ASE Technology : 2025 Financial Report (IFRS)

About this update from Ase Technology Holding Co., Ltd.

ASE Technology Holding Co., Ltd. and Subsidiaries Consolidated Financial Statements as of December 31, 2024 and 2025 and for the Years Ended December 31, 2023, 2024 and 2025, and Report of Independent Registered Public Accounting Firm REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of ASE Technology Holding Co., Ltd. Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of ASE Technology Holding Co., Ltd. (a Republic of China corporation) and its subsidiaries (collectively, the "Group") as of December 31, 2024 and 2025, the related consolidated statements of comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements") (all expressed in New Taiwan Dollars). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of December 31, 2024 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB). Our audits also comprehended the translation of New Taiwan dollar amounts into U.S. dollar amounts and, in our opinion, such translation has been made in conformity with the basis stated in Note 4 to the consolidated financial statements. Such U.S. dollar amounts are presented solely for the convenience of the readers outside the Republic of China. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Group's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 27, 2026, expressed an unqualified opinion on the Group's internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Group's management. Our responsibility is to express an opinion on the Group's consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Goodwill - Allocated to the Packaging and Testing Segments for Impairment - Refer to Notes 4, 5 and 18 to the consolidated financial statements Critical Audit Matter Description The Group's evaluation of goodwill for impairment involves the estimates of the value in use of each segment. The Group used the discounted cash flow model to estimate value in use, which required management to make significant estimates and assumptions related to discount rates and forecasts of future revenues. Changes in these estimates and assumptions could have a significant impact on either the value in use, the amount of any goodwill impairment charge, or both. The goodwill balance was NT$52,541,905 thousand (US$1,674,909 thousand) as of December 31, 2025, of which NT$35,430,752 thousand (US$1,129,447 thousand) and NT$13,440,470 thousand (US$428,450 thousand) were allocated to the packaging and testing segments, respectively. The value in use of the packaging and testing segments exceeded their carrying values as of the measurement date and, therefore, no impairment was recognized. We identified the valuation of goodwill for the Group's packaging and testing segments as a critical audit matter due to the significant estimates and assumptions management makes to estimate the value in use of the packaging and testing segments and the sensitivity of their operations to changes in demand. Auditing management's judgments related to the selection of the discount rates and forecasts of future revenues for the packaging and testing segments required a high degree of auditor's judgment and an increased extent of effort, including the need to involve our valuation specialists. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the discount rates and forecasts of future revenues used by management to estimate the value in use of the packaging and testing segments included the following, among others: We tested the design and operating effectiveness of controls over management's evaluation of goodwill allocated to the packaging and testing segments for impairment, including those over the determination of the value in use of the packaging and testing segments, such as controls related to management's selection of the discount rates and assessment on the reasonableness of forecasts of future revenues. We evaluated management's ability to accurately forecast future revenues of the packaging and testing segments by comparing their actual results to management's historical forecasts. We performed sensitivity analyses to evaluate the risk of impairment if key assumptions were changed. With the assistance of our valuation specialists, we evaluated the reasonableness of the discount rates by performing certain procedures, including: Testing the source information underlying the determination of the discount rates and the mathematical accuracy of the calculation. Developing a range of independent estimates and comparing those to the discount rates selected by management. /s/ Deloitte & Touche Taipei, Taiwan Republic of China March 27, 2026 We have served as the Group's auditor since 1984. ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in Thousands) December 31, 2024 December 31, 2025 ASSETS NT$ NT$ US$ (Note 4) CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit $ 76,492,824 $ 92,468,851 $ 2,947,684 or loss - current (Note 7) 8,390,606 7,754,182 247,185 Contract assets - current (Note 41) 5,640,317 7,568,112 241,253 Trade receivables, net (Note 10) 113,419,820 125,042,214 3,986,044 Other receivables 2,895,495 2,499,294 79,672 Current tax assets (Note 26) 731,828 884,793 28,205 Inventories (Note 11) 57,313,938 65,672,973 2,093,496 Inventories related to real estate business (Notes 12 and 36) 3,866,994 3,710,017 118,266 Other financial assets - current (Notes 13 and 36) 985,925 1,760,287 56,114 Other current assets 5,547,339 6,434,369 205,112 Total current assets 275,285,086 313,795,092 10,003,031 NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Note 7) 2,441,436 2,433,310 77,568 Financial assets at fair value through other comprehensive income - non-current (Note 8) 13,959,493 13,615,254 434,022 Investments accounted for using the equity method (Note 14) 20,423,340 25,030,827 797,922 Property, plant and equipment (Notes 15, 25, 36 and 37) 312,531,471 421,115,044 13,424,133 Right-of-use assets (Note 16) 11,851,087 12,636,536 402,822 Investment properties (Notes 17, 25 and 36) 20,055,044 18,736,891 597,287 Goodwill (Note 18) 52,525,342 52,541,905 1,674,909 Other intangible assets (Notes 19 and 25) 15,692,350 12,920,602 411,878 Deferred tax assets (Note 26) 7,175,371 7,698,208 245,400 Other financial assets - non-current (Notes 13 and 36) 4,691,997 4,108,146 130,958 Other non-current assets 4,428,052 4,867,943 155,178 Total non-current assets 465,774,983 575,704,666 18,352,077 TOTAL $ 741,060,069 $ 889,499,758 $ 28,355,108 (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in Thousands) December 31, 2024 December 31, 2025 LIABILITIES AND EQUITY CURRENT LIABILITIES NT$ NT$ US$ (Note 4) Short-term borrowings (Notes 20 and 36) $ 34,988,758 $ 31,825,453 $ 1,014,519 Short-term bills payable (Note 20) Financial liabilities at fair value through - 2,220,419 70,782 profit or loss - current (Note 7) 324,278 966,484 30,809 Financial liabilities for hedging - current (Notes 20 and 34) 12,456,104 9,282,400 295,901 Trade payables 78,221,100 88,753,993 2,829,263 Other payables (Note 22) 63,179,235 74,816,290 2,384,963 Current tax liabilities (Note 26) 8,888,506 11,593,551 369,574 Lease liabilities - current (Note 16) 986,489 969,441 30,903 Current portion of bonds payable (Note 21) Current portion of long-term borrowings 14,997,976 3,499,748 111,564 (Notes 20 and 36) 3,884,906 3,188,061 101,628 Other current liabilities (Note 37) 16,496,364 21,363,305 681,011 Total current liabilities 234,423,716 248,479,145 7,920,917 NON-CURRENT LIABILITIES Financial liabilities at fair value through profit or loss - non-current (Note 7) 508,591 428,884 13,672 Bonds payable (Note 21) 17,978,188 11,467,882 365,568 Long-term borrowings (Notes 20 and 36) 121,750,192 202,612,796 6,458,808 Current tax liabilities - non-current - 2,702,639 86,154 Deferred tax liabilities (Note 26) 6,850,104 5,391,021 171,853 Lease liabilities - non-current (Note 16) 6,825,534 7,878,666 251,153 Net defined benefit liabilities (Note 23) 3,396,161 4,324,806 137,864 Other non-current liabilities (Note 37) 7,056,670 37,584,819 1,198,113 Total non-current liabilities 164,365,440 272,391,513 8,683,185 Total liabilities 398,789,156 520,870,658 16,604,102 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 24) Share capital Ordinary shares 44,120,643 44,361,420 1,414,135 Shares subscribed in advance 31,862 118,348 3,773 Total share capital 44,152,505 44,479,768 1,417,908 Capital surplus 148,717,262 156,301,716 4,982,522 Retained earnings Legal reserve 21,817,390 25,076,564 799,380 Special reserve 2,791,960 2,791,960 89,001 Unappropriated earnings 96,640,231 108,963,166 3,473,483 Total retained earnings 121,249,581 136,831,690 4,361,864 Other equity 7,866,011 6,527,885 208,093 Treasury shares (1,959,107 ) (1,959,107 ) (62,452 ) Equity attributable to owners of the Company 320,026,252 342,181,952 10,907,935 NON-CONTROLLING INTERESTS (Note 24) 22,244,661 26,447,148 843,071 Total equity 342,270,913 368,629,100 11,751,006 TOTAL $ 741,060,069 $ 889,499,758 $ 28,355,108 The accompanying notes are an integral part of the consolidated financial statements. (Concluded) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands Except Earnings Per Share) For the Year Ended December 31 2023 2024 2025 NT$ NT$ NT$ US$ (Note 4) OPERATING REVENUES (Note 41) $ 581,914,471 $ 595,409,585 $ 645,387,710 $ 20,573,405 OPERATING COSTS (Notes 11 and 25) 490,157,339 498,477,841 531,194,836 16,933,211 GROSS PROFIT 91,757,132 96,931,744 114,192,874 3,640,194 OPERATING EXPENSES (Note 25) Selling and marketing expenses 6,569,478 7,467,844 7,404,893 236,050 General and administrative expenses 19,360,539 21,467,202 23,180,987 738,954 Research and development expenses 25,499,408 28,830,313 32,851,461 1,047,226 Total operating expenses 51,429,425 57,765,359 63,437,341 2,022,230 OTHER OPERATING INCOME AND EXPENSES, NET (Note 25) 1,321,770 1,172,592 665,293 21,208 PROFIT FROM OPERATIONS 41,649,477 40,338,977 51,420,826 1,639,172 NON-OPERATING INCOME AND EXPENSES Other income (Note 25) 2,709,694 2,924,734 2,797,487 89,177 Other gains and losses (Note 25) 3,444,138 4,349,992 3,772,062 120,244 Finance costs (Note 25) (6,272,086 ) (6,777,032 ) (7,503,269 ) (239,186 ) Share of the profit or loss of associates and joint ventures 1,080,600 896,702 815,990 26,012 Total non-operating income and expenses 962,346 1,394,396 (117,730 ) (3,753 ) PROFIT BEFORE INCOME TAX 42,611,823 41,733,373 51,303,096 1,635,419 INCOME TAX EXPENSE (Note 26) 5,303,963 7,916,463 10,106,656 322,176 PROFIT FOR THE YEAR 37,307,860 33,816,910 41,196,440 1,313,243 OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation (66,384 ) 234,388 (1,238,644 ) (39,485 ) Unrealized gain (loss) on equity instruments at fair value through other comprehensive income Share of other comprehensive income 211,468 10,016 (232,486 ) (7,411 ) of associates and joint ventures 2,468,244 160,374 4,358,100 138,926 Income tax relating to items that will not be reclassified subsequently to profit or loss (264,618 ) (84,472 ) (133,120 ) (4,244 ) 2,348,710 320,306 2,753,850 87,786 (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands Except Earnings Per Share) Items that may be reclassified subsequently to profit or loss: Exchange differences on translating 2023 NT$ For the Year Ended December 31 2024 2025 NT$ NT$ US$ (Note 4) foreign operations $ (1,536,221 ) $ 12,788,423 $ (5,275,665 ) $ (168,175 ) Unrealized loss on debt investments