Interim report
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- 1 - Richwave Technology Corp. And Subsidiaries Consolidated Financial Statements for the Nine Months Ended September 30, 2026 and 2025 and Independent Auditors’ Review Report
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- 2 - INDEPENDENT AUDITORS’ REVIEW REPORT The Board of Directors and Shareholders Richwave Technology Corp. Introduction We have reviewed the accompanying consolidated balance sheets of Richwave Technology Corp. and its subsidiaries (collectively, the “Group”) as of September 30, 2026 and 2025, the related consolidated statements of comprehensive income for the three months ended September 30, 2026 and 2025 and for the nine months ended September 30, 2026 and 2025, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financ ial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Comm ission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2026 and 2025 and for the three months ended September 30, 2026 and 2025, and of its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2026 and 2025 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
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- 3 - The engagement partners on the reviews resulting in this independent auditors’ review report are Su-Li Fang and Chih-Y uan Wen. Deloitte & Touche Taipei, Taiwan Republic of China October 29, 2026 Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent aud itors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the origina l Chinese version or any difference in the interpretation of the two versions, the Chinese -language independent auditors’ review report and consolidated financial statements shall prevail.
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- 4 - RICHWA VE TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) September 30, 2026 (Reviewed) December 31, 2025 (Audited) September 30, 2025 (Reviewed) ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents (Notes 6 and 26) $ 928,123 26 $ 704,595 19 $ 856,490 25 Financial assets at amortized cost - current (Notes 7 and 26) 95,000 3 555,867 15 301,068 9 Trade receivables, net (Notes 8, 19 and 26) 1,444,186 41 1,289,891 35 1,310,064 38 Other receivables (Notes 8 and 26) 98,990 3 83,155 3 66,563 2 Current tax assets - - 2,662 - 4,630 - Inventories (Note 9) 585,642 17 651,557 18 530,805 15 Prepayments (Note 14) 21,910 1 42,711 1 52,703 1 Other current assets (Note 14) 1,164 - 1,449 - 1,479 - Total current assets 3,175,015 91 3,331,887 91 3,123,802 90 NON-CURRENT ASSETS Financial assets at amortized cost - non-current (Notes 7, 26 and 28) 9,900 - 9,900 - 9,900 - Property , plant and equipment (Note 11) 100,769 3 121,794 4 134,324 4 Right-of-use assets (Note 12) 70,096 2 76,084 2 83,639 2 Other intangible assets (Note 13) 32,163 1 34,595 1 30,144 1 Deferred tax assets (Notes 4 and 21) 85,345 3 79,942 2 90,158 3 Prepayments for equipment 7,543 - 5,571 - 4,366 - Refundable deposits (Note 26) 6,730 - 6,730 - 6,730 - Net defined benefit assets - non-current (Notes 4 and 17) 8,086 - 7,562 - 5,457 - Total non-current assets 320,632 9 342,178 9 364,718 10 TOTAL $ 3,495,647 100 $ 3,674,065 100 $ 3,488,520 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Trade payables (Notes 15 and 26) $ 376,759 11 $ 489,480 13 $ 383,002 11 Accrued profit sharing to employees and bonus to directors (Note 20) 41,024 1 30,928 1 33,330 1 Other payables (Notes 16 and 26) 113,633 3 149,646 4 136,438 4 Current tax liabilities 24,643 1 18,904 - 8,402 - Lease liabilities – current (Notes 12 and 26) 30,788 1 30,577 1 31,614 1 Refund liabilities – current (Notes 16 and 19) 111,965 3 106,230 3 145,992 4 Other current liabilities (Notes 16 and 19) 13,587 - 37,379 1 59,532 2 Total current liabilities 712,399 20 863,144 23 798,310 23 NON-CURRENT LIABILITIES Deferred tax liabilities (Notes 4 and 21) 2,971 - 8,165 - 5,744 - Lease liabilities - non-current (Notes 12 and 26) 39,666 1 45,929 2 52,506 2 Guarantee deposits (Note 26) 6,440 1 6,355 - 6,156 - Total non-current liabilities 49,077 2 60,449 2 64,406 2 Total liabilities 761,476 22 923,593 25 862,716 25 EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT (Notes 18 and 23) Share capital Ordinary shares 922,099 26 922,099 25 922,099 26 Capital surplus 900,389 26 900,389 25 899,559 26 Retained earnings Legal reserve 253,194 7 228,527 6 228,527 7 Unappropriated earnings 652,766 19 697,373 19 576,851 16 Total retained earnings 905,960 26 925,900 25 805,378 23 Other equity 5,723 - 2,084 - (1,232 ) - Total equity 2,734,171 78 2,750,472 75 2,625,804 75 TOTAL $ 3,495,647 100 $ 3,674,065 100 $ 3,488,520 100 The accompanying notes are an integral part of the consolidated financial statements.
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- 5 - RICHW AVE TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share, in New Taiwan Dollars) (Reviewed, Not Audited) For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Amount % Amount % Amount % Amount % NET OPERA TING REVENUE (Note 19) $ 972,539 100 $ 985,899 100 $ 2,880,078 100 $ 2,809,730 100 OPERA TING COSTS (Notes 9 and 20) 651,429 67 614,076 62 1,916,566 67 1,818,790 65 GROSS PROFIT 321,110 33 371,823 38 963,512 33 990,940 35 OPERA TING EXPENSES (Notes 17 and 20) Selling and marketing expenses 55,194 6 52,584 5 162,633 6 156,343 6 General and administrative expenses 72,330 7 62,507 7 208,786 7 188,958 7 Research and development expenses 165,029 17 174,937 18 501,280 17 488,452 17 Expected credit loss (gain) (Note 8) 2 - (965 ) - (89 ) - (1,586 ) - Total operating expenses 292,555 30 289,063 30 872,610 30 832,167 30 PROFIT FROM OPERA TIONS 28,555 3 82,760 8 90,902 3 158,773 5 NON-OPERA TING INCOME AND EXPENSES (Notes 20 and 24) Interest income 8,068 1 9,894 1 25,671 1 23,344 1 Other income 389 - 13,718 2 11,960 - 40,750 1 Other gains and losses 1,109 - 50,757 5 14,982 1 (69,218 ) (2 ) Finance costs (379 ) - (536 ) - (657 ) - (1,584 ) - Total non-operating income and expenses 9,187 1 73,833 8 51,956 2 (6,708 ) - PROFIT BEFORE INCOME TAX 37,742 4 156,593 16 142,858 5 152,065 5 INCOME TAX EXPENSE (Notes 4 and 21) (2,535 ) - (27,133 ) (3 ) (15,262 ) - (25,917 ) (1 ) NET PROFIT FOR THE PERIOD 35,207 4 129,460 13 127,596 5 126,148 4 OTHER COMPREHENSIVE INCOME Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations 830 - 2,681 - 3,639 - (3,223 ) - Other comprehensive income for the period, net of income tax 830 - 2,681 - 3,639 - (3,223 ) - TOTAL COMPREHENSIVE INCOME FOR THE PERIOD $ 36,037 4 $ 132,141 13 $ 131,235 5 $ 122,925 4 EARNINGS PER SHARE (Note 22) From continuing and discontinued operations Basic $ 0.38 $ 1.40 $ 1.38 $ 1.37 Diluted $ 0.38 $ 1.40 $ 1.38 $ 1.37 The accompanying notes are an integral part of the consolidated financial statements.
