2025 - Q4 Earnings Release

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT THEREON

For the convenience of readers and for information purpose only, the independent auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language independent auditors' report and financial statements shall prevail.

~1~

In connection with the Consolidated Financial Statements of Affiliated Enterprises of ADVANTECH CO., LTD. (the "Consolidated FS of the Affiliates"), we represent to you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2025 in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are the same as those required to be included in the Consolidated Financial Statements of ADVANTECH CO., LTD. and its subsidiaries (the "Consolidated FS of the Group") in accordance with International Financial Reporting Standard 10, as well as that, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, ADVANTECH CO., LTD. does not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours, ADVANTECH CO., LTD.

By

K.C. Liu , Chairman February 26, 2026

INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Shareholders of ADVANTECH CO., LTD.

We have audited the accompanying consolidated balance sheets of ADVANTECH CO., LTD. and its subsidiaries (the "Group") as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant in the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group's 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matter for the Group's 2025 consolidated financial statements is stated as follows:

Description

Refer to Note 4(32) for the related accounting policies on sales revenue and Note 6(20) for the details of revenues.

Due to global economic fluctuations in 2025, there was a significant fluctuation in the Group's revenue from the Intelligent Systems, Intelligent Service, and Advantech Service Plus and Others Business Group. Therefore, we considered the recognition of sales revenue from the Intelligent Systems, Intelligent Service, and Advantech Service Plus and Others Business Group as the key audit matter.

How our audit addressed the matter

We have performed primary audit procedures for the above key audit matter as follows:

1. Obtained an understanding of and assessed the internal controls in relation to sales revenue, and validated its operating effectiveness.

2. Obtained the details of sales revenue from the Intelligent Systems, Intelligent Service, and Advantech Service Plus and Others Business Group for the entire year, and selected samples of sales revenue transactions and related documents to confirm the appropriateness of revenue recognition.

3. Inspected significant abnormal sales returns and allowances after the balance sheet date.

4. Performed accounts receivable confirmation procedure to significant customers.

Other matter

We have audited and expressed an unmodified opinion on the parent company only financial statements of ADVANTECH CO., LTD. as at and for the years ended December 31, 2025 and 2024.

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the Group's financial reporting process.

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of

   not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Liang, Hua-Ling Tsai, pei-Hua

For and on behalf of PricewaterhouseCoopers, Taiwan February 26, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Assets Notes AMOUNT % AMOUNT %

(Continued)

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Liabilities and Equity Notes AMOUNT % AMOUNT %

The accompanying notes are an integral part of these consolidated financial statements.

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

For the years ended December 31,

2025 2024

(Continued)

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

For the years ended December 31,

2025 2024

Items Notes AMOUNT % AMOUNT %

The accompanying notes are an integral part of these consolidated financial statements.

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Capital Retained Earnings Other Equity Interest

Unrealised gains

Advance receipts for

Unappropriated

Financial statements

translation differences of foreign

(losses) from financial

assets measured at fair value through other

Unearned employee benefits

Non-controlling

Notes Common shares share capital Capital surplus Legal reserve retained earnings operations comprehensive income compensation Total interest Total equity

For the year ended December 31, 2024

Balance at January 1, 2024 $ 8,577,795 $ 6,699 $ 9,753,806 $ 9,630,127 $ 19,599,420 ($ 827,011 ) $ 1,720,685 ($ 369 ) $ 48,461,152 $ 348,426 $ 48,809,578

Consolidated profit (loss) for the year - - - - 9,005,037 - - - 9,005,037 ( 116,819 ) 8,888,218 Other comprehensive income (loss) for the year 6(18)(19) - - - - 9,583 681,842 22,384 - 713,809 ( 16,095 ) 697,714 Total comprehensive income (loss) for the year - - - - 9,014,620 681,842 22,384 - 9,718,846 ( 132,914 ) 9,585,932 Appropriations of 2023 earnings 6(17)

Legal reserve - - - 1,092,920 ( 1,092,920 ) - - - - - -

Cash dividends - - - - ( 8,155,269 ) - - - ( 8,155,269 ) - ( 8,155,269 )

Cash dividends distributed by subsidiaries 6(19) - - - - - - - - - ( 3,110 ) ( 3,110 )

Recognition of employee stock options 6(14)(15) 56,527 ( 5,127 ) 721,640 - - - - - 773,040 - 773,040

Compensation costs recognised for employee stock options

Changes in associates and joint ventures accounted for under equity method

Difference between consideration and carrying amount of subsidiaries acquired or disposed

6(14)

6(18)

6(19)(27)

- - 510,318 - - - - - 510,318 - 510,318

- - 157,967 - ( 24,586 ) - - 369 133,750 - 133,750

- - - - ( 25,730 ) - - - ( 25,730 ) 329,096 303,366

Changes in non-controlling interest 6(19) - - - - - - - - - ( 291,689 ) ( 291,689 )