at fair value through other comprehensive income (16,807 ) (17,145 ) (17,620 ) (562 ) Gain (loss) on hedging instruments (312,029 ) Share of other comprehensive income 562,598 (1,117,589 ) (35,626 ) (loss) of associates and joint ventures (28,511 ) (18,192 ) 37,442 1,194 Income tax related to items that may be reclassified subsequently to profit or loss (5,792 ) 2,315 2,379 76 (1,899,360 ) 13,317,999 (6,371,053 ) (203,093 ) Other comprehensive income (loss) for the year, net of income tax 449,350 13,638,305 (3,617,203 ) (115,307 ) TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 37,757,210 $ 47,455,215 $ 37,579,237 $ 1,197,936 NET PROFIT ATTRIBUTABLE TO: Owners of the Company $ 35,457,908 $ 32,378,936 $ 40,015,755 $ 1,275,606 Non-controlling interests 1,849,952 1,437,974 1,180,685 37,637 $ 37,307,860 $ 33,816,910 $ 41,196,440 $ 1,313,243 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company $ 36,020,578 $ 45,203,116 $ 36,688,214 $ 1,169,532 Non-controlling interests 1,736,632 2,252,099 891,023 28,404 $ 37,757,210 $ 47,455,215 $ 37,579,237 $ 1,197,936 EARNINGS PER SHARE (Note 27) Basic $ 8.25 $ 7.50 $ 9.22 $ 0.29 Diluted $ 8.04 $ 7.20 $ 8.75 $ 0.28 EARNINGS PER AMERICAN DEPOSITARY SHARE ("ADS") (Note 27) Basic $ 16.51 $ 14.99 $ 18.44 $ 0.59 Diluted $ 16.08 $ 14.40 $ 17.49 $ 0.56 The accompanying notes are an integral part of the consolidated financial statements. (Concluded) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Amounts in Thousands) Equity Attributable to Owners of the Company Unrealized Gain Other Equity Shares Share Capital Capital Legal Exchange Differences on Retained Earnings Translating Special Unappropriated Foreign (Loss) on Financial Assets at Fair Value Through Other Comprehensive Gain (Loss) on Hedging Unearned Employee Equity Directly Associated with Disposal Groups Treasury Non-controlling (In Thousands) Amounts Surplus Reserve Reserve Earnings Total Operations Income Instruments Benefit Held for Sale Total Shares Total Interests Total Equity BALANCE AT JANUARY 1, 2023 4,367,984 $ 43,679,841 $ 142,607,490 $ 12,582,960 $ 10,367,052 $ 91,556,474 $ 114,506,486 $ (5,529,388 ) $ 1,275,505 $ 520,281 $ (432,847 ) $ - $ (4,166,449 ) $ (1,959,107 ) $ 294,668,261 $ 18,608,124 $ 313,276,385 Appropriation of 2022 earnings Legal reserve - - - 6,001,564 - (6,001,564 ) - - - - - - - - - - - Special reserve - - - - (6,845,501 ) 6,845,501 - - - - - - - - - - - Cash dividends distributed by the Company - - - - - (38,482,083 ) (38,482,083 ) - - - - - - - (38,482,083 ) - (38,482,083 ) - - - 6,001,564 (6,845,501 ) (37,638,146 ) (38,482,083 ) - - - - - - - (38,482,083 ) - (38,482,083 ) Reversal of special reserve appropriated at the first-time adoption of IFRS Accounting Standards - - - - (561,978 ) 561,978 - - - - - - - - - - - Change from investments in associates accounted for using the equity method - - 3,255 - - - - - - - - - - - 3,255 - 3,255 Other changes in the capital surplus - - 87 - - - - - - - - - - - 87 - 87 Net profit for the year ended December 31, 2023 - - - - - 35,457,908 35,457,908 - - - - - - - 35,457,908 1,849,952 37,307,860 Other comprehensive income (loss) for the year ended December 31, 2023, net of income tax - - - - - (32,134 ) (32,134 ) (1,505,241 ) 2,347,561 (242,840 ) - (4,676 ) 594,804 - 562,670 (113,320 ) 449,350 Total comprehensive income (loss) for the year ended December 31, 2023 - - - - - 35,425,774 35,425,774 (1,505,241 ) 2,347,561 (242,840 ) - (4,676 ) 594,804 - 36,020,578 1,736,632 37,757,210 Cash dividends received by subsidiaries from the Company - - 641,387 - - - - - - - - - - - 641,387 - 641,387 Disposal of subsidiary (Note 30) - - - - - - - - - - - - - - - (295,895 ) (295,895 ) Differences between consideration and carrying amount arising from acquisition of subsidiaries - - - - - - - - - - - - - - - 427,913 427,913 Share-based payment from the Company (Note 28) 17,466 174,657 929,634 - - 712 712 - - - 432,847 - 432,847 - 1,537,850 - 1,537,850 Cash dividends distributed by subsidiaries - - - - - - - - - - - - - - - (912,261 ) (912,261 ) Share-based payment from subsidiaries (Note 28) - - 90,773 - - - - - - - - - - - 90,773 293,740 384,513 Issue of convertible bonds by subsidiaries (Note 21) - - - - - - - - - - - - - - - 412,294 412,294 Disposal of investments in equity instruments at fair value through other comprehensive income - - - - - 73,418 73,418 - (73,418 ) - - - (73,418 ) - - - - BALANCE AT DECEMBER 31, 2023 4,385,450 $ 43,854,498 $ 144,272,626 $ 18,584,524 $ 2,959,573 $ 89,980,210 $ 111,524,307 $ (7,034,629 ) $ 3,549,648 $ 277,441 $ - $ (4,676 ) $ (3,212,216 ) $ (1,959,107 ) $ 294,480,108 $ 20,270,547 $ 314,750,655 BALANCE AT JANUARY 1, 2024 4,385,450 $ 43,854,498 $ 144,272,626 $ 18,584,524 $ 2,959,573 $ 89,980,210 $ 111,524,307 $ (7,034,629 ) $ 3,549,648 $ 277,441 $ - $ (4,676 ) $ (3,212,216 ) $ (1,959,107 ) $ 294,480,108 $ 20,270,547 $ 314,750,655 Appropriation of 2023 earnings Legal reserve - - - 3,232,866 - (3,232,866 ) - - - - - - - - - - - Special reserve - - - - (167,613 ) 167,613 - - - - - - - - - - - Cash dividends distributed by the Company - - - - - (22,838,947 ) (22,838,947 ) - - - - - - - (22,838,947 ) - (22,838,947 ) - - - 3,232,866 (167,613 ) (25,904,200 ) (22,838,947 ) - - - - - - - (22,838,947 ) - (22,838,947 ) Change from investments in associates accounted for using the equity method - - 4,445 - - - - - - - - - - - 4,445 - 4,445 Other changes in the capital surplus - - 68 - - - - - - - - - - - 68 - 68 Net profit for the year ended December 31, 2024 - - - - - 32,378,936 32,378,936 - - - - - - - 32,378,936 1,437,974 33,816,910 Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax - - - - - 173,524 173,524 12,085,635 122,083 438,262 - 