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- 6 - RICHW A VE TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited) Share Capital Retained Earnings Other Equity Share (Thousands) Share Capital Advance receipts for share capital Capital Surplus Legal Reserve Special Reserve Unappropriated earnings Unrealized Loss on Financial Assets at Fair Value Through Other Comprehensive Income Exchange Differences on Translation of the Financial Statements of Foreign Operations Total Total Equity BALANCE A T JANUARY 1, 2025 90,682 $ 906,825 $ 12,146 $ 858,718 $ 212,694 $ 710 $ 566,931 $ (14) $ 2,005 $ 1,991 $2,560,015 Appropriation of 2024 earnings Legal reserve - - - - 15,833 - (15,833) - - - - Special reserve - - - - - (710) 710 - - - - Cash dividends distributed by the Company - - - - - - (101,105) - - - (101,105) Net profit for the nine months ended September 30, 2025 - - - - - - 126,148 - - - 126,148 Other comprehensive loss for the nine months ended September 30, 2025, net of income tax - - - - - - - - (3,223) (3,223) (3,223) Compensation cost of employee share options - - - 1,576 - - - - - - 1,576 Convertible bonds converted to ordinary shares 1,528 15,274 (12,146) 39,265 - - - - - - 42,393 BALANCE A T SEPTEMBER 30, 2025 92,210 $ 922,099 $ - $ 899,559 $ 228,527 $ - $ 576,851 $ (14) $ (1,218) $ (1,232) $2,625,804 BALANCE A T JANUARY 1, 2026 92,210 $ 922,099 $ - $ 900,389 $ 228,527 $ - $ 697,373 $ (14) $ 2,098 $ 2,084 $2,750,472 Appropriation of 2025 earnings Legal reserve - - - - 24,667 - (24,667) - - - - Cash dividends distributed by the Company - - - - - - (147,536) - - - (147,536) Net profit for the nine months ended September 30, 2026 - - - - - - 127,596 - - - 127,596 Other comprehensive income for the nine months ended September 30, 2026, net of income tax - - - - - - - - 3,639 3,639 3,639 BALANCE A T SEPTEMBER 30, 2026 92,210 $ 922,099 $ - $ 900,389 $ 253,194 $ - $ 652,766 $ (14) $ 5,737 $ 5,723 $2,734,171 The accompanying notes are an integral part of the consolidated financial statements.
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- 7 - RICHWA VE TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited) For the Nine Months Ended September 30 2026 2025 CASH FLOWS FROM OPERA TING ACTIVITIES Profit before income tax for the period $ 142,858 $ 152,065 Adjustments for: Depreciation expense 72,616 85,255 Amortization expense 26,187 29,951 Expected credit loss reversed on trade receivables (89 ) ( 1,586) Net loss on fair value changes of financial assets at fair value through profit or loss - 97 Finance costs 657 1,584 Interest income (25,671 ) (23,344 ) Compensation cost of employee share options - 1,576 Gain on disposal of property, plant and equipment - 45,743 Write-down of inventories 22,607 (2 ) Net loss on foreign currency exchange 29,921 14,204 Changes in operating assets and liabilities Trade receivables (171,004 ) (140,114 ) Other receivables (17,199 ) (2,000 ) Inventories 43,308 47,032 Net defined benefit assets (524 ) (509 ) Prepayments 20,801 24,470 Other current assets 285 61 Contract liabilities (22,525 ) 35,067 Trade payables (110,126 ) 89,737 Other payables (29,314 ) (6,431 ) Accrued profit sharing to employees and bonus to directors 10,096 12,697 Refund liabilities 5,735 35,496 Other current liabilities (1,267 ) (10,640 ) Cash generated from operations (2,648 ) 390,409 Interest received 27,035 21,598 Interest paid (657 ) (1,192 ) Income tax paid (17,458 ) (2,200 ) Net cash generated from operating activities 6,272 408,615 (Continued)
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- 8 - RICHWA VE TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited) For the Nine Months Ended September 30 2026 2025 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost $ (235,000 ) $ (562,540 ) Proceeds from sale of financial assets at amortized cost 687,413 263,056 Payments for property, plant and equipment (27,962 ) (35,391 ) Proceeds from disposal of property, plant and equipment - 3 Increase in refundable deposits - (64 ) Decrease in refundable deposits - 440 Payments for intangible assets (30,622 ) (30,442 ) Net cash generated from (used in) investing activities 393,829 (364,938 ) CASH FLOWS FROM FINANCING ACTIVITIES Redemption of convertible bonds - (21,400 ) Repayments of Lease principal (24,625 ) (23,937 ) Payment of company's owner dividend (147,536 ) (101,105 ) Net cash used in financing activities (172,161 ) (146,442 ) EFFECT OF EXCHANGE RA TE CHANGES ON CASH AND CASH EQUIV ALENTS (4,412 ) (54,110 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIV ALENTS 223,528 (156,875 ) CASH AND CASH EQUIV ALENTS A T THE BEGINNING OF THE PERIOD 704,595 1,013,365 CASH AND CASH EQUIV ALENTS A T THE END OF THE PERIOD $ 928,123 $ 856,490 (Concluded) The accompanying notes are an integral part of the consolidated financial statements.
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- 9 - RICHWA VE TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited) 1. GENERAL INFORMATION Richwave Technology Corp. (the “Company”) was incorporated in the Republic of China (ROC) in January 2004. The Company is mainly engaged in the des ign and sale of integrated circuits (ICs) for wireless communication products. The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since November 2015. The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar. Richwave Technology Corp. and its subsidiaries are collectively referred to as the “Group” hereinafter. 2. APPROV AL OF FINANCIAL STATEMENTS The consolidated financial statements were approved by the Company’s board of d irectors on October 29, 2026. 3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS a. The IFRS Accounting Standards endorsed by the FSC for application starting from 2027 New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note 1) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19) January 1, 2027 Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency” January 1, 2027 Amendments to IAS 28 “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures” January 1, 2027 (Note 2) Note 1: IFRS 18 will take effect starting from January 1, 2028 for domestic entities. Earlier application is permitted. Note 2: An entity shall apply the amendments when it applies IFRS 18. 1) IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendmen ts and Amendments to IAS 28 “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures” IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise: To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group
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- 10 - shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers. The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss. Provides guidance to enhance the requirement s of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label. Disclosures on Management -defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculatio ns, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items. At the date of initial application of IFRS 18, an entity that is a venture capita l organization, mutual fund, unit trust or similar entity is permitted to change its election from measuring an investment in an associate or joint venture from the equity method to fair value through profit or loss. The amendments to IAS 28 clarify that aforementioned “similar entity” includes the entity that performs the assessments in accordance with the requirements of IFRS 18 and concludes that it has a main business activity of investing in particular types of assets. If eligible, the Group may apply the transition upon initial application. In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”: The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method. Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the sta tement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows. The Group has decided not to apply IFRS 18 and consequential amendments earlier. Except for the above impact, as of t he date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.
