Interim report
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Simplo Technology Co., Ltd. and Subsidiaries Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 and Independent Auditors’ Review Report
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- 1 - INDEPENDENT AUDITORS’ REVIEW REPORT The Board of Directors and Shareholders Simplo Technology Co., Ltd. Introduction We have reviewed the accompanying consolidated balance sheets of Simplo Technology Co., Ltd. (the “Company”) and its subsidiaries (collectively referred to as the “Group”) as of September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months then ended, 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 financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review Except as explained in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Basis for Qualified Conclusion As disclosed in Note 12 to the consolidated financial statements, the financial statements of some non-significant subsidiaries referred to in the first paragraph were not reviewed. As of September 30, 2025 and 2024, combined total assets of these non-significant subsidiaries were NT$3,894,716 thousand and NT$4,334,603 thousand, respectively, representing 5% and 6%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$182,330 thousand and NT$215,783 thousand, respectively, representing 1% both, of the consolidated total liabilities; for the three months and nine months ended September 30, 2025 and 2024, the amounts of combined comprehensive income of these subsidiaries were NT$153,122 thousand, NT$(35,157) thousand, NT$(97,418) thousand and NT$299,277 thousand, respectively, representing 6%, (2)%, (3)% and 6%, respectively, of the consolidated total comprehensive income. As disclosed in Note 13 to
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- 2 - the consolidated financial statements, the Investments accounted for using the equity method on September 30, 2025 and 2024 were NT$0 thousand and NT$94,512 thousand respectively. For the three months ended September 30, 2025 and 2024, share of gains or losses of associate were NT$(409) thousand and NT$(385) thousand, respectively. For the nine months ended September 30, 2025 and 2024, share of gains or losses of associate were NT$(3,230) thousand and NT$(2,264) thousand, respectively. The relevant information disclosed based on the investee company's financial statements for the same period that have not been reviewed. Qualified Conclusion Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and Investments accounted for using the equity method as described in the preceding paragraph been reviewed, 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, 2025 and 2024, and of its consolidated financial performance for the three months and nine months ended September 30, 2025 and 2024, and its consolidated cash flows for the nine months ended September 30, 2025 and 2024 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. The engagement partners on the reviews resulting in this independent auditors’ review report are Su-Li Fang and Cheng-Chih Lin. Deloitte & Touche Taipei, Taiwan Republic of China November 10, 2025 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 audit such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ 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 original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.
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- 3 - SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2025, DECEMBER 31, 2024 AND SEPTEMBER 30, 2024 (In Thousands of New Taiwan Dollars) September 30, 2025 December 31, 2024 September 30, 2024 September 30, 2025 December 31, 2024 September 30, 2024 ASSETS Amount % Amount % Amount % LIABILITIES AND EQUITY Amount % Amount % Amount % CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents (Notes 6 and 29) $23,465,599 30 $23,967,140 31 $17,759,723 24 Short-term loans (Notes 18, 29 and 32) $ 385,000 1 $ 449,228 1 $ 808,011 1 Financial assets at fair value through profit or loss Financial liabilities at fair value through profit or loss - current (Notes 7 and 29) 214,011 - 196,916 - 464,467 1 - current (Notes 7 and 29) 161,669 - 323,109 - 215 - Financial assets at amortized cost - current Notes and accounts payable (Notes 19 and 29) 21,858,573 28 19,508,919 25 19,982,400 26 (Notes 9, 29 and 31) 8,383,214 11 9,839,450 13 12,867,437 17 Other payables (Notes 20 and 29) 4,600,948 6 6,626,492 9 4,586,110 6 Notes and accounts receivable (Notes 10 and 29) 15,267,699 19 15,120,744 19 13,667,831 18 Current tax liabilities (Notes 4 and 26) 824,922 1 929,765 1 525,156 1 Other receivables (Notes 10 and 29) 75,366 - 281,341 - 225,303 - Provisions - current (Notes 21) 691,803 1 806,337 1 762,079 1 Current tax assets (Notes 4 and 26) 31,578 - 18,724 - 89,578 - Lease liabilities - current (Notes 15 and 29) 36,264 - 30,247 - 28,229 - Inventories (Notes 11) 16,608,789 21 14,210,740 18 16,111,944 21 Other current liabilities – other (Note 20) 1,948,216 2 1,761,258 2 1,765,011 2 Prepayments 780,803 1 368,579 1 212,315 - Total current liabilities 30,507,395 39 30,435,355 39 28,457,211 37 Other current assets (Note 17) 400,904 - 310,697 - 290,643 1 Total current assets 65,227,963 82 64,314,331 82 61,689,241 82 NON-CURRENT LIABILITIES Provisions - non-current (Notes 21) 1,383,607 2 1,612,674 2 1,524,157 2 NON-CURRENT ASSETS Deferred tax liabilities (Notes 4 and 26) 2,679,306 3 2,735,871 4 2,727,314 4 Financial assets at fair value through profit or loss - Lease liabilities - non-current (Notes 15 and 29) 82,572 - 110,717 - 114,649 - non-current (Notes 7 and 29) 401,180 1 328,629 - 285,583 - Guarantee deposits (Note 20) 10,960 - 11,507 - 11,595 - Financial assets at fair value through other Total non-current liabilities 4,156,445 5 4,470,769 6 4,377,715 6 comprehensive income -non-current (Notes 8 and 29) 246,036 1 793,638 1 388,793 1 Financial assets at amortized cost - non-current Total liabilities 34,663,840 44 34,906,124 45 32,834,926 43 (Notes 9 and 29) 91,185 - 98,205 - 94,800 - Investments accounted for using the equity method (Notes 13) - - 92,978 - 94,512 - EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 23) Property, plant and equipment (Notes 14) 8,853,926 11 8,971,057 12 9,292,820 12 Share capital - Ordinary shares 1,849,705 2 1,849,705 2 1,849,705 2 Right-of-use assets (Notes 15) 707,053 1 783,362 1 776,510 1 Capital surplus 5,692,496 7 5,693,571 7 5,693,571 8 Intangible assets (Notes 16) 178,607 - 115,624 - 117,734 - Retained earnings Deferred tax assets (Notes 4 and 26) 1,784,576 2 1,312,639 2 1,184,163 2 Legal reserve 7,507,107 9 6,972,284 9 6,972,284 9 Prepayments for land and equipment (Note 15) 653,562 1 390,513 1 407,160 1 Special reserve - - 802,697 1 802,697 1 Refundable deposits (Notes 29, 31 and 32) 998,909 1 1,106,581 1 1,099,834 1 Unappropriated earnings 23,684,044 30 21,120,376 27 21,258,802 28 Net defined benefit assets - non-current (Notes 4 and 22) 17,382 - 17,414 - 9,718 - Total Retained earnings 31,191,151 39 28,895,357 37 29,033,783 38 Other non-current assets (Note 17) 29,835 - 14,094 - 79,446 - Other equity ( 1,120,633 ) ( 1 ) 324,739 1 ( 160,946 ) - Total non-current assets 13,962,251 18 14,024,734 18 13,831,073 18 Total equity attributable to owners of the Company 37,612,719 47 36,763,372 47 36,416,113 48 NON-CONTROLLING INTERESTS 6,913,655 9 6,669,569 8 6,269,275 9 Total equity 44,526,374 56 43,432,941 55 42,685,388 57 TOTAL ASSETS $79,190,214 100 $78,339,065 100 $75,520,314 100 TOTAL LIABILITIES AND EQUITY $79,190,214 100 $78,339,065 100 $75,520,314 100 The accompanying notes are an integral part of the consolidated financial statements.
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- 4 - SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share) FOR THE THREE MONTHS ENDED SEPTEMBER 30 FOR THE NINE MONTHS ENDED SEPTEMBER 30 2025 2024 2025 2024 Amount ％ Amount ％ Amount ％ Amount ％ OPERA TING REVENUE (Notes 24) $ 20,394,261 100 $ 22,031,149 100 $ 58,398,916 100 $ 58,613,560 100 OPERA TING COSTS (Notes 11 and 25) 17,196,811 84 18,944,925 86 49,500,855 85 50,649,707 86 GROSS PROFIT 3,197,450 16 3,086,224 14 8,898,061 15 7,963,853 14 OPERA TING EXPENSES (Notes 10 and 25) Selling and marketing expenses 458,366 2 550,011 3 1,349,025 2 1,459,118 3 General and administrative expenses 280,132 2 264,591 1 804,819 1 747,130 1 Research and development expenses 555,995 3 453,180 2 1,539,325 3 1,329,545 2 Expected credit (gain) loss - - - - ( 216 ) - 4 - Total operating expenses 1,294,493 7 1,267,782 6 3,692,953 6 3,535,797 6 PROFIT FROM OPERATIONS 1,902,957 9 1,818,442 8 5,205,108 9 4,428,056 8 NON-OPERA TING INCOME AND EXPENSES (Note 25) Interest income 288,519 1 314,441 2 930,141 2 1,042,274 2 Other income 7,860 - 58,104 - 61,018 - 70,744 - Other gains and losses 133,207 1 ( 43,616 ) - 278,275 - 229,067 - Finance costs ( 1,673 ) - ( 4,347 ) - ( 5,884 ) - ( 54,785 ) - Share of profits of associates ( 409 ) - ( 385 ) - ( 3,230 ) - ( 2,264 ) - Total non-operating income and expenses 427,504 2 324,197 2 1,260,320 2 1,285,036 2 PROFIT BEFORE INCOME TAX 2,330,461 11 2,142,639 10 6,465,428 11 5,713,092 10 INCOME TAX EXPENSE (Notes 4 and 26) 512,701 2 471,380 2 1,422,394 3 1,256,880 2 NET PROFIT 1,817,760 9 1,671,259 8 5,043,034 8 4,456,212 8 OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified to profit or loss (Notes 23): Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income ( 8,864 ) - 11,028 - ( 31,633 ) - 5,385 - Items that may be reclassified subsequently to profit or loss (Notes 23 and 26): Exchange differences on translation of foreign operations 1,678,336 8 91,638 - ( 1,157,061 ) ( 2 ) 872,256 1 Income tax related to items that may be reclassified subsequently ( 750,207 ) ( 4 ) 9,488 - ( 168,264 ) - ( 31,065 ) - Other comprehensive income, net of income tax 919,265 4 112,154 - ( 1,356,958 ) ( 2 ) 846,576 1 TOTAL COMPREHENSIVE INCOME $ 2,737,025 13 $ 1,783,413 8 $ 3,686,076 6 $ 5,302,788 9 NET PROFIT ATTRIBUTABLE TO: Owners of the Company $ 1,456,633 7 $ 1,429,070 7 $ 3,933,860 7 $ 3,803,420 7 Non-controlling interests 361,127 2 242,189 1 1,109,174 2 652,792 1 $ 1,817,760 9 $ 1,671,259 8 $ 5,043,034 9 $ 4,456,212 8 TOTAL COMPREHENSIVE INCOME A TTRIBUTABLE TO: Owners of the Company $ 2,120,825 10 $ 1,564,619 7 $ 2,959,086 5 $ 4,445,171 8 Non-controlling interests 616,200 3 218,794 1 726,990 1 857,617 1 $ 2,737,025 13 $ 1,783,413 8 $ 3,686,076 6 $ 5,302,788 9 EARNINGS PER SHARE (Note 27) Basic $ 7.87 $ 7.73 $ 21.26 $ 20.56 Diluted $ 7.85 $ 7.71 $ 21.21 $ 20.51 The accompanying notes are an integral part of the consolidated financial statement s.
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- 5 - SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars) EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Other Equity Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income Exchanges Differences on Translation of Foreign Operations Share Capital - Ordinary Shares Retained Earnings Number of Shares (In Thousands) Amount Capital Surplus Legal Reserve Special Reserve Unappropriated Earnings Total Equity Attributable to Owners of the Company Non-controlling Interests Total Equity BALANCE AT JANUARY 1, 2024 184,970 $ 1,849,705 $ 5,693,571 $ 6,404,086 $ 614,076 $ 20,376,356 $ 14,585 ( $ 817,282 ) $ 34,135,097 $ 5,859,793 $ 39,994,890 Appropriation of earnings Legal reserve - - - 568,198 - ( 568,198 ) - - - - - Special reserve - - - - 188,621 ( 188,621 ) - - - - - Cash dividends distributed to shareholders - - - - - ( 2,164,155 ) - - ( 2,164,155 ) - ( 2,164,155 ) Disposal of equity instruments at fair value through other comprehensive income - - - - - - - - - ( 692 ) ( 692 ) Net profit for the nine months ended September 30, 2024 - - - - - 3,803,420 - - 3,803,420 652,792 4,456,212 Other comprehensive income for the nine months ended September 30, 2024, net of income tax - - - - - - 6,077 635,674 641,751 205,517 847,268 Total comprehensive income for the nine months ended September 30, 2024 - - - - - 3,803,420 6,077 635,674 4,445,171 858,309 5,303,480 Cash dividends distributed to non-controlling interests - - - - - - - - - ( 448,135 ) ( 448,135 ) BALANCE AT SEPTEMBER 30, 2024 184,970 $ 1,849,705 $ 5,693,571 $ 6,972,284 $ 802,697 $ 21,258,802 $ 20,662 ( $ 181,608 ) $ 36,416,113 $ 6,269,275 $ 42,685,388 BALANCE AT JANUARY 1, 2025 184,970 $ 1,849,705 $ 5,693,571 $ 6,972,284 $ 802,697 $ 21,120,376 $ 509,498 ( $ 184,759 ) $ 36,763,372 $ 6,669,569 $ 43,432,941 Appropriation of earnings Legal reserve - - - 534,823 - ( 534,823 ) - - - - - Cash dividends distributed to shareholders - - - - - ( 2,108,664 ) - - ( 2,108,664 ) - ( 2,108,664 ) Special reserve reversed - - - - ( 802,697 ) 802,697 - - - - - Changes in associates and joint ventures recognized using the equity method - - ( 1,075 ) - - - - - ( 1,075 ) - ( 1,075 ) Disposal of equity instruments at fair value through other comprehensive income - - - - - 470,598 ( 470,598 ) - - - - Net profit for the nine months ended September 30, 2025 - - - - - 3,933,860 - - 3,933,860 1,109,174 5,043,034 Other comprehensive income for the nine months ended September 30, 2025, net of income tax - - - - - - ( 31,638 ) ( 943,136 ) ( 974,774 ) ( 382,184 ) ( 1,356,958 ) Total comprehensive income for the nine months ended September 30, 2025 - - - - - 3,933,860 ( 31,638 ) ( 943,136 ) 2,959,086 726,990 3,686,076 Cash dividends distributed to non-controlling interests - - - - - - - - - ( 482,904 ) ( 482,904 ) BALANCE AT SEPTEMBER 30, 2025 184,970 $ 1,849,705 $ 5,692,496 $ 7,507,107 $ - $ 23,684,044 $ 7,262 ( $ 1,127,895 ) $ 37,612,719 $ 6,913,655 $ 44,526,374 The accompanying notes are an integral part of the consolidated financial statements.