4,676 12,650,656 - 12,824,180 814,125 13,638,305 Total comprehensive income (loss) for the year ended December 31, 2024 - - - - - 32,552,460 32,552,460 12,085,635 122,083 438,262 - 4,676 12,650,656 - 45,203,116 2,252,099 47,455,215 Cash dividends received by subsidiaries from the Company - - 379,462 - - - - - - - - - - - 379,462 - 379,462 (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Amounts in Thousands) Equity Attributable to Owners of the Company Unrealized Gain Exchange (Loss) on Financial Other Equity Share Capital Differences on Assets at Fair Value Equity Directly Retained Earnings Translating Through Other Gain (Loss) Unearned Associated with Shares Capital Legal Special Unappropriated Foreign Comprehensive on Hedging Employee Disposal Groups Treasury Non-controlling (In Thousands) Amounts Surplus Reserve Reserve Earnings Total Operations Income Instruments Benefit Held for Sale Total Shares Total Interests Total Equity Changes in percentage of ownership interest in subsidiaries (Note 31) - $ - $ (250,106 ) $ - $ - $ (5,439 ) $ (5,439 ) $ - $ - $ - $ - $ - $ - $ - $ (255,545 ) $ (201,150 ) $ (456,695 ) Share-based payment from the Company (Note 28) 29,801 298,007 4,228,820 - - 76,028 76,028 - - - (1,631,257 ) - (1,631,257 ) - 2,971,598 - 2,971,598 Non-controlling interests arising from capital increase of subsidiaries - - - - - - - - - - - - - - - 177,487 177,487 Cash dividends distributed by subsidiaries - - - - - - - - - - - - - - - (593,390 ) (593,390 ) Share-based payment from subsidiaries (Note 28) - - 81,947 - - - - - - - - - - - 81,947 238,183 320,130 Issue of convertible bonds by subsidiaries (Note 21) - - - - - - - - - - - - - - - 100,885 100,885 Disposal of investments in equity instruments at fair value through other comprehensive income - - - - - (58,828 ) (58,828 ) - 58,828 - - - 58,828 - - - - BALANCE AT DECEMBER 31, 2024 4,415,251 $ 44,152,505 $ 148,717,262 $ 21,817,390 $ 2,791,960 $ 96,640,231 $ 121,249,581 $ 5,051,006 $ 3,730,559 $ 715,703 $ (1,631,257 ) $ - $ 7,866,011 $ (1,959,107 ) $ 320,026,252 $ 22,244,661 $ 342,270,913 BALANCE AT JANUARY 1, 2025 4,415,251 $ 44,152,505 $ 148,717,262 $ 21,817,390 $ 2,791,960 $ 96,640,231 $ 121,249,581 $ 5,051,006 $ 3,730,559 $ 715,703 $ (1,631,257 ) $ - $ 7,866,011 $ (1,959,107 ) $ 320,026,252 $ 22,244,661 $ 342,270,913 Appropriation of 2024 earnings Legal reserve - - - 3,259,174 - (3,259,174 ) - - - - - - - - - - - Cash dividends distributed by the Company - - - - - (23,420,372 ) (23,420,372 ) - - - - - - - (23,420,372 ) - (23,420,372 ) - - - 3,259,174 - (26,679,546 ) (23,420,372 ) - - - - - - - (23,420,372 ) - (23,420,372 ) Change from investments in associates accounted for using the equity method - - 16,093 - - - - - - - - - - - 16,093 - 16,093 Other changes in the capital surplus - - 76 - - - - - - - - - - - 76 - 76 Net profit for the year ended December 31, 2025 - - - - - 40,015,755 40,015,755 - - - - - - - 40,015,755 1,180,685 41,196,440 Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax - - - - - (997,790 ) (997,790 ) (5,189,939 ) 3,725,567 (865,379 ) - - (2,329,751 ) - (3,327,541 ) (289,662 ) (3,617,203 ) Total comprehensive income (loss) for the year ended December 31, 2025 - - - - - 39,017,965 39,017,965 (5,189,939 ) 3,725,567 (865,379 ) - - (2,329,751 ) - 36,688,214 891,023 37,579,237 Cash dividends received by subsidiaries from the Company - - 386,307 - - - - - - - - - - - 386,307 - 386,307 Differences between consideration and carrying amount arising from acquisition of subsidiaries (Note 31) - - (68,093 ) - - - - - - - - - - - (68,093 ) 10,618 (57,475 ) Changes in percentage of ownership interest in subsidiaries (Note 31) - - 3,169,280 - - - - - - - - - - - 3,169,280 2,964,788 6,134,068 Share-based payment from the Company (Note 28) 32,726 327,263 3,780,009 - - - - - - - 976,141 - 976,141 - 5,083,413 - 5,083,413 Cash dividends distributed by subsidiaries - - - - - - - - - - - - - - - (514,157 ) (514,157 ) Share-based payment from subsidiaries (Note 28) - - 300,782 - - - - - - - - - - - 300,782 578,048 878,830 Issue of convertible bonds by subsidiaries (Note 21) - - - - - - - - - - - - - - - 272,167 272,167 Disposal of investments in equity instruments at fair value through other comprehensive income - - - - - (15,484 ) (15,484 ) - 15,484 - - - 15,484 - - - - BALANCE AT DECEMBER 31, 2025 4,447,977 $ 44,479,768 $ 156,301,716 $ 25,076,564 $ 2,791,960 $ 108,963,166 $ 136,831,690 $ (138,933 ) $ 7,471,610 $ (149,676 ) $ (655,116 ) $ - $ 6,527,885 $ (1,959,107 ) $ 342,181,952 $ 26,447,148 $ 368,629,100 US DOLLARS (Note 4) BALANCE AT DECEMBER 31, 2025 4,447,977 $ 1,417,908 $ 4,982,522 $ 799,380 $ 89,001 $ 3,473,483 $ 4,361,864 $ (4,429 ) $ 238,177 $ (4,771 ) $ (20,884 ) $ - $ 208,093 $ (62,452 ) $ 10,907,935 $ 843,071 $ 11,751,006 The accompanying notes are an integral part of the consolidated financial statements. (Concluded) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) For the Year Ended December 31 2023 2024 2025 NT$ NT$ NT$ US$ (Note 4) CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax $ 42,611,823 $ 41,733,373 $ 51,303,096 $ 1,635,419 Adjustments for: Depreciation expense 54,195,380 55,995,198 63,607,075 2,027,640 Amortization expense Net gain on fair value change of financial assets and liabilities at fair value through profit or loss 3,906,483 (1,860,511 ) 3,820,014 (9,832,900 ) 3,832,762 (340,984 ) 122,179 (10,870 ) Finance costs 6,272,086 6,777,032 7,503,269 239,186 Interest income (1,513,407 ) (1,883,518 ) (1,879,685 ) (59,920 ) Dividend income (256,160 ) (194,812 ) (119,634 ) (3,814 ) Share-based compensations 742,890 2,188,600 2,481,787 79,113 Share of profit of associates and joint ventures Gain on disposal of