Changes in ownership interests in subsidiaries 6(19)(27) - - 12,272 - ( 27 ) - - - 12,245 118,701 130,946

Disposal of investments in equity instruments measured at fair value through other comprehensive income

Disposal of investments in equity instruments measured at fair value through other comprehensive income owned by associates

6(3)(18)

6(18)

- - - - 86,308 - ( 86,308 ) - - - -

- - - - 797 - ( 797 ) - - - -

Balance at December 31, 2024 $ 8,634,322 $ 1,572 $ 11,156,003 $ 10,723,047 $ 19,402,613 ($ 145,169 ) $ 1,655,964 $ - $ 51,428,352 $ 368,510 $ 51,796,862

For the year ended December 31, 2025

Balance at January 1, 2025 $ 8,634,322 $ 1,572 $ 11,156,003 $ 10,723,047 $ 19,402,613 ($ 145,169 ) $ 1,655,964 $ - $ 51,428,352 $ 368,510 $ 51,796,862

Consolidated profit (loss) for the year - - - - 10,592,508 - - - 10,592,508 ( 91,992 ) 10,500,516 Other comprehensive income (loss) for the year 6(18)(19) - - - - ( 135 ) ( 302,617 ) ( 85,481 ) - ( 388,233 ) ( 17,090 ) ( 405,323 ) Total comprehensive income (loss) for the year - - - - 10,592,373 ( 302,617 ) ( 85,481 ) - 10,204,275 ( 109,082 ) 10,095,193 Appropriations of 2024 earnings 6(17)

Legal reserve - - - 905,138 ( 905,138 ) - - - - - -

Cash dividends - - - - ( 7,254,151 ) - - - ( 7,254,151 ) - ( 7,254,151 )

Cash dividends distributed by subsidiaries 6(19) - - - - - - - - - ( 4,440 ) ( 4,440 )

Execution of employee stock options 6(14)(15) 17,576 4,833 353,867 - - - - - 376,276 - 376,276

Compensation costs recognised for employee stock options

Changes in associates and joint ventures accounted for under equity method

Difference between consideration and carrying amount of subsidiaries acquired or disposed

6(14)

6(18)

6(19)(27)

- - 419,599 - - - - - 419,599 - 419,599

- - 151,097 - ( 11,765 ) - - ( 17,197 ) 122,135 - 122,135

- - ( 31,556 ) - ( 325,593 ) - - - ( 357,149 ) ( 210,537 ) ( 567,686 )

Changes in non-controlling interest 6(19)(27) - - - - - - - - - 50,283 50,283

Changes in ownership interests in subsidiaries 6(19) - - 8,144 - - - - - 8,144 7,050 15,194

Disposal of investments in equity instruments measured at fair value through other comprehensive income

Disposal of investments in equity instruments measured at fair value through other comprehensive income owned by associates

6(3)(18)

6(18)

- - - - 7,913 - ( 7,913 ) - - - -

- - - - 28,523 - ( 28,523 ) - - - -

Balance at December 31, 2025 $ 8,651,898 $ 6,405 $ 12,057,154 $ 11,628,185 $ 21,534,775 ($ 447,786 ) $ 1,534,047 ($ 17,197 ) $ 54,947,481 $ 101,784 $ 55,049,265

The accompanying notes are an integral part of these consolidated financial statements.

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

For the years ended December 31,

Changes in assets and liabilities relating to operating activities

Changes in assets relating to operating activities

(Continued)

ADVANTECH CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

For the years ended December 31,

Notes 2025 2024

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of financial assets at amortised cost - current ( $ 731,598 ) ( $ 1,406,756 )

Proceeds from disposal of financial assets at amortised cost -

current 908,881 2,131,898

Acquisition of financial assets at amortised cost - non-current ( 1,588,740 ) -

Acquisition of financial assets at fair value through profit or

loss ( 533,846 ) ( 724,681 )

Proceeds from disposal of financial assets at fair value through

profit or loss 32,458 2,532

Cash returned from capital reduction of financial assets at fair

value through profit or loss 84,880 -

Acquisition of financial assets at fair value through other

comprehensive income ( 114,867 ) -

Proceeds from disposal of financial assets at fair value through

other comprehensive income 7,913 203,781

Cash returned from capital reduction of financial assets at fair

value through other comprehensive income 26,553 25,829

Acquisition of investments accounted for under equity method 6(7) ( 127,110 ) ( 40,000 )

Proceeds from disposal of investment accounted for under

equity method 488,943 161,992

Net cash flow from acquisition of subsidiaries 6(28) - ( 83,192 ) Dividends received from associates 283,302 308,687 Disposal of non-current assets held for sale - 591,973