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- 6 - SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars) FOR THE NINE MONTHS ENDED SEPTEMBER 30 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax $ 6,465,428 $ 5,713,092 Adjustments for: Depreciation expenses 1,799,310 1,840,658 Amortization expenses 68,427 45,309 Expected credit (gain) loss recognized ( 216 ) 4 Finance costs 5,884 54,785 Interest income ( 930,141 ) ( 1,042,274 ) Dividend income ( 8,046 ) ( 2,126 ) Share of losses of associates and joint ventures 3,230 2,264 Loss on disposal of property, plant and equipment 29,614 49,121 Loss (Gain) on write-downs and obsolescence of inventories 44,181 ( 7,663 ) Loss (Gain) on foreign exchange, net 330,330 ( 339,338 ) Lease modification loss - 541 Changes in operating assets and liabilities: Financial instruments at fair value through profit or loss ( 187,649 ) 57,960 Notes and accounts receivable ( 40,536 ) ( 743,518 ) Other receivables ( 275,789 ) ( 35,715 ) Inventories ( 2,431,869 ) 842,644 Prepayments ( 412,224 ) 184,352 Other current assets ( 90,207 ) ( 37,898 ) Accounts payable 3,279,526 ( 850,626 ) Other payables ( 753,639 ) 293,552 Provisions ( 343,601 ) 969,192 Other current liabilities 209,313 ( 53,451 ) Cash generated from operations 6,761,326 6,940,865 Interest paid ( 8,267 ) ( 55,092 ) Income tax paid ( 2,075,363 ) ( 3,312,576 ) Net cash generated from operating activities 4,677,696 3,573,197 (Continued)
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- 7 - SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars) FOR THE NINE MONTHS ENDED SEPTEMBER 30 2025 2024 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets at fair value through other comprehensive income $ 723,755 $ - Proceeds from capital reduction of financial assets at fair value through other comprehensive income 29,000 50,000 Acquisition of financial assets at amortized cost - ( 35,913 ) Proceeds from disposal of financial assets at amortized cost 1,372,685 261,137 Acquisition of financial assets at fair value through profit or loss ( 63,437 ) - Purchase for property, plant and equipment ( 3,312,982 ) ( 1,857,398 ) Proceeds from disposal of property, plant and equipment 54,312 59,310 decrease in refundable deposits 26,563 1,596,604 Acquisition for intangible assets ( 129,162 ) ( 137,105 ) Acquisition for Right-of-use assets - ( 336,079 ) Interest received 1,057,273 991,428 Dividend received 8,046 2,126 Income tax related to investing activities paid ( 144,351 ) - Proceeds from disposal of right-to-use assets - 354,930 Net cash (used in) generated from investing activities ( 378,298 ) 949,040 CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans 385,000 2,978,695 Decrease in short-term loans ( 458,291 ) ( 4,355,495 ) Decrease in guarantee deposits ( 547 ) ( 137 ) Repayment of the principal portion of lease liabilities ( 19,754 ) ( 23,566 ) Dividends paid to owners of the Company ( 3,791,896 ) ( 4,013,860 ) Net cash (used in) financing activities ( 3,885,488 ) ( 5,414,363 ) EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIV ALENTS ( 915,451 ) 985,632 NET (DECREASE) INCREASE IN CASH AND CASH EQUIV ALENTS ( 501,541 ) 93,506 CASH AND CASH EQUIV ALENTS A T BEGINNING OF PERIOD 23,967,140 17,666,217 CASH AND CASH EQUIV ALENTS A T END OF PERIOD $ 23,465,599 $ 17,759,723 The accompanying notes are an integral part of the consolidated financial statements.
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- 8 - SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited) 1. GENERAL INFORMATION Simplo Technology Co., Ltd. (the “Company”) was incorporated in April 1992. The Company is mainly engaged in the manufacture of information software services, lighting equipment, data storage and processing equipment, electro nic components, batteries, power generation, transmission, distribution of machinery and wireless communication machinery and equipment. The Company’s shares have been listed on the Taipei Exchange (TPEx) since November 2001. The consolidated financial statements of the Company and its subsidiaries (collectively known as the “Group”) are presented in the Company’s functional currency, the New Taiwan dollar. 2. APPROVAL OF FINANCIAL STATEMENTS The consolidated financial statements were approved by the C ompany’s board of directors on November 10, 2025. 3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) 1) Amendments to IAS 21 “Lack of Exchangeability” The initial application of the Amendments to IAS 21 “Lack of Exchangeability” did not have a material impact on the Group’s accounting policies 2) Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of derecognition of financial assets. b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026 New, Revised or Amended Standards and Interpretations Effective Date Announced by IASB Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of derecognition of financial liabilities January 1, 2026
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- 9 - New, Revised or Amended Standards and Interpretations Effective Date Announced by IASB Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Dependent Electricity” January 1, 2026 Annual Improvements to IFRS Accounting Standards – V olume 11 January 1, 2026 1) Amendments to IFRS 9 and I FRS 7 “Amendments to the Classification and Measurement of Financial Instruments” a) Amendments to the Application Guidelines on the Classification of Financial Assets The amendments mainly amend the requirements for the classification of financial assets, including: (1) If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent even t itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if: In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature. (2) Clarifying that financial assets with no recourse rights refer to the ultimate right of the enterprise to receive cash flows, which are contractually limited to cash flows generated by specific assets. (3) Clarifying that contractual linked instruments establish multiple tiered s ecurities through a waterfall payment structure to create a payment priority order for holders of financial assets, thereby generating concentrated credit risk and causing disproportionate allocation of cash shortfalls from the underlying pool among different tiered securities. b) Amendments to the Application Guidelines on the Derecognition of Financial Liabilities The amendments primarily state that financial liabilities should be derecognized on the settlement date; however , when settling a financial l iability in cash using an electronic payment system, an entity can choose to derecognize the financial liability before the settlement date if, and only if, the entity has initiated a payment instruction that resulted in: The entity having no practical ability to withdraw, stop or cancel the payment instruction;
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- 10 - The entity having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and The settlement risk associated with the electronic payment sy stem being insignificant. The Group should retrospectively apply the amendments but is not required to restate the comparative periods, and will recognize the impact of initial application on the initial application date. However, if the entity can restate the comparative periods without using hindsight, it may choose to do so. As of the date this consolidated financial report was approved for issuance, the Group continues to assess the impact of each amendment on its financial position and financial performance, and will disclose the related impacts when the assessment is completed. c. The IFRSs issued by International Accounting Standards Board (IASB), but not yet endorsed and issued into effect by the FSC New, Revised or Amended Standards and Interpretations Effective Date Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” To be determined by IASB IFRS 18 “Presentation and Disclosures in Financial Statements” January 1, 2027 (Note 2) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (Including the 2025 amendment) January 1, 2027 Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates. Note 2: On September 25, 2025, the FSC announced that Taiwanese companies should adopt IFRS 18 from January 1, 2028. Companies may also choose to adopt IFRS 18 earlier if the FSC approves it. 1) IFRS 18 “Presentation and Disclosures in Financial Statements” IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise: Items of income and expenses included in the statement of profit or loss shall be classified in to the operating, investing, financing, income taxes and discounted operations categories. The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss. Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other 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 different 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.
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- 11 - 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 f inancial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non -controlling interests effects of related reconciliation items. Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of other 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 SIGNIFICANT ACCOUNTING POLICIES a. Statement of compliance The 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,” endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complet e set of annual consolidated financial statements prepared under the IFRS Accounting Standards endorsed and issued into effect by the FSC. b. Basis of preparation The consolidated financial statements have been prepared on the historical cost basis exce pt for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets. The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows: 1) Level 1 inputs are quoted price s (unadjusted) in active markets for identical assets or liabilities available on the measurement date.; 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as pr ices) or indirectly (i.e., derived from prices); and 3) Level 3 inputs are unobservable inputs for an asset or liability. 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 - Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates o f acquisitions up to the effective dates of disposals, as appropriate. Adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra -group transactions, balances, i ncome and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners 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 direc tly in equity and attributed to the owners of the Company. See Note 12 and Tables 6 and 7 for detailed information on subsidiaries , the percentages of ownership and main businesses. d. Other significant accounting policy Please refer to the summary of significant accounting policies of consolidated financial statements for the year ended December 31,2024, except the following explanation. 1) Retirement Benefits Pension cost for an interim period is calculated on a year -to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year and adjusted for major market fluctuations of the current period, as well as major plan revisions, liquidations or other one-time major matters. 2) Taxation Income tax expense rep resents the sum of the tax currently payable and deferred tax. The 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. 5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY When the Group adopts accounting policies, the management must make relevant judgments, estimates, and assumptions based on historical experience and other relevant factors for information that is not easily obtainable from other sources. Actual results may differ from estimates.
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- 13 - In developing significant accounting estimates, the Group will consider the potential impact of the U.S. counterpart tariff measures on cash flow projections, growth rates, discount rates, and other related significant estimates, and the management will continually review the estimates and underlying assumptions. 6. CASH AND CASH EQUIVALENTS September 30, 2025 December 31, 2024 September 30, 2024 Cash on hand and working capital $ 6,712 $ 5,694 $ 6,992 Demand deposits 17,097,653 16,839,105 15,047,975 Cash equivalents (investments with original maturities of less than 3 months) Time deposits 6,361,234 7,122,341 2,704,756 $ 23,465,599 $ 23,967,140 $ 17,759,723 7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS September 30, 2025 December 31, 2024 September 30, 2024 Financial assets - current Mandatorily measured at FVTPL Derivative instruments (not under hedge accounting) Cross-currency swap contracts (a) $ 2,264 $ - $ 274,796 Foreign exchange forward contracts (b) 23,157 11,488 16,879 Non-derivative financial assets Mutual funds 175,390 173,428 172,792 Domestic emerging shares 13,200 12,000 - $ 214,011 $ 196,916 $ 464,467 Financial assets - non-current Mandatorily measured at FVTPL Non-derivative financial assets Domestic listed shares $ 49,123 $ 49,042 $ 47,083 Limited Partnership 352,057 279,587 238,500 $ 401,180 $ 328,629 $ 285,583 Financial liabilities - current Mandatorily measured at FVTPL Derivative instruments (not under hedge accounting) Cross-currency swap contracts (a) $ 161,669 $ 291,819 $ - Foreign exchange forward contracts (b) - 31,290 215 $ 161,669 $ 323,109 $ 215
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- 14 - a. At the end of the reporting period, outstanding cross-currency swap contracts not under hedge accounting were as follows: September 30, 2025 Notional Amount (In Thousands) Maturity Date Range of Exchange Rates Paid Range of Exchange Rates Received USD 440,000 /NTD 13,263,857 2025.10.03~2025.11.17 29.8620~30.7550 29.7225~30.5980 USD 4,000 /NTD 122,086 2025.11.06~2025.11.06 30.6780~30.6780 30.5215~30.5215 USD 68,000 /NTD 2,039,615 2025.10.07~2025.11.06 29.9500~30.6780 29.8113~30.5215 December 31, 2024 Notional Amount (In Thousands) Maturity Date Range of Exchange Rates Paid Range of Exchange Rates Received USD 440,000 /NTD 14,147,382 2025.01.06~2025.02.12 31.9100~32.6780 31.7210~32.4850 USD 4,000 /NTD 127,270 2025.01.06~2025.01.06 32.0050~32.0050 31.8175~31.8175 USD 48,000 /NTD 1,557,732 2025.02.05~2025.02.06 32.6160~32.6780 32.4220~32.4835 September 30, 2024 Notional Amount (In Thousands) Maturity Date Range of Exchange Rates Paid Range of Exchange Rates Received USD 404,000 /NTD 12,998,719 2024.10.03~2024.11.18 31.990~32.887 31.8090~32.6760 USD 52,000 /NTD 1,695,777 2024.10.03~2024.11.05 32.060~32.887 31.8442~32.6755 b. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows: September 30, 2025 Currency Period of Maturity Date Notional Amount (In Thousands) Buy USD/NTD 2025.10.08~2025.12.09 USD 20,000 / NTD 584,832 Sell USD/CNY 2025.10.31~2025.10.31 USD 60,000 / CNY 426,906 December 31, 2024 Currency Period of Maturity Date Notional Amount (In Thousands) Sell USD/NTD 2025.01.06~2025.03.05 USD 64,000 / NTD 2,076,136 Sell USD/CNY 2025.01.02~2025.01.27 USD 47,000 / CNY 340,980 Sell JPY/CNY 2025.02.06~2025.02.06 JPY 369,000 / CNY 17,230