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- 11 - b. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB (Note) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” To be determined by IASB IFRS 20 “Regulatory Assets and Regulatory Liabilities” January 1, 2029 Note: Unless stated otherwise, the above IFRS A ccounting Standards are effective for annual reporting periods beginning on or after their respective effective dates. 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” The amendments stipulate that, when the Group sells or contributes assets that constitute a business (as defined in IFRS 3) to an associate or joint venture, the gain or loss resulting from the transaction is recognized in full. Also, when the Group loses control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full. Conversely, when the Group sells or contributes assets that do not constitute a business to an associate or joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Group’s interest as an unrelated investor in the associate or joint venture, i.e., the Group’s share of the gain or loss is eliminated. Als o, when the Group loses control of a subsidiary that does not contain a business but retains significant influence or joint control over an associate or a joint venture, the gain or loss resulting from the transaction is recognized only to the extent of th e Group’s interest as an unrelated investor in the associate or joint venture, i.e., the Group’s share of the gain or loss is eliminated. As of the date the consolidated financial statements w ere authorized for issue, the Group is continuously assessing the impacts of the above amended standards and interpretations on the Group ’s financial position and financial performance and will disclose the relevant impact when the assessment is completed. 4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION a. Statement of compliance These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issue d into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements. b. Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for net defined benefit assets which are measured at the present value of the defined benefit obligation less the fair value of plan assets. c. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries, including structured entities).
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- 12 - When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owne rs of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non -controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non -controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company. See Note 1 0, Table 2 and Table 3 for detailed information on subsidiar ies (including percentages of ownership and main businesses). d. Other material accounting policies Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2025. 1) Retirement benefits Pension co st 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 for significant market fluctuations since that time and for significant plan amendments, s ettlements, or other significant one-off events 2) Income tax expense Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an int erim period's pre-tax income the tax rate that would be applicable to expected total annual earnings. 5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY For the critical accounting judgments and key sources of estimation, uncer tainty and assumption applied in these consolidated financial statements, please refer to the consolidated financial statements for the year ended December 31, 2025.
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- 13 - 6. CASH AND CASH EQUIV ALENTS September 30, 2026 December 31, 2025 September 30, 2025 Cash on hand $ 1,015 $ 616 $ 778 Demand deposits 190,363 229,618 180,777 Cash equivalents Time deposits with original maturities of 3 months or less 736,745 474,361 674,935 $ 928,123 $ 704,595 $ 856,490 The market rate intervals of cash and time deposits with original maturities of 3 months or less at the end of the reporting period were as follows: September 30, 2026 December 31, 2025 September 30, 2025 Bank balance 0.03%-3.60% 0.03%~3.42% 0.03%~3.74% Time deposits with original maturities of 3 months or less 1.505%-4.10% 1.505%~4.13% 1.55%~4.49% 7. FINANCIAL ASSETS AT AMORTIZED COST September 30, 2026 December 31, 2025 September 30, 2025 Current Time deposits with original maturities of more than 3 months (a) $ 95,000 $ 555,867 $ 301,068 Non-current Pledged Certificate of deposit (b) $ 9,900 $ 9,900 $ 9,900 a. The range of interest rate s for time deposits with original maturities of more than 3 months was approximately 1.60%-1.62%, 1.57%-4.31% and 1.62%-4.31% per annum as of September 30, 2026, December 31, 2025 and September 30, 2025, respectively. b. The rang es of interest rates for time deposits with original maturities of more than 1 year were approximately 1.65% p er annum as of September 30, 2026, December 31, 2025 and September 30, 2025, respectively. Refer to Note 28 for information relating to investment s in financial assets at amortized cost pledged as security.
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- 14 - 8. ACCOUNTS RECEIV ABLE AND OTHER RECEIV ABLES September 30, 2026 December 31, 2025 September 30, 2025 Accounts receivable (Note 19) At amortized cost Gross carrying amount $ 1,446,107 $ 1,291,901 $ 1,313,295 Less: Allowance for impairment loss (1,921 ) (2,010 ) (3,231 ) $ 1,444,186 $ 1,289,891 $ 1,310,064 Other receivables Tax refund receivable $ 73,927 $ 52,581 $ 37,390 Interest receivable 3,585 4,949 4,611 Others 21,478 25,625 24,562 $ 98,990 $ 83,155 $ 66,563 The average credit period on sales of goods was 30 to 90 days. In order t o minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow -up action is taken to recover overdue debts. In addition, the Group r eviews the recoverable amount of each individual trade debt at balance sheet dates to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced. The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates and industry outlook. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base. The Group writes off an accounts receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For accounts receivable that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss. The following table details the loss allowance of accounts receivable based on the Group’s provision matrix. September 30, 2026 Not Past Due 1 to 30 Days Past Due 31 to 60 Days Past Due 61 to 90 Days Past Due 91 to 180 Days Past Due Over 180 Days Past Due Individual Identification Total Expected credit loss rate 0.01% 0.08% 0.09% 0.21% 1.46%~15.71% - 100% Gross carrying amount $ 1,396,108 $ 23,650 $ 16,376 $ 6,455 $ 1,768 $ - $ 1,750 $ 1,446,107 Loss allowance (Lifetime ECLs) (96 ) (20 ) (15 ) (14 ) (26 ) - (1,750 ) (1,921 ) Amortized cost $ 1,396,012 $ 23,630 $ 16,361 $ 6,441 $ 1,742 $ - $ - $ 1,444,186