Acquisition of property, plant and equipment ( 2,823,514 ) ( 1,475,070 ) Proceeds from disposal of property, plant and equipment 5,891 91,201 Increase in refundable deposits ( 7,649 ) ( 5,260 )

Acquisition of intangible assets 6(10) ( 176,676 ) ( 132,291 )

Proceeds from disposal of intangible assets 6(10) - 29

Increase in prepayments for business facilities ( 13,052 ) ( 30,299 ) Decrease in other non-current assets 57,710 4,554 Changes due to loss of control of subsidiaries - ( 94,770 )

Net cash flows used in investing activities ( 4,220,521 ) ( 469,843 )

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term borrowings 6(29) 62,200 37,000

Repayments of long-term borrowings 6(29) ( 123,018 ) ( 146,002 )

Decrease in short-term borrowings 6(29) - ( 1,611 ) Increase (decrease) in guarantee deposits received 7,403 ( 453 ) Payments of lease liabilities 6(9)(29) ( 342,178 ) ( 306,495 )

Payments of cash dividends 6(17) ( 7,254,151 ) ( 8,155,269 ) Employee stock options exercised 376,276 773,040 Dividends paid to non-controlling interests 6(19) ( 4,440 ) ( 3,110 ) Change in non-controlling interests 6(27) ( 567,686 ) 10,713

Net cash flows used in financing activities ( 7,845,594 ) ( 7,792,187 )

Effect of exchange rate changes ( 136,345 ) 356,644

Net (decrease) increase in cash and cash equivalents ( 2,299,766 ) 2,605,465 Cash and cash equivalents at beginning of year 13,617,045 11,011,580 Cash and cash equivalents at end of year $ 11,317,279 $ 13,617,045

The accompanying notes are an integral part of these consolidated financial statements.

ADVANTECH CO., LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

1. HISTORY AND ORGANIZATION

   1. Advantech Co., Ltd. (the "Company") was incorporated in September 1981, and its operational headquarters is located in the Neihu Science Park of Taipei, Taiwan. The Company is primarily engaged in the research and development, design, manufacturing and marketing of embedded computing boards, industrial automation products, applied computers and industrial computers.

   2. The Company's shares have been listed and traded on the Taiwan Stock Exchange since December 1999.

   3. The Company is a global leader in the IoT intelligent system and embedded platform industry, and takes the 'smart driver of sustainable earth' as its corporate brand vision. In accordance with the customers' needs, the Company is divided into three major business groups: the Industrial IoT Group, the Embedded IoT Group and the Service IoT Group. To meet the broad trends of the Internet of Things, Big Data, and artificial intelligence, the Company proposes IoT software and hardware solutions plan centered on the industrial IoT cloud platform to assist partners and customers connect the industrial chain.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

   These consolidated financial statements were authorised for issuance by the Board of Directors on February 26, 2026.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

   1. Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS®") Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission ("FSC")

      New standards, interpretations and amendments endorsed by the FSC and became effective from 2025 are as follows:

      Effective date by International Accounting

      New Standards, Interpretations and Amendments Standards Board Amendments to IAS 21, 'Lack of exchangeability' January 1, 2025

      The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

   2. Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

      New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

      Effective date by International Accounting

      New Standards, Interpretations and Amendments Standards Board

      Specific provisions of Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification and measurement of financial instruments' Amendments to IFRS 9 and IFRS 7, 'Contracts referencing nature-dependent electricity'

      January 1, 2026

      January 1, 2026

      IFRS 17, 'Insurance contracts' January 1, 2023

      Amendments to IFRS 17, 'Insurance contracts' January 1, 2023

      Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 -

      comparative information'

      January 1, 2023

      Annual Improvements to IFRS Accounting Standards-Volume 11 January 1, 2026

      Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment. The quantitative impact will be disclosed when the assessment is complete.

      Specific provisions of Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification and measurement of financial instruments'

      The amendments require an entity to:

      1. Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion, covering contractual terms that can change cash flows based on contingent events (for example, interest rates linked to ESG targets), nonrecourse features and contractually-linked instruments.

      2. Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets), including a qualitative description of the nature of the contingent event, quantitative information about the possible changes to contractual cash flows that could result from those contractual terms and the gross carrying amount of financial assets and amortised cost of financial liabilities subject to these contractual terms.

      3. Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception relating to the derecognition of a financial liability (or part of a financial liability) settled through an electronic cash transfer system. Applying the exception, an entity is permitted to derecognise a financial liability at an earlier date if, and only if, the entity has initiated a payment instruction and specific conditions are met.

