Interim report
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Topoint Technology Co., Ltd. and Subsidiaries Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024 and Independent Auditors’ Review Report
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- 1 - INDEPENDENT AUDITORS’ REVIEW REPORT The Board of Directors and Shareholders Topoint Technology Co., Ltd. Introduction We have reviewed the consolidated balance sheets of Topoint Technology Co., Ltd. and its subsidiaries (hereinafter referred to as “Topoint Group”) as of June 30, 2025 and 2024; the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2025 and 2024, the consolidated statements of changes in equity and cash flows for the six months then ended, and the notes to the consolidated financial statements (including a summary of significant accounting policies). M anagement 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 We conducted our reviews in accordance with the Standards on Review Engagement No. 2410 “Review of Financial Information Performed by the Independent Auditor of the Entity.” A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our reviews, we did not discover matters which would lead us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Topoint Group as of June 30, 2025 and 2024, its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, and its consolidated cash flows for the six months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
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- 2 - The engagement partners on the reviews resulting in this independent auditors’ review report are Wan-I Liao and Chien-Hsin Hsieh. Deloitte & Touche Taipei, Taiwan Republic of China August 8, 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 review such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ review report and the 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 c onflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.
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- 3 - TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2025, DECEMBER 31, 2024 AND JUNE 30, 2024 (In Thousands of New Taiwan Dollars) June 30, 2025 December 31, 2024 June 30, 2024 ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents (Note 6) $ 1,792,059 25 $ 2,012,970 28 $ 1,766,536 25 Financial assets at fair value through profit or loss (Notes 7 and 30) 23,141 - 70 - 255,828 4 Financial assets at amortized cost (Note 8) 562,117 8 341,922 5 489,658 7 Notes receivable (Notes 10 and 23) 134,978 2 141,859 2 112,457 2 Accounts receivable, net (Notes 10 and 23) 910,777 13 942,114 13 881,446 13 Accounts receivable - related parties (Notes 23 and 31) 180,282 3 201,540 3 172,209 2 Other receivables (Note 10) 51,751 1 32,895 - 44,631 1 Current tax assets (Note 4) 1,247 - 1,219 - 299 - Inventories (Note 11) 771,530 11 746,823 10 681,928 10 Prepayments (Note 12) 70,603 1 66,285 1 60,637 1 Other current assets (Notes 17 and 32) 5,362 - 5,582 - 8,299 - Total current assets 4,503,847 64 4,493,279 62 4,473,928 65 NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income (Notes 9 and 30) 51,720 1 60,690 1 63,115 1 Property, plant and equipment (Notes 14 and 32) 1,926,315 27 2,147,289 29 2,003,959 29 Right-of-use assets (Note 15) 122,312 2 137,882 2 116,855 2 Intangible assets (Note 16) 12,779 - 12,149 - 12,648 - Deferred tax assets (Note 4) 71,222 1 68,640 1 66,106 1 Other non-current assets (Note 17) 362,550 5 355,803 5 183,049 2 Total non-current assets 2,546,898 36 2,782,453 38 2,445,732 35 TOTAL $ 7,050,745 100 $ 7,275,732 100 $ 6,919,660 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 18 and 32) $ 504,077 7 $ 447,452 6 $ 391,496 6 Financial liabilities at fair value through profit or loss (Notes 7 and 30) 322 - 1,586 - 1,526 - Contract liabilities (Note 23) 895 - 456 - 647 - Notes payable - - 1,916 - 34 - Accounts payable (Note 19) 350,638 5 316,543 4 282,929 4 Accounts payable - related parties (Note 31) 1,024 - 1,194 - 546 - Other payables (Note 20) 921,576 13 836,691 12 806,191 12 Current tax liabilities (Note 4) 66,655 1 64,785 1 79,297 1 Lease liabilities (Note 15) 27,119 1 22,515 - 14,549 - Current portion of long-term borrowings (Note 18) 19,846 - - - - - Other current liabilities 12,932 - 6,223 - 7,227 - Total current liabilities 1,905,084 27 1,699,361 23 1,584,442 23 NON-CURRENT LIABILITIES Long-term borrowings, net of current portion (Notes 18 and 32) 138,921 2 121,708 2 - - Lease liabilities (Note 15) 52,545 1 68,554 1 54,883 1 Net defined benefit liabilities (Notes 4 and 21) 1,850 - 2,083 - 11,315 - Guarantee deposits received 13,255 - 13,306 - 13,188 - Deferred tax liabilities (Note 4) 172,008 2 184,840 3 220,711 3 Total non-current liabilities 378,579 5 390,491 6 300,097 4 Total liabilities 2,283,663 32 2,089,852 29 1,884,539 27 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 22) Share capital 1,421,805 20 1,421,805 19 1,421,805 21 Capital surplus 1,228,872 17 1,228,872 17 1,227,804 18 Retained earnings Legal reserve 573,975 8 552,893 7 552,893 8 Special reserve 177,630 3 368,401 5 368,401 5 Unappropriated earnings 1,357,356 19 1,226,170 17 1,106,507 16 Total retained earnings 2,108,961 30 2,147,464 29 2,027,801 29 Other equity ( 521,692 ) ( 7 ) ( 177,630 ) ( 2 ) ( 219,821 ) ( 3 ) Treasury shares ( 22,286 ) - - - - - Total equity attributable to owners of the Company 4,215,660 60 4,620,511 63 4,457,589 65 NON-CONTROLLING INTERESTS 551,422 8 565,369 8 577,532 8 Total equity 4,767,082 68 5,185,880 71 5,035,121 73 TOTAL $ 7,050,745 100 $ 7,275,732 100 $ 6,919,660 100 The accompanying notes are an integral part of the consolidated financial statements.
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- 4 - TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share) Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Amount % Amount % Amount % Amount % OPERATING REVENUE (Notes 23 and 31) $ 1,018,737 101 $ 903,322 101 $ 1,912,849 101 $1,650,400 101 LESS: SALES RETURNS 999 - 455 - 2,056 - 1,073 - SALES DISCOUNTS AND ALLOWANCES 4,955 1 12,798 1 10,642 1 22,873 1 NET OPERATING REVENUE 1,012,783 100 890,069 100 1,900,151 100 1,626,454 100 OPERATING COSTS (Notes 11, 24 and 31) Operating costs 714,647 71 654,145 74 1,372,992 72 1,223,575 75 GROSS PROFIT 298,136 29 235,924 26 527,159 28 402,879 25 OPERATING EXPENSES (Note 24) Selling and marketing 40,760 4 37,066 4 79,735 4 71,665 5 General and administrative 86,356 8 88,671 10 170,662 9 166,483 10 Research and development 39,246 4 36,128 4 76,156 4 69,053 4 Expected credit (gain) loss - - ( 77 ) - - - 1,201 - Total operating expenses 166,362 16 161,788 18 326,553 17 308,402 19 OTHER OPERATING INCOME AND EXPENSES (Note 24) 9,069 1 6,488 1 12,559 - 575 - PROFIT FROM OPERATIONS 140,843 14 80,624 9 213,165 11 95,052 6 NON-OPERATING INCOME AND EXPENSES Interest income 7,463 1 8,047 1 13,056 1 17,840 1 Dividend income 1,382 - 1,009 - 1,382 - 1,009 - Other income 1,906 - 1,330 - 6,627 1 2,934 - Gain (loss) on valuation of financial instruments at fair value through profit or loss, net 3,636 - 793 - 3,997 - ( 1,044 ) - Other expenses ( 196 ) - ( 103 ) - ( 407 ) - ( 218 ) - Foreign exchange loss, net (Note 24) ( 11,344 ) ( 1 ) ( 2,824 ) - ( 12,421 ) ( 1 ) ( 856 ) - Interest expense ( 6,645 ) ( 1 ) ( 4,874 ) ( 1 ) ( 12,950 ) ( 1 ) ( 9,923 ) ( 1 ) Total non-operating income and expenses ( 3,798 ) ( 1 ) 3,378 - ( 716 ) - 9,742 - (Continued)
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- 5 - TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share) Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Amount % Amount % Amount % Amount % PROFIT BEFORE INCOME TAX $ 137,045 13 $ 84,002 9 $ 212,449 11 $ 104,794 6 INCOME TAX EXPENSE (Notes 4 and 25) ( 43,349 ) ( 4 ) ( 9,902 ) ( 1 ) ( 63,973 ) ( 3 ) ( 18,409 ) ( 1 ) NET PROFIT 93,696 9 74,100 8 148,476 8 86,385 5 OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans ( 136 ) - ( 103 ) - 2,333 - 2,697 - Unrealized (loss) gain on investments in equity instruments at fair value through other comprehensive income ( 2,496 ) - 2,065 - ( 8,970 ) - 8,146 1 Income tax relating to items that will not be reclassified subsequently to profit or loss 27 - 21 - ( 467 ) - ( 539 ) - Items that may be reclassified subsequently to profit or loss: Exchange differences on translation to the financial statements of foreign operations ( 408,153 ) ( 40 ) 13,125 2 ( 358,493 ) ( 19 ) 150,577 9 Total other comprehensive income (loss) ( 410,758 ) ( 40 ) 15,108 2 ( 365,597 ) ( 19 ) 160,881 10 TOTAL COMPREHENSIVE INCOME ( $ 317,062 ) ( 31 ) $ 89,208 10 ( $ 217,121 ) ( 11 ) $ 247,266 15 NET PROFIT (LOSS) ATTRIBUTED TO: Owners of the Company $ 78,352 8 $ 67,718 7 $ 130,248 7 $ 88,995 5 Non-controlling interests 15,344 1 6,382 1 18,228 1 ( 2,610 ) - $ 93,696 9 $ 74,100 8 $ 148,476 8 $ 86,385 5 TOTAL COMPREHENSIVE INCOME ATTRIBUTED TO: Owners of the Company ( $ 314,906 ) ( 31 ) $ 81,415 9 ( $ 211,948 ) ( 11 ) $ 239,733 15 Non-controlling interests ( 2,156 ) - 7,793 1 ( 5,173 ) - 7,533 - ( $ 317,062 ) ( 31 ) $ 89,208 10 ( $ 217,121 ) ( 11 ) $ 247,266 15 EARNINGS PER SHARE (Note 26) Basic $ 0.55 $ 0.48 $ 0.92 $ 0.63 Diluted $ 0.55 $ 0.47 $ 0.91 $ 0.62 The accompanying notes are an integral part of the consolidated financial statements. (Concluded)
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- 6 - TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2025 and 2024 (In Thousands of New Taiwan Dollars, Except Dividends Per Share) Equity Attributable to Owners of the Company (Note 22) Other Equity Exchange Differences on Translation to the Financial Statements of Foreign Operations Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income Retained Earnings Non-controlling Interests (Note 22) Share Capital Capital Surplus Legal Reserve Special Reserve Unappropriated Earnings Treasure Shares Total Total Equity BALANCE AT JANUARY 1, 2024 $ 1,421,805 $ 1,227,638 $ 552,893 $ 305,480 $ 1,192,019 ( $ 387,267 ) $ 18,866 $ - $ 4,331,434 $ 574,926 $ 4,906,360 Appropriation of 2023 earnings Special reserve - - - 62,921 ( 62,921 ) - - - - - - Cash dividends distributed by the Company (NT$0.80 per share) - - - - ( 113,744 ) - - - ( 113,744 ) - ( 113,744 ) - - - 62,921 ( 176,665 ) - - - ( 113,744 ) - ( 113,744 ) Net profit (loss) for the six months ended June 30, 2024 - - - - 88,995 - - - 88,995 ( 2,610 ) 86,385 Other comprehensive income (loss) for the six months ended June 30, 2024, net of income tax - - - - 2,158 140,739 7,841 - 150,738 10,143 160,881 Total comprehensive income (loss) for the six months ended June 30, 2024 - - - - 91,153 140,739 7,841 - 239,733 7,533 247,266 Cash dividends distributed by subsidiaries - - - - - - - - - ( 3,062 ) ( 3,062 ) Changes in percentage of ownership interests in subsidiaries - 166 - - - - - - 166 ( 1,865 ) ( 1,699 ) BALANCE AT JUNE 30, 2024 $ 1,421,805 $ 1,227,804 $ 552,893 $ 368,401 $ 1,106,507 ( $ 246,528 ) $ 26,707 $ - $ 4,457,589 $ 577,532 $ 5,035,121 BALANCE AT JANUARY 1, 2025 $ 1,421,805 $ 1,228,872 $ 552,893 $ 368,401 $ 1,226,170 ( $ 201,497 ) $ 23,867 $ - $ 4,620,511 $ 565,369 $ 5,185,880 Appropriation of 2024 earnings Legal reserve - - 21,082 - ( 21,082 ) - - - - - - Special reserve - - - ( 190,771 ) 190,771 - - - - - - Cash dividends distributed by the Company (NT$1.20 per share) - - - - ( 170,617 ) - - - ( 170,617 ) - ( 170,617 ) - - 21,082 ( 190,771 ) ( 928 ) - - - ( 170,617 ) - ( 170,617 ) Net profit for the six months ended June 30, 2025 - - - - 130,248 - - - 130,248 18,228 148,476 Other comprehensive income (loss) for the six months ended June 30, 2025, net of income tax - - - - 1,866 ( 335,886 ) ( 8,176 ) - ( 342,196 ) ( 23,401 ) ( 365,597 ) Total comprehensive income (loss) for the six months ended June 30, 2025 - - - - 132,114 ( 335,886 ) ( 8,176 ) - ( 211,948 ) ( 5,173 ) ( 217,121 ) Cash dividends distributed by subsidiaries - - - - - - - - - ( 8,774 ) ( 8,774 ) Repurchase of treasury shares - - - - - - - ( 22,286 ) ( 22,286 ) - ( 22,286 ) BALANCE AT JUNE 30, 2025 $ 1,421,805 $ 1,228,872 $ 573,975 $ 177,630 $ 1,357,356 ( $ 537,383 ) $ 15,691 ( $ 22,286 ) $ 4,215,660 $ 551,422 $ 4,767,082 The accompanying notes are an integral part of the consolidated financial statements.