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- 15 - December 31, 2025 Not Past Due 1 to 30 Days Past Due 31 to 60 Days Past Due 61 to 90 Days Past Due 91 to 180 Days Past Due Over 180 Days Past Due Individual Identification Total Expected credit loss rate 0.01% 0.10% 0.94% 2.76% 7.61%~17.09% - 100% Gross carrying amount $ 1,197,695 $ 88,778 $ 582 $ 3,059 $ 38 $ - $ 1,749 $ 1,291,901 Loss allowance (Lifetime ECLs) (79 ) (85 ) (5 ) (85 ) (7 ) - (1,749 ) (2,010 ) Amortized cost $ 1,197,616 $ 88,693 $ 577 $ 2,974 $ 31 $ - $ - $ 1,289,891 September 30, 2025 Not Past Due 1 to 30 Days Past Due 31 to 60 Days Past Due 61 to 90 Days Past Due 91 to 180 Days Past Due Over 180 Days Past Due Individual Identification Total Expected credit loss rate 0.01% 0.28% 0.92% 2.73% 7.51%~15.73% 100% 100% Gross carrying amount $ 1,296,623 $ 7,375 $ 4,002 $ 1,569 $ 794 $ 862 $ 2,070 $ 1,313,295 Loss allowance (Lifetime ECLs) (122 ) (20 ) (37 ) (43 ) (77 ) (862 ) (2,070 ) (3,231 ) Amortized cost $ 1,296,501 $ 7,355 $ 3,965 $ 1,526 $ 717 $ - $ - $ 1,310,064 The movements of the loss allowance of accounts receivable were as follows: For the Nine Months Ended September 30 2026 2025 Balance at January 1 $ 2,010 $ 4,817 Less: Net remeasurement of loss allowance (89) (1,586) Balance at September 30 $ 1,921 $ 3,231 9. INVENTORIES September 30, 2026 December 31, 2025 September 30, 2025 Finished goods $ 170,379 $ 194,746 $ 142,389 Work in progress 230,566 263,125 239,503 Raw materials 184,697 193,686 148,913 $ 585,642 $ 651,557 $ 530,805 The nature of the cost of goods sold is as follows: For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Cost of inventories sold $ 655,504 $ 617,991 $ 1,896,384 $ 1,805,498 Inventory write-downs (reversed) (1,874 ) (3,003 ) 22,607 14,204 Revenue from sale of scraps (2,201 ) (912 ) (2,425 ) (912 ) $ 651,429 $ 614,076 $ 1,916,566 $ 1,818,790
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- 16 - 10. SUBSIDIARIES a. Subsidiaries included in the consolidated financial statements Proportion of Ownership (%) September 30, December 31, September 30, Investor Investee Nature of Activities 2026 2025 2025 Remark Richwave Technology Corp. Yinghon Technology Co. Development, manufacturing and sales of ICs 100 100 100 2 Richwave Technology Corp. AEGIS LINK CORP. Selling and marking 100 100 100 1 Remark: 1) In December 2018, the Company established Minerva Technology Co. in Belize with an investment of USD550 thousand. Minerva Technology Co. reinvested in and established AE GIS LINK CORP. in USA with USD500 thousand in January 2019 . In May 2023, the Company acquired 100% of the shares of AEGIS LINK CORP . at USD 395 thousand from Minerva Technology Co. For details of the investment refer to Table 2. 2) In May 202 1, the Company established Shenzhen Richwave Technology Co. Ltd. in Shen Zhen with an investment of USD 1,000 thousand. Shenzhen Richwave Technology Co. Ltd. was renamed to Yinghon Technology Co. in September 2021. On February 24, 202 2, the board of directors approved a capital increase of USD 1,000 thousand to Yinghon Technology Co . Investment Commission, MOEA approved the capital increase on April 14, 20 22, and the Company completed the capital increase in June 2022. Information on investments in mainland China please refer to Table 3. 11. PROPERTY, PLANT AND EQUIPMENT Testing Equipment Computer Equipment Other Equipment Total Cost Balance at January 1, 2026 $ 234,685 $ 52,594 $ 248,162 $ 535,441 Additions 1,237 4,453 20,844 26,534 Disposals - - (2,852 ) (2,852 ) Effects of foreign currency exchange differences - 172 801 973 Balance at September 30, 2026 $ 235,922 $ 57,219 $ 266,955 $ 560,096 (Continued)
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- 17 - Testing Equipment Computer Equipment Other Equipment Total Accumulated depreciation Balance at January 1, 2026 $ 177,688 $ 33,663 $ 202,296 $ 413,647 Depreciation expense 19,413 5,707 22,938 48,058 Disposals - - (2,852 ) (2,852 ) Effects of foreign currency exchange differences - 112 362 474 Balance at September 30, 2026 $ 197,101 $ 39,482 $ 222,744 $ 459,327 Carrying amount at September 30, 2026 $ 38,821 $ 17,737 $ 44,211 $ 100,769 Carrying amount at December 31, 2025 $ 56,997 $ 18,931 $ 45,866 $ 121,794 Cost Balance at January 1, 2025 $ 226,857 $ 41,389 $ 229,740 $ 497,986 Additions 5,613 7,341 23,257 36,211 Disposals - (769 ) (3,419 ) (4,188 ) Transfers from prepayments 1,400 - - 1,400 Effects of foreign currency exchange differences - (131 ) (505 ) (636 ) Balance at September 30, 2025 $ 233,870 $ 47,830 $ 249,073 $ 530,773 Accumulated depreciation Balance at January 1, 2025 $ 145,730 $ 27,056 $ 166,792 $ 339,578 Depreciation expense 24,464 5,542 31,297 61,303 Disposals - (768 ) (3,419 ) (4,187 ) Effects of foreign currency exchange differences - (57 ) (188 ) (245 ) Balance at September 30, 2025 $ 170,194 $ 31,773 $ 194,482 $ 396,449 Carrying amount at September 30, 2025 $ 63,676 $ 16,057 $ 54,591 $ 134,324 (Concluded) The above items of property, plant and equipment used by the Group are depreciated on a straight-line basis over their estimated useful lives as follows: Testing equipment 1-6 years Computer equipment 3-6 years Other equipment 1-6 years
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- 18 - 12. LEASE ARRANGEMENTS a. Right-of-use assets September 30, 2026 December 31, 2025 September 30, 2025 Carrying amount Buildings $ 70,096 $ 76,084 $ 83,639 For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Additions to right-of-use assets $ 18,269 $ 2,770 Depreciation charge for right-of-use assets Buildings $ 8,298 $ 7,868 $ 24,558 $ 23,952 Income from the subleasing of right-of-use assets (presented in other income) $ (264) $ (218) $ (775) $ (587) Except for the aforementioned addition and recognized depreciation, the Group did not have si gnificant sublease or impairment of right -of-use assets during the nine months ended September 30, 2026 and 2025. b. Lease liabilities September 30, 2026 December 31, 2025 September 30, 2025 Carrying amount Current $ 30,788 $ 30,577 $ 31,614 Non-current $ 39,666 $ 45,929 $ 52,506 Range of discount rate for lease liabilities was as follows: September 30, 2026 December 31, 2025 September 30, 2025 Buildings 1.50%~3.50% 1.50%~3.50% 1.50%~3.50% c. Material leasing activities and terms The Group leases buildings for the use of plants, offices, staff dormitories and parking spaces with lease terms of 1 to 5 years. The Group does not have bargain purchase options to acquire the le asehold buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.
