $235,192 (5) Other payables to related parties As of September 30, 2025 December 31, 2024 September 30, 2024 United Microelectronics Corp. $15,896 $33,223 $5,840 (6) The Group purchased masks and other from the director of the Group and recognized NT$31,947 thousand, NT$9,808 thousand, NT$104,467 thousand and NT$50,127 thousand as manufacturing expenses and operating expenses for the three-month and nine-month periods ended September 30, 2025 and 2024, respectively. Payment term for the related party was 45 days after month-end. (7) The Group had transactions with other related party and recognized NT$88 thousand, NT$0, NT$340 thousand and NT$239 thousand as manufacturing expenses and operating expenses for the three-month and nine-month periods ended September 30, 2025 and 2024, respectively. Payment term for the related party was 45 days after month-end.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 42 - (8) Key management personnel compensation For the three-month periods ended September 30, For the nine-month periods ended September 30, 2025 2024 2025 2024 Short-term employee benefits $15,248 $24,234 $52,999 $76,326 Post-employment benefits 392 443 1,173 1,348 Share-based payment 5,012 1,520 15,036 1,520 Total $20,652 $26,197 $69,208 $79,194 8. Assets Pledged as Security The following table lists assets of the Group pledged as security: As of Assets pledged for security September 30, 2025 December 31, 2024 September 30, 2024 Secured liabilities Financial assets measured at amortized cost – non-current $4,230 $4,230 $4,230 Guarantee for land 9. Significant Contingencies and Unrecognized Contractual Commitments The Group uses patents of other companies for certain products, and will pay royalty fees based on sales amounts or quantities of these products in accordance with the agreements. 10. Losses Due to Major Disasters None. 11. Significant Subsequent Events None.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 43 - 12. Others (1) Categories of financial instruments Financial assets As of September 30, 2025 December 31, 2024 September 30, 2024 Financial assets at fair value through profit or loss: Mandatorily measured at fair value through profit or loss $1,236,959 $1,010,549 $778,741 Financial assets at fair value through other comprehensive income 1,085,279 1,115,201 1,229,996 Financial assets measured at amortized cost (Note) 4,436,315 4,572,728 4,373,888 Total $6,758,553 $6,698,478 $6,382,625 Financial liabilities As of September 30, 2025 December 31, 2024 September 30, 2024 Financial liabilities at amortized cost: Trade and other payables (including related parties) $1,455,736 $1,380,723 $1,274,011 Lease liabilities 78,504 87,817 89,687 Deposits received 28,290 28,290 28,290 Total $1,562,530 $1,496,830 $1,391,988 Note: Including cash and cash equivalents (excluding cash on hand), financial assets measured at amortized cost, notes receivables, trade receivables (including related parties), other receivables and other non-current assets (refundable deposits).
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 44 - (2) Financial risk management objectives and policies The Group’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activities. The Group identifies, measures and manages the aforementioned risks based on the Group’s policy and risk appetite. The Group has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Group complies with its financial risk management policies at all times. (3) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market risks comprise currency risk, interest rate risk and other price risk (such as equity instruments). In practice, it is rarely the case that a single risk variable will change independently from other risk variables, there are usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables. Foreign currency risk The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenues or expenses are denominated in a different currency from the Group’s functional currency) and the Group’s net investments in foreign subsidiaries. The Group has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Group. The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Group’s profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. The Group’s foreign currency risk is mainly related to the volatility in the exchange rates for USD. The information of the sensitivity analysis is as follows:
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 45 - When NTD strengthens/weakens against USD by 5%, the profit for the nine-month periods ended September 30, 2025 and 2024 would decrease/increase by NT$1,772 thousand and NT$10,093 thousand, respectively. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group doesn’t have any liabilities risk of changes in market interest rates. Therefore, the Group expects no fair value and cash flow risks due to significant interest rate fluctuations. All of the Group’s financial assets and financial liabilities that are exposed to cash flow risk due to fluctuating interest rate are under short term contracts, thus the cash flow risk of fluctuate interest is considerably low. The interest rate sensitivity analysis is performed on items exposed to interest rate risk as of the end of the reporting period, including investments with variable interest rate. At the reporting date, an increase/decrease of 10 basis points (0.1%) of interest rate in a reporting period could cause the profit for the nine-month periods ended September 30, 2025 and 2024 to increase/decrease both by NT$0. Equity price risk The Group’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment objectives. The Group’s listed and unlisted equity securities are classified as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. The Group manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Group’s senior management on a regular basis. The Board of Directors reviews and approves certain equity investments according to level of authority. For the nine-month periods ended September 30, 2025 and 2024, a change of 10% in the price of the listed equity instrument investments measured at fair value through other comprehensive income could increase/decrease by NT$10,224 thousand and NT$14,111 thousand, respectively. Please refer to Note 12(8) for sensitivity analysis information of other equity instruments that are linked to such equity instruments whose fair value measurement is categorized under Level 3 of the fair value hierarchy.