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- 15 - September 30, 2024 Currency Period of Maturity Date Notional Amount (In Thousands) Buy USD/NTD 2024.10.03~2024.10.04 USD 20,000 / NTD 633,220 Sell USD/NTD 2024.10.02~2024.10.11 USD 56,000 / NTD 1,792,800 Sell JPY/CNY 2024.10.09~2024.10.31 JPY 540,000 / CNY 26,572 The Group entered into cross-currency swap contracts and foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. 8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME September 30, 2025 December 31, 2024 September 30, 2024 Non-current Investments in equity instruments $ 246,036 $ 793,638 $ 388,793 Domestic investments Unlisted shares $ 213,862 $ 181,106 $ 217,107 Foreign investments Listed shares - 576,445 99,659 Unlisted shares 32,174 36,087 72,027 $ 246,036 $ 793,638 $ 388,793 The Group invests in common stocks of domestic and foreign listed and unlisted companies based on medium to long-term strategic purposes, and expects to profit from long-term investments.. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes. 9. FINANCIAL ASSETS AT AMORTIZED COST September 30, 2025 December 31, 2024 September 30, 2024 Current Domestic investments Time deposits with original maturities of more than 3 months (a) $ 6,313,856 $ 3,698,022 $ 6,918,324 Foreign investments Time deposits with original maturities of more than 3 months (a) 2,069,358 6,141,428 5,949,113 $ 8,383,214 $ 9,839,450 $ 12,867,437 Non-current Foreign investments Bond investments (b) $ 91,185 $ 98,205 $ 94,800
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- 16 - a. The interest rates for time deposits with original maturities of more than 3 months are 1.585%～5.25%, 1.445%～6.15% and 1.56%～6.15% as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively. b. In May 2021, the Group bought 5 -year corporate bonds with a coupon rate of 8% issued by Lion Best Global Limited at face value of US $3,000 thousand, which will expire on September 25, 2026. c. Refer to Note 31 for information relating to investments in financial assets at amortized cost – current pledged as security. 10. NOTES, ACCOUNTS AND OTHER RECEIVABLES September 30, 2025 December 31, 2024 September 30, 2024 Notes and accounts receivable At amortized cost Gross carrying amount $ 15,316,905 $ 15,170,246 $ 13,717,351 Less: Allowance for impairment loss ( 49,206 ) ( 49,502 ) ( 49,520 ) $ 15,267,699 $ 15,120,744 $ 13,667,831 Other receivables $ 75,366 $ 281,341 $ 225,303 Accounts receivable The primary credit period of sales of goods is between 45 and 90 days. The Group adopted a policy of only dealing with entities that are rated the equivalent of investment grade or higher and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Credit rating information is obtained from other publicly available financial information or its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management annually. The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all accounts receivable. The expected credit losses on accounts receivable are estimated using a provision matrix by reference to past default records of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. 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 account receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the
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- 17 - debtor has been placed under liquidation. 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 notes and accounts receivable based on the Group’s provision matrix: 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 Total Gross carrying amount $ 14,557,340 $ 701,349 $ 36,068 ( $ 58 ) $ 5,740 $ 16,466 $ 15,316,905 Loss allowance (Lifetime ECL) ( 28,951 ) ( 7,161 ) ( 6,693 ) - ( 55 ) ( 6,346 ) ( 49,206 ) Amortized cost $ 14,528,389 $ 694,188 $ 29,375 ( $ 58 ) $ 5,685 $ 10,120 $ 15,267,699 December 31, 2024 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 Total Gross carrying amount $ 14,201,624 $ 844,544 $ 110,227 $ 327 $ - $ 13,524 $ 15,170,246 Loss allowance (Lifetime ECL) ( 16,186 ) ( 7,029 ) ( 24,483 ) - - ( 1,804 ) ( 49,502 ) Amortized cost $ 14,185,438 $ 837,515 $ 85,744 $ 327 $ - $ 11,720 $ 15,120,744 September 30, 2024 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 Total Gross carrying amount $ 13,480,586 $ 180,183 $ 1,220 $ 30,826 $ 2,386 $ 22,150 $ 13,717,351 Loss allowance (Lifetime ECL) ( 31,005 ) ( 8,987 ) ( 587 ) ( 105 ) ( 37 ) ( 8,799 ) ( 49,520 ) Amortized cost $ 13,449,581 $ 171,196 $ 633 $ 30,721 $ 2,349 $ 13,351 $ 13,667,831 The movements of the loss allowance of notes and accounts receivable were as follows: For the Nine Months Ended September 30 2025 2024 Balance, beginning of period $ 49,502 $ 49,438 Add: Net (reverse) recognize of loss allowance ( 216 ) 4 Foreign exchange gains and losses ( 80 ) 78 Balance, end of period $ 49,206 $ 49,520 11. INVENTORIES September 30, 2025 December 31, 2024 September 30, 2024 Finished goods $ 7,711,345 $ 5,197,087 $ 5,558,161 Work in progress 545,941 11,476 481,643 Raw materials 8,351,503 9,002,177 10,072,140 $ 16,608,789 $ 14,210,740 $ 16,111,944 The cost of inventories recognized as cost of goods sold for the three months and nine months ended September 30, 2025 and 2024 was NT$17,196,811 thousand, NT$18,944,925 thousand,
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- 18 - NT$49,500,855 thousand and NT$50,649,707 thousand, respectively. The cost of goods sold included inventory write -downs (recovery) of NT$21,382 thousand, NT$6,395 thousand, NT$44,181 thousand and NT$(7,663) thousand, respectively. The recovery of the net realizable value of inventory is due to an increase in the selling prices of the inventory in specific markets. 12. SUBSIDIARIES a. Subsidiaries included in the consolidated financial statements P ro po r ti o n o f Ow ne r shi p ( %) Investor Investee Nature of Activities September 30, 2025 December 31, 2024 September 30, 2024 Remark SIMPLO TECHNOLOGY CO., LTD. SIMPLO Technology (BVI) CO., LTD. Investment business 100% 100% 100% － SonicEdge Industries (BVI) Corporation Investment business 100% 100% 100% 1 Trend Power Technology Holdings (Samoa) Co., Ltd. Investment business 100% 100% 100% － Simplo Energy Co., Ltd. Investment business 100% 100% 100% 1 SIMPLO TECHNOLOGY (VIETNAM) COMPANY LIMITED Production of batteries, Detail: production and processing of lithium-ion batteries, lithium-ion batteries module 100% 100% 100% 1 SIMPLO TECHNOLOGY (INDIA) PRIV ATE LIMITED Production and processing of lithium-ion battery module 99.99% 99.99% 99.99% 1 SIMPLO Technology (BVI) CO., LTD. SMP Holdings International Incorporated Investment business 100% 100% 100% － SIMPLO HOLDINGS (SAMOA) CO., LTD. Investment business 100% 100% 100% 1 SIMPLO TECHNOLOGY STS (SAMOA) LIMITED Investment business 100% 100% 100% 1 SMP Holdings International Incorporated Simplo Technology STCS (HK) Limited Investment business 100% 100% 100% － Simplo Technology STCS (HK) Limited SIMPLO TECHNOLOGY (CHANGSHU) INC. Engaged in lithium-ion batteries, fine blanking die, precision cavity molds, electronic equipment, testing instruments, LED rectifier, precision shaft, electronic connectors and other electronic products, as well as the production and processing of related parts of the previous products. Printing and decorating printed matter, selling self-produced products and providing related after-sales service and related maintenance services. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) 100% 100% 100% － (Continued)
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- 19 - P ro po r ti o n o f Ow ne r shi p ( %) Investor Investee Nature of Activities September 30, 2025 December 31, 2024 September 30, 2024 Remark Simplo Technology STCS (HK) Limited Simplo Technology (Chongqing) Inc. Licensed business activities: Printing and decorating printed matter; Main business activities: engaged in the production and sale of lithium ion batteries, precision stamping dies with accuracy higher than 0.02 mm, prevision cavity molds with accuracy higher than 0.05 mm, test equipment, LED rectifiers, electronic special equipment, electronic connectors, stamping parts, vacuum forming product (Tray), production of insulating plates and other peripheral equipment of electronic products and accessories (bags), and the production, processing, matching, sale and provision of related after-sales services and maintenance services for the related parts of the previous products. 100% 100% 100% － HUAPU TECHNOLOGY (CHANGSHU) INC. Engaged in the production, processing and sales of electronic products such as lithium-ion batteries, precision stamping dies with accuracy higher that 0.02 mm, prevision cavity molds with accuracy higher than 0.5 mm electronic special equipment, test equipment, automation equipment, wireless electronic transmission modules and related parts of the previous products production, processing and sales, and provided related after-sales service and maintenance services. Printing and packaging printed matter; engaged in the import and export of goods and technology. Except for goods and technologies that are restricted by the state or prohibited from import and export. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) 100% 100% 100% － Simplo Technology (Chongqing) Inc ChongQing Trend Power Technology Inc. Printing and decorating printed matter, engaged in the production and sale of lithium-ion batteries, electronic products and precision molds, die-cutting processing (insulation paper), stamping parts processing (nickel sheets, copper sheets, fixture), plastic molding, injection molding, and the production and sale, and provision of after-sales installation and maintenance services for the related equipment and parts. 100% 100% 100% 1 (Continued)
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- 20 - P ro po r ti o n of Ow ne r shi p (%) Investor Investee Nature of Activities September 30, 2025 December 31, 2024 Septembe r 30, 2024 Remark SIMPLO HOLDINGS (SAMOA) CO., LTD. Simplo Technology USA Logistic Company, Ltd. Battery pack merchandising-sector companies 100% 100% 100% 1 Trend Power Technology Holdings (Samoa) Co., Ltd. Advanced Energy Solution Holding Co., Ltd. Investment business 54.77% 54.77% 54.77% 1 Simplo Energy Co., Ltd. SIMPLO TECHNOLOGY (INDIA) PRIV ATE LIMITED Production and processing of lithium-ion battery module 0.01% 0.01% 0.01% 1 Advanced Energy Solution Holding Co., Ltd. Trend Power Technology (Samoa) Co., Ltd. Investment business 100% 100% 100% － Legend Investment (BVI) Co., Ltd. Investment business 100% 100% 100% 1 Innovations Investment (BVI) Co., Ltd. Investment business 100% 100% 100% 1、3 Legend Investment (BVI) Co., Ltd. Legend Energy Co., Ltd. Investment business 100% 100% 100% 1 Innovations Investment (BVI) Co., Ltd. Trend Power Technology (SuZhou) Co., Ltd. Technical service, technology development, technical consultation, technical exchange, technology transfer, technology promotion, battery manufacturing, battery sales, mold manufacturing, mold sales, plastic product manufacturing, plastic product sales. (Except for projects subject to approval according to law, self-service business activities can be carried out according to the law with a business license.) 100% 100% 100% 1、4 Trend Power Technology (Samoa) Co., Ltd. Trend Power Technology (Changshu) CO., LTD Large-scale industrial energy storage lithium-ion battery, power lithium-ion battery precision mold, plastic, plastic injection molding and the production and sales of the previous products and spare parts and provide related after-sales installation and maintenance services; engaged in import and export business of goods and technology. Except for commodities and technologies that the state restricts the company from operating or prohibits import and export; engage in printing services for packaging and decoration of printed matter. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) 83.56% 83.56% 83.56% － DC-Link International Ltd. Investment business 100% 100% 100% 1 (Continued)
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- 21 - P ro po r ti o n of Ow ne r shi p (%) Investor Investee Nature of Activities September 30, 2025 December 31, 2024 September 30, 2024 Remark Trend Power Technology (Samoa) Co., Ltd. Sunny Sky Group (Hong Kong) Limited Investment business 100% 100% 100% 1 TREND POWER TECHNOLOGY PRIV ATE LIMITED Battery pack merchandising-sector companies 100% 100% 100% 1 Trend Energy Technology Co., Ltd. Power generation, transmission, distribution machinery manufacturing, wired communications machinery and equipment manufacturing, wireless communications machinery and equipment manufacturing, battery manufacturing, computer and peripheral equipment manufacturing, automobile and parts manufacturing, bicycles and parts manufacturing, general instruments of manufacturing industry, electronic material wholesale industry, research and development service industry, energy technology service industry. 100% 100% 100% 1 DC-Link International Ltd. Trend Power Technology (Changshu) CO., LTD Large-scale industrial energy storage lithium-ion battery, power lithium-ion battery precision mold, plastic, plastic injection molding and the production and sales of the previous products and spare parts, and provide related after-sales installation and maintenance services; engaged in import and export business of goods and technology. Except for commodities and technologies that the state restricts the company from operating or prohibits import and export; engage in printing services for packaging and decoration of printed matter. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) 15.49% 15.49% 15.49% 1 Sunny Sky Group (Hong Kong) Limited Trend Power Technology (Changshu) CO., LTD Large-scale industrial energy storage lithium-ion battery, power lithium-ion battery precision mold, plastic, plastic injection molding and the production and sales of the previous products and spare parts, and provide related after-sales installation and maintenance services; engaged in import and export business of goods and technology. Except for commodities and technologies that the state restricts the company from operating or prohibits import and export; engage in printing services for packaging and decoration of printed matter. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) 0.94% 0.94% 0.94% 1 Trend Power Technology (Changshu) CO., LTD Trend Power Technology (HK) Co., Limited Investment business 100% 100% 100% 1 (Continued)