         The conditions for the exception are that the entity making the payment does not have:

         1. the practical ability to withdraw, stop or cancel the payment instruction;

         2. the practical ability to access the cash used for settlement; and

         3. significant settlement risk.

      4. Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

   3. IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

      New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

      Effective date by

      International Accounting

      New Standards, Interpretations and Amendments Standards Board

      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 International Accounting Standards Board

      IFRS 18, 'Presentation and disclosure in financial statements' January 1, 2027 (Note)

      IFRS 19, 'Subsidiaries without public accountability: disclosures' January 1, 2027

      Amendments to IAS 21, 'Translation to a Hyperinflationary Presentation Currency'

      January 1, 2027

      Note: The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

      Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment. The quantitative impact will be disclosed when the assessment is complete.

      IFRS 18, 'Presentation and disclosure in financial statements'

      IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

   The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

   1. Compliance statement

      The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC®Interpretations, and SIC®Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

   2. Basis of preparation

      1. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

         1. Financial assets and liabilities (including derivative instruments) at fair value through profit or loss.

         2. Financial assets at fair value through other comprehensive income.

         3. Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

      2. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC®Interpretations, and SIC®Interpretations that came into effect as endorsed by the FSC ("IFRSs") requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

   3. Basis of consolidation

      1. Basis for preparation of consolidated financial statements:

         1. All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

         2. Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

         3. Profit or loss and each component of other comprehensive income are attributed to the shareholders of the parent and to the non-controlling interests. Total comprehensive income is attributed to the shareholders of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

         4. Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

         5. When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

      2. Subsidiaries included in the consolidated financial statements:

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         The Company	Advantech Automation Corporation B.V. (AAC NL)	Overseas investment in manufacturing and services industries	100.00	100.00	Note 9
         	(Formerly Advantech Automation Corporation Limited (AAC MT))
         	Advantech Technology Co., Ltd. (ATC)	Overseas investment in manufacturing and services industries	100.00	100.00
         	Advanixs Corporation (Advanixs)	Manufacturing, marketing and trade of industrial use computers	100.00	100.00

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         The Company	Advantech Corporate Investment (ACI)	Investment in marketable securities	100.00	100.00
         	Advantech Europe Holding B.V. (AEUH)	Overseas investment in manufacturing and services industries	100.00	100.00
         	Advantech Co., Singapore Pte, Ltd. (ASG)	Marketing and trade of industrial use computers	100.00	100.00
         	Advantech Australia Pty Ltd. (AAU)	Marketing and trade of industrial use computers	100.00	100.00
         	Advantech Japan Co., Ltd. (AJP)	Marketing and trade of industrial use computers	100.00	100.00
         	Advantech Co., Malaysia Sdn. Bhd (AMY)	Marketing and trade of industrial use computers	100.00	100.00
         	Advantech KR Co., Ltd. (AKR)	Marketing and trade of industrial use computers	100.00	100.00
         	Advantech Brasil Ltd. (ABR)	Marketing and trade of industrial use computers	100.00	100.00
         	Advantech Industrial Computing India Private Limited (AIN)	Marketing and trade of industrial use computers	99.99	99.99
         	LNC Technology Co., Ltd. (LNC)	Manufacturing and trade of controllers	40.55	40.55	Notes 2
         	Advantech Electronics, S.A.P.I DE C. V. (AMX)	Marketing and trade of industrial use computers	96.90	97.50	Notes 4
         	Advantech Intelligent Services Co., Ltd. (AiCS)	Design, research and development and sales of intelligent services	100.00	100.00
         	Advantech Corporation (Thailand) Co., Ltd. (ATH)	Manufacturing of computer products	49.51	51.00	Notes 15

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         The Company	PT. Advantech International (AID)	Marketing and trade of industrial use computers	1.00	1.00
         	Advantech Vietnam Technology Company Limited (AVN)	Marketing and trade of industrial use computers	60.00	60.00
         	Advantech Turkey Teknoloji A.S. (ATR)	Wholesale of computers and peripheral devices	100.00	100.00	Notes 3
         	ADVANTECH IOT ISRAEL LTD. (AIL)	Trading of industrial network communications systems	100.00	100.00
         	Huan Yan Water Solution Co., Ltd.	Service plan for combination of related technologies of water treatment and Applications of Internet of Things	90.00	90.00
         	Advantech Technology FZCO (ADB) [Formerly Advantech Technology DMCC (ADB)]	Trading of industrial network communication systems	100.00	100.00	Notes 14
         	Advantech Automation Corp. (HK) Limited [ACC (HK)]	Oversea investment in manufacturing and services industries	100.00	100.00
         	Advantech Corporate Investment Ltd. (ACI KY)	General investment	100.00	100.00
         	Cermate Technologies Inc. (Cermate Taiwan)	Manufacturing of electronic components, computers, and peripheral devices	45.00	45.00
         	AUERS TECHNOLOGIES S.A. (Aures)	Retail electronic and computer products marketing and sales	100.00	36.32	Notes 12