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 46 - (4) Credit risk management Credit risk is the risk that counterparty will not meet its obligations under a contract, leading to a financial loss. The Group is exposed to credit risk from operating activities (primarily for trade receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments. Credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to credit risk management. Credit limits are established for all counter parties based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Group’s internal rating criteria, etc. Certain counter parties’ credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment. As of September 30, 2025, December 31, 2024 and September 30, 2024, trade receivables from top ten customers represented 96.83%, 94.94% and 94.02% of the total trade receivables of the Group, respectively. The credit concentration risk of other trade receivables is insignificant. Credit risk from balances with banks and other financial instruments is managed by the Group’s treasury in accordance with the Group’s policy. The Group only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions and companies with good credit rating. Consequently, there is no significant credit risk for these counter parties. The Group adopted IFRS 9 to assess the expected credit losses. The measurement indicators of the Group are described as follows: Gross carrying amount as of Level of credit risk Indicator Measurement method for expected credit losses September 30, 2025 December 31, 2024 September 30, 2024 Simplified approach (Note) (Note) Lifetime expected credit losses $1,146,471 $1,045,227 $1,261,324 Note: By using simplified approach (loss allowance is measured at lifetime expected credit losses), including notes receivables, trade receivables and trade receivables from related parties. Financial assets are written off when there is no realistic prospect of future recovery.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 47 - (5) Liquidity risk management The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents and financial assets and liabilities at fair value through profit or loss. The table below summarizes the maturity profile of the Group’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. Non-derivative financial liabilities Less than 1 year 2 to 3 years 4 to 5 years 5 to 15 years 15 to 20 years > 20 years Total September 30, 2025 Payables (including related parties) $1,455,736 $- $- $- $- $- $1,455,736 Lease liabilities $8,771 $12,205 $8,047 $39,591 $10,452 $13,761 $92,827 Deposits received $- $28,290 $- $- $- $- $28,290 December 31, 2024 Payables (including related parties) $1,380,723 $- $- $- $- $- $1,380,723 Lease liabilities $9,357 $16,708 $8,371 $41,856 $11,711 $15,947 $103,950 Deposits received $- $28,290 $- $- $- $- $28,290 September 30, 2024 Payables (including related parties) $1,274,011 $- $- $- $- $- $1,274,011 Lease liabilities $9,363 $17,803 $8,530 $41,856 $12,214 $16,490 $106,256 Deposits received $- $28,290 $- $- $- $- $28,290
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 48 - (6) Reconciliation of liabilities arising from financing activities Reconciliation of liabilities for the nine-month periods ended September 30, 2025 and 2024: Deposits received Lease liabilities Total liabilities from financing activities As of January 1, 2025 $28,290 $87,817 $116,107 Cash flows - (5,943) (5,943) Non-cash changes - (3,370) (3,370) As of September 30, 2025 $28,290 $78,504 $106,794 As of January 1, 2024 $28,290 $83,163 $111,453 Cash flows - (5,876) (5,876) Non-cash changes - 12,400 12,400 As of September 30, 2024 $28,290 $89,687 $117,977 (7) Fair value of financial instruments (a) The methods and assumptions applied in determining the fair value of financial instruments: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Group to measure or disclose the fair values of financial assets and financial liabilities: I. The carrying amount of cash and cash equivalents, trade receivables (including related parties), other receivables, other non-current assets, payables (including related parties) and deposits received approximate their fair value due to their short maturities. II. For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities and funds) at the reporting date.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 49 - III.Fair value of equity instruments without market quotations (including private company equity securities) is estimated using the market approach and asset approach valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities). (b) Fair value of financial instruments measured at amortized cost The carrying amounts of the Group’s financial assets and liabilities measured at amortized cost approximate their fair value. (c) Fair value measurement hierarchy for financial instruments Please refer to Note 12(8) for fair value measurement hierarchy for financial instruments of the Group. (8) Fair value measurement hierarchy (a) Fair value measurement hierarchy All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows: Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 — Unobservable inputs for the assets or liabilities. For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period. (b) Fair value measurement hierarchy of the Group’s assets and liabilities The Group does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Group’s assets and liabilities measured at fair value on a recurring basis is as follows:
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 50 - As of September 30, 2025: Level 1 Level 2 Level 3 Total Financial assets at fair value: Financial assets at fair value through profit or loss Funds $965,518 $- $- $965,518 Capital - - 271,441 271,441 Financial assets at fair value through other comprehensive income Equity instruments measured at fair value through other comprehensive income 102,241 - 983,038 1,085,279 Total $1,067,759 $- $1,254,479 $2,322,238 As of December 31, 2024: Level 1 Level 2 Level 3 Total Financial assets at fair value: Financial assets at fair value through profit or loss Funds $790,646 $- $- $790,646 Capital - - 219,903 219,903 Financial assets at fair value through other comprehensive income Equity instruments measured at fair value through other comprehensive income 113,320 - 1,001,881 1,115,201 Total $903,966 $- $1,221,784 $2,125,750 As of September 30, 2024: Level 1 Level 2 Level 3 Total Financial assets at fair value: Financial assets at fair value through profit or loss Funds $590,163 $- $- $590,163 Capital - - 188,578 188,578 Financial assets at fair value through other comprehensive income Equity instruments measured at fair value through other comprehensive income 141,110 - 1,088,886 1,229,996 Total $731,273 $- $1,277,464 $2,008,737
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 51 - Transfers between Level l and Level 2 during the period During the nine-month periods ended September 30, 2025 and 2024, there were no transfers between Level 1 and Level 2 fair value measurements. Movements of fair value measurement in level 3 on recurring basis Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows: Assets At fair value through profit or loss At fair value through other comprehensive income Capital Stocks Total As of January 1, 2025 $219,903 $1,001,881 $1,221,784 Total gains and losses recognized: Amount recognized in profit or loss (“other gains and losses ”) (6,899) - (6,899) Amount recognized in other comprehensive income (“Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income ”) - 26,841 26,841 Additions 58,437 - 58,437 Disposals - (7,638) (7,638) Capital return - (38,046) (38,046) As of September 30, 2025 $271,441 $983,038 $1,254,479 Assets At fair value through profit or loss At fair value through other comprehensive income Capital Stocks Total As of January 1, 2024 $133,939 $1,125,410 $1,259,349 Total gains and losses recognized: Amount recognized in profit or loss (“other gains and losses ”) 18,726 - 18,726 Amount recognized in other comprehensive income (“Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income ”) - (24,024) (24,024) Additions 35,913 37,500 73,413 Capital return - (50,000) (50,000) As of September 30, 2024 $188,578 $1,088,886 $1,277,464
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 52 - Information on significant unobservable inputs to valuation Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows: As of September 30, 2025 Valuation technique Significant unobservable inputs Quantitative information Relationship between inputs and fair value Sensitivity analysis of the input to fair value Financial assets: Financial assets at fair value through profit or loss Capital Asset approach Discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s profit (loss) by NT$30,160 thousand Financial assets at fair value through other comprehensive income Stocks Market approach Discount for lack of marketability 30% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$21,795 thousand Stocks Asset approach Discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$92,297 thousand As of December 31, 2024 Valuation technique Significant unobservable inputs Quantitative information Relationship between inputs and fair value Sensitivity analysis of the input to fair value Financial assets: Financial assets at fair value through profit or loss Capital Asset approach Discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s profit (loss) by NT$24,434 thousand
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 53 - Valuation technique Significant unobservable inputs Quantitative information Relationship between inputs and fair value Sensitivity analysis of the input to fair value Financial assets at fair value through other comprehensive income Stocks Market approach Discount for lack of marketability 30% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$15,983 thousand Stocks Asset approach Discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$98,945 thousand As of September 30, 2024 Valuation technique Significant unobservable inputs Quantitative information Relationship between inputs and fair value Sensitivity analysis of the input to fair value Financial assets: Financial assets at fair value through profit or loss Capital Asset approach Discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s profit (loss) by NT$20,953 thousand Financial assets at fair value through other comprehensive income Stocks Market approach Discount for lack of marketability 30% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$18,322 thousand Stocks Asset approach Discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value estimated 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$106,782 thousand