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- 22 - P ro po r ti o n of Ow ne r shi p (%) Investor Investee Nature of Activities September 30, 2025 December 31, 2024 September 30, 2024 Remark TREND POWER TECHNOLOGY PRIV ATE LIMITED Trend Power Technology (USA)CO., Limited Battery pack merchandising-sector companies 100% 100% 100% 1 Trend Power Technology (BVI) Co., Ltd. Investment business 100% 100% 100% 1 Trend Power Technology (Germany) GmbH Battery module R&D and marketing support, etc. 100% 100% 100% 1、5 Precision Technology Holding Limited Investment business 100% - - 1、6 Trend Power Technology (BVI) Co., Ltd. TREND POWER TECHNOLOGY (VIETNAM) COMPANY LIMITED Production of batteries, Detail: production and processing of lithium-ion battery module, lithium-ion batteries 100% 100% 100% 1 Notes: 1. Not important subsidiaries and the financial statement was not reviewed by CPAs. 2. The board of directors of SonicEdge Industries (BVI) Corporation resolved to dissolve and liquidate Simplo Technology STSZ (HK) Limited in order to adjust the organizational structure and effectively integrate resources on March 17,2023. Simplo Technology STSZ (HK) Limited completed the liquidation process in February 2024. 3. The board of directors of Advanced Energy Solution Holding Co., Ltd. resolved on March 22, 2022, to increase the capital of its subsidiary Innovations Investment (BVI) Co., Ltd. with a cash injection of US$4,750 thousand. The capital increase was completed in June 2024. 4. The subsidiary Innovations Investment (BVI) Co., Ltd. resolved on July 28, 2022, to increase the capital of its subsidiary Trend Power Technology (SuZhou) Co., Ltd. by cash. The subsidiary Innovations Investment (BVI) Co., Ltd. completed the capital increase of US$4,750 thousand for its subsidiary Trend Power Technology (SuZhou) Co., Ltd. in July 2024. 5. The subsidiary TREND POWER TECHNOLOGY PRIVATE LIMITED resolved on May 26, 2025, to inc rease the capital of its subsidiary Trend Power Technology (Germany) GmbH by cash. The subsidiary TREND POWER TECHNOLOGY PRIVATE LIMITED completed the capital increase of EUR 300 thousand for its subsidiary Trend Power Technology (Germany) GmbH in June 2025. 6. On September 12, 2025, Trend Power Technology Private Limited invested in Precision Technology Holding Limited, holding 100% of its shares. 13. INVESMENTS ACCOUNTED FOR USING THE EQUITY METHOD September 30, 2025 December 31, 2024 September 30, 2024 Investments in associates Associates that are not individually material $ - $ 92,978 $ 94,512 The Group's ownership and voting rights in associates at balance sheet date are as follows: % of Ownership and Voting Rights Held by the Company Name of Associate Principal Activities Place of Operation September 30, 2025 December 31, 2024 September 30, 2024 Huiqin Energy Co., LTD. Energy Technology Services, International Trade Hsinchu Country 15.04% 20% 20%
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- 23 - Huiqin Energy Co., Ltd. increased its capital in 202 5, while the Group did not increase its capital simultaneously, resulting in the shareholding ratio of Huiqin Energy Co., Ltd. decreasing to 15.04%. The share of profit or loss and other comprehensive income of the investee and the Group using the equity method is calculated based on financial statements that have not been reviewed by an accountant. However, the management of the Group believes that the fact that the financial statements of the investee have not been reviewed by an accountant will not have a material impact. 14. PROPERTY, PLANT AND EQUIPMENT September 30, 2025 December 31, 2024 September 30, 2024 Assets used by the Group $ 8,820,769 $ 8,937,451 $ 9,259,023 Assets leased under operating leases 33,157 33,606 33,797 $ 8,853,926 $ 8,971,057 $ 9,292,820 a. Assets used by the Group Land Buildings Leasehold Improvements Machinery Equipment Transportation Equipment Office Equipment Other Equipment Property under Construction Total Cost Balance at January 1, 2025 $ 761,320 $ 4,333,748 $ 24,960 $ 10,164,951 $ 53,635 $ 196,116 $ 5,042,159 $ 701,324 $ 21,278,213 Additions - 368,504 3,633 850,374 2,672 9,580 739,589 725,247 2,699,599 Disposals - - - ( 346,651 ) ( 1,123 ) ( 3,135 ) ( 206,833 ) - ( 557,742 ) Reclassification - 413,049 - 327,995 - 3,723 ( 88,388 ) ( 1,241,472 ) ( 585,093 ) Effects of foreign currency exchange differences - ( 179,928 ) - ( 472,890 ) ( 1,748 ) ( 8,088 ) ( 244,750 ) ( 28,217 ) ( 935,621 ) Balance at September 30, 2025 $ 761,320 $ 4,935,373 $ 28,593 $10,523,779 $ 53,436 $ 198,196 $ 5,241,777 $ 156,882 $21,899,356 Accumulated depreciation Balance at January 1, 2025 $ - $ 2,133,794 $ 18,750 $ 6,689,624 $ 36,056 $ 151,823 $ 3,310,715 $ - $12,340,762 Depreciation expenses - 155,509 2,053 1,118,781 6,141 13,980 466,398 - 1,762,862 Disposals - - - ( 309,496 ) ( 1,011 ) ( 2,825 ) ( 160,484 ) - ( 473,816 ) Reclassification - - - 4,933 - - ( 4,933 ) - - Effects of foreign currency exchange differences - ( 84,759 ) - ( 297,442 ) ( 1,257 ) ( 5,392 ) ( 162,371 ) - ( 551,221 ) Balance at September 30, 2025 $ - $ 2,204,544 $ 20,803 $ 7,206,400 $ 39,929 $ 157,586 $ 3,449,325 $ - $13,078,587 Carrying amounts at September 30, 2025 $ 761,320 $ 2,730,829 $ 7,790 $ 3,317,379 $ 13,507 $ 40,610 $ 1,792,452 $ 156,882 $ 8,820,769 Carrying amounts at December 31, 2024 and January 1, 2025 $ 761,320 $ 2,199,954 $ 6,210 $ 3,475,327 $ 17,579 $ 44,293 $ 1,731,444 $ 701,324 $ 8,937,451 Cost Balance at January 1, 2024 $ 761,320 $ 4,227,569 $ 23,342 $ 9,209,120 $ 52,953 $ 175,787 $ 4,596,438 $ 286,855 $19,333,384 Additions - - 1,617 1,063,344 2,033 6,311 354,830 386,480 1,814,615 Disposals - ( 8,620 ) - ( 411,287 ) ( 2,214 ) ( 4,836 ) ( 205,140 ) - ( 632,097 ) Reclassification - 1,998 - 11,468 - 68 8,484 ( 33,874 ) ( 11,856 ) Effects of foreign currency exchange differences - 151,444 - 409,956 1,672 6,022 191,848 4,341 765,283 Balance at September 30, 2024 $ 761,320 $ 4,372,391 $ 24,959 $10,282,601 $ 54,444 $ 183,352 $ 4,946,460 $ 643,802 $21,269,329 Accumulated depreciation Balance at January 1, 2024 $ - $ 1,892,650 $ 16,078 $ 5,409,109 $ 28,924 $ 134,098 $ 2,788,325 $ - $10,269,184 Depreciation expenses - 148,067 2,047 1,145,588 6,363 16,174 487,349 - 1,805,588 Disposals - ( 8,620 ) - ( 344,801 ) ( 1,773 ) ( 4,306 ) ( 164,166 ) - ( 523,666 ) Effects of foreign currency exchange differences - 73,890 - 259,967 1,047 4,781 119,515 - 459,200 Balance at September 30, 2024 $ - $ 2,105,987 $ 18,125 $ 6,469,863 $ 34,561 $ 150,747 $ 3,231,023 $ - $12,010,306 Carrying amounts at September 30, 2024 $ 761,320 $ 2,266,404 $ 6,834 $ 3,812,738 $ 19,883 $ 32,605 $ 1,715,437 $ 643,802 $ 9,259,023 Carrying amounts at December 31, 2023 and January 1, 2024 $ 761,320 $ 2,344,919 $ 7,264 $ 3,800,011 $ 24,029 $ 41,689 $ 1,808,113 $ 286,855 $ 9,064,200
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- 24 - Depreciation expense if calculated on a straight -line basis over their estimated useful lives as follows: Buildings Main buildings 20-35 years Electromechanical power system 10-15 years Engineering systems 8-10 years Leasehold improvements 1-5 years Machinery equipment 1-10 years Transportation equipment 3-5 years Office equipment 1-5 years Other equipment 1-10 years b. Assets leased under operating leases Land Buildings Total Cost Balance at January 1, and September 30, 2025 $ 22,928 $ 17,965 $ 40,893 Accumulated depreciation Balance at January 1, 2025 $ - $ 7,287 $ 7,287 Depreciation expenses - 449 449 Balance at September 30, 2025 $ - $ 7,736 $ 7,736 Carrying amount at September 30, 2025 $ 22,928 $ 10,229 $ 33,157 Carrying amount at December 31, 2024 and January 1, 2025 $ 22,928 $ 10,678 $ 33,606 Cost Balance at January 1, and September 30, 2024 $ 22,928 $ 17,965 $ 40,893 Accumulated depreciation Balance at January 1, 2024 $ - $ 6,520 $ 6,520 Depreciation expenses - 576 576 Balance at September 30, 2024 $ - $ 7,096 $ 7,096 Carrying amount at September 30, 2024 $ 22,928 $ 10,869 $ 33,797 Carrying amount at December 31, 2023 and January 1, 2024 $ 22,928 $ 11,445 $ 34,373 The Group’s o perating leases relate to leases of land and buildings with lease terms from February 1, 2023 to January 31, 2026. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods. Buildings are depreciated on a straight-line-basis over their useful lives of 10 to 28 years.
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- 25 - 15. LEASE ARRANGEMENTS a. Right-of-use assets September 30, 2025 December 31, 2024 September 30, 2024 Carrying amount Land $ 589,887 $ 644,147 $ 631,612 Buildings 117,166 139,215 144,898 $ 707,053 $ 783,362 $ 776,510 For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Additions to right-of-use assets $ 7,934 $ 438,302 Depreciation expense for right-of-use assets Land $ 3,898 $ 5,685 $ 11,092 $ 12,057 Buildings 9,517 7,158 24,907 22,437 $ 13,415 $ 12,843 $ 35,999 $ 34,494 b. Lease liabilities September 30, 2025 December 31, 2024 September 30, 2024 Carrying amount Current $ 36,264 $ 30,247 $ 28,229 Non-current $ 82,572 $ 110,717 $ 114,649 Range of discount rate for lease liabilities was as follows: September 30, 2025 December 31, 2024 September 30, 2024 Buildings 1.90%~2.64% 1.90%~2.20% 1.90%~2.20% c. Material lease activities and terms The Group leases several parcels of land for the use of plants and offices, and land use rights are located in mainland China and Vietnam with a lease term of 37-50 years, and the Group had already obtained the land use right certificates. Additionally, a building located in Taiwan for the use of office, with a lease term of 1 year. The subsidiary's land use rights in Vietnam were partially returned with a rent reduction in July 2024, and a refund of the rent amounting to VND 262,007,319 thousand (US$ 10,976 thousand) was agreed upon . The Group leased several staff dormitories with lease terms of 1 to 10 years.
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- 26 - d. Other lease information For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Expenses relating to short-term leases $ 2,209 $ 14,021 $ 16,571 $ 24,745 Total cash (outflow) for leases ( $ 36,325 ) ( $ 48,311 ) The Group’s leases of certain buildings qualify as short-term leases. The Group has elected to apply the recognition exemption for these leases and thus, did not recognize right-of-use assets and lease liabilities for these leases. 16. INTANGIBLE ASSETS September 30, 2025 December 31, 2024 September 30, 2024 Computer Software $ 178,607 $ 115,624 $ 117,734 Except for the recognized amortization expenses, there were no major additions, disposals or impairment of the intangible assets of the Group for the nine months ended September 30, 2025 and 2024. Amortization expense is calculated on a straight-line basis over their useful lives as follows: Computer software 1-5 years 17. OTHER ASSETS September 30, 2025 December 31, 2024 September 30, 2024 Current Excess V AT paid $ 215,058 $ 207,370 $ 231,026 Temporary payments 85,863 91,547 48,336 Others 99,983 11,780 11,281 $ 400,904 $ 310,697 $ 290,643 Non-current Others $ 29,835 $ 14,094 $ 79,446 18. LOANS September 30, 2025 December 31, 2024 September 30, 2024 Unsecured loans Line of credit loans $ 385,000 $ 449,228 $ 808,011
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- 27 - The weighted average effective interest rate on bank working capital loans was 1.850%, 1.980%~4.592% and 1.980%~4.592% per annum at September 30, 2025, December 31, 2024 and September 30, 2024, respectively. 19. NOTES AND ACCOUNTS PAYABLE September 30, 2025 December 31, 2024 September 30, 2024 Notes and accounts payable Operating $ 21,858,573 $ 19,508,919 $ 19,982,400 The primary credit period for accounts payable is 30~120 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. 20. OTHER LIABILITIES September 30, 2025 December 31, 2024 September 30, 2024 Current Other payables Payables for business promotion fee $ 1,135,002 $ 1,974,432 $ 1,605,082 Payables for salaries and bonuses 952,769 1,176,076 1,172,434 Payables for compensation of employees and remuneration of directors 683,378 512,937 439,522 Payables for dividends - 1,683,311 - Others (mainly molds, insurance, services and hydropower and, etc.) 1,829,799 1,279,736 1,369,072 $ 4,600,948 $ 6,626,492 $ 4,586,110 September 30, 2025 December 31, 2024 September 30, 2024 Other liabilities Refund liabilities $ 1,068,428 $ 935,955 $ 879,351 Temporary receipts 667,085 657,980 706,663 Contract liabilities 121,886 72,923 71,297 Others (mainly receipts under custody, etc.) 90,817 94,400 107,700 $ 1,948,216 $ 1,761,258 $ 1,765,011 Non-current Other liabilities Guarantee deposits $ 10,960 $ 11,507 $ 11,595
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- 28 - Refund liabilities refer to the revenue from the sale of goods measured at the fair value of the consideration received or receivable, after deducting estimated customer returns, discounts and other similar discounts. The Group estimates possible sales returns and discounts based on historical experience and consideration of different contract conditions. 21. PROVISIONS September 30, 2025 December 31, 2024 September 30, 2024 Current Warranties $ 691,803 $ 806,337 $ 762,079 Non-current Warranties $ 1,383,607 $ 1,612,674 $ 1,524,157 For the Nine Months Ended September 30 2025 2024 Balance, beginning of period $ 2,419,011 $ 1,317,044 Provisions (reverse) recognize ( 343,601 ) 969,192 Balance, end of period $ 2,075,410 $ 2,286,236 The provision for warranty claims represents the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Group’s obligations for warranties under contracts for the sale of goods. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality. 22. RETIREMENT BENEFIT PLANS Pension cost for defined benefit plans of NT$258 thousand, NT$261 thousand, NT$771 thousand and NT$784 thousand for the three months and nine months ended September 30, 2025 and 2024, respectively. The afore-mentioned pension cost is calculated on a year-to-date basis by using the actuarially determined pension cost rate as of December 31, 2024 and 2023. 23. EQUITY a. Share capital - ordinary shares September 30, 2025 December 31, 2024 September 30, 2024 Number of shares authorized (in thousands) 320,000 320,000 320,000 Shares authorized $ 3,200,000 $ 3,200,000 $ 3,200,000 Number of shares issued and fully paid (in thousands) 184,970 184,970 184,970 Shares issued $ 1,849,705 $ 1,849,705 $ 1,849,705
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- 29 - b. Capital surplus September 30, 2025 December 31, 2024 September 30, 2024 May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Issuance of ordinary shares $ 2,921,176 $ 2,921,176 $ 2,921,176 Conversion of bonds - 396,185 396,185 The compensation costs of cash capital increase reserved for employees’ subscription of subsidiaries 140,873 140,873 140,873 Recognized from interest payable compensation of convertible bonds 28,999 28,999 28,999 May be used to offset a deficit only (2) Share of change in capital surplus of subsidiaries 2,601,448 2,206,338 2,206,338 $ 5,692,496 $ 5,693,571 $ 5,693,571 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, provided that the transfer to share capital is limited to a certain percentage of the Company’s capital surplus. 2) Such capital surplus arises from the effect of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions or from changes in capital surplus of subsidiaries accounted for using the equity method. c. Retained earnings and dividend policy Under the dividends policy as set forth in the Articles, where the Company made a profit after the end of each half of the fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, retaining an estimated amount for employees’ compensation, frontline employees’ compensation and directors’ remuneration, setting aside as a legal reserve 10% of the remaining profit. Where such legal reserve amounts to the total paid-in capital, this provision shall not apply. The Company shall also setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan for the distribution of dividends to shareholders. If the dividends are to be distributed in the form of new shares, it should be submitted to the shareholders' meeting for resolution; if the dividends are to be distributed by way of cash dividends, it should be approved by the board of directors and reported to the shareholders' meeting. For the employee and director remuneration distribution policy stipulated in the Company's Articles of Association, please refer to Note 25-g Employee compensation and Director Remuneration. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 50% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.