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         Advantech Corporate Investment (ACI)	Cermate Technologies Inc. (Cermate Taiwan)	Manufacturing of electronic components, computers, and peripheral devices	55.00	55.00
         	Yan Xu Green Electricity Co., Ltd. (Yan Xu Green Electricity)	Green energy power plant development	82.50	82.50
         	Expetech Co., Ltd. (Expetech)	Computer system integration service	58.87	59.23	Notes 11
         Advantech Technology Co., Ltd. (ATC)	HK Advantech Technology Co., Ltd. [ATC (HK)]	Overseas investment in manufacturing and services industries	100.00	100.00
         HK Advantech Technology Co., Ltd. [ATC (HK)]	Advantech Technology (China) Company Ltd. (AKMC)	Manufacturing and trade of interface cards and PC cases, plastic cases and accessories	100.00	100.00
         Advantech Automation Corporation B.V. (AAC NL) (Formerly Advantech Automation Corporation Limited (AAC MT))	Advantech Corp. (ANA)	Marketing, trade and assembly of industrial use computers	100.00	100.00
         Advantech Corp. (ANA)	Advantech Technology Limited (AIE)	Trading of industrial network communication systems	100.00	100.00
         	BitFlow, Inc. (ABO)	High-speed image capture core technology in the advanced fields of image and AI machine vision technology	100.00	100.00

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         Advantech Automation Corp. (HK) Limited [AAC (HK)]	Beijing Yan Hua Xing Ye Electronic Science & Technology Co., Ltd. (ACN)	Marketing and trade of industrial use computers	100.00	100.00
         	Shanghai Advantech Intelligent Services Co., Ltd. (ACI CN)	Overseas investment	82.00	82.00
         Beijing Yan Hua Xing Ye Electronic Science & Technology Co., Ltd. (ACN)	Xi'an Advantech Software Ltd. (AXA)	Development and manufacturing of software products	100.00	100.00
         	Shanghai Advantech Intelligent Service Co., Ltd. (ACI CN)	Overseas investment	18.00	18.00
         Shanghai Advantech Intelligent Services Co., Ltd. (ACI CN)	Advantech Service-IoT (Shanghai) Co., Ltd. [SIoT (China)]	Technology development, consulting and services in the field of intelligent technology	-	100.00	Notes 16
         	Adveco Technology Co., Ltd. (Adveco)	Technology development, consulting, services, product design, production and project implementation in the field of smart buildings	30.00	30.00	Notes 5 and 10
         	Adveco Management Consulting Co., Ltd. (Adveco Management)	Enterprise management consulting, information consulting, planning, service	60.00	60.00	Notes 6

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         Shanghai Advantech Intelligent Services Co., Ltd. (ACI CN)	Shanghai Fuhua Huichuang Intelligent Information Technology Co., Ltd. (Fuhua Huichuang)	Development and sales of information security devices, intelligent systems and cloud technologies	50.00	-	Notes 13
         Adveco Management Consulting Co., Ltd. (Adveco Management)	Adveco Management Consulting No.1 (Limited partnership) (Adveco Management No.1)	Enterprise management consulting, information consulting, planning, service	99.90	99.90	Notes 7 and 10
         	Adveco Management Consulting No. 2 (Limited partnership) (Adveco Management No. 2)	Enterprise management consulting, information consulting, planning, service	99.90	99.90	Notes 8 and 10
         Adveco Management Consulting No. 1 (Limited partnership) (Adveco Management No. 1)	Adveco Technology Co., Ltd. (Adveco)	Technology development, consulting, services, product design, production and project implementation in the field of smart buildings	20.00	20.00	Notes 5 and 10
         Adveco Management Consulting No. 2 (Limited partnership) (Adveco Management No. 2)	Adveco Technology Co., Ltd. (Adveco)	Technology development, consulting, services, product design, production and project implementation in the field of smart buildings	20.00	20.00	Notes 5 and 10
         Advantech Europe Holding B.V. (AEUH)	Advantech Europe B.V. (AEU)	Marketing and trade of industrial use computers	100.00	100.00