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- 19 - d. Other lease information For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Expenses relating to short-term leases $ 1,227 $ 1,166 $ 3,582 $ 3,612 Total cash outflow for leases $ (28,858) $ (28,202) The Group’s leases of certain parking spaces, offices and staff dormitories qualify as short -term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right -of-use assets and lease liabilities for these leases. 13. OTHER INTANGIBLE ASSETS Computer Software Specialized Techniques Trademarks Total Cost Balance at January 1, 2026 $ 45,155 $ 3,500 $ 555 $ 49,210 Additions 23,729 - - 23,729 Disposals (14,900 ) - - (14,900 ) Effects of foreign currency exchange differences - - 31 31 Balance at September 30, 2026 $ 53,984 $ 3,500 $ 586 $ 58,070 Accumulated amortization Balance at January 1, 2026 $ 12,298 $ 2,251 $ 66 $ 14,615 Additions 25,918 226 43 26,187 Disposals (14,900 ) - - (14,900 ) Effects of foreign currency exchange differences - - 5 5 Balance at September 30, 2026 $ 23,316 $ 2,477 $ 114 $ 25,907 Carrying amount at September 30, 2026 $ 30,668 $ 1,023 $ 472 $ 32,163 Carrying amount at December 31, 2025 $ 32,857 $ 1,249 $ 489 $ 34,595 (Continued)
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- 20 - Computer Software Specialized Techniques Trademarks Total Cost Balance at January 1, 2025 $ 55,797 $ 3,500 $ 82 $ 59,379 Additions 16,040 - - 16,040 Effects of foreign currency exchange differences - - (4 ) (4 ) Balance at September 30, 2025 $ 71,837 $ 3,500 $ 78 $ 75,415 Accumulated amortization Balance at January 1, 2025 $ 13,408 $ 1,900 $ 13 $ 15,321 Additions 29,682 263 6 29,951 Effects of foreign currency exchange differences - - (1 ) (1 ) Balance at September 30, 2025 $ 43,090 $ 2,163 $ 18 $ 45,271 Carrying amount at September 30, 2025 $ 28,747 $ 1,337 $ 60 $ 30,144 (Concluded) Other intangible assets are amortized on a straight-line basis over their estimated useful lives as follows: Computer software 1-6 years Specialized techniques 10 years Trademarks 10 years 14. OTHER ASSETS September 30, 2026 December 31, 2025 September 30, 2025 Current Prepayments Prepayment for purchases $ 13,668 $ 35,482 $ 43,724 Prepaid expenses 8,242 7,229 8,979 $ 21,910 $ 42,711 $ 52,703 Other current assets Temporary payments $ 1,164 $ 1,449 $ 1,479
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- 21 - 15. ACCOUNTS PAYABLE September 30, 2026 December 31, 2025 September 30, 2025 Accounts payable Generated from operating activities $ 376,759 $ 489,480 $ 383,002 The average credit period was 30 to 60 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. 16. OTHER LIABILITIES September 30, 2026 December 31, 2025 September 30, 2025 Current Other payables Payables for salaries and bonuses $ 57,330 74,977 $ 68,156 Payables for insurance premium 13,993 12,790 12,744 Payables for annual leave 12,186 11,735 12,448 Payables for purchases of equipment 6,711 6,456 5,169 Payables for research and design fee 4,315 7,464 19,691 Payables for freight cost 3,911 4,154 4,425 Payables for software usage fee 1,392 8,285 839 Payables for testing fee 1,218 1,315 608 Others 12,577 22,470 12,358 $ 113,633 $ 149,646 $ 136,438 Refund liabilities (Note 19) $ 111,965 $ 106,230 $ 145,992 Other liabilities Receipts under custody $ 8,496 $ 8,763 $ 7,910 Contract liabilities (Note 19) 5,091 27,616 37,122 Deferred revenue (Note 24) - 1,000 14,500 $ 13,587 $ 37,379 $ 59,532 17. RETIREMENT BENEFIT PLANS a. Defined contribution plan Apart from Yinghon Technology Co., the Group adopted a pension plan under the Labor Pension Act (LPA), which is a state -managed defined contribut ion plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.
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- 22 - b. Defined benefit plan For the three months ended and nine month ended September 30, 2026 and 2025, the pension expenses of defined benefit plans were $(25) thousand, $ (20) thousand, $(74) thousand and $ (59) thousand, respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2025 and 2024, respectively. 18. EQUITY a. Ordinary shares September 30, 2026 December 31, 2025 September 30, 2025 Number of shares authorized (in thousands of shares) 200,000 200,000 200,000 Shares authorized $ 2,000,000 $ 2,000,000 $ 2,000,000 Number of shares issued and fully paid (in thousands of shares) 92,210 92,210 92,210 Shares issued and fully paid $ 922,099 $ 922,099 $ 922,099 A holder of ordinary shares issued with par value of $10 is entitled to vote and to receive dividends. The authorized shares include 10,000 thousand shares reserved for the exercise of employee share options. The change in the Company’s share capital for the year ended December 31, 2025 was mainly due to the conversion of unsecured domestic convertible bonds into ordinary shares. Bondholders converted the Company's ordinary shares of $15,274 thousand (1,528 thousand shares). On February 27 and April 30, 2025, the Company’s board of directors resolved to set March 5 and May 5, 2025 as the subscription base date, and the Company has completed the alteration registration on March 31 and August 29, 2025, respectively. b. Capital surplus September 30, 2026 December 31, 2025 September 30, 2025 Maybe used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Issuance of ordinary shares $ 497,045 $ 497,045 $ 497,045 Issuance of ordinary shares (exercised or expired employee share options) 96,246 93,806 87,517 Conversion of bonds 279,887 279,887 279,887 May not be used for any purpose Employee share options 27,211 29,651 35,110 $ 900,389 $ 900,389 $ 899,559
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- 23 - 1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and to once a year). c. Retained earnings and dividends policy Under the dividends policy as set forth in the Company’s Articles of Incorporation (“Articles”), where the Company made a profit in a fiscal year, the profit shall be first utilized for paying tax es, offsetting losses of previous years, setting aside a legal reserve of 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed r etained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses t o shareholders. Refer to Note 20(g) for the policies on the distribution of compensation of employees and remuneration of directors. The Company’s Articles also stipulate a balanced and stable dividends policy whereby share and cash dividends are distributed based on the Company’s profitability , financial structure and future development plans. Dividends may be distributed in form of cash or shares taking into consideration future profitability and funding needs, out of which the total cash dividends paid in any given year shall be at least 10% of the total dividends distributed. Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficits and the legal r eserve has exceeded 25% of the Company’s paid -in capital, the excess may be transferred to capital or distributed in cash. The appropriations of earnings for 2025 and 2024 that had been resolved by the shareholders in their meetings on May 28, 2026 and May 29, 2025, respectively, were as follows: Appropriation of Earnings For the Year Ended December 31 2025 2024 Legal reserve $ 24,667 $ 15,833 Reversal of special reserve $ - $ (710) Cash dividends $ 147,536 $ 101,105 Cash dividends per share (NT$) $ 1.6 $ 1.1 d. Special reserve For the Nine Months Ended September 30 2026 2025 Balance at January 1 $ - $ 710 Reversals: Reversal of the debits to other equity items - (710) Balance at September 30 $ - $ -