property, plant and equipment (1,080,600 ) (161,761 ) (896,702 ) (208,980 ) (815,990 ) (809,950 ) (26,012 ) (25,819 ) Gain on disposal of investments accounted for using the equity method (55,795 ) (20,952 ) (15,310 ) (488 ) Impairment loss recognized on financial assets Impairment loss recognized on nonfinancial assets 108,443 3,536,506 195,455 603,756 236,942 816,424 7,553 26,026 Gain on disposal of subsidiary (529,721 ) - - - Gain on bargain purchase - (76,715 ) - - Net loss (gain) on foreign currency exchange 10,127 3,377,808 (2,005,284 ) (63,924 ) Others Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss 34,888 8,453,963 (65,671 ) 7,767,363 (72,453 ) 7,875,427 (2,310 ) 251,050 Contract assets 631,097 (540,241 ) (1,927,795 ) (61,453 ) Trade receivables 15,868,810 (14,331,791 ) (11,899,300 ) (379,321 ) Other receivables 348,614 1,068,459 851,315 27,138 Inventories 25,401,815 1,781,135 (8,515,201 ) (271,444 ) Other current assets (292,294 ) (620,913 ) (872,015 ) (27,798 ) Other financial assets (718,946 ) 1,009,130 686,757 21,892 Other operating assets 92,135 181,390 (18,486 ) (589 ) Financial liabilities held for trading (3,619,901 ) (2,966,792 ) (5,719,744 ) (182,332 ) Trade payables (9,037,355 ) 7,694,702 10,498,543 334,668 Other payables (8,281,769 ) 1,540,330 4,638,266 147,857 Other current liabilities (877,245 ) 95,790 3,535,163 112,693 Other operating liabilities (182,534 ) (387,660 ) 31,961,760 1,018,864 Cash generated from operations 133,747,061 103,801,888 154,816,755 4,935,184 Interest received 1,479,507 1,811,676 1,801,128 57,416 Dividend received 668,883 665,916 610,201 19,452 Interest paid (5,998,956 ) (6,419,091 ) (7,870,200 ) (250,883 ) Income tax paid (15,474,646 ) (9,072,635 ) (7,108,597 ) (226,605 ) Net cash generated from operating activities 114,421,849 90,787,754 142,249,287 4,534,564 (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) 2023 For the Year Ended December 31 2024 2025 NT$ NT$ NT$ US$ (Note 4) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income $ (184,355 ) $ (13,560 ) $ (478,350 ) $ (15,249 ) - 405 - - 188,347 184,050 32,675 1,042 (2,259,757 ) (14,700 ) - - Proceeds from sale of financial assets at fair value through other comprehensive income Return of capital from financial assets at fair value through other comprehensive income Acquisition of associates accounted for using the equity method Proceeds from disposal of investments accounted for Net proceeds outflow on acquisition of subsidiaries (1,224,183 ) Net proceeds from disposal of subsidiary (Note 30) 2,093,700 Payments for property, plant and equipment (54,158,229 ) Proceeds from disposal of property, plant using the equity method 489,329 - - -(1,627,074 ) (258,554 ) (8,242 ) - - -(79,521,938 ) (164,642,502 ) (5,248,406 ) and equipment 475,326 908,053 2,493,114 79,474 Payments for intangible assets (395,651 ) (1,567,300 ) (1,017,558 ) (32,437 ) Proceeds from disposal of intangible assets 9,901 10,177 10,022 319 Payments for right-of-use assets (35,851 ) (593,496 ) (188,303 ) (6,003 ) Payments for investment properties (35,304 ) (15,145 ) (33,260 ) (1,060 ) Proceeds from disposal of investment properties - 34 - - Increase in other financial assets (485,132 ) (1,686,349 ) (2,645,136 ) (84,321 ) Decrease in other financial assets 226,397 1,530,701 1,120,247 35,711 Increase in other non-current assets (294,680 ) (473,350 ) (511,749 ) (16,313 ) Decrease in other non-current assets 80,668 140,976 475,095 15,145 Income tax paid - (1,170,149 ) - - Other investing activities items 387,480 - - - Net cash used in investing activities (55,121,994 ) (83,908,665 ) (165,644,259 ) (5,280,340 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings 3,231,840 - - - Repayment of short-term borrowings - (4,514,729 ) (5,839,428 ) (186,147 ) Proceeds from short-term bills payable 2,787,340 - 2,198,419 70,080 Repayment of short-term bills payable - (2,787,340 ) - - Proceeds from bonds offering 2,426,634 1,035,014 4,376,855 139,524 Repayment of bonds payable (5,000,000 ) (13,902,400 ) (15,000,000 ) (478,164 ) Proceeds from long-term borrowings 286,268,360 244,731,255 459,416,458 14,645,089 Repayment of long-term borrowings (300,531,590 ) (208,074,986 ) (378,109,527 ) (12,053,220 ) Repayment of the principle portion of lease liabilities (1,136,666 ) (1,547,291 ) (1,063,297 ) (33,895 ) Dividends paid (37,840,609 ) (22,459,417 ) (23,033,989 ) (734,268 ) Proceeds from exercise of employee share options 1,175,260 1,103,058 3,480,455 110,948 Decrease in non-controlling interests (484,348 ) (872,613 ) (1,157,064 ) (36,884 ) Other financing activities items 2,740 18,243 254 8 Net cash generated from (used in) financing activities (49,101,039 ) (7,271,206 ) 45,269,136 1,443,071 (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) For the Year Ended December 31 2023 2024 2025 NT$ NT$ NT$ US$ (Note 4) EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD EQUIVALENTS 9,244,124 9,208,306 15,976,027 509,277 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 58,040,394 67,284,518 76,492,824 2,438,407 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 67,284,518 $ 76,492,824 $ 92,468,851 $ 2,947,684 IN FOREIGN CURRENCY $ (954,692 ) $ 9,600,423 $ (5,898,137 ) $ (188,018 ) NET INCREASE IN CASH AND CASH The accompanying notes are an integral part of the consolidated financial statements. (Concluded) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Amounts in Thousands, Unless Stated Otherwise) GENERAL INFORMATION ASE Technology Holding Co., Ltd. (the "Company") is a corporation incorporated in Nanzih Technology Industrial Park under the laws of Republic of China ("R.O.C.") starting from April 30, 2018 (date of incorporation). The Company and its