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- 30 - The Company held its Annual Shareholders Meeting on May 29, 2025 and May 30, 2024, and resolved to approve the appropriations of the earnings for the first and second halves of 2024 and the first and second halves of 2023 were as follows: For the Six Months Ended June 30, 2024 For the Six Months Ended December 31, 2024 For the Six Months Ended June 30, 2023 For the Six Months Ended December 31, 2023 Date of Board resolution November 16, 2024 March 5, 2025 November 13, 2023 March 13, 2024 Legal reserve $ 237,435 $ 297,388 $ 261,244 $ 306,954 Special reserve (reversal) ( $ 506,202 ) ( $ 621,234 ) $ 278,174 ( $ 89,553 ) Cash dividends $ 1,683,232 $ 2,108,664 $ 1,849,705 $ 2,164,155 Cash dividends per share (NT$) $ 9.1 $ 11.4 $ 10.0 $ 11.7 The appropriations of the earnings for the first half of 2025 was as follows: For the Six Months Ended June 30, 2025 Legal reserve $ 294,782 Special reserve $ 2,109,563 Cash dividends $ 1,757,220 Cash dividends per share (NT$) $ 9.5 The above appropriations for cash dividends were resolved by the Company’s Board of Directors on November 10, 2025. According to the regulations of the competent authorities, the Group reversed the special surplus reserve NT$1,127,436 thousand, the appropriations of the earnings of 2024 profit distribution plan was terminated due to the eradication of reasons for the reduction of shareholders' equity. In preparing the Statements of Changes in Equity, an unadjusted difference of NT$324,739 thousand was not reversed due to insufficient special surplus reserve, resulting in inconsistency in the amount of reversal of the special surplus reserve item in the earnings distribution table and the Statements of Changes in Equity. However, after evaluation by the Company's management, it was determined that this does not affect the overall present fairly presentation of the financial statements. d. Other equity items 1) Exchange differences on translating the financial statements of foreign operations For the Nine Months Ended September 30 2025 2024 Balance, beginning of period ( $ 184,759 ) ( $ 817,282 ) Exchange differences on translating the financial statements of foreign operations ( 943,136 ) 635,674 Balance, end of period ( $ 1,127,895 ) ( $ 181,608 )
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- 31 - 2) Unrealized valuation gain (loss) on financial assets at FVTOCI For the Nine Months Ended September 30 2025 2024 Balance, beginning of period $ 509,498 $ 14,585 Recognized for the period Unrealized gain (loss) ( 31,638 ) 6,077 Other comprehensive income recognized for the period ( 31,638 ) 6,077 Cumulative realized gain (loss) of equity instruments transferred to retained earnings due to disposal ( 470,598 ) - Balance, end of period $ 7,262 $ 20,662 e. Non-controlling interests For the Nine Months Ended September 30 2025 2024 Balance, beginning of period $ 6,669,569 $ 5,859,793 Share in profit for the period 1,109,174 652,792 Cash dividend distribution ( 482,904 ) ( 448,135 ) Exchange differences arising on translation of foreign operations ( 382,189 ) 205,517 Unrealized valuation gain (loss) on financial assets at FVTOCI 5 ( 692 ) Balance, end of period $ 6,913,655 $ 6,269,275 24. REVENUE For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Revenue from contracts with customers Revenue from the sale of goods $20,394,261 $22,031,149 $58,398,916 $58,613,560
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- 32 - a. Contract balances September 30, 2025 December 31, 2024 September 30, 2024 January 1, 2024 Notes and accounts receivable (Note 10) $ 15,267,303 $ 15,120,744 $ 13,667,831 $ 12,685,271 Contract liabilities (Note 20) Sale of goods $ 121,886 $ 72,923 $ 71,297 $ 60,351 b. Disaggregation of revenue from contracts with customers 1. The Group operates mainly in four regions - Taiwan, United States, China and Singapore. The Group’s revenue from continuing operations from external customers and information by the subsidiaries’ geographical locations is detailed below: For the Three Months Ended September 30 For the Nine Months Ended September 30 Region 2025 2024 2025 2024 Taiwan $ 18,974,764 $ 20,826,101 $ 54,674,684 $ 54,920,042 United States 1,056,728 771,030 2,361,333 2,321,915 China 174,723 135,022 893,119 683,064 Singapore 188,046 298,996 469,780 688,539 $ 20,394,261 $ 22,031,149 $ 58,398,916 $ 58,613,560 2. Revenue categories by product, as follow: Product For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Lithium batteries $ 20,006,207 $ 21,829,049 $ 56,465,345 $ 58,000,168 Others 388,054 202,100 1,933,571 613,392 $ 20,394,261 $ 22,031,149 $ 58,398,916 $ 58,613,560 25. NET PROFIT FROM CONTINUING OPERATIONS a. Interest income For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Bank deposits $ 288,519 $ 314,441 $ 930,141 $ 1,042,274
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- 33 - b. Other income For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Government grants $ 3,120 $ 53,007 $ 45,406 $ 62,321 Dividend income 2,338 2,126 8,046 2,126 Rental income Operating lease (Note 14) 2,402 2,971 7,566 6,297 $ 7,860 $ 58,104 $ 61,018 $ 70,744 c. Other gains and losses For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Net foreign currency exchange gains (loss) $ 188,134 $ 71,797 ( $ 302,206 ) $ 915,169 Loss on financial assets measured at fair value through (loss) profit ( 54,907 ) ( 121,489 ) 587,773 ( 691,166 ) Loss on disposal of property, plant and equipment ( 8,619 ) ( 3,019 ) ( 29,614 ) ( 49,121 ) Others 8,599 9,095 22,322 54,185 $ 133,207 ( $ 43,616 ) $ 278,275 $ 229,067 d. Finance costs For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Interest on bank loans $ 1,017 $ 4,347 $ 3,526 $ 54,785 Interest on lease liabilities 656 - 2,358 - $ 1,673 $ 4,347 $ 5,884 $ 54,785
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- 34 - e. Depreciation and amortization For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Depreciation expense summarized by function Operating costs $ 437,554 $ 520,268 $1,429,383 $1,511,422 Operating expenses 133,500 110,700 369,927 329,236 $ 571,054 $ 630,968 $1,799,310 $1,840,658 Amortization expense summarized by function Operating costs $ 266 $ 163 $ 777 $ 482 Operating expenses 25,190 17,472 67,650 44,827 $ 25,456 $ 17,635 $ 68,427 $ 45,309 f. Employee benefits expense For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Post-employment benefits Defined contribution plans $ 12,064 $ 10,206 $ 33,386 $ 29,329 Defined benefit plans (Note 22) 258 261 771 784 12,322 10,467 34,157 30,113 Other employee benefits 1,235,524 1,056,460 3,543,742 3,176,375 Total employee benefits expense $ 1,247,846 $ 1,066,927 $ 3,577,899 $ 3,206,488 For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Employee benefits expenses summarized by function Operating costs $ 679,214 $ 685,189 $ 2,102,821 $ 1,969,165 Operating expenses 568,632 381,738 1,475,078 1,237,323 $ 1,247,846 $ 1,066,927 $ 3,577,899 $ 3,206,488 g. Compensation of employees and remuneration of directors According to the Company’s Articles, the Company accrued compensation of employees and remuneration of directors at rates of no less than 3% and no higher than 3%, respectively, of net profit before income tax, employees’ compensation and remuneration of directors. In accordance with the amendment to the Securities and Exchange Act in August 2024, the Company has resolved at the 2025 annual shareholders' meeting to amend the articles of incorporatio n, Of the amount allocated for employees’ compensation mentioned above, no less than 30% shall be designated for the distribution of compensation for frontline employees. The compensation of employees (Including frontline employees ’
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- 35 - compensation) and the r emuneration of directors for the three months and nine months ended September 30, 2025 and 2024, respectively, are as follows: Accrual rate For the Nine Months Ended September 30 2025 2024 Compensation of employees 3.63% 3.12% Remuneration of directors 0.53% 0.48% Amount For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Compensation of employees $ 57,009 $ 54,571 $ 149,096 $ 140,775 Remuneration of directors $ 7,250 $ 7,250 $ 21,750 $ 21,750 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 and adjusted in the following year. The compensation of employees and the remuneration of directors for the years ended December 31, 202 4 and 2023, which were approved by the Company’s board of directors on March 5, 2025 and March 13, 2024, respectively, are as follows: For the Year Ended December 31 2024 2023 Cash Cash Compensation of employees $ 195,583 $ 206,400 Remuneration of directors 29,000 29,000 Information on the compensation of employees and remuneration of directors resolved by the Company’s board of directors in 2025 and 2024 is available at the Market Observation Post System website of the Taiwan Stock Exchange. 26. INCOME TAXES a. Income tax recognized in profit or loss Major components of tax expense were as follows:
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- 36 - For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Current tax In respect of the current period $ 970,867 $ 336,720 $1,946,190 $ 914,115 Income tax on unappropriated earnings - - 91,210 45,973 Surplus repatriation withheld 80,613 - 80,613 131,858 Adjustments for prior years - - 1,147 1,090 1,051,480 336,720 2,119,160 1,093,036 Deferred tax In respect of the current period ( 538,779 ) 134,660 ( 696,766 ) 163,844 Income tax expenses recognized in profit or loss $ 512,701 $ 471,380 $1,422,394 $1,256,880 b. Income tax recognized in other comprehensive income For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Deferred tax In respect of the current period Translation of foreign operations ( $ 750,207 ) $ 9,488 ( $ 168,264 ) ( $ 31,065 ) c. Impact on income tax expenses of Pillar 2 Act The government of Vietnam, the country where SIMPLO TECHNOLOGY (VIETNAM) COMPANY LIMITED is registered, has legislated the Pillar 2 Income Tax Act, which has come into effect on January 1, 2024. The compa ny has no relevant current income tax impact. d. Income tax assessments The income tax returns through 2022 of the Company and Trend Energy Technology Co., Ltd., respectively, have been assessed by the tax authorities. 27. EARNINGS PER SHARE Unit: NT$ Per Share For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Basic earnings per share $ 7.87 $ 7.73 $ 21.26 $ 20.56 Diluted earnings per share $ 7.85 $ 7.71 $ 21.21 $ 20.51
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- 37 - The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows: Net Profit for the Period For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Profit for the period attributable to owners of the Company $ 1,456,633 $ 1,429,070 $ 3,933,860 $ 3,803,420 Earnings used in the computation of basic and diluted earnings per share $ 1,456,633 $ 1,429,070 $ 3,933,860 $ 3,803,420 Number of shares For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Weighted average number of ordinary shares used in the computation of basic earnings per share 184,970 184,970 184,970 184,970 Effect of potentially dilutive ordinary shares Compensation of employees 403 398 522 505 Weighted average number of ordinary shares used in the computation of diluted earnings per share 185,373 185,368 185,492 185,475 The Group may settle the compensation of employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number o f 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. 28. 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 is not subject to any externally imposed capital requirements.
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- 38 - Key management personnel of the Group review the capital structure on a 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 personnel, in order to balance the overall capital structure, the Group may adjust the number of dividends paid to shareholders, the number of new shares issued or repurchased, and/or the amount of new debt issued or existing debt redeemed. 29. FINANCIAL INSTRUMENTS a. Fair value information - financial instruments not measured at fair value The management considers that the carrying amounts of financial assets and liabilities recognized in the consolidated financial statements approximate their fair values. b. Fair value information - financial instruments measured at fair value on a recurring basis 1) Fair value hierarchy September 30, 2025 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Derivative instruments $ - $ 25,421 $ - $ 25,421 Mutual funds 175,390 - - 175,390 Domestic emerging shares 13,200 - - 13,200 Domestic listed shares 49,123 - - 49,123 Limited Partnership - - 352,057 352,057 $ 237,713 $ 25,421 $ 352,057 $ 615,191 Financial assets at FVTOCI Investments in equity instruments Domestic unlisted shares $ - $ - $ 213,862 $ 213,862 Foreign unlisted shares - - 32,174 32,174 $ - $ - $ 246,036 $ 246,036 Financial liabilities at FVTPL Derivative instruments $ - $ 161,669 $ - $ 161,669
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- 39 - December 31, 2024 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Derivative instruments $ - $ 11,488 $ - $ 11,488 Mutual funds 173,428 - - 173,428 Domestic emerging shares - - 12,000 12,000 Domestic listed shares 49,042 - - 49,042 Limited Partnership - - 279,587 279,587 $ 222,470 $ 11,488 $ 291,587 $ 525,545 Financial assets at FVTOCI Investments in equity instruments Domestic unlisted shares $ - $ - $ 181,106 $ 181,106 Foreign listed shares 576,445 - - 576,445 Foreign unlisted shares - - 36,087 36,087 $ 576,445 $ - $ 217,193 $ 793,638 Financial liabilities at FVTPL Derivative instruments $ - $ 323,109 $ - $ 323,109 September 30, 2024 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Derivative instruments $ - $ 291,675 $ - $ 291,675 Mutual funds 172,792 - - 172,792 Domestic listed shares 47,083 - - 47,083 Limited Partnership - - 238,500 238,500 $ 219,875 $ 291,675 $ 238,500 $ 750,050 Financial assets at FVTOCI Investments in equity instruments Domestic unlisted shares $ - $ - $ 217,107 $ 217,107 Foreign listed shares 99,659 - - 99,659 Foreign unlisted shares - - 72,027 72,027 $ 99,659 $ - $ 289,134 $ 388,793 Financial liabilities at FVTPL Derivative instruments $ - $ 215 $ - $ 215 There were no transfers betw een Levels 1 and 2 for the nine months ended September 30, 2025 and 2024.