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 54 - Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy The Group validates the fair value measurements and ensures that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Group also analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed based on the Group’s accounting policies at each reporting date. (9) Significant assets and liabilities denominated in foreign currencies Information regarding the significant financial assets and liabilities denominated in foreign currencies is listed below: As of September 30, 2024 Foreign currencies (In thousands) Foreign exchange rate NTD (In thousands) Financial assets Monetary items: USD $15,381 31.60 $486,053 Financial liabilities Monetary items: USD $8,993 31.60 $284,184 As of September 30, 2025 December 31, 2024 Foreign currencies (In thousands) Foreign exchange rate NTD (In thousands) Foreign currencies (In thousands) Foreign exchange rate NTD (In thousands) Financial assets Monetary items: USD $13,230 30.535 $403,971 $13,598 32.785 $445,810 Financial liabilities Monetary items: USD $12,069 30.535 $368,529 $11,887 32.785 $389,726
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 55 - During the three-month and nine-month periods ended September 30, 2025 and 2024, the foreign exchange gains (losses) were NT$2,029 thousand, NT$(6,438) thousand, NT$(14,434) thousand and NT$11,869 thousand, respectively. The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency). (10) Capital management The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 56 - 13. Additional Disclosure (1) Information at significant transactions Additional disclosures for information of the Company for the nine-month period ended September 30, 2025: (a) Financing provided to others: None. (b) Endorsement/Guarantee provided to others: None. (c) Significant marketable securities held as of September 30, 2025 (excluding subsidiaries, associates and joint ventures): A m o u n t : T h o u s a n d s o f N T D Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2025 NoteShares/Units Carrying Value Percentage of Ownership (%) Fair Value ITE Tech. Inc. Common Stock Shieh Yong Investment Co., Ltd. - Financial assets at fair value through other comprehensive income, non-current 30,697,721 $285,489 1.52% $285,489 Common Stock Darchan Venture Corporation - Financial assets at fair value through other comprehensive income, non-current 20,000,000 $182,000 18.18% $182,000 Common Stock Embestor Technology Inc. - Financial assets at fair value through other comprehensive income, non-current 4,639,000 $109,248 13.87% $109,248 Fund Taishin 1699 Money Market Fund - Financial assets at fair value through profit or loss, current 32,002,187.87 $458,092 - $458,092 Fund Taishin Ta Chong Money Market Fund - Financial assets at fair value through profit or loss, current 10,237,796.20 $153,461 - $153,461 Fund Fubon Money Market Fund - Financial assets at fair value through profit or loss, current 16,125,519.12 $252,343 - $252,343 Capital TGVest Asia Partners II (Taiwan), L.P. - Financial assets at fair value through profit or loss, non-current - $271,441 - $271,441
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 57 - (d) Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock: Amount: Thousands of NTD Company Name Related Party Nature of Relationship Transaction Details Abnormal Transaction Notes/Trade (Payable) or Receivable Note Purchases/ Sales Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total ITE Tech. Inc. United Microelectronics Corp. Directors of the Company Purchases $792,877 66.17% 45 days after month-end Not comparable to the market due to differentiation of manufacturing process and product specification Same as general trading conditions $(224,200) (28.15)% HeJian Technology (Suzhou) Co., Ltd. Other related party Purchases $270,067 22.54% 45 days after month-end Not comparable to the market due to differentiation of manufacturing process and product specification Same as general trading conditions $(66,280) (8.32)% (e) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of September 30, 2025: None.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 58 - (f) Intercompany relationship and significant intercompany transactions: A m o u n t : T h o u s a n d s o f N T D No. (Note 1) Company Name Counter Party Nature of Relationship (Note 2) Intercompany Transactions Financial Statement Item Amount Term Percentage of Consolidated Net Revenue or Total Assets (Note 3) 0 ITE Tech. Inc. ITE Tech. (Shenzhen) Inc. 1 Administrative expenses $29,678 On demand 0.55% Note 1: Number should be input in the remark column for intercompany transactions. Here illustrate how to assign numbers to transactions. 1. 0 for parent company. 2. Subsidiaries are given a number in sequence starting with No. 1. Note 2: There are three types of transactions. Please remark the type of transaction by giving a number to it. 1. Parent to Subsidiary. 2. Subsidiary to Parent. 3. Subsidiaries to Subsidiaries. Note 3: Asset/liability items are calculated by using the ending balances of the item divided by ending balance of total consolidated assets; profit/loss items are calculated by using the amount of the transaction divided by total consolidated revenue.