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         Advantech Europe Holding B.V. (AEUH)	Advantech Poland Sp z o.o. (APL)	Marketing and trade of industrial use computers	100.00	100.00
         Advantech Co., Singapore Pte, Ltd. (ASG)	Advantech Corporation (Thailand) Co., Ltd. (ATH)	Manufacturing of computer products	50.49	49.00	Notes 15
         	PT. Advantech International (AID)	Marketing and trade of industrial use computers	99.00	99.00
         	Advantech	Marketing and trade	0.10	0.10	Notes 4
         Electronics, S.A.P.I. of industrial use
         	DE C.V. (AMX)	computers
         Cermate Technologies Inc. (Cermate Taiwan)	LandMark Co., Ltd. (LandMark)	General investment	100.00	100.00
         LandMark Co., Ltd. (LandMark)	Shenzhen Cermate Technologies Inc. (Cermate Shenzhen)	Production of LCD touch screen, USB data cables, and industrial use computers	90.00	90.00
         	Cermate software Inc. (CSI)	Software development	100.00	100.00
         LNC Technology Co., Ltd. (LNC)	Better Auto Holdings Limited (Better Auto)	Holding company	100.00	100.00	Notes 2
         	LNCMac Technology Corp. (LNCMac)	System integration and application, system furniture intelligent design, manufacturing and sales	56.09	56.09	Notes 2
         	BEST PLC LTD. (BEST PLC)	Holding company	100.00	100.00	Notes 2
         Better Auto Holdings Limited (Better Auto)	Famous Now Limited (Famous Now)	Holding company	100.00	100.00	Notes 2

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         BEST PLC LTD. (BEST PLC)	BEST SERVO LTD. (BEST SERVO)	Holding company	100.00	100.00	Notes 2
         Famous Now Limited (Famous Now)	LNC Dong Guan Co., Ltd. (LNC Dong Guan)	Manufacturing and trade of controllers	100.00	100.00	Notes 2
         LNCMac Technology Corp. (LNCMac)	BEST MACHINE LTD. (BEST MACHINE)	Holding company	100.00	100.00	Notes 2
         	BEST AUTOMATION LTD. (BEST AUTOMATION)	Holding company	100.00	100.00	Notes 2
         BEST MACHINE LTD. (BEST MACHINE)	LNCMac DONG GUAN Technology Co Ltd. (LNCMac DONG GUAN)	System intergration	100.00	100.00	Notes 2
         Advantech Technology Limited (AIE)	Advantech Czech, s.r.o. (ACZ)	Manufacturing of automation control	100.00	100.00
         Advantech Industrial Computer India Private Limited (AIN)	Advantech Raiser India Private Limited (ARI)	Marketing and trade of industrial use computers	55.00	55.00
         LNCMac DONG GUAN Technology Co., Ltd. (LNCMac DONG GUAN)	LNCMac Furniture Co., Ltd. (LNCMac Furniture)	System furniture intelligent design, manufacturing and sales	100.00	100.00	Notes 2
         AURES TECHNOLOGI ES S.A. (Aures)	AURES Technologies Ltd. (Aures UK)	Retail electronic and computer products marketing and sales	100.00	100.00	Notes 12
         	AURES TECHNOLOGIES GmbH (Aures DE)	Retail electronic and computer products marketing and sales	90.00	90.00	Notes 12
         	A.G.H. US HOLDING COMPANY, INC. (Aures AGH)	Holding company	100.00	100.00	Notes 12

         Ownership (%)

         Name of

         Name of

         December 31,

         December 31,

         investor subsidiary Business activities 2025 2024 Description

         AURES TECHNOLOGI	J2 SYSTEMS TECHNOLOGY	Holding company	100.00	100.00	Notes 12
         ES S.A. (Aures)	Limited (Aures J2SYSTEMS)
         A.G.H. US HOLDING COMPANY, INC. (Aures AGH)	Retail Technology Group Inc. (Aures RTG)	Maintenance , installation and technical support for retail services	100.00	100.00	Notes 12
         J2 SYSTEMS TECHNOLOG Y Limited (Aures J2SYSTEMS)	Aures Technologies Inc. (Aures US)	Retail electronic and computer products marketing and sales	100.00	100.00	Notes 12
         	AURES Technologies Pty Ltd. (Aures AU)	Retail electronic and computer products marketing and sales	100.00	100.00	Notes 12

         Note 1: The Group collectively holds more than 50% of the voting shares or has control over the above subsidiaries.

         Note 2: In the first quarter of 2024, LNC did not participate in the capital increase proportionally to its equity interest in LNCMac, which resulted to a decrease in ownership to 57.49%. In the second quarter of 2024, it acquired equity interest in LNCMac from non-controlling interest, which resulted to an increase in ownership from 57.49% to 58.44%. In the third quarter of 2024, it did not participate in the capital increase proportionally to its equity interest in LNCMac, which resulted to a decrease in ownership from 58.44% to 56.09%. In the second quarter of 2024, the Group lost control over LNC and its subsidiaries, but still has significant influence over them. Accordingly, the investments in LNC and its subsidiaries were reclassified to investments accounted for under equity method from the second quarter of 2024.