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- 7 - TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 and 2024 (In Thousands of New Taiwan Dollars) Six Months Ended June 30 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax $ 212,449 $ 104,794 Adjustments for: Depreciation 178,300 186,681 Amortization 2,790 1,994 Expected credit loss - 1,201 (Gain) loss on valuation of financial instruments at fair value through profit or loss, net ( 3,997 ) 1,044 Interest expense 12,950 9,923 Interest income ( 13,056 ) ( 17,840 ) Dividend income ( 1,382 ) ( 1,009 ) Gain on disposal of property, plant and equipment, net ( 12,559 ) ( 575 ) Net changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss 117 1,164 Notes receivable 6,881 ( 61,277 ) Accounts receivable 30,623 ( 85,800 ) Accounts receivable - related parties 21,258 ( 61,174 ) Other receivables ( 18,679 ) ( 5,987 ) Inventories ( 27,358 ) ( 34,353 ) Prepayments ( 4,318 ) ( 45,791 ) Other current assets 220 ( 162 ) Contract liabilities 439 ( 187 ) Notes payable ( 1,916 ) 20 Accounts payable 34,095 71,877 Accounts payable - related parties ( 170 ) ( 211 ) Other payables ( 50,018 ) 14,975 Other current liabilities 6,709 1,132 Net defined benefit assets ( 893 ) 2,340 Cash generated from operations 372,485 82,779 Interest received 12,879 75,721 Interest paid ( 12,637 ) ( 9,846 ) Income tax paid ( 71,420 ) ( 91,659 ) Net cash generated from operating activities 301,307 56,995 (Continued)
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- 8 - TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 and 2024 (In Thousands of New Taiwan Dollars) Six Months Ended June 30 2025 2024 CASH FLOWS FROM INVESTING ACTIVITIES Payment for financial assets at amortized cost ( $ 220,195 ) $ - Payment for financial assets at fair value through profit or loss ( 22,174 ) ( 65,940 ) Disposal of financial assets at amortized cost - 392,361 Payments for property, plant and equipment (Note 28) ( 169,139 ) ( 227,795 ) Proceeds from disposal of property, plant and equipment (Note 28) 55,894 49,562 Decrease in refundable deposits 3,173 1,735 Payments for intangible assets ( 3,543 ) ( 773 ) Decrease in other non-current assets 1,384 112 Dividends received 1,382 1,009 Net cash (used in) generated from investing activities ( 353,218 ) 150,271 CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings 64,230 ( 112,936 ) Increase in long-term borrowings 47,249 - (Decrease) increase in guarantee deposits received ( 51 ) 625 Changes in non-controlling interests - ( 1,699 ) Repayment of the principal portion of lease liabilities ( 16,253 ) ( 11,405 ) Cost of treasury shares repurchased ( 22,286 ) - Net cash generated from (used in) financing activities 72,889 ( 125,415 ) EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES ( 241,889 ) 88,159 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 220,911 ) 170,010 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 2,012,970 1,596,526 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD $ 1,792,059 $ 1,766,536 The accompanying notes are an integral part of the consolidated financial statements. (Concluded)
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- 9 - TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 and 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) 1. GENERAL INFORMATION Topoint Technology Co., Ltd. (the “Company”) was incorporated in 1996. On May 10, 2000, the Securities and Futures Commission (SFC) approved the Company’s application to become a public company. Since December 21, 2004, the Company’s shares have been trade d on the Taipei Exchange (TPEx). Later, when the Company’s shares ceased to be traded over the counter, the Company’s shares became listed on the Taiwan Stock Exchange (TWSE) in January 2008. The Company mainly manufactures and markets micro - drills for pri nted circuit boards (PCBs), numerically controlled drilling machines for PCBs and peripheral equipment used in the manufacture of PCB. The consolidated financial statements of the Company and its subsidiaries (collectively referred to 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 Company’s board of directors on August 8, 2025. 3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS a. Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies. b. IFRS Accounting Standards endorsed by the FSC to take effect for annual periods beginning on January 1, 2026 New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the amendments to the application guidance for financial asset classification January 1, 2026
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- 10 - Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the amendments to the application guidance for financial asset classification These amendments primarily revise the classification requirements for financial assets, including 1) For financial assets that contain contingent features which may alter the timing or amount of contractual cash flows, and where the nature of such contingencies is not directly linked to changes in basic lending risks and costs (e.g., whether the debtor me ets specific carbon emission reduction targets), the contractual cash flows may still be considered solely payments of principal and interest on the principal amount outstanding, provided that both of the following conditions are met. • In all possible scenarios (whether before or after the contingent event occurs), 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 are not significantly different from those of a financial instrument with the same contractual terms but without the contingent feature. 2) Clarification that non-recourse financial assets refer to arrangements in which the entity’s contractual right to receive cash flows is limited to those generated from specified assets. 3) Clarification that contractually linked instruments are structured through waterfall payment arrangements that create multiple tranches, resulting in prioritized payments to different classes of financial asset holders. This structure introduces credit ris k concentration and leads to disproportionate allocation of cash shortfalls among tranches. As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of each amendment will have on the Group’s financial position and financial performance. c. IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” To be determined by IASB IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 IFRS 19 “Subsidiaries without Public Accountability: Disclosures” 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. IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 18 will replace IAS 1 “Presentation of Financial Statements.” Major changes in the new standard are as follows: ⚫ Income and expense items on the statement of profit or loss shall be classified into categories of operating, investing, financing, income taxes and discontinued operations. ⚫ Subtotals and totals of operating profit or loss, profit or loss before financing and income taxes and profit or loss shall be presented on the statement of profit or loss.
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- 11 - ⚫ The Standard provides enhanced guidance on aggregation and disaggregation: The Group shall identify assets, liabilities, equity, income , expenses and cash flows that arise from individual transactions or other events, and group and aggregate them based on shared characteristics for line items in the primary financial statements to share at least one characteristic. Items with different characteristics shall be disaggregate in the primary financial statements and the notes. Only when the Group cannot find an appropriate descriptive label would “others” be used. ⚫ Disclosures about management -defined performance measures are added: For public communications outside financial statements and the communication of management’s view on an aspect of the Group’s financial performance with the financial statement users, information associated with the management-defined performance measures shall be disclosed in a single note to the financial statements, including a description of the measures, how they are calcul ated, the reconciliation of the measures to subtotals or total s specified by the IFRS Accounting Standards, and the income tax and non-controlling interests effects of relevant reconciliation items. As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing other impacts that the application of amendments to each standard and interpretation will have 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 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. They do not include all disclosures of IFRS Accounting Standards required in annual financial statements. Basis of Preparation The consolidated financial statements have been prepared on the historical cost basis, except for financial instruments which are measured at fair values and the net defined benefit asset and the net defined benefit liability which are measured at the present value of the defined benefit obligations 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: a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; b. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and c. Level 3 inputs are unobservable inputs for the asset or liability. 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). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the
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- 12 - 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 Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity a nd attributed to the owners of the Company. See Note 1 3 and Tables 5 and 6 for the detailed information of subsidiaries (including the percentages of ownership and main businesses). Details of Other Significant Accounting Policies Except for descriptions set out below, please refer to the consolidated financial statements for the year ended December 31, 2024 for a summary of significant accounting policies. a. Defined benefit retirement benefit plan Pension cost of an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the previous financial year and adjusted for significant market fluctuations, plan amendments or settlements, or other significant one-off events during the period. b. Income tax expense Income tax expense represents the sum of the tax currently payable and deferred tax. Income tax of an interim period is calculated on an annual basis, i.e., applying the expected tax rate applicable to the annual earnings to the net profit before income tax of the interim period. 5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY Please refer to the critical accounting judgements and key sources of estimation uncertainty section in the consolidated financial statements for the year ended December 31, 2024 for details. 6. CASH AND CASH EQUIVALENTS June 30, 2025 December 31, 2024 June 30, 2024 Cash on hand $ 1,499 $ 1,645 $ 1,329 Checking accounts and demand deposits 715,029 942,982 824,026 Cash equivalents Time deposits 1,075,531 1,068,343 941,181 $ 1,792,059 $ 2,012,970 $ 1,766,536 The market interest rate intervals of demand deposits and time deposits at the end of reporting period were as follows:
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- 13 - June 30, 2025 December 31, 2024 June 30, 2024 Demand deposits 0.001%~0.80% 0.001%~0.80% 0.001%~1.45% Time deposits 0.30%~2.60% 0.45%~2.70% 0.80%~4.90% 7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS June 30, 2025 December 31, 2024 June 30, 2024 Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Forward exchange contracts (a) $ 2,563 $ 70 $ 62 Hybrid financial assets Structured deposits (b) 20,578 - 255,766 $ 23,141 $ 70 $ 255,828 Financial liabilities held for trading Derivative financial liabilities (not under hedge accounting) Forward exchange contracts (a) $ 322 $ 1,586 $ 1,526 a. At the end of the reporting period, outstanding forward exchange contracts not under hedge accounting were as follows: Currency Maturity Notional Amount (In Thousands) June 30, 2025 Sell JPY/NTD 2025.07.23 JPY 2,200 /NTD 486 Sell JPY/NTD 2025.09.23 JPY 3,300 /NTD 677 Sell JPY/NTD 2025.10.27 JPY 700 /NTD 146 Sell USD/NTD 2025.07.02 USD 200 /NTD 6,544 Sell USD/NTD 2025.07.04 USD 200 /NTD 6,486 Sell USD/NTD 2025.08.04 USD 250 /NTD 7,525 Sell USD/NTD 2025.08.06 USD 280 /NTD 9,122 Sell USD/NTD 2025.09.03 USD 180 /NTD 5,225 Sell USD/NTD 2025.09.04 USD 257 /NTD 8,338 Sell USD/NTD 2025.10.07 USD 170 /NTD 4,966 Sell USD/NTD 2025.11.07 USD 270 /NTD 7,878 December 31, 2024 Sell JPY/NTD 2025.01.21 JPY 3,760 /NTD 838 Sell JPY/NTD 2025.02.21 JPY 1,500 /NTD 328 Sell JPY/NTD 2025.03.25 JPY 1,666 /NTD 347 (Continued) Sell JPY/NTD 2025.04.23 JPY 1,777 /NTD 381
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- 14 - Currency Maturity Notional Amount (In Thousands) Sell USD/NTD 2025.01.03 USD 130 /NTD 4,091 Sell USD/NTD 2025.01.07 USD 97 /NTD 3,117 Sell USD/NTD 2025.02.04 USD 80 /NTD 2,536 Sell USD/NTD 2025.02.06 USD 260 /NTD 8,334 Sell USD/NTD 2025.02.06 USD 257 /NTD 8,147 Sell USD/NTD 2025.02.27 USD 422 /NTD 13,579 Sell USD/NTD 2025.03.04 USD 80 /NTD 2,565 Sell USD/NTD 2025.03.06 USD 298 /NTD 9,460 Sell USD/NTD 2025.04.02 USD 89 /NTD 2,878 Sell USD/NTD 2025.04.07 USD 244 /NTD 7,714 Sell USD/NTD 2025.05.07 USD 320 /NTD 10,256 June 30, 2024 Sell JPY/NTD 2024.07.23 JPY 1,900 /NTD 403 Sell JPY/NTD 2024.08.23 JPY 862 /NTD 183 Sell JPY/NTD 2024.08.23 JPY 1,952 /NTD 412 Sell JPY/NTD 2024.09.23 JPY 629 /NTD 131 Sell JPY/NTD 2024.10.24 JPY 1,800 /NTD 374 Sell JPY/NTD 2024.10.24 JPY 1,870 /NTD 388 Sell EUR/NTD 2024.07.25 EUR 13 /NTD 438 Sell USD/NTD 2024.07.02 USD 80 /NTD 2,521 Sell USD/NTD 2024.07.04 USD 267 /NTD 8,227 Sell USD/NTD 2024.08.02 USD 45 /NTD 1,447 Sell USD/NTD 2024.08.05 USD 219 /NTD 6,775 Sell USD/NTD 2024.09.05 USD 455 /NTD 14,322 Sell USD/NTD 2024.10.04 USD 295 /NTD 9,379 Sell USD/NTD 2024.11.06 USD 267 /NTD 8,470 (Concluded) The Group entered into forward exchange contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. The purpose of its financial hedging strategy is to avoid price volatility of primary markets. b. The Group entered into 66 to 110 days structured time deposit contract. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract is assessed and mandatorily classified as at FVTPL since it contains a host that is an asset within the scope of IFRS 9. 8. FINANCIAL ASSETS AT AMORTIZED COST June 30, 2025 December 31, 2024 June 30, 2024 Current Time deposits with original maturities of more than three months $ 562,117 $ 341,922 $ 489,658
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- 15 - The market interest rate intervals of financial assets at amortized cost were as follows: June 30, 2025 December 31, 2024 June 30, 2024 Time deposits with original maturities of more than three months 1.00%~3.50% 1.25%~3.55% 1.435%~3.55% 9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Investments in equity instruments June 30, 2025 December 31, 2024 June 30, 2024 Non-current Domestic investments Listed shares Ordinary shares - Zhen Ding Technology Holding Limited $ 36,320 $ 43,367 $ 46,800 Unlisted shares Ordinary shares - Chipboard Technology Corporation 15,400 17,323 16,315 $ 51,720 $ 60,690 $ 63,115 10. NOTES RECEIVABLES, TRADE RECEIVABLES AND OTHER RECEIVABLES June 30, 2025 December 31, 2024 June 30, 2024 Notes receivables At amortized cost $ 134,978 $ 141,859 $ 112,457 Trade receivables At amortized cost Gross carrying amount $ 923,105 $ 955,156 $ 882,664 Less: Loss allowance 12,328 13,042 1,218 $ 910,777 $ 942,114 $ 881,446 Other receivables Interest receivable $ 11,543 $ 11,366 $ 14,301 Proceeds from disposal of equipment 11,760 - - Purchase of equipment on other’s behalf 4,782 6,954 9,309 Bank retention accounts 10,586 6,978 7,824 Others 13,080 7,597 13,197 $ 51,751 $ 32,895 $ 44,631
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- 16 - a. Notes receivable The average credit period of notes receivable was 90 to 120 days. In determining the recoverability of a note receivable, the Group considered any change in the credit quality of the note receivable since the date credit was initially granted to the end of the reporting period. The notes receivable that are past due recognized 100% allowance for bad debt. As of the reporting date, the Group had no notes receivables that were past due. b. Accounts receivable 1) At amortized cost The average credit period of sales of goods was 90 to 150 days. No interest was charged on trade receivables. The Group adopts 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 default. The Group uses other publicly available financial information and 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 among approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved 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 trade receivables. The expected credit losses on trade receivables are estimated using a provis ion matrix by considering the past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the 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 evaluates the prospect of recovery based on the past due days of accounts receivable and determine the credit losses with the respective risks of default occurring as the weights. The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss. The following table details the loss allowance of accounts receivable based on the Group’s provision matrix. June 30, 2025 Not Past Due Less than 60 Days 61 to 90 Days 91 to 120 Days 121 to 180 Days 181 to 360 Days Individually Assessed Total Expected credit loss (ECL) rate 0% 0% - - - - 100% Gross carrying amount $ 904,614 $ 6,163 $ - $ - $ - $ - $ 12,328 $ 923,105 Loss allowance (Lifetime ECL) - - - - - - ( 12,328) ( 12,328) Amortized cost $ 904,614 $ 6,163 $ - $ - $ - $ - $ - $ 910,777
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- 17 - December 31, 2024 Not Past Due Less than 60 Days 61 to 90 Days 91 to 120 Days 121 to 180 Days 181 to 360 Days Individually Assessed Total Expected credit loss rate 0% 0% - - - - 100% Gross carrying amount $ 925,120 $ 16,994 $ - $ - $ - $ - $ 13,042 $ 955,156 Loss allowance (Lifetime ECL) - - - - - - ( 13,042) ( 13,042) Amortized cost $ 925,120 $ 16,994 $ - $ - $ - $ - $ - $ 942,114 June 30, 2024 Not Past Due Less than 60 Days 61 to 90 Days 91 to 120 Days 121 to 180 Days 181 to 360 Days Individually Assessed Total Expected credit loss rate 0% 0% - 0% 0% 50% 100% Gross carrying amount $ 878,278 $ 2,140 $ - $ 249 $ 745 $ 68 $ 1,184 $ 882,664 Loss allowance (Lifetime ECL) - - - - - ( 34) ( 1,184) ( 1,218) Amortized cost $ 878,278 $ 2,140 $ - $ 249 $ 745 $ 34 $ - $ 881,446 The movements of the loss allowance of trade receivables were as follows: Six Months Ended June 30 2025 2024 Balance at January 1 $ 13,042 $ - Add: Impairment loss recognized - 1,201 Less: Amounts written off - - Foreign exchange (loss) gain ( 714 ) 17 Balance at June 30 $ 12,328 $ 1,218 2) At FVTPL For accounts receivable from related parties, the Group sells them to banks without recourse. The sale results in derecognizing these trade receivables because the Group transfers the significant risks and rewards relating to them. These trade receivables are classified as at FVTPL because the objective of the Group’s business model is neither to collect contractual cash flows nor achieved by collecting contractual cash flows and selling financial assets. Factored trade receivables for the six months ended June 30, 2025 and 2024 were as follows: For the six months ended June 30, 2025 Counterparties Receivables Sold Receivables Sold at June 30, 2025 Advances Received Not Yet Received as of June 30, 2025 Retention Interest Rates for Advances Received (%) Credit Line Mega International Commercial Bank $ 184,905 $ 103,854 $ 93,268 $ 8 $ 10,578 5.18 US$ 5,000 thousand For the six months ended June 30, 2024 Counterparties Receivables Sold Receivables Sold at June 30, 2024 Advances Received Not Yet Received as of June 30, 2024 Retention Interest Rates for Advances Received (%) Credit Line Mega International Commercial Bank $ 132,764 $ 78,154 $ 70,330 $ 10 $ 7,814 6.40 US$ 3,000 thousand The above credit line may be used on a revolving basis.