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 59 - (2) Information on investees Names, locations and related information of investees as of September 30, 2025 (excluding investment in Mainland China): Amount: Thousands of NTD Investor Company Investee Company Location Main Businesses and Products Original Investment Amount Balances as of September 30, 2025 Net Income (Losses) of the Investee Company Share of Profits /(Losses) NoteSeptember 30, 2025 December 31, 2024 Shares Percentage of Ownership Carrying Value ITE Tech. Inc. Emright Technology Co., Ltd. Taiwan Communication machinery equipment, electronic components manufacturing $41,768 $41,768 4,176,800 30.15% $16,524 $4,076 $1,229 (3) Investment in Mainland China (a) Investment situation: Amount: US Dollars/Thousands of NTD Investee Company Main Businesses and Products Total Amount of Paid-in Capital (Note 4) Method of Investment Accumulated outflow of Investment from Taiwan as of January 1, 2025 (Note 4) Investment Flows Accumulated outflow of Investment from Taiwan as of September 30, 2025 (Note 4) Percentage of Ownership Net Income (Losses) of the Investee Company Share of Profits /(Losses) (Note 3) Carrying Amount as of September 30, 2025 (Note 3) Accumulated Inward Remittance of Earnings as of September 30, 2025 Outflow Inflow ITE Tech. (Shenzhen) Inc. Technological consultation services for ICs products, sales of IC chips and products. $18,321 USD 600,000 Direct investment in Mainland China (Note 1) $18,321 USD 600,000 $- $- $18,321 USD 600,000 100% $145 $145 $2,526 $-
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 60 - Accumulated Investment in Mainland China as of September 30, 2025 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment $18,321 (Note 4) (USD600,000) $18,321 (Note 4) (USD600,000) $3,980,182 (Note 2) Note 1: The Company has been approved the investment which that changed the investment structure and directly invested in ITE Tech. (Shenzhen) Inc. by the Investment Commission, MOEA. Note 2: lBased on Regulations Governing the Approval of Investment or Technical Cooperation in the Mainland China promulgated by Investment Commission, MOEA. Note 3: According to regulations, it may be evaluated based on the financial statements of the investee company un-reviewed by the accountant during the same period. Note 4: Converted to NTD at the exchange rate on the financial reporting date (1 USD=30.535NTD). (b) Significant direct or indirect transactions with the investees in Mainland China: I. The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: None. II. The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: None. III.The amount of property transactions and the amount of the resultant gains or losses: None. IV.The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None. V. The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: None. VI.Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services: Please refer to Note 13(1) (f).
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English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated) - 61 - 14. Segment information General Information The products of the Group are all related to integrated circuit design products and the chief operating decision maker reviews the Group’s operating results as a whole to make decisions about resources to be allocated and assess its performance; therefore, the Group is considered a single segment. The preparation basis of the segment is the same with the preparation of this financial statements, and the policies are the same with those mentioned in Note 4, Summary of Material Accounting Policies.