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- 40 - 2) Valuation techniques and inputs applied for Level 2 fair value measurement Financial Instruments Valuation Techniques and Inputs Derivatives instruments - foreign exchange forward contracts and cross-currency swap contracts Discounted cash flow: Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. Structured deposits Discounted cash flow: Discounted using a discount rate that reflects the current interest rate of financial products at the end of the reporting period. 3) Reconciliation of financial instruments measured at Level 3 fair value a) The fair values of limited partnership and domestic and foreign unlisted equity investments were determined using the asset -based approach on the net asset value and investment agreement. Reconciliation of financial instruments measured at Level 3 fair value For the nine months ended September 30, 2025 Financial Assets at FVTPL Financial Assets at FVTOCI Financial Assets Equity Instruments Equity Instruments Balance, beginning of period $ 291,587 $217,193 Transfer out of level 3 ( 13,200 ) - Cash capital reduction - ( 29,000 ) Recognized in other gains and losses 10,233 - Recognized in other comprehensive income and loss - ( 30,831 ) Purchases 63,437 88,673 Exchange Rate Difference - 1 Balance, end of period $ 352,057 $ 246,036
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- 41 - For the nine months ended September 30, 2024 Financial Assets at FVTPL Financial Assets at FVTOCI Financial Assets Equity Instruments Equity Instruments Balance, beginning of period $ 175,558 $ 347,210 Recognized in other gains and losses 27,029 - Cash capital reduction - ( 50,000 ) Recognized in other comprehensive income - ( 8,076 ) Purchases 35,913 - Balance, end of period $ 238,500 $ 289,134 c. Categories of financial instruments September 30, 2025 December 31, 2024 September 30, 2024 Financial assets Financial assets at FVTPL Mandatorily classified as at FVTPL $ 615,191 $ 525,545 $ 750,050 Financial assets at amortized cost (1) 48,281,972 50,413,461 45,714,928 Financial assets at FVTOCI Investments in equity instruments 246,036 793,638 388,793 September 30, 2025 December 31, 2024 September 30, 2024 Financial liabilities Financial liabilities at FVTPL Mandatorily classified as at FVTPL $ 161,669 $ 323,109 $ 215 Financial liabilities at amortized cost (2) 26,844,521 26,584,639 25,376,521 (1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, time deposits with original maturities of more than 3 months, bond investments, notes and accounts receivable, other receivables and refundable deposits. (2) The balances include financial liabilities at amortized cost, which comprise short-term loans, notes and accounts payable and other payables. d. Financial risk management objectives and policies The Group’s major financial instruments include equity investments, bond investments, accounts receivable, refundable deposits, accounts payable and borrowings. The Group’s corporate treasury function provides services to the business, coordinates access to domestic
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- 42 - and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk and interest rate risks), credit risk and liquidity risk. The Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge ri sk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provided written principles on foreign currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments (including derivative financial instruments) for speculative purposes. The corporate treasury function reports quarterly to the Group’s management that monitors risks and policies implemented to mitigate risk exposures. 1) Market risk The Group’s operating activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk an d interest rate risk, which includes foreign exchange forward contracts to hedge the exchange rate risk arising on the import and export of goods. There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured. a) Foreign currency risk Several subsidiaries of the Group have foreign currency denominated sales and purchases, which expose the Group to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilizing foreign exchange forward contracts. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and of the derivatives exposed to foreign currency risk at t he end of the reporting period are set out in Note 33. Sensitivity analysis The Group was mainly exposed to the USD. The following table details the Group’s sensitivity to a 5% increase and decrease in the New Taiwan dollar (i.e. the functional currency ) against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting
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- 43 - period for a 5% change in foreign currency rates. A positive number below indicates an increase in pre-tax profit associated with the New Taiwan dollar strengthening 5% against the relevant currency. For a 5% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impa ct on pre-tax profit, and the balances below would be negative. USD Impact For the Nine Months Ended September 30 2025 2024 Profit or loss $ 1,264,785 $ 1,361,241 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 rates. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite 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 end of the reporting period were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Fair value interest rate risk Financial assets $14,835,633 $17,059,996 $15,666,993 Financial liabilities 385,000 449,228 808,011 Cash flow interest rate risk Financial assets 17,097,653 16,839,105 15,047,975 Sensitivity analysis The sensitivity analysis below was determined based on the Group’s exposure to interest rates for 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. If interest rates had been 10 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the nine months ended September 30, 2025 and 2024 would both increase/decrease by NT$12,823 thousand and NT$11,286 thousand. 2) Credit risk Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the
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- 44 - Group due to the f ailure 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 counterparties of li quidity and derivative financial instruments are banks with high credit quality by international credit rating agencies, so the credit risk is not high. The counterparties of accounts receivable cover a wide range of customers and are spread across differ ent industries and geographic regions. The Group continuously evaluates the financial position of customers with accounts receivable. Apart from the main customers of the Group, companies A, B and C, the Group did not have significant credit risk to any s ingle counterparty or any group of counterparties having similar characteristics. As the above customers were all reputable manufacturers, the credit risk was limited. Concentration of credit risk to any other counterparty did not exceed 5% of the total accounts receivable. 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. The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 202 5, December 31, 20 24 and September 30, 202 4, the Group had available unutilized bank loan facilities set out in (c) below. a) Liquidity and interest rate risk tables for non-derivative financial liabilities The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment 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 principal and interest cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates. September 30, 2025 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1 Year to 5 Year 5+ Years Non-derivative financial liabilities Non-interest-bearing liabilities Accounts payable $ - $21,858,545 $ - $ - $ - Other payables (Note) - 3,017,003 - - - Lease liabilities 3,219 6,437 28,377 80,344 2,818 Fixed interest rate instruments 385,000 - - - - $ 388,219 $24,881,985 $ 28,377 $ 80,344 $ 2,818
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- 45 - December 31, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1 Year to 5 Year 5+ Years Non-derivative financial liabilities Non-interest-bearing liabilities Accounts payable $ - $19,508,919 $ - $ - $ - Other payables (Note) - 4,937,479 - - - Lease liabilities 2,784 8,088 21,744 87,180 23,537 $ 2,784 $24,454,486 $ 21,744 $ 87,180 $ 23,537 September 30, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1 Year to 5 Year 5+ Years Non-derivative financial liabilities Non-interest-bearing liabilities Accounts payable $ - $19,982,400 $ - $ - $ - Other payables (Note) - 2,945,942 - - - Lease liabilities 2,352 4,705 21,172 111,141 3,508 Fixed interest rate instruments 360,518 - 450,965 - - $ 362,870 $22,933,047 $ 472,137 $ 111,141 $ 3,508 Note: The above other payables did not include payables for payroll and bonuses, payables for employees’ compensation and directors’ remuneration. The amounts included ab ove for variable interest rate instruments for non -derivative financial liabilities are subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period. b) Liquidity and interest rate risk table for derivative financial liabilities The following table details the Group’s liquidity analysis of its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed is determined by reference to the projected interest rates as illustrated by the yield curves at the end of the reporting period. September 30, 2025 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1 Year to 5 Year Net settled Foreign exchange forward contracts $ 15,759 $ 7,398 $ - $ - Cross-currency swap contracts ( 176,797) 17,392 - - ( $161,038) $ 24,790 $ - $ -
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- 46 - December 31, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1 Year to 5 Year Net settled Foreign exchange forward contracts ( $ 18,955) ( $ 847 ) $ - $ - Cross-currency swap contracts ( 215,679) ( 76,140 ) - - ( $234,634) ( $ 76,987 ) $ - $ - September 30, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1 Year to 5 Year Net settled Foreign exchange forward contracts $ 16,316 $ 348 $ - $ - Cross-currency swap contracts 195,958 78,838 - - $212,274 $ 79,186 $ - $ - c) Financing credit September 30, 2025 December 31, 2024 September 30, 2024 Unsecured bank credit Amount used $ 438,428 $ 517,189 $ 876,091 Amount unused 33,217,352 35,184,368 30,547,303 $ 33,655,780 $ 35,701,557 $ 31,423,394 As of September 30, 2025, December 31, 2024 and September 30, 2024, the amounts used included the performance guarantee limits of NT$53,428 thousand, NT$67,961 thousand and NT$68,080 thousand, respectively, which were guaranteed by the letters of guarantee of custom duties issued by the bank with respect to the Group. 30. TRANSACTIONS WITH RELATED PARTIES Transactions, account balances, gains and losses between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. B esides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed as follows. a. Related party name and category Related Party Name Related Party Category Ju Ming, Chen CEO’s spouse
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- 47 - b. Other transactions with related parties During the year 2000, the Company acquired the land at Hukou for operating purposes, with a total land area of 6,011 square meters (1,818 pings), amounting to NT$76,267 thousand (accounted for property, plant and equipment), of which the agricultural land area was 3,763 square meters and costs NT$21,601 thousand. Due to legal restrictions, it was registered under the name of Ju Ming, Chen, the spouse of the CEO. c. Remuneration of key management personnel For the Three Months Ended September 30 For the Nine Months Ended September 30 2025 2024 2025 2024 Short-term employee benefits $ 52,790 $ 44,286 $ 129,687 $ 103,627 Post-employment benefits 383 176 947 652 $ 53,173 $ 44,462 $ 130,634 $ 104,279 The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends. 31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY The following assets were provided as collateral for the tariffs of imported raw materials’ guarantees. September 30, 2025 December 31, 2024 September 30, 2024 Pledged deposits (accounted for as financial assets at amortized cost - current) $ 4,214 $ 4,371 $ 4,405 32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS In addition to those disclosed in other notes, significant commitments and contingencies of the Group at balance sheet date were as follows: a. As of September 30, 2025, December 31, 2024 and September 30, 2024, the Group issued guarantee notes of NT$10,528,833 thousand, NT$10,776,288 thousand and NT$10,776,288 thousand, respectively, as sub-guarantees for bank financing. b. The Group paid US$80,000 thousand (NT$2,432,000 thousand) as a security deposit in accordance with the contract in the first quarter of 2022. As of September 30, 2025, the Group still has US$29,300 thousand as a security deposit, and the remaining amount has been fully recovered.
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- 48 - 33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows: September 30, 2025 Foreign Currency Exchange Rate Carrying Amount Foreign Currency Assets Monetary items USD $ 1,321,579 30.395 $ 40,169,394 Foreign Currency Liabilities Monetary items USD 487,742 30.495 14,873,692 December 31, 2024 Foreign Currency Exchange Rate Carrying Amount Foreign Currency Assets Monetary items USD $ 1,051,052 32.735 $ 34,406,187 Foreign Currency Liabilities Monetary items USD 508,012 32.835 16,680,574 September 30, 2024 Foreign Currency Exchange Rate Carrying Amount Foreign Currency Assets Monetary items USD $ 1,248,550 31.6 $ 39,454,180 Foreign Currency Liabilities Monetary items USD 385,784 31.7 12,229,353 For the three months and nine months ended September 30, 2025 and 2024, unrealized net foreign exchange gains (loss) were NT$(1,016,512) thousand, NT$(391,032) thousand, NT$330,330 thousand and NT$339,338 thousand, respectively. It is impractical to disclose net foreign exchange gains or losses by each significant foreign currency due to the variety of the functional currencies of the entities in the Group.
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- 49 - 34. SEPARATELY DISCLOSED ITEMS a. Information on significant transactions and b. Investees: 1) Financing provided to others: Table 1. 2) Endorsements/guarantees provided: None. 3) Holding of significant m arketable securities at the end of th e period (excluding investments in subsidiaries, associates and joint ventures): Table 2 4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 3. 5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4. 6) Others: Intercompany relationships and significant intercompany transactions: Table 5. 7) Names, locations and related information of investees: Table 6. c. Information on investments in mainland China 1) Information on any investee Group in mainland China, showing the name, principal business activities, paid -in capital, method of investment, inward and outward remittance of funds, ownership percentage, 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 7. 2) Any of the following significant transactions with investee companies in m ainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: Table 8. 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 inst rument endorsements or guarantees or pledges of collateral at the end of the period and the purposes e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds f) Other transactions that have a material effect on the profit or loss for the year or on
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- 50 - the financial position, such as the rendering or receipt of services 35. SEGMENT INFORMATION The Group is mainly engaged in the manufacture and sale of information sof tware services, lighting equipment, data storage and processing equipment, electronic components, batteries, power generation, transmission, distribution machinery and wireless communication machinery and equipment. The Group’s chief operating decision mak er focuses on the overall financial information of the Group when allocating resources to the segments and assessing their performance. As the entities in the Group have similar economic characteristics, manufacturing processes and products and selling met hods, the entities in the Group belong to a single segment. In addition, the basis of measurement of the segment information provided to the chief operating decision maker is the same as that of the consolidated financial statements . The measurement basis of operating department profit and loss, assets and liabilities is the same as that of the preparation of this consolidated financial report. Hence, only a single operating segment is included for the three months and nine months ended September 30, 2025 and 202 4, and the information provided to the Group’s chief operating decision maker for the allocation of resources and assessment of segment performance is based on the consolidated financial statements.