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- 18 - The above factored accounts receivable s have not been received and the retention amounts were reclassified to other receivables - bank retention accounts. c. Other receivables The Group assesses other receivables for impairment when there is objective evidence of receivable being impaired. As of the reporting date, the Group had no other receivables that were past due; thus, no loss allowance was recognized. 11. INVENTORIES June 30, 2025 December 31, 2024 June 30, 2024 Finished goods $ 317,081 $ 310,837 $ 281,680 Raw materials 235,652 226,252 200,078 Supplies 149,521 142,578 132,596 Work in process 46,000 54,394 48,212 Merchandise 23,276 12,762 19,362 $ 771,530 $ 746,823 $ 681,928 The nature of cost of goods sold is as follows: Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Cost of inventories sold $ 711,191 $ 653,214 $ 1,367,971 $ 1,212,117 Inventory write-downs 541 393 961 3,479 Inventory loss for market price 2,915 538 4,060 2,238 Unallocated production overhead - - - 5,741 $ 714,647 $ 654,145 $ 1,372,992 $ 1,223,575 12. PREPAYMENTS June 30, 2025 December 31, 2024 June 30, 2024 Prepaid value-added tax $ 41,211 $ 46,341 $ 21,124 Prepayment for expense 19,134 17,470 19,993 Prepaid purchases 10,258 2,474 19,520 $ 70,603 $ 66,285 $ 60,637 13. SUBSIDIARIES a. Subsidiaries included in the consolidated financial statements Entities included in the consolidated financial statements were as follows:
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- 19 - Proportion of Ownership (%) Investor Investee Nature of Activities June 30, 2025 December 31, 2024 June 30, 2024 Note Topoint Technology Co., Ltd. Topoint Technology Co., LTD. (B.V.I.) International investment 100 100 100 Unipoint Technology Co., Ltd. Processing print circuit board 61.76 61.76 61.76 Warpspeed Corporation (B.V.I.) International trade 100 100 100 Topoint Japan Co., Ltd. Selling electronic components 100 100 100 Unipoint Technology Holdings Co., Ltd. (B.V.I.) International investment 100 100 100 Raypoint Precision Tools Co., Ltd. International trade 100 100 100 Drilltek Corporation Processing print circuit board 58.72 58.72 58.72 Cosmos Vacuum Technology Corporation Vacuum coating and router bits 61.86 61.86 57.56 Note 5 Topoint Technology (Thailand) Co., Ltd. Manufacturing, selling and processing micro-drills for printed circuit boards 99.92 99.92 99.89 Note 4 Topoint Technology Co., LTD. (B.V.I.) Shanghai Topoint Precision Technology Co., Ltd. Manufacturing and selling precision equipment and measurement facilities 100 100 100 Note 1 Sharpoint Technology (Qinhuangdao) Co., Ltd. Testing of drill bits and mounting plate blot holes - - 100 Note 2 Sharpoint Technology (Shenzhen) Co., Ltd. Testing of drill bits and mounting plate blot holes - - 100 Note 8 Sharpoint Technology (Suzhou) Co., Ltd. Testing of drill bits and mounting plate blot holes 100 100 100 Sharpoint Electronics (Huaian) Co., Ltd. Testing of drill bits and mounting plate blot holes - 100 84 Note 3 Shanghai IntelliBrightPoint Electronic Co., Ltd. Sales electronic products and electronic components 100 100 - Note 6 Shanghai Topoint Precision Technology Co., Ltd. Kunshan Restek Technology Co., Ltd. Manufacturing, processing and selling print circuit board 75 75 75 Kunshan Topoint Technology Co., Ltd. Drilling bits - - 100 Note 7 Sharpoint Electronics (Huaian) Co., Ltd. Testing of drill bits and mounting plate blot holes - - 16 Note 3 Chengdu Raypoint Precision Tools Co., Ltd. Cutting tools 100 100 100 Shanghai Ringpoint Nano Material Co., Ltd. Processing metal products 75 75 75 Shanghai IntelliBrightPoint Electronic Co., Ltd. Kunshan Topoint Technology Co., Ltd. Drilling bits 100 100 - Note 7 Sharpoint Technology (Qinhuangdao) Co., Ltd. Testing of drill bits and mounting plate blot holes 100 100 - Note 2 Sharpoint Technology (Shenzhen) Co., Ltd. Testing of drill bits and mounting plate blot holes 100 100 - Note 8 Sharpoint Electronics (Huaian) Co., Ltd. Testing of drill bits and mounting plate blot holes 100 - - Note 3 Sharpoint Electronics (Huaian) Co., Ltd. Winpoint Electronics (Huaian) Co., Ltd. Testing of drill bits and mounting plate blot holes 100 100 100 Sharpoint Technology (Qinhuangdao) Co., Ltd. Huangshi Topoint Technology Co., Ltd. Testing of drill bits and mounting plate blot holes 100 100 100 Unipoint Technology Co., Ltd. Topmicron Investment Ltd. International investment 100 100 100 Cosmos Vacuum Technology Corporation H&N Technology Co., Ltd. International trade 100 100 100 Cosmos Integration Corp. International investment 100 100 100 Cosmos Integration Corp. Universal Technology Corp. International investment 100 100 100 Universal Technology Corp. Cosmos Electronic Technology (Kunshan) Co., Ltd. Vacuum coating and router bits 100 100 100 Note 1: Shanghai Topoint Precision Technology Co., Ltd. approved the cash dividend distribution of RMB 100,000 thousand and RMB 65,000 thousand in the board of directors’ meeting on April 3, 2024 and August 9, 2024, respectively. Shanghai Topoint Precision Technology Co., Ltd. approved the cash dividend distribution of RMB 25,000 thousand in the board of directors’ meeting on April 8, 2025. Note 2: Sharpoint Technology (Qinhuangdao) Co., Ltd. approved the dividend distribution of RMB 3,487 thousand in the board of directors’ meeting on June 6, 2024. In December 2024, Shanghai
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- 20 - IntelliBrightPoint Electronic Co., Ltd. acquired 100% of the shares of Sharpoint Technology (Qinhuangdao) Co., Ltd. from Topoint Technology Co., LTD. (B.V.I.). This transaction constitutes a reorganization under common control, and the related accounting treatment d oes not recognize any gain or loss. Note 3: Sharpoint Electronics (Huaian) Co., Ltd. approved an earnings distribution of RMB 793 thousand in the board of directors’ meeting on June 6, 2024 . In December 2024, Sharpoint Electronics (Huaian) Co., Ltd. fully refunded the original investment cost of the 16% equity held by Shanghai Topoint Precision Technology Co., Ltd. Following the refund, Sharpoint Electronics (Huaian) Co., Ltd. is 100% owned by Topoint Technology Co., LTD. (B.V.I.) . Sharpoint Electronics (Huaian) Co., Ltd. approved an earnings distribution of RMB 10,122 thousand in the board of directors’ meeting on April 8, 2025. In June 2025, Shanghai IntelliBrightPoint Electronic Co., Ltd. acquired 100% of the equity interest in Sharpoint Electronics (Huaian) Co., Ltd. from Topoint Technology Co., Ltd. (B.V.I.). This transaction constitutes a reorganization under common control, and the related accounting treatment does not recognize any gain or loss. Note 4: In May 2024, the parent company increased its capital by distributing cash in the amount of 163,624 thousand dollars to acquire 18,180,400 ordinary shares of Topoint Technology (Thailand) Co., Ltd. , resulting in an increase in its ownership percentage from 99.80% to 99.89%. In July 2024, the parent company increased its capital by cash in the amount of 138,000 thousand dollars to acquire 15,000,000 ordinary shares of Topoint Technology (Thailand) Co., Ltd., resulting in an increase in its ownership percentage from 99.89% to 99.92%. Note 5: In January 2024, the parent company acquired 160,428 ordinary shares of Cosmos Vacuum Technology Corporation from unrelated parties for $1,699 thousand in cash, increasing its ownership interest from 57.14% to 57.56%. In August 2024, the parent company acq uired 37,110 ordinary shares of Cosmos Vacuum Technology Corporation from unrelated parties for $410 thousand in cash, increasing its ownership interest from 57.56% to 57.65%. In November 2024, the parent company acquired 1,613,487 ordinary shares of Cosmos Vacuum Technology Corporation from unrelated parties for $ 18,878 thousand in cash, increasing its ownership interest from 57.65% to 61.86%. Note 6: Topoint Technology Co., Ltd. (B.V.I.) invested in and established Shanghai IntelliBrightPoint Electronic Co., Ltd., on August 26, 2024. Note 7: In December 2024, Shanghai IntelliBrightPoint Electronic Co., Ltd. acquired 100% of the shares of Kunshan Topoint Technology Co., Ltd. from Shanghai Topoint Precision Technology Co., Ltd. This transaction constitutes a reorganization under common control, and the related accounting treatment does not recognize any gain or loss. Note 8: In December 2024, Shanghai IntelliBrightPoint Electronic Co., Ltd. acquired 100% of the shares of Sharpoint Technology (Shenzhen) Co., Ltd. from Topoint Technology Co., LTD. (B.V.I.). This transaction constitutes a reorganization under common control, and the related accounting treatment does not recognize any gain or loss. b. Details of subsidiaries that have material non-controlling interests Proportion of Ownership and Voting Rights Held by Non-controlling Interests Name of Subsidiary Principal Place of Business June 30, 2025 December 31, 2024 June 30, 2024 Unipoint Technology Co., Ltd. Taoyuan City 38.24% 38.24% 38.24% Cosmos Vacuum Technology Corporation New Taipei City 38.14% 38.14% 42.44%
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- 21 - Profit (Loss) Allocated to Non-controlling Interests Three Months Ended June 30 Six Months Ended June 30 Name of Subsidiary 2025 2024 2025 2024 Unipoint Technology Co., Ltd. $ 3,589 $ 3,341 $ 3,879 $ 862 Cosmos Vacuum Technology Corporation $ 9,462 $ 2,023 $ 13,927 $ 8,137 Non-controlling Interests Name of Subsidiary June 30, 2025 December 31, 2024 June 30, 2024 Unipoint Technology Co., Ltd. $ 274,994 $ 271,116 $ 268,339 Cosmos Vacuum Technology Corporation $ 172,709 $ 179,650 $ 193,486 The summarized financial information of subsidiaries below represents the amounts before intragroup elimination: Unipoint Technology Co., Ltd. and Subsidiaries June 30, 2025 December 31, 2024 June 30, 2024 Current assets $ 597,244 $ 558,657 $ 543,431 Non-current assets 178,764 224,153 242,253 Current liabilities ( 45,928 ) ( 57,545 ) ( 78,890 ) Non-current liabilities ( 10,955 ) ( 16,284 ) ( 5,070 ) Equity $ 719,125 $ 708,981 $ 701,724 Equity attributable to: Owners of Unipoint Technology Co., Ltd. $ 444,131 $ 437,865 $ 433,385 Non-controlling interests of Unipoint Technology Co., Ltd. 274,994 271,116 268,339 $ 719,125 $ 708,981 $ 701,724 Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Revenue $ 58,008 $ 64,378 $ 111,021 $ 106,019 Profit for the period $ 9,387 $ 8,736 $ 10,144 $ 2,254 Profit attributable to: Owners of Unipoint Technology Co., Ltd. $ 5,798 $ 5,395 $ 6,265 $ 1,392 Non-controlling interests of Unipoint Technology Co., Ltd. 3,589 3,341 3,879 862 $ 9,387 $ 8,736 $ 10,144 $ 2,254
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- 22 - Six Months Ended June 30 2025 2024 Net cash inflow (outflow) from: Operating activities $ 39,393 $ 62,211 Investing activities 15,264 ( 2,923 ) Financing activities ( 5,240 ) ( 5,054 ) Net cash inflow $ 49,417 $ 54,234 Dividends paid to non-controlling interests of Unipoint Technology Co., Ltd. $ - $ - Cosmos Vacuum Technology Corporation and Subsidiaries June 30, 2025 December 31, 2024 June 30, 2024 Current assets $ 555,942 $ 508,418 $ 445,467 Non-current assets 137,146 126,863 126,521 Current liabilities ( 225,330 ) ( 149,072 ) ( 104,473 ) Non-current liabilities ( 14,929 ) ( 15,182 ) ( 11,608 ) Equity $ 452,829 $ 471,027 $ 455,907 Equity attributable to: Owners of Cosmos Vacuum Technology Corporation $ 280,120 $ 291,377 $ 262,421 Non-controlling interests of Cosmos Vacuum Technology Corporation 172,709 179,650 193,486 $ 452,829 $ 471,027 $ 455,907 Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Revenue $ 168,043 $ 192,202 $ 282,521 $ 200,466 Profit for the period $ 24,809 $ 4,782 $ 36,516 $ 19,141 Profit attributable to: Owners of Cosmos Vacuum Technology Corporation $ 15,347 $ 2,759 $ 22,589 $ 11,004 Non-controlling interests of Cosmos Vacuum Technology Corporation 9,462 2,023 13,927 8,137 $ 24,809 $ 4,782 $ 36,516 $ 19,141
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- 23 - Six Months Ended June 30 2025 2024 Net cash inflow (outflow) from: Operating activities $ 86,631 $ 2,018 Investing activities ( 28,579 ) ( 4,428 ) Financing activities ( 2,067 ) ( 11,000 ) Net cash inflow (outflow) $ 55,985 ( $ 13,410 ) Dividends paid to non-controlling interests of Cosmos Vacuum Technology Corporation $ - $ - 14. PROPERTY, PLANT AND EQUIPMENT June 30, 2025 December 31, 2024 June 30, 2024 Assets used by the Group $ 1,926,315 $ 2,147,289 $ 2,003,959 Land Buildings Machinery and Equipment Transportation Equipment Office Equipment Miscellaneous Equipment Equipment to Be Inspected or under Construction Total Cost Balance at January 1, 2025 $ 178,026 $ 846,084 $ 7,152,425 $ 30,847 $ 23,580 $ 513,093 $ 137,745 $ 8,881,800 Additions 1,011 14,167 71,287 1,596 379 21,491 6,096 116,027 Disposals - - ( 158,843 ) ( 1,922 ) ( 152 ) ( 2,805 ) - ( 163,722 ) Reclassification - - 637 1,419 22 1,265 ( 3,343 ) - Effect of foreign currency exchange differences ( 5,962 ) ( 61,857 ) ( 363,757 ) ( 1,691 ) ( 1,174 ) ( 14,225 ) ( 8,334 ) ( 457,000 ) Balance at June 30, 2025 173,075 798,394 6,701,749 30,249 22,655 518,819 132,164 8,377,105 Accumulated depreciation and impairment Balance at January 1, 2025 - 473,861 5,883,878 18,646 13,867 344,259 - 6,734,511 Depreciation expense - 16,277 116,749 1,813 1,535 26,363 - 162,737 Disposals - - ( 115,984 ) ( 1,775 ) ( 137 ) ( 2,491 ) - ( 120,387 ) Effect of foreign currency exchange differences - ( 30,922 ) ( 286,985 ) ( 878 ) ( 613 ) ( 6,673 ) - ( 326,071 ) Balance at June 30, 2025 - 459,216 5,597,658 17,806 14,652 361,458 - 6,450,790 Carrying amount at June 30, 2025 $ 173,075 $ 339,178 $ 1,104,091 $ 12,443 $ 8,003 $ 157,361 $ 132,164 $ 1,926,315 Carrying amount at December 31, 2024 and January 1, 2025 $ 178,026 $ 372,223 $ 1,268,547 $ 12,201 $ 9,713 $ 168,834 $ 137,745 $ 2,147,289 Cost Balance at January 1, 2024 $ 75,652 $ 844,578 $ 6,916,031 $ 26,365 $ 17,886 $ 454,712 $ 8,386 $ 8,343,610 Additions 93,304 97 102,630 2,535 3,333 24,934 4,297 231,130 Disposals - ( 41,933 ) ( 45,107 ) ( 1,207 ) ( 309 ) ( 2,327 ) - ( 90,883 ) Reclassification - - - - - 3,200 ( 3,200 ) - Effect of foreign currency exchange differences ( 11 ) 26,450 188,807 610 580 4,305 254 220,995 Balance at June 30, 2024 168,945 829,192 7,162,361 28,303 21,490 484,824 9,737 8,704,852 Accumulated depreciation and impairment Balance at January 1, 2024 - 436,207 5,635,556 16,285 11,958 300,026 - 6,400,032 Depreciation expense - 15,523 131,624 1,890 1,120 24,418 - 174,575 Disposals - ( 5,545 ) ( 32,782 ) ( 1,006 ) ( 282 ) ( 2,281 ) - ( 41,896 ) Effect of foreign currency exchange differences - 11,453 153,872 350 225 2,282 - 168,182 Balance at June 30, 2024 - 457,638 5,888,270 17,519 13,021 324,445 - 6,700,893 Carrying amount at June 30, 2024 $ 168,945 $ 371,554 $ 1,274,091 $ 10,784 $ 8,469 $ 160,379 $ 9,737 $ 2,003,959 Impairment loss was not recognized nor reversed for the six months ended June 30, 2025 and 2024.