subsidiaries (collectively referred to as the "Group") offer a comprehensive range of semiconductors packaging, testing, and electronic manufacturing services ("EMS"). The Company's subsidiaries, Advanced Semiconductor Engineering, Inc. (symbol "2311", "ASE") and Siliconware Precision Industries Co., Ltd. (symbol "2325", "SPIL"), entered into and executed a joint share exchange agreement to establish the Company, and the Company acquired all issued and outstanding ordinary shares of ASE and SPIL on April 30, 2018. Both of ASE's and SPIL's ordinary shares have been delisted while the ordinary shares of the Company were listed starting from the same date under the symbol "3711". In addition, ASE's ordinary shares that have been traded on the New York Stock Exchange (the "NYSE") under the symbol "ASX" in the form of American Depositary Shares ("ADS") since September 2000 were exchanged as the Company's ADSs under the same symbol "ASX" starting from April 30, 2018. The Company's subsidiaries, ASE and SPIL, were approved by the competent authority to terminate their public offering in March 2024 and April 2024, respectively, and cease the status as a public company. The ordinary shares of the Company's subsidiary, Universal Scientific Industrial (Shanghai) Co., Ltd. ("USISH"), have been listed on the Shanghai Stock Exchange under the symbol "601231" since February 2012. The consolidated financial statements are presented in the Company's functional currency, New Taiwan dollar (NT$). APPROVAL OF FINANCIAL STATEMENTS The accompanying consolidated financial statements were authorized for issue by the management on March 27, 2026. APPLICATION OF NEW, AMENDED AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD ("IASB") (collectively, "IFRS Accounting Standards") Amendments to IFRS Accounting Standards that are mandatorily effective for the current year In the current year, the Group applied the amendments to IAS 21 "Lack of Exchangeability." The initial application of the aforementioned new, revised or amended standards and interpretations did not have material impact on the Group's accounting policies. New, revised or amended IFRS Accounting Standards in issue but not yet effective The Group has not applied the following new, revised or amended IFRS Accounting Standards that have been issued but are not yet effective: New, Revised or Amended Standards and Interpretations Effective Date Announced by IASB (Note 1) 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 Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026 Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture" To be determined by IASB IFRS 18 "Presentation and Disclosures in Financial Statements" January 1, 2027 Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates. Material changes in accounting policy resulted from new, revised and amended IFRS Accounting Standards in issue but not yet effective Except for the following, as of the date that the accompanying consolidated financial statements were authorized for issue, the Group is continuously assessing other impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impacts when the assessment is completed. IFRS 18 "Presentation and Disclosure in Financial Statements" and consequential amendments IFRS 18 will supersede IAS 1 "Presentation of Financial Statements". The main changes comprise: To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers. The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss. Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label. Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards, and the income tax and non-controlling interests effects of related reconciliation items. In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows": The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method. Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION Statement of compliance The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the IASB. Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for financial instruments measured at fair value, contingent considerations assumed in business combinations, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets. Classification of current and non-current assets and liabilities Current assets include cash and cash equivalents and those assets held primarily for trading purposes or expected to be realized within 12 months after the balance sheet date, unless the asset is to be used for an exchange or to settle a liability, or otherwise remains restricted, for more than 12 months after the balance sheet date. Current liabilities are obligations incurred for trading purposes or to be settled within 12 months after the balance sheet date (even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the balance sheet date and before the consolidated financial statements are authorized for issue) and liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the balance sheet date. Assets and liabilities that are not classified as current are classified as non-current. Terms of a liability that could, at the option of the counterparty, result in its settlement by the transfer of the Group's own equity instruments do not affect its classification as current or non-current if the Group classifies the option as an equity instrument. The Group engages in the real estate development business which has an operating cycle of over one year. The normal operating cycle applies when considering the classification of the Group's real estate development-related assets and liabilities. Basis of consolidation Principles for preparing consolidated financial statements The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e. its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities. The