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- 51 - TABLE 1 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) No. (Note 1) Lender Borrower Financial Statement Account Related Party Highest Balance for the Period (Note 2) Ending Balance (Note 2) Actual Amount Borrowed Interest Rate (%) Nature of Financing Business Transaction Amount Reasons for Short-term Financing Allowance for Impairment Loss Collateral Financing Limit for Each Borrower (Note 2) Aggregate Financing Limit (Note 2) Note Item Value 0 SIMPLO TECHNOLOGY CO., LTD. SIMPLO TECHNOLOGY (VIETNAM) COMPANY LIMITED Other receivables from related parties - other Yes $ 596,790 $ 547,110 $ 410,333 5.100% Financing needs $ - Purchase of equipment, expansion of the factory and replenishment of working capital $ - None $ - $15,045,087 $15,045,087 － 1 TREND POWER TECHNOLOGY PRIV A TE LIMITED TREND POWER TECHNOLOGY (VIETNAM) COMPANY LIMITED Other receivables from related parties - other Yes 828,875 759,875 349,543 3.84%~ 5.619% Financing needs - Operating requirement - None - 3,733,387 3,733,387 － Advanced Energy Solution Holding Co., Ltd. Other receivables from related parties - other Yes 360,000 - - 3.119% Financing needs - Operating requirement - None - 3,733,387 3,733,387 － Advanced Energy Solution Holding Co., Ltd. Other receivables from related parties - other Yes 385,000 385,000 385,000 3.244% Financing needs - Operating requirement - None - 3,733,387 3,733,387 － 2 Trend Power Technology (Changshu) CO., LTD Trend Power Technology (SuZhou) Co., Ltd. Other receivables from related parties - other Yes 181,920 169,840 84,920 2.150% Financing needs - Operating requirement - None - 2,756,448 2,756,448 － Note 1: Information in the number column is as follows: 1. Issuer is numbered 0. 2. The invested company is numbered sequentially starting from 1. Note 2: The aggregate financing limit and the financing limit for each borrower shall not exceed 40% of the net worth of the Company. The aggregate financing limit and the financing limit for each borrower shall not exceed 40% of the net worth of TREND POWER TECHNOLOGY PRIV ATE LIMITED. The aggregate financing limit ant the financing limit for each borrower shall not exceed 40% of the net worth of Trend Power Technology (Changshu) CO., LTD.
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- 52 - TABLE 2 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES HOLDING OF SIGNIFICANT MARKETABLE SECURITIES HELD AT THE END OF THE PERIOD SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars / Thousands of Units / Thousands of Shares) Holding Company Name Type and Name of Marketable Securities Relationship with the Holding Company Financial Statement Account September 30, 2025 Note Number of Shares (In Thousands) Carrying Amount Percentage of Ownership (%) Fair Value SIMPLO TECHNOLOGY Mutual funds CO., LTD. Mega Diamond Money Market Fund None Financial assets at fair value through profit or loss - current 13,259 $ 175,390 - $ 175,390 － Limited Partnership TGVest Asia Partners II L.P. None Financial assets at fair value through profit or loss - non-current - 301,601 7.13 301,601 Note 1 Cathay Private Equity Smart Tech None Financial assets at fair value through profit or loss - non-current - 50,456 7.39 50,456 Note 1 Listed shares Cathay Financial Holdings Co., Ltd. Preferred Stock B None Financial assets at fair value through profit or loss - non-current 816 49,123 - 49,123 － Emerging shares Minson Integration, Inc. None Financial assets at fair value through profit or loss - current 100 13,200 - 13,200 － Unlisted shares GOMORE INC. None Financial assets at fair value through other comprehensive income - non-current 10,594 - 3.40 - － TriKnight Capital Corporation None Financial assets at fair value through other comprehensive income - non-current 16,442 107,792 5.00 107,792 － Simplo Energy Co., Ltd. Huiqin Energy Co., LTD None Financial assets at fair value through other comprehensive income - non-current 9,700 87,217 15.04 87,217 － SonicEdge Industries (BVI) Corporation TXOne Networks Inc. None Financial assets at fair value through other comprehensive income - non-current 455 32,174 0.66 32,174 － Legend Energy Co., Ltd. Taiwan Truewin Technology Co., Ltd. None Financial assets at fair value through other comprehensive income - non-current 592 18,853 0.91 18,853 － Note 1: The Group disclosed the percentage of ownership based on the percentage of the Group’s investment amount. Note 2: This is a limited company, therefore there are no shares.
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- 53 - TABLE 3 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) Buyer Related Party Relationship Transaction Details Abnormal Transaction Notes/Accounts Receivable (Payable) Note Purchase/ Sale Amount % of Total Payment Terms Unit Price Payment Terms Ending Balance (Note) % of Total SIMPLO TECHNOLOGY CO., LTD. HUAPU TECHNOLOGY (CHANGSHU) INC. Subsidiary which is held 100% indirectly by the Company Purchase $ 14,656,898 29.61% Monthly 90 days to 120 days $ - － ( $ 2,640,246 ) 12.08% － SIMPLO TECHNOLOGY (CHANGSHU) INC. Subsidiary which is held 100% indirectly by the Company Processing charge 785,738 1.59% Monthly 90 days to 120 days - － - - － Simplo Technology (Chongqing) Inc. Subsidiary which is held 100% indirectly by the Company Purchase 18,583,449 37.54% Monthly 90 days to 120 days - － ( 3,746,936 ) 17.14% － Trend Power Technology (Changshu) CO., LTD TREND POWER TECHNOLOGY PRIV ATE LIMITED Affiliated Company Sale 4,903,862 12.90% Monthly 180 days to 270 days - － 2,042,684 13.38% － Trend Energy Technology Co., Ltd. Affiliated Company Sale 114,839 0.30% Monthly 180 days to 270 days - － 111,011 0.73% － Trend Energy Technology Co., Ltd. TREND POWER TECHNOLOGY PRIV ATE LIMITED Affiliated Company Sale 285,692 0.75% Monthly 180 days - － 52,804 0.35% － TREND POWER TECHNOLOGY PRIV ATE LIMITED Trend Power Technology (USA) CO., Limited Affiliated Company Sale 3,803,679 10.01% Monthly 270 days - － 3,780,302 24.76% － Note: Notes and accounts receivable and processing charges payable were listed at their net values.
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- 54 - TABLE 4 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES RECEIV ABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) Company Name Related Party Relationship Ending Balance Turnover Rate Overdue Amount Received in Subsequent Period Allowance for Impairment Loss Amount Actions Taken SIMPLO TECHNOLOGY CO., LTD. SIMPLO TECHNOLOGY (CHANGSHU) INC. Subsidiary which is held 100% indirectly by the Company $ 795,438 - $ - － $ - $ - HUAPU TECHNOLOGY (CHANGSHU) INC. SIMPLO TECHNOLOGY CO., LTD. Subsidiary which is held 100% indirectly by the Company 2,640,246 5.57 - － 1,519,750 - SIMPLO TECHNOLOGY (CHANGSHU) INC. HUAPU TECHNOLOGY (CHANGSHU) INC. Affiliated Company 414,865 - - － - - Simplo Technology (Chongqing) Inc. SIMPLO TECHNOLOGY CO., LTD. Subsidiary which is held 100% indirectly by the Company 3,746,936 5.37 - － 91,185 - TREND POWER TECHNOLOGY PRIVATE LIMITED Trend Power Technology (USA) CO., Limited Affiliated Company 3,780,302 2.16 - － - - TREND POWER TECHNOLOGY (VIETNAM) COMPANY LIMITED Affiliated Company 421,656 2.94 - － - - Trend Power Technology (Changshu) CO., LTD TREND POWER TECHNOLOGY PRIV ATE LIMITED Affiliated Company 2,042,684 3.36 - － 274,005 - Trend Power Technology (SuZhou) Co., Ltd Affiliated Company 157,566 - - － - - Trend Energy Technology Co., Ltd. Affiliated Company 111,011 1.63 - － - -
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- 55 - TABLE 5 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) No. (Note 1) Company Name Counterparty Relationship (Note 2) Transaction Details (Note4) Financial Statement Account Amount Payment Terms % of Total Sales or Assets (Note 3) 0 SIMPLO TECHNOLOGY CO., LTD. SIMPLO TECHNOLOGY (CHANGSHU) INC. 1 Accounts receivable $ 795,438 － 1% Processing charge 785,738 Depends on contract 1% HUAPU TECHNOLOGY (CHANGSHU) INC. 1 Purchase 14,656,898 Negotiation 25% Accounts payable 2,640,246 － 3% Simplo Technology (Chongqing) Inc. 1 Accounts payable 3,746,936 － 5% Purchase 18,583,449 Negotiation 32% Trend Power Technology (Changshu) CO., LTD 1 Accounts receivable 791 － - SIMPLO Technology (USA) Logistic 1 Accounts receivable 77,957 － - Company, Ltd. Sales 155,782 Negotiation - Trend Energy Technology Co., Ltd. 1 Accounts payable 2,901 － - Purchase 3,695 － - Sales 229 Negotiation - Rental income 7,750 Depends on contract - ChongQing Trend Power Technology Inc. 1 Accounts payable 19,555 － - Purchase 53,139 Negotiation - TREND POWER TECHNOLOGY PRIV ATE LIMITED 1 Rental income 4,553 Depends on contract - SIMPLO TECHNOLOGY (VIETNAM) COMPANY LIMITED 1 Other receivables Processing charge Sales 410,333 108,269 29,412 － Depends on contract － 1% - - 1 SIMPLO TECHNOLOGY (CHANGSHU) INC. HUAPU TECHNOLOGY (CHANGSHU) INC. 3 Accounts receivable 414,865 － 1% Rental income 28,144 Depends on contract - Trend Power Technology (Changshu) CO., LTD 3 Accounts receivable 43,303 － - Sales 129,032 Negotiation - Rental income 3,352 Depends on contract - 2 HUAPU TECHNOLOGY (CHANGSHU) INC. Trend Power Technology (Changshu) CO., LTD 3 Accounts receivable 1,705 － - Sales 163,820 Negotiation - 3 Trend Power Technology (Changshu) CO., LTD Trend Energy Technology Co., Ltd. 3 Accounts receivable 111,011 － - Sales 114,839 Negotiation - Temporary receipts 316 － - TREND POWER TECHNOLOGY PRIV ATE LIMITED 3 Accounts receivable Other payable 2,042,684 297,738 － － 3% - Sales 4,903,862 Negotiation 8% TREND POWER TECHNOLOGY 3 Accounts receivable 79,615 － - (VIETNAM) COMPANY LIMITED Other receivables 147,710 － - Sales 82,992 Negotiation - Disposal of fixed assets 147,651 － - Gain on disposal of fixed assets 14,332 － -
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- 56 - No. (Note 1) Company Name Counterparty Relationship (Note 2) Transaction Details (Note4) Financial Statement Account Amount Payment Terms % of Total Sales or Assets (Note 3) 3 Trend Power Technology (Changshu) CO., LTD Trend Power Technology (SuZhou) Co., Ltd. 3 Accounts receivable Other receivables $ 157,566 90,450 － － - - Rental income 3,190 Depends on contract - Disposal of fixed assets Gain on disposal of fixed assets 4,967 571 － － - - 4 Trend Energy Technology Co., Ltd. TREND POWER TECHNOLOGY 3 Accounts receivable 52,804 － - PRIV ATE LIMITED Sales 285,692 Negotiation - Other receivables 3,706 － - Service revenue 3,271 Depends on contract - Trend Power Technology (USA) CO., 3 Other receivables 4,526 － - Limited Service revenue 4,673 Depends on contract - 5 TREND POWER TECHNOLOGY PRIV ATE LIMITED Trend Power Technology (USA) CO., Limited 3 Accounts receivable Sales Service revenue Other receivables 3,780,302 3,803,679 790 441,181 － Negotiation Depends on contract － 5% 7% - 1% TREND POWER TECHNOLOGY 3 Purchase 16 Negotiation - (VIETNAM) COMPANY LIMITED Other receivables 359,061 － - Interest income 8,603 － - Accounts receivable 421,656 － - Trend Power Technology (SuZhou) Co., 3 Accounts receivable 15,286 － - Ltd. R&D revenue 13,221 Depends on contract - Other receivables 7 － - Note 1: Information on business relationships between the parent company and subsidiary should be indicated in the number column as follows: 1. Parent company – 0. 2. Subsidiary – is numbered sequentially starting from 1. Note 2: The three types of relationships between counterparties are as follows: 1. represents transaction from the parent company to a subsidiary. 2. represents transaction from the subsidiary to parent company. 3. represents transaction between subsidiaries. Note 3: The transaction is calculated as the ratio of the combined total revenue or total assets. If it is an asset or liability account, it is calculated the way in which the ending balance for the proportion of the combined total assets. If it is a profit and loss account, it is calculated by the way in which the accumulated amount during the period for the proportion of the combined total revenue. Note 4: The important transactions between the parent company and subsidiaries had been reversed when the consolidated financial statements were prepared.