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- 24 - The items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets: Buildings Main buildings 10-50 years Elevators 8-15 years Decorating constructions 3-10 years Machinery and equipment 1-15 years Transportation equipment 1-10 years Office equipment 2-8 years Miscellaneous equipment 1-14 years Refer to Note 32 for the carrying amount of property, plant and equipment pledged by the Group to secure borrowings. 15. LEASE ARRANGEMENTS a. Right-of-use assets June 30, 2025 December 31, 2024 June 30, 2024 Carrying amount Land use right $ 41,776 $ 47,193 $ 47,755 Buildings 78,683 88,054 68,052 Transportation equipment 1,853 2,635 1,048 $ 122,312 $ 137,882 $ 116,855 Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Additions to right-of-use assets $ - $ - $ 7,761 $ - Depreciation charge for right-of-use assets Land use right $ 302 $ 321 $ 624 $ 632 Buildings 6,438 5,153 14,258 10,270 Transportation equipment 341 443 681 1,204 $ 7,081 $ 5,917 $ 15,563 $ 12,106 Except for the additions and the depreciation expenses listed above, there was no indication of impairment of the right-of-use assets and no significant sublease for the six months ended June 30 , 2025 and 2024. In addition, in 2025, the Group early terminated certain lease contracts, resulting in a reduction of right- of-use assets by $656 thousand.
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- 25 - b. Lease liabilities June 30, 2025 December 31, 2024 June 30, 2024 Carrying amount Current $ 27,119 $ 22,515 $ 14,549 Non-current $ 52,545 $ 68,554 $ 54,883 Range of discount rates for lease liabilities was as follows: June 30, 2025 December 31, 2024 June 30, 2024 Buildings 1.60%~3.60% 1.50%~3.60% 1.50%~4.75% Transportation equipment 1.14%~1.90% 1.14%~4.75% 1.14%~4.75% c. Material lease-in activities and terms The Group leases certain transportation equipment with lease terms of 2 years. The Group does not have bargain purchase options to acquire transportation equipment at the end of the lease terms. The Group also leases certain buildings for the use of plants, office spaces and dormitories with lease terms of 2 to 10 years. The Group does not have bargain purchase options to acquire buildings at the end of the lease terms. The land use right is amortized by the straight-line method over 49 to 50 years. d. Other lease information Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Expenses relating to short- term leases $ 62 $ 22 $ 124 $ 54 Expenses relating to low- value asset leases $ 88 $ 93 $ 181 $ 186 Total cash outflow for leases ( $ 8,722 ) ( $ 6,112 ) ( $ 17,824 ) ( $ 12,539 ) The Group’s leases of certain transportation equipment and buildings for the use of plants and dormitories quality as short-term leases and leases of certain office equipment qualify as low-value asset leases. The Group has elected to apply the recognition exemption and thus does not recognize right-of-use assets and lease liabilities for these leases. 16. INTANGIBLE ASSETS June 30, 2025 December 31, 2024 June 30, 2024 Computer software $ 4,401 $ 3,771 $ 4,270 Goodwill 8,378 8,378 8,378 $ 12,779 $ 12,149 $ 12,648
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- 26 - Movements in computer software were as follows: Computer Software Cost Balance at January 1, 2025 $ 21,845 Additions 3,543 Effect of foreign currency exchange differences ( 692 ) Balance at June 30, 2025 24,696 Accumulated amortization Balance at January 1, 2025 18,074 Amortization expense 2,790 Effect of foreign currency exchange differences ( 569 ) Balance at June 30, 2025 20,295 Carrying amount at June 30, 2025 $ 4,401 Carrying amount at December 31, 2024 and January 1, 2025 $ 3,771 Cost Balance at January 1, 2024 $ 18,980 Additions 773 Effect of foreign currency exchange differences 279 Balance at June 30, 2024 20,032 Accumulated amortization Balance at January 1, 2024 13,558 Amortization expense 1,994 Effect of foreign currency exchange differences 210 Balance at June 30, 2024 15,762 Carrying amount at June 30, 2024 $ 4,270 Impairment loss was not recognized nor reversed for the six months ended June 30, 2025 and 2024. The intangible assets are amortized on a straight -line basis over the following estimated useful lives of the assets: Computer software 1-5 years 17. OTHER ASSETS June 30, 2025 December 31, 2024 June 30, 2024 Current Restricted deposits $ 4,074 $ 4,059 $ 7,109 (Continued)
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- 27 - June 30, 2025 December 31, 2024 June 30, 2024 Payment on behalf of others $ 1,236 $ 1,357 $ 882 Others 52 166 308 $ 5,362 $ 5,582 $ 8,299 Non-current Prepayments for equipment $ 322,674 $ 314,363 $ 144,013 Refundable deposits 19,202 22,375 19,862 Long-term prepaid expenses 12,276 9,782 10,173 Net defined benefit asset 8,398 9,283 9,001 $ 362,550 $ 355,803 $ 183,049 (Concluded) The restricted deposits pledged as collateral are set out in Note 32. 18. BORROWINGS a. Short-term borrowings June 30, 2025 December 31, 2024 June 30, 2024 Unsecured borrowings $ 489,077 $ 432,452 $ 376,496 Secured borrowings (Note 32) 15,000 15,000 15,000 $ 504,077 $ 447,452 $ 391,496 Interest rate 1.95%-5.23% 1.62%-5.56% 2.29%-6.25% b. Long-term borrowings June 30, 2025 December 31, 2024 June 30, 2024 Unsecured borrowings Mega International Commercial Bank $ 158,767 $ 121,708 $ - Less: Current portion ( 19,846 ) - - Long-term borrowings $ 138,921 $ 121,708 $ - Mega International Commercial Bank: Topoint Technology (Thailand) Co., Ltd. utilized the borrowing facilities in November and December 2024 for the first time , with borrowing periods from November 2024 to November 2029 and from December 2024 to December 2029, respectively. The credit agreement is an unsecured loan with a grace period of 12 months from the first utilization date, then every three months thereafter, there will be 16 installments in total.
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- 28 - Related information as of June 30, 2025 and December 31, 2024 is as follows: Credit Line Amount to Be Paid Interest Rate Repayment June 30, 2025 Unsecured borrowing $ 154,173 (THB 170,000 thousand) $ 135,497 (THB 149,407 thousand) 3.2919% ~3.8002% Principal after the grace period with the principal as the first installment in February 2026, and every three months thereafter. There will be 16 installments in total, which will be evenly amortized on a thereafter basis. Unsecured borrowing 54,414 (THB 60,000 thousand) 23,270 (THB 25,659 thousand) 3.2927% ~3.7958% Principal after the grace period with the principal as the first installment in March 2026, and every three months thereafter. There will be 16 installments in total, which will be evenly amortized on a thereafter basis. December 31, 2024 Unsecured borrowing 163,591 (THB 170,000 thousand) 115,603 (THB 120,132 thousand) 3.7958% ~3.8002% Principal after the grace period with the principal as the first installment in February 2026, and every three months thereafter. There will be 16 installments in total, which will be evenly amortized on a thereafter basis. Unsecured borrowing 57,738 (THB 60,000 thousand) 6,105 (THB 6,344 thousand) 3.7958% Principal after the grace period with the principal as the first installment in March 2026, and every three months thereafter. There will be 16 installments in total, which will be evenly amortized on a thereafter basis. 19. ACCOUNTS PAYABLE June 30, 2025 December 31, 2024 June 30, 2024 Accounts payable – operating $ 350,638 $ 316,543 $ 282,929 The average credit period for purchases was 90 to 1 50 days. The Group has established financial risk management policies to ensure that all payables are repaid within pre-agreed credit periods. 20. OTHER PAYABLES June 30, 2025 December 31, 2024 June 30, 2024 Accrued payroll and employee benefits $ 317,374 $ 363,278 $ 344,931 Dividends payable 170,617 - 113,744 Payable for purchase of equipment 165,651 210,452 92,944 Compensation of employees and remuneration of directors 108,736 106,941 105,644 Payable for annual leave 13,502 13,911 13,499 Dividends payable to non-controlling interests 8,774 - 3,062 Others 136,922 142,109 132,367 $ 921,576 $ 836,691 $ 806,191
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- 29 - 21. RETIREMENT BENEFIT PLANS a. Defined contribution plan The Company, Unipoint Technology Co., Ltd., Drilltek Corporation and Cosmos Vacuum Technology Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a Republic of China state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages. The employees of the Group’s subsidiaries in mainland China are members of a state-managed retirement benefit plan operated by the government of mainland China. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. Topoint Technology (Thailand) Co., Ltd. is a member of a state-managed retirement benefit plan operated by the government of Thailand. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit plan to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions. Topoint Technology Co., Ltd. (B.V.I.), Warpspeed Corporation (B.V.I.), Unipoint Technology Holdings Co., Ltd. (B.V.I.), Raypoint Precision Tools Co., Ltd., Topoint Japan Co., Ltd., Topmicron Investment Ltd., H&N Technology Co., Ltd., Cosmos Integration Corp. , and Universal Technology Corp. do not have employee retirement policies in place. Pension expenses for these defined contribution plans are classified under the following accounts: Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Operating costs $ 13,339 $ 9,259 $ 27,048 $ 17,904 Operating expenses $ 5,042 $ 4,375 $ 10,370 $ 8,743 b. Defined benefit plan Pensions under defined benefit plan is calculated using the actuarially determined pension cost rates as of December 31, 2024 and 2023 and recognized in the following item: Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Operating (income) expenses ( $ 62 ) $ 58 ( $ 125 ) $ 116 22. EQUITY a. Share capital - ordinary shares June 30, 2025 December 31, 2024 June 30, 2024 Registered shares (thousands) 300,000 300,000 300,000 Registered capital $ 3,000,000 $ 3,000,000 $ 3,000,000 Issued shares (thousands) 142,181 142,181 142,181 Issued capital $ 1,421,805 $ 1,421,805 $ 1,421,805
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- 30 - The par value of the issued ordinary shares is NT$10. Each share entitles its holder to a right to vote and to receive dividends. Of the authorized capital, a total of 30,000 thousand shares should be reserved for employee share option plan, preference shares with warrant and bonds with warrant attached. b. Capital surplus June 30, 2025 December 31, 2024 June 30, 2024 May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Issuance of ordinary shares $ 1,190,843 $ 1,190,843 $ 1,190,843 Exercise of employee share options 8,992 8,992 8,992 Expiry of employee share options 8,408 8,408 8,408 May be used to offset a deficit only Changes in percentage of ownership interest in subsidiaries (2) 20,629 20,629 19,561 $ 1,228,872 $ 1,228,872 $ 1,227,804 1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and to once a year). 2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulting from equity transactions or from changes in capital surplus of subsidiaries accounted for using the equity method. The Group acquired the equity of Cosmos Vacuum Technology Corporation from non-controlling equity interest in January 2024, and the ownership interest increased from 5 7.14% to 57. 56%, and increased capital surplus - changes in percentage of ownership interest in subsidiaries by $166 thousand. The Group acquired the equity of Cosmos Vacuum Technology Corporation from non-controlling equity interest in November 2024, and the ownership interest increased from 57.65% to 61.86%, and increased capital surplus - changes in percentage of ownership interest in subsidiaries by $1,068 thousand. c. Retained earnings and dividend policy Under the dividend policy as set forth in the Articles of Incorporation, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for prop osing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonus to shareholders. To distribute dividends and bonuses in cash, the board of directors is authorized to adopt a special resolution, and a report of such distribution should be submitted in the shareholders’ meeting.