         Note 3: In the fourth quarter of 2024, the Group acquired equity interest in ATR from other shareholders, which resulted to an increase in ownership from 80.10% to 100%.

         Note 4: In the first quarter of 2024, the Group sold 2.4% equity interest in AMX, which resulted to a decrease in ownership from 100% to 97.6%, and in the first quarter of 2025, the Group sold 0.6% equity interest in AMX, which resulted to a decrease in ownership from 97.6% to 97%.

         Note 5: In the first quarter of 2024, the Group established Adveco, and in the second and fourth quarter of 2024, the Group did not participate in the capital increase proportionally to its

         equity interest in Adveco, which resulted to a decrease in ownership from 54.88% to 53.98%.

         Note 6: In the first quarter of 2024, the Group established Adveco Management, and the Group held 60% equity interest in Adveco Management.

         Note 7: During 2024, the Group established Adveco Management No. 1, and the Group held 59.94% equity interest in Adveco Management No. 1.

         Note 8: During 2024, the Group established Adveco Management No. 2, and the Group held 59.94% equity interest in Adveco Management No. 2.

         Note 9: In the fourth quarter of 2025, AAC (MT) relocated to Netherlands and changed its company name to Advantech Automation Corporation B.V. (AAC NL).

         Note 10: The purpose of establishing Adveco Management No.1 and Adveco Management No. 2 is to serve as equity platforms for future rewards for Adveco's management and employees.

         Note 11: In the second quarter of 2024, the Group acquired 21.51% equity interest in Expetech from external shareholders for a cash consideration of $40,000, which resulted to an increase in ownership from 43.01% to 64.52%. The subsidiary was consolidated starting from the date the Group obtained control of the subsidiary, and the related information on the business combination is provided in Note 6(28). In the third quarter of 2024 and the fourth quarter of 2025, Expetech converted employee stock options into common shares, which resulted to a decrease in ownership from 64.52% to 58.87%.

         Note 12: On October 1, 2024, the Group acquired 1,430,381 shares at a price of 6.31 Euros per share from Aures' major shareholder. The ownership is approximately 36.32%. Consequently, the Group became the single largest shareholder and acquired substantial control over Aures. The subsidiary was consolidated starting from the date the Group obtained control of the subsidiary, and the related information on the business combination is provided in Note 6(28). In the first quarter of 2025, there was a continued acquisition of 2,210,774 shares, resulting in an increase in the ownership percentage to 92.39%. The Company has completed the tender offer of Aures Technologies S.A. (Aures). As approved by Autorite des marches financiers, the squeeze-out and delisting procedure were implemented on April 14, 2025.

         Note 13: In the first quarter of 2025, the Group established and held a 50% equity interest in Fuhua Huichuang. Under the investment agreement, the Group holds 68.18% of the voting rights in Fuhua Huichuang, thus exercising control and incorporating into the consolidated financial statements.

         Note 14: In the second quarter of 2025, Advantech Technology DMCC (ADB) changed its company name to Advantech Technology FZCO (ADB).

         Note 15: In the third quarter of 2025, ATH made a cash capital increase, which was fully subscribed by ASG and resulted to an increase in ownership from 49% to 50.49%.

         Note 16: SIoT (China) was dissolved and liquidated in the third quarter of 2025.

      3. Subsidiaries not included in the consolidated financial statements: None.

      4. Adjustments for subsidiaries with different balance sheet dates: None.

      5. Significant restrictions: None.

      6. Subsidiaries that have non-controlling interests that are material to the Group: None.

1. Foreign currency translation

   Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan Dollar, which is the Company's functional and the Group's presentation currency.

   1. Foreign currency transactions and balances

      1. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

      2. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

      3. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

      4. All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.

   2. Translation of foreign operations

      1. The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

         1. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

         2. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

         3. All resulting exchange differences are recognised in other comprehensive income.

      2. When the foreign operation partially disposed of or sold is an associate or joint arrangement, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate or joint arrangement after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangement, such transactions should be accounted for as disposal of all interest in these foreign operations.

      3. When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

      4. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

2. Classification of current and non-current items

   1. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

      1. Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

      2. Assets that are held primarily for the purpose of trading;

      3. Assets that are expected to be realised within twelve months after the reporting period;

      4. Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

   2. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

      1. Liabilities that are expected to be settled in the normal operating cycle;

      2. Liabilities that are held primarily for the purpose of trading;

      3. Liabilities that are due to be settled within twelve months after reporting period;

      4. It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

3. Cash equivalents

   Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

4. Financial assets at fair value through profit or loss

   1. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

   2. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

   3. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

   4. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

5. Financial assets at fair value through other comprehensive income

   1. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

   2. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

   3. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

6. Financial assets at amortised cost

   1. Financial assets at amortised cost are those that meet all of the following criteria:

      1. The objective of the Group's business model is achieved by collecting contractual cash flows.

      2. The assets' contractual cash flows represent solely payments of principal and interest.

   2. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting .