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- 57 - TABLE 6 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES NAMES, LOCATIONS AND RELATED INFORMATION OF INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars / Thousands of shares) Investor Company Investee Company Location Main Businesses and Products Original Investment Amount As of September 30, 2025 Net Income (Loss) of the Investee (Note 1) Investment Gain (Loss) Recognized (Note 2) Note September 30, 2025 December 31, 2024 Number of Shares % Carrying Amount SIMPLO TECHNOLOGY CO., LTD. SIMPLO Technology (BVI) CO., LTD. British Virgin Islands Investment Business $ 4,242,377 $ 4,242,377 129,540 100 $ 11,644,423 $ 789,185 $ 789,185 Subsidiary SonicEdge Industries (BVI) Corporation British Virgin Islands Investment Business 81,577 81,577 2,342 100 597,603 ( 23,441 ) ( 23,441 ) Subsidiary Simplo Energy Co., Ltd. Taiwan Investment Business 99,500 99,500 9,950 100 89,699 ( 3,305 ) ( 3,305 ) Subsidiary Trend Power Technology Holdings (Samoa) Co., Ltd. Western Samoa Investment Business 727,534 727,534 24,060 100 10,837,869 1,248,144 1,248,144 Subsidiary SIMPLO TECHNOLOGY (VIETNAM) COMPANY LIMITED Vietnam Production of batteries, Detail: production and processing of lithium-ion battery module, lithium-ion batteries 706,301 706,301 - 100 648,192 10,846 10,846 Subsidiary SIMPLO TECHNOLOGY (INDIA) PRIVATE LIMITED Republic of India Production and processing of lithium-ion battery module 128,061 128,061 32,800 99.99 84,610 ( 10,920 ) ( 10,920 ) Subsidiary Simplo Energy Co., Ltd. SIMPLO TECHNOLOGY (INDIA) PRIVATE LIMITED Republic of India Production and processing of lithium-ion battery module - - - --- - 0.01 - ( 10,920 ) - Subsidiary SIMPLO Technology (BVI) CO., LTD. SMP Holdings International Incorporated British Virgin Islands Investment Business 4,119,822 4,119,822 126,810 100 11,537,233 792,362 792,362 Subsidiary SIMPLO HOLDINGS (SAMOA) CO., LTD. Western Samoa Investment Business 3,243 3,243 100 100 19,354 463 463 Subsidiary SIMPLO TECHNOLOGY STS (SAMOA) LIMITED Western Samoa Investment Business 119,827 119,827 3,500 100 74,761 ( 2,924) ( 2,924) Subsidiary SMP Holdings International Incorporated Simplo Technology STCS (HK) Limited Hong Kong Investment Business 4,151,032 4,151,032 130,010 100 11,536,599 792,421 792,421 Subsidiary SIMPLO HOLDINGS (SAMOA) CO., LTD. Simplo Technology USA Logistic Company, Ltd. USA Battery pack merchandising-sector companies 3,243 3,243 100 100 19,354 463 463 Subsidiary Trend Power Technology Holdings (Samoa) Co., Ltd. Advanced Energy Solution Holding Co., Ltd. Cayman Islands Investment Business 640,289 640,289 46,786 54.77 8,355,597 2,452,200 1,343,149 Subsidiary Advanced Energy Solution Holding Co., Ltd. Trend Power Technology (Samoa) Co., Ltd. Western Samoa Investment Business 5,317,324 5,317,324 182,153 100 15,358,795 2,386,560 2,386,560 Subsidiary Legend Investment (BVI) Co., Ltd. British Virgin Islands Investment Business 23,528 23,528 850 100 20,139 ( 88 ) ( 88 ) Subsidiary Innovations Investment (BVI) Co., Ltd. British Virgin Islands Investment Business 511,758 511,758 16,763 100 144,895 ( 110,657 ) ( 110,657 ) Subsidiary Trend Power Technology (Samoa) Co., Ltd. DC-Link International Ltd. Cayman Islands Investment Business 430,254 430,254 9,977 100 1,067,451 163,428 163,428 Subsidiary (Note 3) Sunny Sky Group (Hong Kong) Limited Hong Kong Investment Business 25,954 25,954 500 100 64,915 9,821 9,821 Subsidiary (Note 3) TREND POWER TECHNOLOGY PRIVATE LIMITED Singapore Battery pack merchandising-sector companies 2,496,098 2,496,098 80,000 100 7,737,602 2,464,864 868,997 （Note 2） Subsidiary
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- 58 - Investor Company Investee Company Location Main Businesses and Products Original Investment Amount As of March 31, 2025 Net Income (Loss) of the Investee (Note 1) Investment Gain (Loss) Recognized (Note 2) Note September 30, 2025 December 31, 2024 Number of Shares % Carrying Amount Trend Power Technology (Samoa) Co., Ltd. Trend Energy Technology Co., Ltd. Taiwan Power generation, transmission, distribution machinery manufacturing, wired communications machinery and equipment manufacturing, wireless communications machinery and equipment manufacturing, battery manufacturing, computer and peripheral equipment manufacturing, automobile and parts manufacturing, bicycles and parts manufacturing, general instruments of manufacturing industry, electronic material wholesale industry, research and development service industry, energy technology service industry. $ 55,067 $ 55,067 5,300 100 $ 409,798 ( $ 63,771 ) ( $ 63,771 ) Subsidiary TREND POWER TECHNOLOGY PRIVATE LIMITED Trend Power Technology (USA) CO., Limited USA Battery pack merchandising-sector companies 3,149 3,149 10 100 62,983 17,278 17,278 Subsidiary Trend Power Technology (BVI) Co., Ltd. British Virgin Islands Investment Business 638,773 638,773 20,760 100 483,177 ( 104,453 ) ( 104,453 ) Subsidiary Trend Power Technology (Germany) GmbH Germany Battery module R&D and marketing support, etc. 10,882 766 - 100 10,291 ( 522 ) ( 522 ) Subsidiary Precision Technology Holding Limited British Virgin Islands Battery module R&D and marketing support, etc. 357,840 - 12,000 100 358,075 235 235 Subsidiary Legend Investment (BVI) Co., Ltd. Legend Energy Co., Ltd. Taiwan Investment Business 23,000 23,000 2,300 100 19,555 ( 46 ) ( 46 ) Subsidiary Trend Power Technology (Changshu) CO., LTD Trend Power Technology (HK) Co., Limited Hong Kong Investment Business 55,440 55,440 1,740 100 73,842 2,313 2,313 Subsidiary Trend Power Technology (BVI) Co., Ltd. TREND POWER TECHNOLOGY (VIETNAM) COMPANY LIMITED Vietnam Production of batteries, Detail: production and processing of lithium-ion battery module, lithium-ion batteries 646,256 646,256 - 100 482,806 ( 101,427 ) ( 101,427 ) Subsidiary Note 1: For information on investments in mainland China, refer to Table 7. Note 2: Including write-off of unrealized gains and losses of intercompany transactions. Note 3: Refer to the original investment amount. Advanced Energy Solution Holding Co., Ltd. is essentially a continuation of Trend Power Technology (Samoa) Co., Ltd.; the organizational restructuring under common control does not consider the impact since the beginning of the merger.
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- 59 - TABLE 7 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars) Investee Company Main Businesses and Products Paid-in Capital Method of Investment Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 Remittance of Funds Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2025 % Ownership of Direct or Indirect Investment Investment Gain (Loss) Recognized Carrying Amount as of September 30, 2025 Accumulated Repatriation of Investment Income as of September 30, 2025 Note Outward Inward SIMPLO TECHNOLOGY (CHANGSHU) INC. Engaged in lithium-ion batteries, fine blanking die, precision cavity molds, electronic equipment, testing instruments, LED rectifier, precision shaft, electronic connectors and other electronic products, as well as the production and processing of related parts of the previous products. Printing and decorating printed matter, selling self-produced products and providing related after-sales service and related maintenance services. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) $ 2,305,244 (US$ 70,000 thousand) Investing in a third region to set up a company to reinvest in mainland China companies $ 2,305,244 (US$ 70,000 thousand) $ - $ - $ 2,305,244 (US$ 70,000 thousand) 100.00% $ 30,801 （Note 2） $ 3,120,226 $ 4,386,418 (US$ 141,639 thousand) － Simplo Technology (Chongqing) Inc. Licensed business activities: Printing and decorating printed matter; Main business activities: engaged in the production and sale of lithium ion batteries, precision stamping dies with accuracy higher than 0.02 mm, prevision cavity molds with accuracy higher than 0.05 mm, test equipment, LED rectifiers, electronic special equipment, electronic connectors, stamping parts, vacuum forming product (Tray), production of insulating plates and other peripheral equipment of electronic products and accessories (bags), and the production, processing, matching, sale and provision of related after-sales services and maintenance services for the related parts of the previous products. 948,308 (US$ 30,010 thousand) Investing in a third region to set up a company to reinvest in mainland China companies 948,308 (US$ 30,010 thousand) - - 948,308 (US$ 30,010 thousand) 100.00% 543,962 (Note 2) 3,929,708 4,425,045 (US$ 1 41,164 thousand) － Hangzhou Xin Yuedong Venture Capital Co., Ltd. Equity investment, venture capital consulting and business management consulting - Investing in a third region to set up a company to reinvest in mainland China companies - - - - （Note 9） - - - - － HUAPU TECHNOLOGY (CHANGSHU) INC. Engaged in the production, processing and sales of electronic products such as lithium-ion batteries, precision stamping dies with accuracy higher that 0.02 mm, prevision cavity molds with accuracy higher than 0.5 mm electronic special equipment, test equipment, automation equipment, wireless electronic transmission modules and related parts of the previous products production, processing and sales, and provided related after-sales service and maintenance services. Printing and packaging printed matter; engaged in the import and export of goods and technology. Except for goods and technologies that are restricted by the state or prohibited from import and export. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) 897,480 (US$ 30,000 thousand) Investing in a third region to set up a company to reinvest in mainland China companies 897,480 (US$ 30,000 thousand) - - 897,480 (US$ 30,000 thousand) 100.00% 217,834 (Note 2) 4,481,289 - － Trend Power Technology (Changshu) CO., LTD Large-scale industrial energy storage lithium-ion battery, power lithium-ion battery precision mold, plastic, plastic injection molding and the production and sales of the previous products and spare parts and provide related after-sales installation and maintenance services; engaged in import and export business of goods and technology. Except for commodities and technologies that the state restricts the company from operating or prohibits import and export; engage in printing services for packaging and decoration of printed matter. (For projects that are subject to approval according to law, business activities can only be carried out after the approval by the relevant departments.) 293,574 (CNY 66,000 thousand) Investing in a third region to set up a company to reinvest in mainland China companies 727,534 (US$ 24,060 thousand) - - 727,534 (US$ 24,060 thousand) 54.76% 368,618 (Note 2) 3,564,774 - Note 6 and 7
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- 60 - Investee Company Main Businesses and Products Paid-in Capital Method of Investment Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 Remittance of Funds Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2025 % Ownership of Direct or Indirect Investment Investment Gain (Loss) Recognized Carrying Amount as of September 30, 2025 Accumulated Repatriation of Investment Income as of September 30, 2025 Note Outward Inward ChongQing Trend Power Technology Inc. Printing and decorating printed matter, engaged in the production and sale of lithium-ion batteries, electronic products and precision molds, die-cutting processing (insulation paper), stamping parts processing (nickel sheets, copper sheets, fixture), plastic molding, injection molding, and the production and sale, and provision of after-sales installation and maintenance services for the related equipment and parts. $ 91,540 (CNY 20,000 thousand) Investing in a third region to set up a company to reinvest in mainland China companies $ - (Note 4) $ - $ - $ - (Note 4) 100.00% $ 37,712 (Note 1) $ 518,266 $ - － Trend Power Technology (SuZhou) Co., Ltd. Technical service, technology development, technical consultation, technical exchange, technology transfer, technology promotion, battery manufacturing, battery sales, mold manufacturing, mold sales, plastic product manufacturing, plastic product sales. (Except for projects subject to approval according to law, self-service business activities can be carried out according to the law with a business license.) 510,475 (US$ 16,760 thousand) Investing in a third region to set up a company to reinvest in mainland China companies - (Note 8) - - - (Note 8) 54.77% ( 60,601 ) (Note 2) 79,277 - Note 8 Accumulated Outward Remittance for Investment in Mainland China as of September 30,2025 (Note3) Investment Amount Authorized by Investment Commission, MOEA Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA US$ 163,565 thousand (equivalent to NT$5,188,335 thousand) US$ 229,041 thousand (equivalent to NT$7,074,806 thousand) Note 5 Note 1: Based on the same period of financial statements not reviewed by CPAs. Note 2: Based on the same period of financial statements reviewed by CPAs. Note 3: The difference between the accumulated outward remittance for investments in mainland China and the accumulated outward remittance for investments was US$9,455 thousand. This difference was due to the liquidations of SonicEdge Industrial (SHANGHAI) Inc. US$2,600 thousand, Simplo Technology (SHANGHAI) INC. US$3,500 thousand, Changshu Pu Yuan Electronics Co., Ltd. US$982 thousand and Simplo Technology (Suzhou) Inc. US$2,373 thousand from 2009 to 2013. Note 4: It is 100% owned by Simplo Technology (Chongqing) Inc. Note 5: In June 2024, the Group obtained the documents issued by the Industrial Bureau of the Ministry of Economic Affairs in line with the certification requirements of the operational headquarters. As the effective period was from June 2024 to June 2027, there is no upper limit on the amount of investments in mainland China. Note 6: With re-investment in Advance Energy Solution Holding Co., Ltd. through Trend Power Technology Holdings (Samoa) Co., Ltd., Advanced Energy solution Holding Co., Ltd. issued new shares in March 2021 through a cash capital increase. After the capital increase, the shareholding ratio decreased from 73.39% to 54.77%. The Company invested in 100% of the equity of Trend Power Technology (Samoa) Co., Ltd. and reinvested in 83.56% of the equity of Trend Power Technology (Changshu) CO., LTD In addition, Trend Power Technology (Samoa) Co., Ltd. indirectly invested in 15.49% and 0.94% of the shares of Trend Power Technology (Changshu) CO., LTD through DC-LINK International Ltd. and SunnySky Group (Hong Kong) Limited, respectively. The Company still indirectly held 54.76% of the shares of Trend Power Technology (Changshu) CO., LTD. Note 7: It does not include the amount of US$1,763 thousand invested by Trend Power Technology (Samoa) Co., Ltd. for the reinvestment of surplus. Note 8: Innovation Investment (BVI) Co., Ltd. increased its investment in Trend Power Technology (SuZhou) Co., Ltd. by US$4,750 in July 2024. Note 9: Hangzhou Xin Yuedong Venture Capital Co., Ltd. has transferred the full investment amount back, but as of September 30, 2025, the liquidation process has not yet been completed.
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- 61 - TABLE 8 SIMPLO TECHNOLOGY CO., LTD. AND SUBSIDIARIES 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 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Investee Company Relationship Between Investee Company and The Company Transaction Type Amount Price Transaction Details Notes/Accounts Receivable (Payable) Unrealized Gain Note Payment Terms Comparison with General Transactions Ending Balance % SIMPLO TECHNOLOGY (CHANGSHU) INC. Subsidiary which is held 100% indirectly by the Company Commissioned processing Processing charge $ 785,738 Negotiation Depends on contract No significant difference Accounts Payable $ - - $ - Simplo Technology (Chongqing) Inc. Subsidiary which is held 100% indirectly by the Company Purchase Purchase 18,583,449 Negotiation Depends on contract No significant difference Accounts Payable (3,746,936 ) (17%) - HUAPU TECHNOLOGY (CHANGSHU) INC. Subsidiary which is held 100% indirectly by the Company Purchase Purchase 14,656,898 Negotiation Depends on contract No significant difference Accounts Payable (2,640,246 ) (12%) -