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- 31 - For the conditions on distribution of compensation of employees and remuneration of directors, refer to compensation of employees and remuneration of directors in Note 24, d. To meet the requirements for future operational expansion and financial structure and to satisfy the shareholders’ need for cash inflow, the Company’s dividend policy states that total dividends should be at least 20% of net income and cash dividends should be at least 10% of total dividends. Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash. When a special reserve is appropriated for cumulative net debit balance reserves from the prior period, the special reserve is only appropriated from the prior unappropriated earnings. The appropriations of earnings for 2024 and 2023 approved in the shareholders’ meetings on May 27, 2025 and May 27, 2024, respectively, were as follows: Appropriation of Earnings Dividends Per Share (NT$) Year Ended December 31 Year Ended December 31 2024 2023 2024 2023 Legal reserve $ 21,082 $ - Special reserve (reversed) ( 190,771 ) 62,921 Cash dividends 170,617 113,744 $ 1.20 $ 0.80 The above appropriations of cash dividends have been resolved by the Company’s board of directors on February 26, 2025 and February 27, 2024, respectively. The other proposed appropriations for 2024 and 2023 have been resolved by the shareholders’ meetings on May 27, 2025 and May 27, 2024, respectively. d. Other equity items Exchange differences on translation to the financial statements of foreign operations Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their functional currencies to the Group’s presentation currency (i.e., New Taiwan dollars) were recognized directly in other comprehensive income and accumulated in the foreign currency translation reserve. Exchange differences previously accumulated in the foreign currency translation reserve (in respect of translating both the net assets of foreign operations and hedges of foreign operations) were reclassified to profit or loss on the disposal of the foreign operation. Unrealized gain/(loss) on financial assets at FVTOCI Six Months Ended June 30 2025 2024 Balance at January 1 $ 23,867 $ 18,866 Recognized for the period Unrealized (loss)/gain ( 8,176 ) 7,841 Balance at June 30 $ 15,691 $ 26,707
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- 32 - e. Treasury shares Reason for Repurchase Repurchased for Cancellation (In thousand shares) Balance as of January 1, 2025 - Increase during the period 808 Balance as of June 30, 2025 808 On April 10, 2025, the Board of Directors resolved that, in order to safeguard the Company’s credit standing and shareholders’ rights and interests, the Company would mandate a securities firm to repurchase up to 1,000 thousand shares of its ordinary share from the centralized securities market between April 2025 and June 2025, at a price range of NT$16.60 to NT$46.10 per share. The Company had repurchased 808 thousand shares at a total cost of $22,286 thousand, with an average repurchase price of NT$27.58 per share. Treasury shares held by the Company, in accordance with securities trading regulations, may not be pledged, and are not entitled to dividends, voting rights, or other shareholder rights. f. Non-controlling interests Six Months Ended June 30 2025 2024 Balance at January 1 $ 565,369 $ 574,926 Attributable to non-controlling interests: Share of profit (loss) for the period 18,228 ( 2,610 ) Exchange difference arising on translation of foreign entities ( 22,607 ) 9,838 Unrealized (loss)/gain of financial assets at FVTOCI ( 794 ) 305 Acquisition of non-controlling interests in Cosmos Vacuum Technology Corporation - ( 1,865 ) Cash dividends to non-controlling interests ( 8,774 ) ( 3,062 ) Balance at June 30 $ 551,422 $ 577,532 23. REVENUE a. Contact balances June 30, 2025 December 31, 2024 June 30, 2024 January 1, 2024 Notes receivables (Note 10) $ 134,978 $ 141,859 $ 112,457 $ 51,180 Accounts receivable (Note 10) $ 910,777 $ 942,114 $ 881,446 $ 796,864 Accounts receivable - related parties (Note 31) $ 180,282 $ 201,540 $ 172,209 $ 111,035 Contract liabilities Sale of goods $ 895 $ 456 $ 647 $ 834
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- 33 - The changes in the balance of contract liabilities primarily result from the timing difference between the Group’s performance and the respective customer’s payment. Revenues of the reporting period re cognized from the beginning balance of contract liabilities with performance obligations satisfied are as follows: Six Months Ended June 30 2025 2024 From the beginning contract liabilities Sale of goods $ 456 $ 834 b. Disaggregation of revenue Six Months Ended June 30 2025 2024 Precision metal products and processing services $1,855,055 $1,594,192 Others 45,096 32,262 $1,900,151 $1,626,454 c. Partially completed contracts Expected schedule for revenue recognition is as follows: June 30, 2025 December 31, 2024 June 30, 2024 Sale of goods - In 2024 $ - $ - $ 647 - In 2025 895 456 - $ 895 $ 456 $ 647 24. NET PROFIT Net profit includes the following items: a. Depreciation and amortization expenses Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 An analysis of depreciation by function Operating costs $ 71,695 $ 77,732 $ 150,693 $ 157,056 Operating expenses 13,530 14,664 27,607 29,625 $ 85,225 $ 92,396 $ 178,300 $ 186,681 (Continued)
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- 34 - Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 An analysis of amortization by function Operating costs $ 300 $ 336 $ 536 $ 669 General and administrative expenses 1,147 692 2,254 1,325 $ 1,447 $ 1,028 $ 2,790 $ 1,994 (Concluded) b. Other operating income and expenses Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Gain on disposal of property, plant and equipment $ 9,069 $ 6,488 $ 12,559 $ 575 c. Employee benefit expenses Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Post-employment benefit (Note 21) Defined contribution plans $ 18,381 $ 13,634 $ 37,418 $ 26,647 Defined benefit plans ( 62 ) 58 ( 125 ) 116 18,319 13,692 37,293 26,763 Other employee benefits 246,748 265,580 495,907 492,524 Total employee benefit expenses $ 265,067 $ 279,272 $ 533,200 $ 519,287 An analysis of employee benefit expense by function Operating costs $ 179,283 $ 193,869 $ 361,355 $ 358,168 Operating expenses 85,784 85,403 171,845 161,119 $ 265,067 $ 279,272 $ 533,200 $ 519,287 d. Compensation of employees and remuneration of directors The Company accrued compensation of employees at a rate no less than 1% and no higher than 25% and remuneration of directors at a rate no higher than 3% of net profit before income tax, compensation of employees, and remuneration of directors. Pursuant to the amendments to the Securities and Exchange Act in August 2024, the Company amended its Articles of Incorporation at the 2025 annual shareholders’ meeting to specify that no less than 20% of the total employee compensation for the year shall be allocated to non-executive employees. The compensation of employees and remuneration of directors for the three months and six months ended June 30, 2025 and 2024 were as follows:
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- 35 - Accrual rate Six Months Ended June 30 2025 2024 Compensation of employees 15.0% 15.0% Remuneration of directors 2.5% 2.5% Amount Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Compensation of employees $ 19,949 $ 22,134 $ 31,680 $ 27,185 Remuneration of directors $ 3,325 $ 3,689 $ 5,280 $ 4,531 If there is a change in the amounts after the annual consolidated financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate. The compensation of employees and remuneration of directors for the years ended December 31, 2024 and 2023 which have been approved by the Company’s board of directors on February 2 6, 2025 and February 27, 2024, respectively, were as follows: Amount For the Year Ended December 31 2024 2023 Cash Cash Compensation of employees $ 59,767 $ 33,347 Remuneration of directors 9,961 5,558 There was no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023. Information on the compensation of employees and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange. e. Gain/(loss) on foreign currency exchange Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Foreign currency exchange gains $ 15,341 $ 5,132 $ 21,746 $ 19,394 Foreign currency exchange losses ( 26,685 ) ( 7,956 ) ( 34,167 ) ( 20,250 ) Net losses ( $ 11,344 ) ( $ 2,824 ) ( $ 12,421 ) ( $ 856 )
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- 36 - 25. INCOME TAXES a. Major components of tax expense recognized in profit or loss Major components of income tax expense are as follows: Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Current tax In respect of the current period $ 57,644 $ 99,573 $ 73,987 $ 107,906 Income tax on unappropriated earnings 6,120 130 6,120 130 Adjustments for prior year ( 6,915 ) ( 11,202 ) ( 6,845 ) ( 11,202 ) 56,849 88,501 73,262 96,834 Deferred tax In respect of the current period ( 13,500 ) ( 78,599 ) ( 9,289 ) ( 78,425 ) Income tax expense recognized in profit or loss $ 43,349 $ 9,902 $ 63,973 $ 18,409 b. Income tax recognized in other comprehensive income Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Deferred tax In respect of the current period Remeasurement on defined benefit plan ( $ 27 ) ( $ 21 ) $ 467 $ 539 c. Income tax assessments Income tax returns of Unipoint Technology Co., Ltd. and Cosmos Vacuum Technology Co rporation through 2023 have been examined and cleared by the tax authorities. Income tax returns of the Company and Drilltek Corporation through 2022 have been examined and cleared by the tax authorities. 26. EARNINGS PER SHARE The earnings and weighted average number of ordinary shares outstanding that were used in the computation of earnings per share were as follows:
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- 37 - Net Profit Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Profit for the computation of basic and diluted earnings per share $ 78,352 $ 67,718 $ 130,248 $ 88,995 Weighted average number of ordinary shares outstanding (in thousand shares) Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Weighted average number of ordinary shares in computation of basic earnings per share 142,181 142,181 142,181 142,181 Effect of potentially dilutive ordinary shares: Compensation of employees 438 708 1,237 1,235 Weighted average number of ordinary shares in computation of diluted earnings per share 142,619 142,889 143,418 143,416 The Group may settle compensation paid to employees in cash or shares; therefore, the Group assumes the entire amount of the compensation will be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the effect is dilutive. Such dilutive effect of the potential shares was 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. 27. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS On January 30, 2024, the Group acquired the equity of Cosmos Vacuum Technology Corporation from non- controlling interests, and the ownership interest increased from 57.14% to 57.56%. On August 9, 2024, the Group acquired the equity of Cosmos Vacuum Technology Corporation from non - controlling interests, and the ownership interest increased from 57.56% to 57.65%. On November 27, 2024, the Group acquired the equity of Cosmos Vacuum Technology Corporation from non-controlling interests, and the ownership interest increased from 57.65% to 61.86%. The above transactions were accounted for as equity transactions, since the Group did not cease to have control over the subsidiary. 28. PARTIAL CASH TRANSACTIONS a. Non-cash transaction For the six months ended June 30 , 2025 and 2024, the Group entered into the following partial cash investing activities, which were not reflected in the consolidated statements of cash flows:
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- 38 - Six Months Ended June 30 2025 2024 Cash paid for property, plant and equipment acquisition Increase in property, plant and equipment $ 116,027 $ 231,130 Net change in prepayments for equipment 8,311 38,370 Net change in payable for purchase of equipment 44,801 ( 41,705 ) Cash paid $ 169,139 $ 227,795 Cash received from disposal of property, plant and equipment Disposal of property, plant and equipment $ 43,335 $ 48,987 Net gain on disposal of property, plant and equipment 12,559 575 Cash received $ 55,894 $ 49,562 b. Changes in liabilities arising from financing activities For the six months ended June 30, 2025 Non-cash Changes Beginning Balance Cash Flows New Leases Foreign Exchange Termination of Leases Ending Balance Short-term borrowings $ 447,452 $ 64,230 $ - ( $ 7,605 ) $ - $ 504,077 Long-term borrowings 121,708 47,249 - ( 10,190 ) - 158,767 Guarantee deposits received 13,306 ( 51 ) - - - 13,255 Lease liabilities 91,069 ( 16,253 ) 7,761 ( 2,257 ) ( 656 ) 79,664 $ 673,535 $ 95,175 $ 7,761 ( $ 20,052 ) ( $ 656 ) $ 755,763 For the six months ended June 30, 2024 Non-cash Changes Beginning Balance Cash Flows Foreign Exchange Reclassification Ending Balance Short-term borrowings $ 104,432 ( $ 112,936) $ - $ 400,000 $ 391,496 Long-term borrowings 400,000 - - ( 400,000 ) - Guarantee deposits received 12,563 625 - - 13,188 Lease liabilities 80,382 ( 11,405) 455 - 69,432 $ 597,377 ( $ 123,716) $ 455 $ - $ 474,116 29. CAPITAL RISK 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 shareholders through the optimization of the debt and equity balances. 30. FINANCIAL INSTRUMENTS a. Fair value of financial instruments that are not measured at fair value
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- 39 - The management believes the carrying amounts of financial assets and financial liabilities not measured at fair value in the consolidated financial statements approximate their fair values (or their fair values cannot be reliably measured). b. Fair value of financial instruments that are measured at fair value on a recurring basis 1) Fair value hierarchy June 30, 2025 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Derivative financial instrument $ - $ 2,563 $ - $ 2,563 Structured deposit - 20,578 - 20,578 Accounts receivable - related parties - - 40,916 40,916 Other receivables - - 10,586 10,586 $ - $ 23,141 $ 51,502 $ 74,643 Financial assets at FVTOCI Listed shares $ 36,320 $ - $ - $ 36,320 Unlisted shares - - 15,400 15,400 $ 36,320 $ - $ 15,400 $ 51,720 Financial liabilities at FVTPL Derivative financial instrument $ - $ 322 $ - $ 322 December 31, 2024 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Derivative financial assets $ - $ 70 $ - $ 70 Accounts receivable - related parties - - 57,488 57,488 Other receivables - - 6,978 6,978 $ - $ 70 $ 64,466 $ 64,536 Financial assets at FVTOCI Listed shares $ 43,367 $ - $ - $ 43,367 Unlisted shares - - 17,323 17,323 $ 43,367 $ - $ 17,323 $ 60,690 (Continued)
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- 40 - Level 1 Level 2 Level 3 Total Financial liabilities at FVTPL Derivative financial instrument $ - $ 1,586 $ - $ 1,586 (Concluded) June 30, 2024 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Derivative financial assets $ - $ 62 $ - $ 62 Structured deposit - 255,766 - 255,766 Accounts receivable - related parties - - 27,452 27,452 Other receivables - - 7,824 7,824 $ - $ 255,828 $ 35,276 $ 291,104 Financial assets at FVTOCI Listed shares $ 46,800 $ - $ - $ 46,800 Unlisted shares - - 16,315 16,315 $ 46,800 $ - $ 16,315 $ 63,115 Financial liabilities at FVTPL Derivative financial instrument $ - $ 1,526 $ - $ 1,526 There were no transfers between Levels 1 and 2 for the six months ended June 30, 2025 and 2024. 2) Reconciliation of Level 3 fair value measurements of financial instruments For the six months ended June 30, 2025 Financial Assets at FVTPL Financial Assets at FVTOCI Financial Assets Financial Instruments Equity Instruments Total Balance at January 1, 2025 $ 64,466 $ 17,323 $ 81,789 Recognized in unrealized loss on financial assets at FVTOCI - ( 1,923 ) ( 1,923 ) Purchases 225,821 - 225,821 Settlements ( 238,785 ) - ( 238,785 ) Balance at June 30, 2025 $ 51,502 $ 15,400 $ 66,902
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- 41 - For the six months ended June 30, 2024 Financial Assets at FVTPL Financial Assets at FVTOCI Financial Assets Financial Instruments Equity Instruments Total Balance at January 1, 2024 $ 23,294 $ 15,577 $ 38,871 Recognized in unrealized gain on financial assets at FVTOCI - 738 738 Purchases 160,216 - 160,216 Settlements ( 148,234 ) - ( 148,234 ) Balance at June 30, 2024 $ 35,276 $ 16,315 $ 51,591 3) Valuation techniques and assumption applied for the purpose of measuring fair value The fair values of financial assets and financial liabilities are determined as follows: a) The fair values of mutual funds and listed shares are determined at their net asset value and closing price at the end of the reporting period. b) Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. The use of estimates and hypotheses of valuation method the Group adopts is in consistent with the market participants, when pricing such financial instruments. c) For accounts receivable - related parties that are measured at FVTPL, the fair value is measured according to the original invoice amount and the effect of discounting is immaterial. d) Structured deposits are measured using discounted cash flows. Future cash flows are estimated based on contract forward rates, discounted at a rate that reflects the credit risk. e) Non-principal protected wealth management products and structured deposits are measured using discounted cash flows. Future cash flows are estimated based on contract forward rates, discounted at a rate that reflects the credit risk. f) The fair values of domestic unlisted equity investments are determined using the market approach, which references the transaction prices of comparable companies engaged in the same or similar business, their stock prices in active markets, the price multi pliers implicit in those prices, and considers liquidity discounts to determine the value of the target company. The significant unobservable inputs are as follows: June 30, 2025 December 31, 2024 June 30, 2024 Discount for lack of marketability 25% 25% 10% If the inputs to the valuation model were changed to reflect reasonably possible alternative assumptions while all the other variables were held const ant, the fair value of the shares would increase (decrease) as follows:
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- 42 - June 30, 2025 December 31, 2024 June 30, 2024 Discount for lack of marketability 5% increase ( $ 784 ) ( $ 815 ) ( $ 770 ) 5% decrease $ 784 $ 815 $ 770 c. Categories of financial instruments June 30, 2025 December 31, 2024 June 30, 2024 Financial assets Fair value through profit or loss Mandatorily classified as at FVTPL $ 74,643 $ 64,536 $ 291,104 Financial assets at amortized cost (Note 1) 3,580,462 3,609,570 3,431,662 Financial assets at FVTOCI 51,720 60,690 63,115 Financial liabilities Fair value through profit or loss Held for trading 322 1,586 1,526 Amortized cost (Note 2) 1,181,002 1,248,037 885,248 Note 1: The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable, part of accounts receivable - related parties and part of other receivables. Note 2: The balances included financial liabilities measured at amortized cost, which comprise short - term borrowings, notes payable, accounts payable, accounts payable - related parties, part of other payables and long-term borrowings. d. Financial risk management objectives and policies The Group ’s major financial instruments include equity investments, accounts receivable, accounts payables, borrowings and lease liabilities. The Group ’s Corporate Treasury function monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. 1) Market risk The Group ’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and other price risk. There has been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured. a) Foreign currency risk Several subsidiaries of the Company had foreign currency sales and purchases, which exposed the Group to foreign currency risk. Approximately 18% of the Group’s sales were denominated in currencies other than the functional currency of the entity in the Group making the sale, while almost 13% of costs were not denominated in the functional currency of the entity in the Group.