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- 24 - e. Other equity items 1) Exchange differences on translation of the financial statements of foreign operations For the Nine Months Ended September 30 2026 2025 Balance at January 1 $ 2,098 $ 2,005 Recognized for the year Exchange differences on translation of the financial statements of foreign operations 3,639 (3,223) Balance at September 30 $ 5,737 $ (1,218) 2) Unrealized gain (loss) on financial assets at FVTOCI For the Nine Months Ended September 30 2026 2025 Balance at January 1 and September 30 $ (14) $ (14) 19. REVENUE a. Contract revenue from customers For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Revenue from the sale of goods $ 972,539 $ 985,899 $2,880,078 $2,809,730 b. Contract information As wireless communication products are innovative and the prices are highly volatile, the disco unt is estimated at the most likely amount based on the range of discounts given in the past. The Group estimates the allowances rate based on most likely amount from past experience, and recognizes the refund liabilities accordingly. c. Contract balances September 30, 2026 December 31, 2025 September 30, 2025 January 1, 2025 Accounts receivable (Note 8) $ 1,444,186 $ 1,289,891 $ 1,310,064 $ 1,165,240 Contract liabilities (Note 16) Sale of goods $ 5,091 $ 27,616 $ 37,122 $ 2,055
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- 25 - d. Disaggregation of revenue For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Type of goods or services WIFI products $ 845,181 $ 858,018 $ 2,507,572 $ 2,326,681 Wireless audio and video products 34,460 13,195 99,540 192,322 Others 92,898 114,686 272,966 290,727 $ 972,539 $ 985,899 $ 2,880,078 $ 2,809,730 20. NET PROFIT a. Interest income For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Bank deposits $ 8,049 $ 9,876 $ 25,606 $ 23,280 Deposit interest 19 18 65 64 $ 8,068 $ 9,894 $ 25,671 $ 23,344 b. Other income For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Government grant $ - $ 13,500 $ 11,000 $ 39,112 Rental income 264 218 775 587 Others 125 - 185 1,051 $ 389 $ 13,718 $ 11,960 $ 40,750 c. Other gains and losses For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Net foreign exchange gains (loss) $ 1,111 $ 50,758 $ 14,988 $ (69,113 ) Fair value changes of financial assets designated as at FVTPL - - - (97 ) Gains on disposal of property, plant and equipment - - - 2 Others (2 ) (1 ) (6 ) (10 ) $ 1,109 $ 50,757 $ 14,982 $ (69,218 )
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- 26 - d. Finance costs For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Interest on lease liabilities $ 379 $ 181 $ 651 $ 653 Interest on bank loans - 323 6 539 Interest on convertible bonds - 32 - 392 $ 379 $ 536 $ 657 $ 1,584 e. Depreciation and amortization For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 An analysis of depreciation by function Selling and marketing expenses $ 2,054 $ 2,814 $ 6,156 $ 8,367 General and administrative expenses 6,265 5,807 18,445 18,168 Research and development expenses 15,429 19,542 48,015 58,720 $ 23,748 $ 28,163 $ 72,616 $ 85,255 An analysis of amortization by function Selling and marketing expenses $ 107 $ 104 $ 316 $ 139 General and administrative expenses 527 737 2,126 4,335 Research and development expenses 9,010 8,901 23,745 25,477 $ 9,644 $ 9,742 $ 26,187 $ 29,951 f. Employee benefits expense For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Post-employment benefits (Note 17) Defined contribution plans $ 7,205 $ 5,247 $ 17,903 $ 15,406 Defined benefit plans (25 ) (20 ) (74 ) (59 ) 7,180 5,227 17,829 15,347 Share-based payments Equity-settled - 525 - 1,576 Other employee benefits 162,353 168,082 488,708 459,345 Total employee benefits expense $ 169,533 $ 173,834 $ 506,537 $ 476,268 (Continued)
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- 27 - For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 An analysis of employee benefits expense by function Selling and marketing expenses $ 32,321 $ 31,438 $ 95,669 $ 88,397 General and administrative expenses 32,962 34,166 98,736 93,916 Research and development expenses 104,250 108,230 312,132 293,955 $ 169,533 $ 173,834 $ 506,537 $ 476,268 (Concluded) g. Compensation of employees and remuneration of directors According to the Company’ s Articles, the Company accrues compensation of employees and remuneration of directors at rates of no less than 8% and no higher than 1.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024 , the shareholders of the Company resolved the amendments to the Company’s Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of no less than 1 0% of the compensation of employees as compensation distributions for non-executive employees. The compensation of employees (including non-executive employees) and the remuneration of directors for the three months and nine months ended September 30, 2026 and 2025 are as follows: Accrual rate For the Nine Months Ended September 30 2026 2025 Compensation of employees 8% 8% Remuneration of directors 1.5% 1.5% Amount For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Compensation of employees $ 3,334 $ 13,436 $ 12,614 $ 13,436 Remuneration of directors $ 625 $ 2,519 $ 2,365 $ 2,519 If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate. The appropriations of employees ’ compensation and remuneration of directors for 2025 and 2024 that were resolved by th e board of directors on March 5, 2026 and February 27, 2025, respectively, are as shown below:
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- 28 - For the Year Ended December 31 For the Year Ended December 31 2025 2024 Cash Shares Cash Shares Compensation of employees $ 26,045 $ - $ 17,375 $ - Remuneration of directors 4,883 - 3,258 - There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year s ended December 31, 2025 and 2024. Information on the compensation of employees and remuneration of directors resolved by the Company’s board of directors in 2026 and 2025 is available at the Market Observation Post System website of the Taiwan Stock Exchange. h. Gain or loss on foreign currency exchange For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Foreign exchange gains $ 9,387 $ 50,758 $ 34,686 $ 46,688 Foreign exchange losses (8,276 ) - (19,698 ) (115,801) Net gain (loss) on foreign currency exchange $ 1,111 $ 50,758 $ 14,988 $ (69,113) 21. INCOME TAXES a. Income tax recognized in profit or loss Major components of income tax expense are as follows: For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Current tax In respect of the current period $ 11,671 $ 9,700 $ 27,359 $ 10,531 Adjustments for prior year - - (1,500 ) 71 Deferred tax In respect of the current period (9,136 ) 17,433 (10,597 ) 15,315 Income tax expense recognized in profit or loss $ 2,535 $ 27,133 $ 15,262 $ 25,917 b. Income tax assessments The Company’s tax returns through 2024 have been assessed by the tax authorities.
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- 29 - 22. EARNINGS PER SHARE Unit : NT$ Per Share For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Basic earnings per share $ 0.38 $ 1.40 $ 1.38 $ 1.37 Diluted earnings per share $ 0.38 $ 1.40 $ 1.38 $ 1.37 The earnings and weighted average number of ordinary shares outstan ding used in the computation of earnings per share were as follows: Net Profit For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Earnings used in the computation of basic and diluted earnings per share $ 35,207 $ 129,460 $ 127,596 $ 126,148 The weighted average number of ordinary shares outstanding (in thousands of shares) was as follows: For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Weighted average number of ordinary shares used in the computation of basic earnings per share 92,210 92,210 92,210 92,121 Effect of potentially dilutive ordinary shares Compensation of employees 130 90 183 109 Weighted average number of ordinary shares used in the computation of diluted earnings per share 92,340 92,300 92,393 92,230 Since the Group may settle compensation of employees in cash or shares, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year. Since the exercise price of the opti ons issued by the Company exceeded the average market price of the shares during the nine months ended September 30, 2026 and 2025, they are anti -dilutive and excluded from the computation of diluted earnings per share. If the outstanding convertible bond s issued by the Company are converted to ordinary shares during the nine months ended September 30, 2025, they are anti-dilutive and excluded from the computation of diluted earnings per share.