detail information of the subsidiaries was as follows: Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2024 2025 The Company ASE Engaged in the packaging and testing of semiconductors R.O.C. 100.0 100.0 USI Inc. ("USIINC") Holding company R.O.C. 100.0 100.0 SPIL Engaged in the assembly, testing and turnkey services of integrated circuit R.O.C. 100.0 100.0 ASE Social Enterprise Co., Ltd. ("ASE SOCIAL") ASE Global Integrated Solutions Co., Ltd. Engaged in social services R.O.C. 100.0 100.0 Engaged in integration-relevant services R.O.C. 100.0 100.0 ASE A.S.E. Holding Limited Holding company Bermuda 100.0 100.0 J & R Holding Limited ("J&R Holding company Bermuda 100.0 100.0 Holding") Innosource Limited Holding company British Virgin Islands Omniquest Industrial Limited Holding company British Virgin Islands 100.0 100.0 71.0 71.0 ASE Marketing & Service Japan Engaged in marketing and sales services Japan 100.0 100.0 Co., Ltd. ASE Test, Inc. ("ASET") Engaged in the testing of semiconductors R.O.C. 100.0 100.0 Advanced Microelectronic Products Inc. ("AMPI") Engaged in the manufacturing of integrated circuit R.O.C. 6.9 6.9 ASE Singapore Pte. Ltd. Engaged in the packaging and testing of semiconductors ASE Electronics (M) Sdn. Bhd. Engaged in the packaging and testing of semiconductors Singapore 100.0 100.0 Malaysia 100.0 100.0 ASEP Cayman Ltd. ("ASEPCAYMAN") Engaged in the packaging and testing of semiconductors, and was acquired in August 2024 (Note 29) British Cayman Islands 100.0 100.0 HydroTron Power Co., Ltd. Micro-hydro power generation, and was acquired in October 2025 R.O.C. - 100.0 ASET Alto Enterprises Limited Holding company British Virgin Islands 100.0 100.0 Super Zone Holdings Limited Holding company Hong Kong 100.0 100.0 TLJ Intertech Inc. Engaged in information software services AMPI Engaged in the manufacturing of integrated circuit R.O.C. 60.0 60.0 R.O.C. 48.9 54.1 A.S.E. Holding Limited ASE Investment (Labuan) Inc. Holding company Malaysia 70.1 70.1 ASE Test Limited ("ASE Test") Holding company Singapore 10.2 10.2 Integrated Solutions Enterprise Trading company Belgium 100.0 100.0 Europe (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2024 2025 J&R Holding ASE Test Holding company Singapore 89.8 89.8 Omniquest Industrial Limited Holding company British Virgin Islands 8.4 8.4 J&R Industrial Inc. Engaged in leasing and investing activity ASE Japan Co., Ltd. Engaged in the packaging and testing of semiconductors R.O.C. 100.0 100.0 Japan 100.0 100.0 ASE (U.S.) Inc. After-sales service and sales support U.S.A. 100.0 100.0 Global Advanced Packaging Technology Limited Holding company British Cayman Islands 100.0 100.0 Innosource Limited Omniquest Industrial Limited Holding company British Virgin Islands 20.6 20.6 ASE (Shanghai) Inc. ("ASEMTL") Engaged in the production of substrates Shanghai, China 8.5 8.5 ASE Enterprise Management (Shanghai) Inc. ("ASEEMSH") Engaged in the leasing of properties and buildings Shanghai, China 8.5 8.5 Omniquest Industrial Limited ASE Corporation Holding company British Cayman Islands 100.0 100.0 Kun Shan, China 100.0 100.0 Shanghai, China 100.0 100.0 Korea 100.0 100.0 Korea 100.0 100.0 British Cayman 100.0 100.0 Islands Malaysia 29.9 29.9 U.S.A. 100.0 100.0 U.S.A. 100.0 100.0 Shanghai, China 100.0 100.0 Wuxi, China 100.0 100.0 Shanghai, China 100.0 100.0 Shanghai, China 60.0 60.0 Shanghai, China 100.0 100.0 Shanghai, China 100.0 100.0 Alto Enterprises Limited ASE Investment (Kun Shan) Limited Holding company Super Zone Holdings Limited Advanced Semiconductor Engineering (China) Ltd. Engaged in the packaging and testing of semiconductors, after-sale services, advisory and lease of factory ASE Investment (Labuan) Inc. ASE (Korea) Inc. Engaged in the packaging and testing of semiconductors ASE (Korea) Inc. ASE Cheonan, Inc. ("CHE") Engaged in the packaging and testing of semiconductors, and was acquired in August 2024 (Note 29) ASE Test ASE Test Holdings, Ltd. Holding company ASE Investment (Labuan) Inc. Holding company ASE Test Holdings, Ltd. ISE Labs, Inc. Engaged in the testing of semiconductors ISE Labs, Inc. ISE Services, Inc. Engaged in turnkey services of semiconductors Global Advanced Packaging Technology Limited ASE Assembly & Test (Shanghai) Limited ("ASESH") Engaged in the packaging and testing of semiconductors and leasing of properties ASESH Wuxi Tongzhi Microelectronics Co., Ltd. Engaged in the packaging and testing of semiconductors ISE Labs, China, Ltd. Engaged in the testing of semiconductors Shanghai Ding Hui Real Estate Development Co., Ltd. ("DH") DH Shanghai Ding Qi Property Management Co., Ltd. Shanghai Ding Wei Real Estate Development Co., Ltd. Shanghai Ding Yu Real Estate Development Co., Ltd. Kun Shan Ding Hong Real Estate Development Co., Ltd. Shanghai Ding Xu Property Management Co., Ltd. Shanghai Ding Yao Estate Development Co., Ltd. Shanghai Ding Fan Business Management Co., Ltd. Engaged in the development, construction and sale of real estate properties Engaged in the management of real estate properties Engaged in the management of properties, parking lot business and leasing of properties for shopping center Engaged in the management of properties, parking lot business and leasing of properties for shopping center Engaged in the development, construction and leasing of properties for shopping center Engaged in the management of real estate properties Engaged in the management of real estate properties Engaged in the management of commercial complex services and department store trading Shanghai, China 100.0 100.0 Kun Shan, China 100.0 100.0 Shanghai, China 100.0 100.0 Shanghai, China 100.0 100.0 Shanghai, China 100.0 100.0 ASE