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- 43 - The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and the carrying amounts of the derivatives exposing to foreign currency risk at the end of the reporting period are set out in Notes 7 and 34. Sensitivity analysis The Group was mainly exposed to U.S. dollars, Japanese yen, Euros and Swiss franc. The following table details the Group’s sensitivity to a 1% increase and decrease in New Taiwan dollars (the functional currency) against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. A positive number below indicates an increase in pre -tax profit associated with New Taiwan dollars strengthen 1% against the relevant currency. For a 1% weakening of New Taiwan dollars against the relevant currency, there would be an equal and opposite impact on pre -tax profit and the balances below would be negative. U.S. Dollars Swiss Franc USD:NTD USD:RMB CHF:RMB Six Months Ended June 30 Six Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 2025 2024 Profit (loss) ( $ 53 ) ( $ 476 ) ( $ 206 ) $ 185 $ 4 $ 16 Japanese Yen Euros JPY:NTD EUR:RMB EUR:NTD Six Months Ended June 30 Six Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 2025 2024 Profit (loss) ( $ 12 ) ( $ 9 ) ( $ 68 ) ( $ 85 ) ( $ 102 ) ( $ 115 ) This was mainly attributable to the exposure outstanding on U.S. dollars, Japanese yen, Euros and Swiss franc cash in the bank, bank loans, receivables and payables at the end of the reporting period. b) Interest rate risk The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rate risks at the end of the reporting period were as follows: June 30, 2025 December 31, 2024 June 30, 2024 Fair value interest rate risk Financial assets $ 1,643,258 $ 1,413,845 $ 1,439,406 Financial liabilities 79,664 91,069 69,432 Cash flows interest rate risk Financial assets 713,493 943,461 822,568 Financial liabilities 662,844 569,160 391,496
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- 44 - Sensitivity analysis The sensitivity analyses below were determined based on the Group’s exposure to interest rates for non -derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of the asset and liability outstanding at the end of the reporting period was outstanding for the whole period. A 25 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. Had interest rates been 25 basis points higher/lower and all other variables been held constant, the Group’s pretax profit for the six months ended June 30, 2025 would have increased/decreased by $63 thousand, which was mainly attributable to the Group’s exposure to interest rates on its demand deposits and variable-rate borrowings. Had interest rates been 25 basis points higher/lower and all other variables been held constant, the Group’s pretax profit for the six months ended June 30, 2024 would have increased/decreased by $539 thousand, which was mainly attributable to the Group’s exposure to interest rates on its demand deposits and variable-rate borrowings. c) Other price risk The Group was exposed to equity price risk through its investments in equity securities. Equity investments are held for strategic rather than trading purposes. The Group does not actively trade these investments. Sensitivity analysis The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period. If equity prices had been 5% higher/lower, pre-tax other comprehensive income for the six months ended June 30, 2025 and 2024 would have increased/decreased by $2,586 thousand and $3,156 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI. 2) Credit risk Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. As of the end of the reporting period, the Group’s maximum exposure to credit risk, which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation, is primary from the book value of its financial assets. The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s concentration of credit risk of 39.23%, 34.40% and 34.01% in total trade receivables as of June 30, 2025, December 31, 2024 and June 30, 2024, respectively, were related to the Group’s five largest customers. 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. As of June 30, 2025, December 31, 2024 and June 30, 2024, the available borrowing facilities were $1, 616,368 thousand, $1, 749,504 thousand and $ 1,698,231 thousand, respectively.
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- 45 - The Group manages liquidity risk by maintaining adequate bank balance and banking facilities, and continuously monitoring forecast and actual cash flows as well as the maturity profiles of financial assets and liabilities. a) Liquidity and interest rate risk tables for non-derivative financial liabilities The Group’s noninterest-bearing liabilities pertaining on non -derivative financial liabilities are paid in succession within one year. The following table details the Group ’s remaining maturity for its borrowings with agreed repayment periods. The tables have 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. June 30, 2025 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years More than 5 Years Non-derivative financial liabilities Variable interest rate liabilities $ 4,917 $396,036 $131,150 $157,310 $ - Lease liabilities 2,272 6,817 19,654 54,233 - $ 7,189 $402,853 $150,804 $211,543 $ - December 31, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years More than 5 Years Non-derivative financial liabilities Variable interest rate liabilities $313,012 $ 85,240 $ 50,756 $144,480 $ - Lease liabilities 2,061 6,081 20,270 68,933 - $315,073 $ 91,321 $ 71,026 $213,413 $ -
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- 46 - June 30, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years More than 5 Years Non-derivative financial liabilities Variable interest rate liabilities $ 4,719 $ 49,057 $337,720 $ - $ - Lease liabilities 2,070 5,253 10,725 51,859 3,351 $ 6,789 $ 54,310 $348,445 $ 51,859 $ 3,351 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. June 30, 2025 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years Gross settled Foreign exchange forward contracts Inflows $ 13,516 $ 30,887 $ 12,990 $ - Outflows ( 12,404 ) ( 29,570 ) ( 13,178 ) - $ 1,112 $ 1,317 ( $ 188 ) $ - December 31, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years Gross settled Foreign exchange forward contracts Inflows $ 8,047 $ 45,296 $ 21,229 $ - Outflows ( 8,229 ) ( 46,276 ) ( 21,583 ) - ( $ 182 ) ( $ 980 ) ( $ 354 ) $ -
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- 47 - June 30, 2024 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years Gross settled Foreign exchange forward contracts Inflows $ 11,589 $ 23,270 $ 18,611 $ - Outflows ( 12,123 ) ( 23,976 ) ( 18,835 ) - ( $ 534 ) ( $ 706 ) ( $ 224 ) $ - e. Transfers of financial assets For factored trade receivables for the six months ended June 30, 2025 and 2024, refer to Note 10. 31. TRANSACTIONS WITH RELATED PARTIES Balances, transactions, incomes and expenses 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. Besides information disclosed elsewhere in the other notes, details of transactions are disclosed below. a. The Group’s related parties Related Party Relationship with the Group Other related parties Unimicron Technology Corporation The parent company of the equity-method investor of Unipoint Technology Co., Ltd. Unimicron Technology (Shenzhen) Corp. Investee of Unimicron Technology Corporation Unimicron Technology (Kunshan) Corp. Investee of Unimicron Technology Corporation Unimicron-FPC Technology (Kunshan) Inc. Investee of Unimicron Technology Corporation Unimicron Technology (Suzhou) Corp. Investee of Unimicron Technology Corporation Unimicron-Carrier Technology (Huangshi) Inc. Investee of Unimicron Technology Corporation Unimicron Technology (Huangshi) Corp. Investee of Unimicron Technology Corporation Subtron Technology Co., Ltd. Subsidiary of Unimicron Technology Corporation b. Operating revenue Related Party Category/ Name Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Other related parties Unimicron Technology Corporation $ 206,115 $ 153,851 $ 391,721 $ 253,300 Others 16,603 17,524 31,728 39,105 $ 222,718 $ 171,375 $ 423,449 $ 292,405
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- 48 - c. Purchases of goods Related Party Category/ Name Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Other related parties $ 1,892 $ 1,440 $ 4,767 $ 3,311 The sales prices and payment terms to related parties were not significantly different from those sales to third parties. d. Receivables from related parties Related Party Category/Name June 30, 2025 December 31, 2024 June 30, 2024 Accounts receivable Other related parties Unimicron Technology Corporation $ 157,082 $ 161,572 $ 138,219 Others 23,200 39,968 33,990 $ 180,282 $ 201,540 $ 172,209 The accounts receivable from related parties are unsecured. For the six months ended June 30, 2025 and 2024, no impairment loss was recognized for accounts receivables from related parties. e. Payables to related parties Related Party Category/Name June 30, 2025 December 31, 2024 June 30, 2024 Other related parties $ 1,024 $ 1,194 $ 546 The accounts payable to related parties are unsecured. f. Compensation of key management personnel Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Short-term employee benefits $ 9,731 $ 8,890 $ 17,607 $ 14,490 Post-employment benefits 27 27 54 54 $ 9,758 $ 8,917 $ 17,661 $ 14,544 The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.
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- 49 - 32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY The following assets were provided as collateral for bank borrowings and financing facilities: June 30, 2025 December 31, 2024 June 30, 2024 Property, plant and equipment $ 140,165 $ 142,242 $ 144,443 Restricted deposits 4,074 4,059 7,109 $ 144,239 $ 146,301 $ 151,552 33. SIGNIFICANT SUBSEQUENT EVENTS: None. 34. 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 foreign currencies and respective functional currencies were as follows: June 30, 2025 Foreign Currency Exchange Rate Carrying Amount Financial assets Monetary items USD $ 11,060 29.300 (USD:NTD) $ 324,072 USD 1,149 7.1586 (USD:RMB) 33,652 KRW 120 0.0219 (KRW:NTD) 3 JPY 16,129 0.2034 (JPY:NTD) 3,281 EUR 197 8.4024 (EUR:RMB) 6,755 EUR 316 34.350 (EUR:NTD) 10,859 Financial liabilities Monetary items USD 9,074 29.300 (USD:NTD) 265,858 USD 446 7.1586 (USD:RMB) 13,061 JPY 4,063 0.2034 (JPY:NTD) 826 CHF 12 8.9721 (CHF:RMB) 427 EUR 18 34.350 (EUR:NTD) 626 December 31, 2024 Foreign Currency Exchange Rate Carrying Amount Financial assets Monetary items USD $ 8,370 32.785 (USD:NTD) $ 274,420 (Continued)
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- 50 - Foreign Currency Exchange Rate Carrying Amount USD $ 3,696 7.1884 (USD:RMB) $ 121,184 KRW 120 0.0225 (KRW:NTD) 3 JPY 13,568 0.2099 (JPY:NTD) 2,848 EUR 197 7.4855 (EUR:RMB) 6,713 EUR 397 34.140 (EUR:NTD) 13,537 Financial liabilities Monetary items USD 5,157 32.785 (USD:NTD) 169,065 USD 4,071 7.1884 (USD:RMB) 133,469 JPY 3,005 0.2099 (JPY:NTD) 631 EUR 10 34.140 (EUR:NTD) 334 CHF 24 7.9525 (CHF:RMB) 854 (Concluded) June 30, 2024 Foreign Currency Exchange Rate Carrying Amount Financial assets Monetary items USD $ 7,360 32.450 (USD:NTD) $ 238,838 USD 234 7.1268 (USD:RMB) 7,603 KRW 250 0.0237 (KRW:NTD) 6 JPY 158,924 0.2017 (JPY:NTD) 32,055 EUR 244 7.8176 (EUR:RMB) 8,481 EUR 447 34.710 (EUR:NTD) 15,511 Financial liabilities Monetary items USD 5,893 32.450 (USD:NTD) 191,236 USD 804 7.1268 (USD:RMB) 26,075 JPY 145,308 0.2017 (JPY:NTD) 29,309 CHF 45 8.1500 (CHF:RMB) 1,617 EUR 117 34.710 (EUR:NTD) 4,054 For the three months and six months ended June 30, 2025 and 2024, (realized and unrealized) net foreign exchange losses were $11,344 thousand, $2,824 thousand, $12,421 thousand and $856 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign functional currency transactions and currencies of the Group entities. 35. SEPARATELY DISCLOSED ITEMS a. Information about significant transactions and b. investees: 1) Financing provided to others: Table 1 2) Endorsements/guarantees provided: Table 2
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- 51 - 3) Material marketable securities held (excluding investment in subsidiaries , associates and joint ventures): Table 3 4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4 5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None 6) Intercompany relationships and significant intercompany transactions: Table 8 7) Information on investees (excluding investees in mainland China): Table 5 c. Information on investments in mainland China 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, 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 6 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: Table 7 b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: Table 7 c) The amount of property transactions and the amount of the resultant gains or losses: None d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: Table 2 e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: Table 1 f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services: None 36. SEGMENT INFORMATION Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on regional operating performance. Specifically, the Group’s reportable segments under IFRS 8 “Operating Segments” were as follows: Taiwan area, mainland China area and other areas. These segments mainly process PCBs and design, manufacture and sell related cutting equipment.