   3. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

   4. The Group's time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

7. Accounts and notes receivable

   1. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

   2. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

8. Impairment of financial assets

   For financial assets at amortised cost including accounts and notes receivable that have a significant financing component, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

9. Derecognition of financial assets

   The Group derecognises a financial asset when one of the following conditions is met:

   1. The contractual rights to receive the cash flows from the financial asset expire.

   2. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

   3. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Group has not retained control of the financial asset.

10. Leasing arrangements (lessor) - operating leases

    Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

11. Inventories

    Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

12. Investments accounted for under equity method - associates

    1. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for under equity method and are initially recognised at cost.

    2. The Group's share of its associates' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

    3. When changes in an associate's equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group's ownership percentage of the associate, the Group recognises change in ownership interests in the associate in 'capital surplus' in proportion to its ownership.

    4. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the company's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

    5. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for under equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group's ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

    6. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

    7. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

    8. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

    9. At the balance sheet date, the Group performs an impairment test for an investment in an associate when there is an indication that the investment may be impaired. The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of impairment loss is recognised to the extent that the recoverable amount of the investment subsequently increases.

13. Property, plant and equipment

    1. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

    2. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

    3. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

    4. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

       Buildings

       Main buildings 20 ~ 60 years

       Electronic equipment 5 years

       Engineering systems 5 years

       Machinery and equipment 2 ~ 10 years

       Office equipment 1 ~ 8 years

       Other equipment 1 ~ 10 years

14. Leasing arrangements (lessee) - right-of-use assets/lease liabilities

    1. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease

       term.

    2. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

    3. At the commencement date, the right-of-use asset is stated at cost comprising the following:

       1. The amount of the initial measurement of lease liability;

       2. Any lease payments made at or before the commencement date;

       3. Any initial direct costs incurred by the lessee; and

       4. An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

          The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

    4. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss.

15. Intangible assets

    1. Goodwill

       Goodwill arises in a business combination accounted for by applying the acquisition method.

    2. Customer relationship and trademarks

       Customer relationship and trademarks acquired in a business combination are recognised at fair value at the acquisition date. Trademarks and customer relationship have a finite useful life and are amortised on a straight-line basis over their estimated useful lives of 1 to 3 years and 2 to 15 years, respectively.

    3. Intangible assets, except for goodwill, customer relationship and trademarks are mainly software and technology licencing, etc. and are amortised on a straight-line basis as follows:

       Technology licenses 5 ~ 8 years

       Others 1 ~ 5 years

16. Impairment of non-financial assets

    1. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by

       which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

    2. The recoverable amounts of goodwill shall be evaluated periodically. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

    3. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination.

17. Borrowings

    Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

18. Notes and accounts payable

    1. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

    2. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

19. Financial liabilities at fair value through profit or loss

    1. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.

    2. At initial recognition, the company measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

20. Derecognition of financial liabilities

    A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

21. Offsetting financial assets and liabilities

    Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

22. Non-hedging derivatives

    Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

23. Provisions for liabilities

    Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses.

24. Employee benefits

    1. Short-term employee benefits

       Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

    2. Pensions

       1. Defined contribution plans

          For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

       2. Defined benefit plans

          1. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the

             currency and term of the employment benefit obligations.

          2. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

          3. Past service costs are recognised immediately in profit or loss.

    3. Termination benefits

       Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises expense as it can no longer withdraw an offer of termination benefits or it recognises relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

    4. Employees' compensation and directors' remuneration

       Employees' compensation and directors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

25. Employee share-based payment

    1. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

    2. The share-based payment grant date is the date that the Group and employees reached a consensus on the terms and provisions of share-based payment arrangements.

26. Income tax

    1. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

    2. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns

       with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the shareholders resolve to retain the earnings.

    3. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred income tax liability is settled.

    4. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.

    5. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current income tax assets against current income tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

    6. A deferred income tax asset shall be recognised for the carryforward of unused tax credits resulting from research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

27. Share capital

    Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

28. Dividends

    Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities.

29. Revenue recognition

    1. Sales of goods

       1. The Group manufactures and sells embedded computing boards, industrial automation products, applied computers and industrial computers. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied. The Group does not recognise revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

       2. The Group's obligation to provide a repair for faulty products under the standard warranty terms is recognised as a provision.

       3. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

    2. Revenue from rendering services

       Revenue from rendering services comes from developing products and extended warranty services, etc. Such revenue is recognised when services are provided.

30. Government grants

    Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

31. Business combinations

    1. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity's net assets in the event of liquidation at either fair value or the present ownership instruments' proportionate share in the recognised