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- 30 - 23. SHARE-BASED PAYMENT ARRANGEMENTS The Company issued 300 units of employee share options on November 29, 2021. On the grant date, each option entities the holder with the right to subscribe for one thousand ordinary share of the Company at the exercise price of NT$ 279 per share. The options are granted to the e mployees of the Company and its subsidiaries that meet certain criteria. The expected lifetime of the options is 5 years. The options are exercisable by the qualified employees at 50% after the second year from the grant date, and another two tranches of 25% exercisable after third and fourth years from the grant date. The vesting period will end on November 29, 2026. Information on outstanding employee share options is as follows: For the Nine Months Ended September 30 2026 2025 Number of Options (In Thousands of Units) Weighted- average Exercise Price (NT$) Number of Options (In Thousands of Units) Weighted- average Exercise Price (NT$) Balance at January 1 243 $ 267.1 300 $ 270.8 Options forfeited (20 ) 267.1 - - Balance on September 30 223 267.1 300 270.8 Options exercisable, end of the period 223 267.1 225 270.8 Weighted - average fair value of options granted (NT$) $ 122.02 $ 122.02 As of the balance sheet date, information about employee share options outstanding was as follows: September 30, 2026 September 30, 2025 Range of exercise price (NT$) $ 267.1 $ 270.8 Weighted average remaining contractual life (in years) - 0.50 The options granted by the Company are priced using the Black -Scholes pricing model and the related inputs to the model are as follows: November 29, 2021 Grant-date share price NT$279 Expected volatility 59.55%、57.55% and 56.53% Risk-free interest rate 0.40%、0.41% and 0.42% Expected dividend yield rate - Expected life 3.5 years、4 years and 4.5 years Compensation costs recognized were $525 thousand for the three months ended September 30, 2025, and $1,576 thousand for the nine months ended September 30, 2025. 24. GOVERNMENT GRANTS In October 2024, the Company obtained the subsidy approval for the "Wi -Fi 7 Linear and Nonlinear RF Front-end Module Technology Development Project" of the Ministry of Economic Affairs' Industrial Upgrading Innovation Platform Guidance Program . The project period is from April 20 24 to March 2026. The Company received a government grant of $ 100,000 thousand from the Ministry of Economic Affairs.
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- 31 - As of September 30, 202 6, the C ompany had received $ 100,000 thousand. The Company recognized government grants of $11,000 thousand under other income according to the progress of plan execution during the nine months ended September 30, 2026. 25. CAPITAL MANAGEMENT The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The Group’s overall strategy remains unchanged. The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Group (comprising issued capital, reserves, retained earnings and other equity). The Group is not subject to any externally imposed capital requirements. The key management personnel of the Group review the capital structure on regular basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management pe rsonnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders and the number of new shares issued. 26. FINANCIAL INSTRUMENTS a. Categories of financial instruments September 30, 2026 December 31, 2025 September 30, 2025 Financial assets Financial assets at amortized cost (1) $ 2,582,929 $ 2,650,138 $ 2,550,815 Financial liabilities Amortized cost (2) 427,316 558,769 444,992 1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, accounts receivable, other receivables, financial assets at amortized cost and refundable deposits. 2) The balances include financial liabilitie s measured at amortized cost, which comprise accounts payable, other payables and guarantee deposits. b. Financial risk management objectives and policies The Group’s major financial instruments included accounts receivable, accounts payable and lease liabilities. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign cu rrency risk, interest rate risk and other price risk), credit risk, and liquidity risk. The Group did not use derivative financial instruments to minimize the effect of these risks, but it uses natural hedging from operations and borrowings denominated in foreign currencies to mitigate the impact of foreign currency risk.
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- 32 - The corporate treasury function reports monthly to the Group’ s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures. 1) Market risk The Group’s activities exposed it primarily to the financial risks of changes in foreign currency risk (see (a) below) and interest rates (see (b) below). a) Foreign currency risk The Group has foreign currency denominated sales and purchases, which expose the Group to foreign currency risk. Approximately 66% of the Group’s sales is denominated in currencies other than the functional currency of the entity in the Group making the sale, whilst almost 77% of costs is denominated in currencies other than the functional currency of the entity in the Group. The carrying amounts of the Group’s foreign currency denominated m onetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the period are set out in Note 30. Sensitivity analysis The Group was mainly exposed to the USD. The following table details the Group’s sensitivity to a 2% increase and decrease in the New Taiwan dollar (i.e., the functional currency) against the relevant foreign currencies. The sensitivity ra te used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 2%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the period for a 2% change in foreign c urrency rates. A positive (negative) number below indicates an increase in pre-tax profit associated with New Taiwan dollar strengthening (weakening) 2% against the relevant currency. USD Impact For the Nine Months Ended September 30 2026 2025 Profit or (loss) $ 28,083 $ 25,231 This was mainly attributable to the exposure on outstanding accounts receivable, cash and cash equivalents and accounts payable denominated in USD that were not hedged at the balance sheet dates. b) Interest rate risk The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetites ensuring the most cost -effective hedging strategies are applied. The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the balance sheet dates were as follows:
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- 33 - September 30, 2026 December 31, 2025 September 30, 2025 Fair value interest rate risk Financial assets $ 841,645 $ 1,040,128 $ 985,903 Financial liabilities 70,454 76,506 84,120 Cash flow interest rate risk Financial assets 190,363 229,618 180,777 Sensitivity analysis The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both der ivative and non -derivative instruments at the end of the reporting period . For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 0.25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been 0.25 basis point higher/lower and all other variables were held constant, the Group’s pre-tax profit for the nine months ended September 30, 2026 and 2025 would have increased/decreased by $357 thousand and $339 thousand, respectively. 2) Credit risk Credit risk refers t o the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the balance sheet date, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failur e of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the carrying amount of the respective recognized financial assets as stated in the balance sheets. The Group adopted a policy of dealing only with reputable parties and, where necessary, obtains appropriate guarantees to mitigate the risk of financial losses resulting from the default of payment. The Group assesses the creditability of the key customers based on financial informati on available and mutual transaction records. The Group continuously monitors the credit risk and credit rating of the counterparties, distributes the total transaction amount to customers with sound credit ratings, and controls the credit risk by ensuring that each counterparty’s credit limit is reviewed and approved by the risk management committee. The Group assesses the financial position of customers with outstanding accounts receivable balances regularly and requests for collateral if necessary. The Group’s concentration of credit risk is mainly related to the top five largest customers, which represents 90%, 88% and 90% of total accounts receivable as of September 30, 2026, December 31, 2025 and September 30, 2025, respectively. 3) Liquidity risk The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.
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- 34 - The Group relies on bank borrowings as a significant source of liquidity. Refer to (b) below for the amount of unsecured short -term bank loan facilities of the Group as of September 30, 2026, December 31, 2025 and September 30, 2025: a) Liquidity and interest risk rate table for non-derivative financial liabilities The following table details the Group’s remaining contractual maturit ies for its non -derivative financial liabilities with agreed r epayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Specifically, financial liabilities with a repayment on demand clause are included in the earliest time band regardless of the probability of the creditors choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities are based on the agreed repayment dates. September 30, 2026 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Y ears Non-derivative financial liabilities Non-interest bearing $ 187,064 $ 217,299 $ 16,513 $ 6,440 Lease liabilities - 9,302 23,529 40,490 $ 187,064 $ 226,601 $ 40,042 $ 46,930 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years Lease liabilities $ 32,831 $ 40,490 December 31, 2025 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Y ears Non-derivative financial liabilities Non-interest bearing $ 288,082 $ 243,665 $ 20,667 $ 6,355 Lease liabilities - 8,284 23,256 47,356 $ 288,082 $ 251,949 $ 43,923 $ 53,711 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years Lease liabilities $ 31,540 $ 47,356
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- 35 - September 30, 2025 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Y ears Non-derivative financial liabilities Non-interest bearing $ 231,664 $ 185,400 $ 21,772 $ 6,156 Lease liabilities - 8,168 24,222 54,268 $ 231,664 $ 193,568 $ 45,994 $ 60,424 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years Lease liabilities $ 32,390 $ 54,268 The amounts included above for variable interest rate instruments for both non -derivative financial assets and liabilities are subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the period. b) Financing facilities September 30, 2026 December 31, 2025 September 30, 2025 Unsecured bank loan facilities Amount used $ 100,000 $ 100,000 $ 100,000 Amount unused 580,000 680,000 480,000 Financial assets $ 680,000 $ 780,000 $ 580,000 27. TRANSACTIONS WITH RELATED PARTIES Balances and transactions between the Company and its subsidiaries, which are related pa rties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed as follows. a. Remuneration of key management personnel For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Short-term employee benefits $ 16,306 $ 14,197 $ 48,979 $ 43,641 Post-employment benefits 279 297 873 891 $ 16,585 $ 14,494 $ 49,852 $ 44,532 The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.