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- 52 - a. Segment revenues and results Six Months Ended June 30, 2025 Items Taiwan Mainland China Others Elimination Total Revenues from external customers $ 876,991 $ 1,009,389 $ 13,771 $ - $ 1,900,151 Intersegment revenues $ 196,374 $ 289,903 $ - ( $ 486,277 ) $ - Segment income (loss) ( $ 17,442 ) $ 232,259 ( $ 1,689 ) ( $ 679 ) $ 212,449 Six Months Ended June 30, 2024 Items Taiwan Mainland China Others Elimination Total Revenues from external customers $ 733,163 $ 885,067 $ 8,224 $ - $ 1,626,454 Intersegment revenues $ 181,063 $ 8,732 $ - ( $ 189,795 ) $ - Segment income (loss) $ 33,331 $ 76,319 ( $ 3,620 ) ( $ 1,236 ) $ 104,794 b. Segment total assets June 30, 2025 December 31, 2024 June 30, 2024 Taiwan $ 3,342,104 $ 3,633,976 $ 3,453,698 Mainland China 2,961,297 3,400,702 3,454,649 Others 747,344 241,054 11,313 Consolidated total assets $ 7,050,745 $ 7,275,732 $ 6,919,660
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- 53 - TABLE 1 TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES FINANCING PROVIDED TO OTHERS FOR THE SIX MONTHS ENDED JUNE 30, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) No. Lender Borrower Financial Statement Account Related Parties Maximum Balance for the Period (Note 2) Ending Balance (Note 2) Actual Borrowing Amount Interest Rate (%) Nature of Financing Business Transaction Amount Reason for Short-term Financing Allowance for Bad Debt Collateral Financing Limit for Each Borrowing Company Financing Company’s Financing Amount Limit Note Item Value 1 Topoint Technology Co., Ltd. (B.V.I.) Topoint Japan Co., Ltd. Other receivables Yes $ 20,178 (JPY 90,000 thousand ) $ 18,306 (JPY 90,000 thousand ) $ 14,238 (JPY 70,000 thousand ) 1.61 Short-term financing $ - Operating turnover $ - - $ - $ 4,215,660 (Note 1) $ 4,215,660 (Note 1) Note 3 2 Shanghai Topoint Precision Technology Co., Ltd. Kunshan Topoint Technology Co., Ltd. Other receivables Yes 92,516 (RMB 20,000 thousand ) 81,860 (RMB 20,000 thousand ) 40,930 (RMB 10,000 thousand ) 4.75 Short-term financing - Operating turnover - - - 4,215,660 (Note 1) 4,215,660 (Note 1) Note 3 Chengdu Raypoint Precision Tools Co., Ltd. Other receivables Yes 11,565 (RMB 2,500 thousand ) 10,232 (RMB 2,500 thousand ) 8,186 (RMB 2,000 thousand ) 4.75 Short-term financing - Operating turnover - - - 4,215,660 (Note 1) 4,215,660 (Note 1) Note 3 Sharpoint Technology (Qinhuangdao) Co., Ltd. Other receivables Yes 138,775 (RMB 30,000 thousand ) 122,789 (RMB 30,000 thousand ) - 4.75 Short-term financing - Operating turnover - - - 4,215,660 (Note 1) 4,215,660 (Note 1) Note 3 Huangshi Topoint Technology Co., Ltd. Other receivables Yes 67,537 (RMB 14,600 thousand ) 59,757 (RMB 14,600 thousand ) 40,930 (RMB 10,000 thousand ) 4.75 Short-term financing - Operating turnover - - - 4,215,660 (Note 1) 4,215,660 (Note 1) Note 3 3 Sharpoint Electronics (Huaian) Co., Ltd. Winpoint Electronics (Huaian) Co., Ltd. Other receivables Yes 37,007 (RMB 8,000 thousand ) 32,744 (RMB 8,000 thousand ) - 4.75 Short-term financing - Acquisition of equipment - - - 4,215,660 (Note 1) 4,215,660 (Note 1) Note 3 Note 1: The maximum financing allowed for a foreign company in which the lender directly and indirectly held 100% voting shares of is limited to the net value of the lender as of June 30, 2025. Note 2: The maximum balance for the period and ending balances were approved by the board of directors. Note 3: Eliminated from the consolidated financial statements. Note 4: The total interest for the current period amounts to $2,315 thousand.
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- 54 - TABLE 2 TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES ENDORSEMENT/GUARANTEE PROVIDED FOR THE SIX MONTHS ENDED JUNE 30, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) No. Endorser/Guarantor Endorsee/Guarantee Limit on Endorsement/ Guarantee Given on Behalf of Each Party Maximum Amount Endorsed/ Guaranteed During the Period (Note 4) Outstanding Endorsement/ Guarantee at the End of the Period (Note 4) Actual Borrowing Amount Amount Endorsed/ Guaranteed by Collateral Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%) (Note 3) Aggregate Endorsement/ Guarantee Limit Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries (Note 5) Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent (Note 5) Endorsement/ Guarantee Given on Behalf of Companies in Mainland China (Note 5) Note Name Relationship 0 Topoint Technology Co., Ltd. Topoint Technology Co., Ltd. (B.V.I.) b. $ 2,529,396 (Note 2) $ 99,615 (US$ 3,000 thousand) $ 87,900 (US$ 3,000 thousand) $ 8,250 (US$ 282 thousand) $ - 2.09 $ 4,215,660 (Note 2) Y - - Note 6 Topoint Technology (Thailand) Co., Ltd. b. 2,529,396 (Note 2) 541,310 (THB 550,000 thousand) 498,795 (THB 550,000 thousand) 158,767 (THB 175,066 thousand) - 11.83 4,215,660 (Note 2) Y - - Note 7 Note 1: Relationships between the endorsement/guarantee provider and the guaranteed party: a. The Company in relation to business. b. A company in which endorsement/guarantee provider holds directly and indirectly over 50% of voting shares. c. A company holds directly and indirectly over 50% voting shares of endorsement/guarantee provider. d. A company directly and indirectly holds more than 90% voting shares of endorsement/guarantee provider. e. Based on contract projects among their peers in accordance with contract provisions which need mutual insurance company. f. Owing to the joint venture funded by the shareholders on its endorsement of its holding company. g. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other. Note 2: The maximum of total endorsement/guarantee provided is limited to the net value of the Company as of June 30, 2025. The maximum endorsement/guarantee provided for a single party is limited to 60% of the net value of the Company as of June 30, 2025. Note 3: The rate is calculated in accordance with the financial statements of the endorsement/guarantee provider. Note 4: The maximum balance for the period and ending balance were approved by the board of directors. Note 5: Indicate “Y” if the endorsement/guarantee is given by parent on behalf of subsidiaries, given by subsidiaries on behalf of parent or given on behalf of companies in mainland China. Note 6: Topoint Technology Co., Ltd. provides endorsement guarantee to Topoint Technology Co., Ltd. (B.V.I.) for short-term operating turnover purpose. Note 7: Topoint Technology Co., Ltd. provides endorsement guarantee to Topoint Technology (Thailand) Co., Ltd. for short-term operating turnover purpose.
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- 55 - TABLE 3 TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES MATERIAL MARKETABLE SECURITIES HELD JUNE 30, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Holding Company Name Type and Name of Marketable Securities Relationship with the Holding Company Financial Statement Account June 30, 2025 Note Number of Shares Carrying Amount Percentage of Ownership (%) Fair Value Topoint Technology Co., Ltd. Shares (the “Company”) Zhen Ding Technology Holding Limited - Financial assets at fair value through other comprehensive income (FVTOCI) 363,000 $ 36,320 0.4 $ 36,320 Note 1 Drilltek Corporation Shares Chipboard Technology Co., Ltd. - Financial assets at fair value through other comprehensive income (FVTOCI) 663,000 15,400 7.73 15,400 Note 1 Note 1: The fair value of listed shares of the financial assets at FVTOCI was calculated on the closing price of the shares as of June 30, 2025. If there is no market for unlisted shares, the estimated market value is assessed based on the fair value evaluation method. Note 2: For the information of the investment in subsidiaries, refer to Tables 5 and 6.
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- 56 - TABLE 4 TOPOINT 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 SIX MONTHS ENDED JUNE 30, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Company Name Related Party Relationship Transaction Details Abnormal Transaction Notes/Accounts Receivable or Payable Note Purchase/ Sale Amount % to Total (Note 1) Payment Terms Unit Price Payment Terms Ending Balance % to Total (Note 1) Raypoint Precision Tools Co., Ltd. Shanghai Topoint Precision Technology Co., Ltd. Subsidiary of Topoint Technology Co., Ltd. Sales $ 102,807 100 Based on mutual agreement Based on mutual agreement Based on mutual agreement $ 20,409 100 (Note 2) Shanghai Topoint Precision Technology Co., Ltd. Raypoint Precision Tools Co., Ltd. Subsidiary of Topoint Technology Co., Ltd. Purchase 102,807 30 Based on mutual agreement Based on mutual agreement Based on mutual agreement ( 20,409) 10 (Note 2) Topoint Technology Co., Ltd. Unimicron Technology Corporation Other related parties Sales 215,318 36 Based on mutual agreement Based on mutual agreement Based on mutual agreement 40,913 17 - Note 1: The rate is calculated in accordance with the financial statements of individual companies. Note 2: Eliminated from the consolidated financial statements.
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- 57 - TABLE 5 TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES (EXCLUDING INVESTEES IN MAINLAND CHINA) FOR THE SIX MONTHS ENDED JUNE 30, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Investor Company Investee Company Location Main Businesses and Products Investment Amount June 30, 2025 Net Income (Loss) of the Investee Share of Profit (Loss) (Notes 7 and 8) June 30, 2025 December 31, 2024 Number of Shares % Carrying Amount (Notes 7 and 8) Topoint Technology Co., Ltd. Topoint Technology Co., Ltd. (B.V.I.) British Virgin Islands International investment $ 1,870,763 $ 1,870,763 7,501 100 $ 2,404,715 $ 116,983 $ 115,826 (Note 1) Unipoint Technology Co., Ltd. Republic of China Processing print circuit board 305,299 305,299 30,696,297 61.76 440,460 10,144 6,282 (Note 2) Warpspeed Corporation (B.V.I.) British Virgin Islands International trade 1,569 1,569 50,000 100 2,930 ( 239) ( 239) Topoint Japan Co., Ltd. Japan Selling electronic components 7,667 7,667 600 100 ( 6,101) 532 532 Unipoint Technology Holdings Co., Ltd. (B.V.I.) British Virgin Islands International investment - - - 100 14 - - Raypoint Precision Tools Co., Ltd. Republic of Seychelles International trade 1,511 1,511 50,000 100 ( 871) ( 2,111) ( 2,111) Drilltek Corporation Republic of China Processing print circuit board 123,482 123,482 7,692,816 58.72 120,811 ( 10,365) ( 6,923) (Note 3) Cosmos Vacuum Technology Corporation Republic of China Vacuum coating and router bits 299,631 299,631 23,720,088 61.86 284,641 36,516 21,482 (Note 4) Topoint Technology (Thailand) Co., Ltd. Thailand Manufacturing, selling and processing micro-drills for printed circuit boards 501,490 501,490 54,956,400 99.92 456,995 ( 23,413) ( 23,394) Unipoint Technology Co., Ltd. Topmicron Investment Ltd. Independent State of Samoa International investment - - - 100 5 - - Cosmos Vacuum Technology Corporation H&N Technology Co., Ltd. St. Kitts Nevis International trade 6,939 (US$ 200 thousand) 6,939 (US$ 200 thousand) 200,000 100 15,306 71 71 Cosmos Integration Corp. St. Kitts Nevis International investment 241,571 (US$ 7,422 thousand) 241,571 (US$ 7,422 thousand) 7,422,000 100 269,678 23,764 23,878 (Note 5) Cosmos Integration Corp. Universal Technology Corp. St. Kitts Nevis International investment 215,793 (US$ 6,630 thousand) 215,793 (US$ 6,630 thousand) 6,630,000 100 269,214 23,764 23,764 Note 1: Investment gain is the investee’s net gain of $116,983 thousand minus unrealized profits of $1,157 thousand from upstream and side stream intercompany transactions. Note 2: Investment gain is the investee’s net gain of $6,265 thousand plus realized profits of $17 thousand from upstream and side stream intercompany transactions. Note 3: Investment loss is the investee’s net loss of $6,086 thousand minus amortization of premium of $837 thousand. Note 4: Investment gain is the investee’s net gain of $22,589 thousand minus unrealized profits of $670 thousand from upstream intercompany transactions and amortization of premium of $437 thousand. Note 5: Investment gain is the investee’s net gain of $23,764 thousand plus realized profits of $114 thousand from upstream and side stream intercompany transactions. Note 6: The investees’ financial statements used as basis for calculating investment gains (losses) recognized have all been reviewed. Note 7: Eliminated from the consolidated financial statements. Note 8: For information on investee companies in mainland China, refer to Table 6.
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- 58 - TABLE 6 TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE SIX MONTHS ENDED JUNE 30, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Investor Company 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 June 30, 2025 Net Income (Loss) of the Investee (Note 10) Ownership % of Direct or Indirect Investment Investment Gain (Loss) (Notes 10 and 17) Carrying Amount as of June 30, 2025 (Notes 10 and 17) Accumulated Repatriation of Investment Income as of June 30, 2025 Note Outflow Inflow Topoint Technology Co., Ltd. (the “Company”) Shanghai Topoint Precision Technology Co., Ltd. Manufacturing and selling precision equipment and measurement facilities $ 1,443,066 (US$ 44,200 thousand ) (Note 1) Indirect: Through an investment company registered in a third region (Note 2) $ 914,337 (US$ 27,300 thousand ) $ - $ - $ 914,337 (US$ 27,300 thousand ) $ 68,155 100 $ 68,155 $ 1,745,881 $ 1,708,923 (US$ 54,451 thousand) Sharpoint Technology (Suzhou) Co., Ltd. Testing of drill bits and mounting plate bolt holes 177,872 (US$ 6,000 thousand ) Indirect: Through an investment company registered in a third region (Note 2) 177,872 (US$ 6,000 thousand ) - - 177,872 (US$ 6,000 thousand ) 776 100 776 169,358 60,856 (US$ 1,908 thousand) Sharpoint Electronics (Huaian) Co., Ltd. (Note 12) Testing of drill bits and mounting plate bolt holes 260,412 (US$ 8,400 thousand ) Indirect: Through an investment company registered in a third region (Note 2) 259,808 (US$ 8,400 thousand ) - - 259,808 (US$ 8,400 thousand ) 4,025 - (Note 6) 4,025 231,487 102,173 (US$ 3,181 thousand) Shanghai IntelliBrightPoint Electronic Co., Ltd. Sales services of electronic products and components 672,803 (RMB 153,858 thousand ) Indirect: Through an investment company registered in a third region (Note 2) 98,572 (US$ 3,029 thousand ) - - 98,572 (US$ 3,029 thousand ) 27,697 100 27,697 671,239 - Shanghai Topoint Precision Technology Co., Ltd. Kunshan Restek Technology Co., Ltd. Manufacturing, processing and selling printed circuit board 30,480 (US$ 1,000 thousand ) Other (Note 3) - (Note 3) - - - (Note 3) - 75 - 5 - Chengdu Raypoint Precision Tools Co., Ltd. (Note 13) Cutting equipment 453,943 (RMB 97,000 thousand ) Other (Note 13) 16,934 (US$ 555 thousand ) - - 16,934 (US$ 555 thousand ) ( 8,569 ) 100 ( 8,569 ) 175,235 - Shanghai Ringpoint Nano Material Co., Ltd. Processing metal products 58,660 (RMB 12,000 thousand ) Other (Note 3) - (Note 3) - - - (Note 3) 23,630 75 17,722 75,841 - Shanghai IntelliBrightPoint Electronic Co., Ltd. Kunshan Topoint Technology Co., Ltd. (Note 14) Drilling bits 97,228 (RMB 20,800 thousand ) Other (Note 5) - (Note 5) - - - (Note 5) 24,213 100 24,213 107,352 - Sharpoint Technology (Shenzhen) Co., Ltd. (Note 14) Testing of drill bits and mounting plate bolt holes 147,583 (US$ 5,000 thousand ) Other (Note 4) 147,583 (US$ 5,000 thousand ) (Note 4) - - 147,583 (US$ 5,000 thousand ) (Note 4) 1,033 100 1,033 68,028 - Sharpoint Technology (Qinhuangdao) Co., Ltd. (Note 14) Testing of drill bits and mounting plate bolt holes 250,222 (US$ 7,800 thousand ) Other (Note 4) 250,222 (US$ 7,800 thousand ) (Note 4) - - 250,222 (US$ 7,800 thousand ) (Note 4) 2,509 100 2,509 256,169 149,911 (US$ 4,749 thousand) Sharpoint Electronics (Huaian) Co., Ltd. (Note 15) Testing of drill bits and mounting plate bolt holes 260,412 (RMB 8,400 thousand ) Other (Note 6) - (Note 6) - - - (Note 6) - 100 (Note 6) - - - Sharpoint Electronics (Huaian) Co., Ltd. Winpoint Electronics (Huaian) Co., Ltd. Testing of drill bits and mounting plate bolt holes 57,598 (RMB 12,650 thousand ) Other (Note 7) - (Note 7) - - - (Note 7) ( 1,962 ) 100 ( 1,962 ) 54,235 - Sharpoint Technology (Qinhuangdao) Co., Ltd. Huangshi Topoint Technology Co., Ltd. Testing of drill bits and mounting plate bolt holes 151,732 (RMB 35,000 thousand ) Other (Note 8) - (Note 8) - - - (Note 8) ( 7,514 ) 100 ( 7,514 ) 130,825 - Cosmos Vacuum Technology Corporation Cosmos Electronic Technology (Kunshan) Co., Ltd. Vacuum coating and router bits 231,752 (US$ 7,130 thousand ) Indirect: Through an investment company registered in a third region (Note 9) 217,775 (US$ 6,700 thousand ) - - 217,775 (US$ 6,700 thousand ) 23,764 100 23,764 254,092 - (Continued)
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- 59 - Investor Company Name Accumulated Outward Remittance for Investment in Mainland China as of June 30, 2025 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 16) Topoint Technology Co., Ltd. (the “Company”) $ 1,865,328 (US$ 58,084 thousand ) $ 2,370,125 (US$ 74,148 thousand ) (Note 11) $ 2,529,396 Cosmos Vacuum Technology Corporation 217,775 (US$ 6,700 thousand ) 241,271 (US$ 7,422 thousand ) 279,837 Note 1: The amount includes the capitalization of retained earnings of US$16,700 thousand of Shanghai Topoint Precision Technology Co., Ltd. and US$200 thousand invested by Topoint Technology Co., Ltd. (B.V.I.). Note 2: The investment company registered in a third region is Topoint Technology Co., Ltd. (B.V.I.). Note 3: Invested and established by the owned fund of Shanghai Topoint Precision Technology Co., Ltd. Note 4: Invested and established by Topoint Technology Co., Ltd. (B.V.I.), a company registered in a third region, and in December 2024, full ownership was transferred to Shanghai IntelliBrightPoint Electronic Co., Ltd. Note 5: Invested and established by the owned fund of Shanghai Topoint Precision Technology Co., Ltd. and in December 2024, full ownership was transferred to Shanghai IntelliBrightPoint Electronic Co., Ltd. Note 6: Invested and established by Topoint Technology Co., Ltd. (B.V.I.), a company registered in a third region, and in June 2025, full ownership was transferred to Shanghai IntelliBrightPoint Electronic Co., Ltd. Note 7: Invested and established by the owned fund of Sharpoint Electronics (Huaian) Co., Ltd. Note 8: Invested and established by the owned assets of Sharpoint Technology (Qinhuangdao) Co., Ltd. Note 9: The investment company registered in a third region is Universal Technology Corp. Note 10: Calculated based on the investees’ financial statements reviewed by the independent auditors of the Company for the same period. Note 11: Investment amounts authorized by Investment Commission under the Ministry of Economic Affairs (MOEA) included the capitalizat ion of retained earnings of US$16,700 thousand of Shanghai Topoint Precision Technology Co., Ltd., RMB100 thousand investe d by Topoint Technology Co., Ltd. (B.V.I.), US$200 thousand invested by Topoint Technology Co., Ltd. (B.V.I.) and US$771 thousand for purchasing Unipoint Technology Holdings Co., Ltd. (B.V.I.) from Unipoint Technology Co., Ltd. Note 12: The investment from Topoint Technology Co., Ltd. (B.V.I.) and Shanghai Topoint Precision Technology Co., Ltd. was US$8,400 thousand (84%) and US$1,600 thousand (16%), respectively. Shanghai Topoint Precision Technology Co., Ltd. returned a 16% equity interest to Topoint Technology Co., Ltd. (B.V.I.) in December 2024; therefore, Topoint Technology Co., Ltd. (B.V.I.) held 100% ownership of Sharpoint Electronics (Huaian) Co., Ltd. Note 13: The investment from Topoint Technology Co., Ltd. (B.V.I.) and Shanghai Topoint Precision Technology Co., Ltd. was RMB6,000 thousand (10%) and RMB54,000 thousand (90%), respectively. Topoint Technology Co., Ltd. (B.V.I.) disposed of 10% of the equity to Shanghai Topoint Precision Technology Co., Ltd. in March 2021; therefore, Shanghai Topoint Precision Technology Co., Ltd. held 100% ownership of Chengdu Raypoint Precision Tools Co., Ltd. In March 2021, the borrowing was converted into capital of RMB37,000 thousand, and the registration of changes was completed in March 2021. Note 14: Topoint Technology Co., Ltd. (B.V.I.) disposed of 100% of the equity to Shanghai IntelliBrightPoint Electronic Co., Ltd. in D ecember 2024; therefore, Shanghai IntelliBrightPoint Electronic Co., Ltd. held 100% ownership of Kunshan Topoint Technolog y Co., Ltd., Sharpoint Technology (Shenzhen) Co., Ltd. and Sharpoint Technology (Qinhuangdao) Co., Ltd. Note 15: Topoint Technology Co., Ltd. (B.V.I.) disposed of 100% of the equity to Shanghai IntelliBrightPoint Electronic Co., Ltd. in June 2025; therefore, Shanghai IntelliBrightPoint Electronic Co., Ltd. held 100% ownership of Sharpoint Electronics (Huaian) Co., Ltd. Note 16: According to rules of the Investment Commission under the MOEA, since the Company’s issued capital is between $80,000 thousand and $5,000,000 thousand, the upper limit on the Company’s investment is at the higher of 60% of the net worth or $80,000 thousand. Note 17: Eliminated from the consolidated financial statements. (Concluded)
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- 60 - TABLE 7 TOPOINT 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 SIX MONTHS ENDED JUNE 30, 2025 (In Thousands of New Taiwan Dollars) No. Investor Company Investee Company Transaction Type Amount % to Total Sales or Purchase Transaction Details Notes/Accounts Receivable (Payable) Unrealized Gain/(Loss) Note Payment Terms Comparison with Normal Transactions Ending Balance % to Total 0 Topoint Technology Co., Ltd. Shanghai Topoint Precision Technology Co., Ltd. Sales $ 8,074 1 Based on mutual agreement Based on mutual agreement $ 3,203 1 $ 16,806 Note 1 Purchase 13,362 6 Based on mutual agreement Based on mutual agreement ( 6,266) 7 - Note 1 Sharpoint Technology (Qinhuangdao) Co., Ltd. Sales 2,769 1 Based on mutual agreement Based on mutual agreement 117 1 8 Note 1 1 Raypoint Precision Tools Co., Ltd. Shanghai Topoint Precision Technology Co., Ltd. Sales 102,807 17 Based on mutual agreement Based on mutual agreement 20,409 5 - Note 1 Note 1: Eliminated from the consolidated financial statements.
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- 61 - TABLE 8 TOPOINT TECHNOLOGY CO., LTD. AND SUBSIDIARIES INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE SIX MONTHS ENDED JUNE 30, 2025 (In Thousands of New Taiwan Dollars) No. (Note 1) Company Counterparty Flow of Transactions (Note 2) Transaction Details Financial Statement Account Amount (Note 5) Transaction Terms (Note 3) % to Consolidated Sales or Total Assets (Note 4) 0 Topoint Technology Co., Ltd. Raypoint Precision Tools Co., Ltd. a Accounts receivable - related parties $ 10,371 - - Sales 85,956 - 1 Shanghai Topoint Precision Technology Co., Ltd. a Accounts receivable - related parties 3,203 - - Inventories 379 - - Accounts payable - related parties 6,266 - - Deferred credits 116,229 - 1 Sales 8,074 - - Realized profit 17,243 - - Unrealized profit 16,806 - - Cost of goods sold 3,445 - - Machinery and equipment 99,423 - 1 Gain on disposal of property, plant and equipment 7,178 - - Topoint Technology (Thailand) Co., Ltd. a Accounts receivable - related parties 231 - - Sales 234 - - Topoint Japan Co., Ltd. a Accounts receivable - related parties 1,471 - - Deferred credits 1,125 - - Sales 2,205 - - Unrealized profit 105 - - Cost of goods sold 1,125 - - Rental revenue 644 - - Other income 644 - - Unipoint Technology Co., Ltd. a Accounts receivable - related parties 2,181 - - Refundable deposits 300 - - Guarantee deposits received 3 - - Deferred credits 59 - - Sales 76 - - Unrealized profit 144 - - Cost of goods sold 541 - - Rental revenue 18 - - Other income 3,794 - - Sharpoint Technology (Shenzhen) Co., Ltd. a Accounts receivable - related parties 2,613 - - Cost of goods sold 58 - - Sales 3,852 - - Deferred credits 58 - - Unrealized profit 7 - - Sharpoint Technology (Qinhuangdao) Co., Ltd. a Accounts receivable - related parties 117 - - Deferred credits 922 - - Sales 2,769 - - Realized profit 224 - - Unrealized profit 8 - - Cost of goods sold 8 - - Other income 191 - - Sharpoint Technology (Suzhou) Co., Ltd. a Deferred credits 474 - - (Continued)
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- 62 - No. (Note 1) Company Counterparty Flow of Transactions (Note 2) Transaction Details Financial Statement Account Amount (Note 5) Transaction Terms (Note 3) % to Consolidated Sales or Total Assets (Note 4) Cost of goods sold $ 146 - - Other income 95 - - Kunshan Topoint Technology Co., Ltd. a Deferred credits 1,783 - - Other income 300 - - Drilltek Corporation a Accounts receivable - related parties 7,605 - - Accounts payable - related parties 144 - - Deferred credits 492 - - Sales 9,383 - - Other income 480 - - Cost of goods sold 442 - - Unrealized profit 492 - - Shanghai Ringpoint Nano Material Co., Ltd. a Cost of goods sold 273 - - Cosmos Vacuum Technology Corporation a Other income 480 - - Cost of goods sold 31,272 - 1 Accounts receivable - related parties 1,899 - - Accounts payable - related parties 13,868 - - Sales 3,236 - - 1 Topoint Technology Co., Ltd. (B.V.I.) Topoint Japan Co., Ltd. c Accounts receivable - related parties 14,353 - - Interest income 120 - - 2 Raypoint Precision Tools Co., Ltd. Shanghai Topoint Precision Technology Co., Ltd. c Accounts receivable - related parties 20,409 - - Sales 102,807 - 5 3 Shanghai Topoint Precision Technology Co., Ltd. Topoint Technology Co., Ltd. b Accounts receivable - related parties 6,266 - - Accounts payable - related parties 3,203 - Inventories 16,806 - Sales 13,362 - 1 Cost of goods sold 32,116 - 2 Machinery and equipment 102,765 - 1 Accumulated depreciation 202,188 - 3 Sharpoint Technology (Qinhuangdao) Co., Ltd. c Accounts receivable - related parties 10,184 - - Sales 9,682 - 1 Rental revenue 76 - - Cost of goods sold 28 - - Sharpoint Technology (Shenzhen) Co., Ltd. c Accounts receivable - related parties 1,132 - - Sales 1,348 - - Huangshi Topoint Technology Co., Ltd. c Accounts receivable - related parties 47,224 - 1 Sales 7,017 - - Interest income 999 - - Kunshan Topoint Technology Co., Ltd. c Accounts receivable - related parties 46,337 - 1 Accounts payable - related parties 79 - - Other income 13,381 - 1 Interest income 999 - - Rental revenue 196 - - Sales 6,298 - - Sharpoint Electronics (Huaian) Co., Ltd. c Accounts receivable - related parties 69,155 - 1 Sales 90,914 - 5 Winpoint Electronics (Huaian) Co., Ltd. c Sales 7,657 - - Accounts receivable - related parties 6,030 - - Shanghai Ringpoint Nano Material Co., Ltd. c Accounts payable - related parties 25,991 - - Accounts receivable - related parties 178 - - Rental revenue 354 - - Sales 1,462 - - (Continued)
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- 63 - No. (Note 1) Company Counterparty Flow of Transactions (Note 2) Transaction Details Financial Statement Account Amount (Note 5) Transaction Terms (Note 3) % to Consolidated Sales or Total Assets (Note 4) Cost of goods sold $ 48,884 - 3 Cosmos Electronic Technology (Kunshan) Co., Ltd. c Accounts payable - related parties 36,708 - 1 Accounts receivable - related parties 7,733 - - Cost of goods sold 39,926 - 2 Sales 7,415 - - Topoint Technology (Thailand) Co., Ltd. Accounts receivable - related parties 13,977 - - Sales 15,433 - 1 4 Sharpoint Technology (Qinhuangdao) Co., Ltd. Winpoint Electronics (Huaian) Co., Ltd. c Accounts receivable - related parties 141 - - Rental revenue 202 - - 5 Drilltek Corporation Winpoint Electronics (Huaian) Co., Ltd. c Sales 43,902 - 2 6 Cosmos Vacuum Technology Corporation Cosmos Electronic Technology (Kunshan) Co., Ltd. c Accounts receivable - related parties 1,701 - - Deferred credits 250 - - Sales 1,869 - - Cost of goods sold 3,242 - - Unrealized profit 61 - - Gain on disposal of property, plant and equipment 11 - - Accounts payable - related parties 1,271 - - 7 Cosmos Electronic Technology (Kunshan) Co., Ltd. H&N Technology Co., Ltd. c Cost of goods sold 456 - - Note 1: Companies are numbered as follows: a. The number of Topoint Technology Co., Ltd. (“Topoint”) is “0.” b. Subsidiaries are numbered from “1” onward. Note 2: The flow of transactions is as follows: a. From Topoint to the subsidiary. b. From the subsidiary to Topoint. c. Between subsidiaries. Note 3: The prices and terms for related-party transactions were based on mutual agreements. Note 4: If the transaction amounts are related to the balance sheet accounts, the percentages are those of the period -end balances to the consolidated total assets. If the transaction amounts are related to the income statement accounts, the p ercentages are the year-to-date amounts to the consolidated total sales. Note 5: Eliminated from the consolidated financial statements. (Concluded)