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- 36 - 28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY The following assets were provided as collateral for customs import goods tax and performance guarantee: September 30, 2026 December 31, 2025 September 30, 2025 Pledged deposits (classified as financial assets at amortized cost) $ 9,900 $ 9,900 $ 9,900 29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS In addition to those disclosed in other notes, significant contingencies and unrecognized commitments of the Group at the balance sheet dates were as follows: a. Significant commitments Under a sales agreement, the Group shall pay royalties at a certain percentage of net sales of certain products. Royalty expenses amounted to $436 thousand and $0 thousand for the three months ended September 30, 2026 and 2025, respectively; and $ 2,101 thousand and $ 1,335 thousand for the nine months ended September 30, 2026 and 2025, respectively. 30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES The significant financial assets and liabilities of the entities in the Group denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between the foreign currencies and the respective functional currencies were as follows: September 30, 2026 Foreign Currency Exchange Rate Carrying Amount Financial assets Monetary items USD $ 50,955 31.85 $ 1,622,917 Financial liabilities Monetary items USD 6,869 31.85 218,778
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- 37 - December 31, 2025 Foreign Currency Exchange Rate Carrying Amount Financial assets Monetary items USD $ 51,232 31.43 $ 1,610,222 Financial liabilities Monetary items USD 11,239 31.43 353,242 September 30, 2025 Foreign Currency Exchange Rate Carrying Amount Financial assets Monetary items USD $ 50,486 30.445 $ 1,537,046 Financial liabilities Monetary items USD 9,049 30.445 275,497 The significant unrealized foreign exchange gains (losses) were as follows: For the Three Months Ended September 30, 2026 For the Three Months Ended September 30,2025 Foreign Currency Exchange Rate Net Foreign Exchange Loss Exchange Rate Net Foreign Exchange Gains USD 31.989 $ (11,584 ) 29.950 $ 86,538 For the Nine Months Ended September 30, 2026 For the Nine Months Ended September 30,2025 Foreign Currency Exchange Rate Net Foreign Exchange Gains Exchange Rate Net Foreign Exchange Gains USD 31.739 $ 14,250 31.222 $ 28,935 31. SEPARATELY DISCLOSED ITEMS a. Information about significant transactions: 1) Financing provided to others: None 2) Endorsements/guarantees provided: None
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- 38 - 3) Significant marketable securities held (excluding investments in subsidiaries, associates, and joint ventures): None 4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None 5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid -in capital: None 6) Intercompany relationships and significant intercompany transactions: Table 1 b. Information on investees: Table 2 c. Information on investments in mainland China 1) Information on any investee company in mainland China, showing the name, principal business activities, paid -in capital, method of investment, inw ard and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 3 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: Table 1 a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period c) The amount of property transactions and the amount of the resultant gains or losses d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes e) The highest balance, the ending balance, the int erest rate range, and total current period interest with respect to the financing of funds f) 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 receipt of services 32. SEGMENT INFORMATION The Group is considered a single operating segment. Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Group is currently engaged in the design and sale of the wireless communication products, and its operating segment’s profit or loss, assets and liabilities were measured on the same basis as the consolidated financial statements , please refer to accompanying consolidated financial statements.
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- 39 - TABLE 1 RICHWA VE TECHNOLOGY CORP. AND SUBSIDIARIES Intercompany relationships and significant intercompany transactions FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) No. (Note 1) Investee Company Counterparty Relationship (Note 2) Transaction Details Financial Statement Accounts Amount Payment Terms % of Total Sales or Assets (Note 3) 0 Richwave Technology Corp. Yinghon Technology Co. 1 Other accounts payable $ 16,972 Based on regular terms - 1 Operating expenses 71,670 Based on regular terms 2% Richwave Technology Corp. AEGIS LINK CORP . 1 Other accounts payable 1,884 Based on regular terms - 1 Operating expenses 5,649 Based on regular terms - Note 1: Companies are numbers as follows: 1. “0” for the Company. 2. Subsidiaries are numbered from Arabic”1” onward. Note 2：Related party transactions are divided into three categories as below: 1. The Company to the subsidiary. 2. The subsidiary to the Company. 3. Between subsidiaries. Note 3：The amount was eliminated upon the consolidation.
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- 40 - TABLE 2 RICHWA VE TECHNOLOGY CORP. AND SUBSIDIARIES INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Investor Company Investee Company Location Main Businesses and Products Original Investment Amount Balance as of September 30, 2026 Net Income of the Investee Share of Profit Note September 30, 2026 December 31, 2025 Number of Shares % Carrying Amount Richwave Technology Corp. AEGIS LINK CORP . USA Selling and marketing $ 12,161 (USD 395 thousand) $ 12,161 (USD 395 thousand) - 100 $ 4,722 $ 7 $ 7 The Group’s subsidiary (Note) Note: The amounts were based on the financial statements which were reviewed by independent auditors.
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- 41 - TABLE 3 RICHWA VE TECHNOLOGY CORP. AND SUBSIDIARIES INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Investee Company Main Businesses and Products Paid-in capital Method of Investment Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2026 Remittance of Funds Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2026 Net Income (Loss) of the Investee % Ownership of Direct or Indirect Investment Investment Gain (Loss) Carrying Amount as of September 30, 2026 Accumulated Repatriation of Investment Income as of September 30, 2026 Note Outflow Inflow Yinghon Technology Co. Development, manufacturing and sales of ICs $ 57,410 ( US$ 2,000 thousand) Direct Investment $ 57,410 ( US$ 2,000 thousand) $ - $ - $ 57,410 ( US$ 2,000 thousand) $ 775 100% $ 775 $ 67,880 $ - The Group’s subsidiary (Notes 1 and 2 ) Accumulated Outward Remittance for Investment in Mainland China as of September 30, 2026 Investment Amount Authorized by Investment Commission, MOEA Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA $ 57,410 （US$ 2,000 thousand） $ 57,410 （US$ 2,000 thousand） $1,640,503 Note 1: The amounts were based on the financial statements which were reviewed by independent auditors. Note 2: Shenzhen Richwave Technology Co. Ltd. was renamed to Yinghon Technology Co. in September 2021.