Corporation ASE Mauritius Inc. Holding company Mauritius 100.0 100.0 ASE Labuan Inc. Holding company Malaysia 100.0 100.0 ASE Mauritius Inc. ASEMTL Engaged in the production of substrates Shanghai, China 91.5 91.5 ASE Labuan Inc. ASE Electronics Inc. Engaged in the production of substrates R.O.C. 100.0 100.0 ASEMTL Advanced Semiconductor Trading company Hong Kong 100.0 100.0 ASEEMSH Engaged in the leasing of properties and buildings Shanghai, China 91.5 91.5 Engineering (HK) Limited Universal Scientific Industrial (Shanghai) Co., Ltd. ("USISH") Engaged in the designing, manufacturing and sales of electronic components Shanghai, China 0.8 0.8 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2024 2025 ASEEMSH DH Engaged in the development, construction and sale of real estate properties Shanghai, China 40.0 40.0 ASEPCAYMAN Cyland Corp. Engaged in the leasing of real estate The Philippines 39.8 39.8 USIINC Huntington Holdings International Co., Ltd. Holding company British Virgin Islands 100.0 100.0 Huntington Holdings International Co., Ltd. Unitech Holdings International Co., Ltd. Holding company British Virgin Islands 100.0 100.0 Real Tech Holdings Limited Holding company British Virgin Islands 100.0 100.0 Universal ABIT Holding Co., Ltd. In the process of liquidation British Cayman Islands 100.0 100.0 Real Tech Holdings Limited USI Enterprise Limited ("USIE") Universal Ample Technology Co., Limited Hirschmann Mobility Holding GmbH Engaged in the service of investment advisory and warehousing management In the process of liquidation (acquired from Universal Global Technology Co., Limited in September 2025) Holding company (acquired from Universal Ample Technology Co., Limited in October 2025) Hong Kong 100.0 100.0 Hong Kong - 75.1 Germany - 75.1 Universal Ample Technology Co., Limited Hirschmann Mobility Holding GmbH Hirschmann Mobility Holding GmbH Hirschmann Car Communication Holding S.a.r.l. ("Hirschmann") Hirschmann Car Communication GmbH Hirschmann Car Communication Kft. Hirschmann Car Communication, Inc. Holding company (disposed to Real Tech Holdings Limited in October 2025) Holding company (merged by Hirschmann Mobility Holding GmbH in July 2025) Engaged in the research and development, manufacturing and sales of PCBAs and tuners Engaged in the manufacturing and sales of antennas, RF amplifiers, connectors and wave straps Engaged in the research and development, and sales marketing Germany 100.0 - Luxembourg 100.0 - Germany - 100.0 Hungary - 100.0 U.S.A. - 100.0 Hirschmann Hirschmann Car Communication GmbH Hirschmann Car Communication Kft. Hirschmann Car Communication, Inc. Engaged in the research and development, manufacturing and sales of PCBAs and tuners Engaged in the manufacturing and sales of antennas, RF amplifiers, connectors and wave straps Engaged in the research and development, and sales marketing Germany 100.0 - Hungary 100.0 - U.S.A. 100.0 - Hirschmann Car Communication GmbH Hirschmann Car Communication S.A.S. Hirschmann Car Communication (Shanghai) Co., Ltd. Engaged in the research and development, and sales marketing Engaged in the sales of antennas, RF amplifiers and wave straps, PCBs, and tuners France 100.0 100.0 Shanghai, China 100.0 100.0 USIE USISH Engaged in the designing, manufacturing and sales of electronic components Shanghai, China 77.1 74.3 USISH Universal Global Technology Co., Limited Holding company Hong Kong 100.0 100.0 Universal Global Technology (Kunshan) Co., Ltd. ("UGKS") Universal Global Technology (Shanghai) Co., Ltd. Universal Global Electronics (Shanghai) Co., Ltd. USI Electronics (Shenzhen) Co., Ltd. ("USISZ") Universal Global Technology (Huizhou) Co., Ltd. Universal Optoelectronics Co., Ltd Engaged in the designing and manufacturing of electronic components Engaged in the processing and sales of computer and communication peripherals as well as business in import and export of goods and technology Engaged in the sales of electronic components and telecommunications equipment Engaged in the design, manufacturing and sales of motherboards and computer peripherals Engaged in the research and manufacturing of new electronic applications, communications, computers and other electronics products and also provided auxiliary technical services as well as import and export services Engaged in the manufacturing of optoelectronic devices, optical communication equipment, electronic components devices, integrated circuit chips and products as well as import and export services, and was established in December 2025 Kun Shan, China 100.0 100.0 Shanghai, China 100.0 100.0 Shanghai, China 100.0 100.0 Shenzhen, China 50.0 50.0 Huizhou, China 100.0 100.0 Shanghai, China - 100.0 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2024 2025 FINANCIERE AFG ("FAFG") Holding company France 10.4 10.4 Universal Global Technology Co., Limited Universal Global Industrial Co., Limited Universal Global Scientific Industrial Co., Ltd. ("UGTW") Engaged in manufacturing, trading and investing activity Engaged in the manufacturing of components of telecommunication and cars and provision of related R&D services Hong Kong 100.0 100.0 R.O.C. 100.0 100.0 USI America Inc. Engaged in the manufacturing and processing of motherboards and wireless network communication and provision of related technical service U.S.A. 100.0 100.0 Universal Scientific Industrial De Mexico S.A. De C.V. Engaged in the assembling of motherboards and computer components Mexico 100.0 100.0 USI Japan Co., Ltd. Engaged in the manufacturing and sales of computer peripherals, integrated chip and other related accessories USISZ Engaged in the design, manufacturing and sales of motherboards and computer peripherals Japan 100.0 100.0 Shenzhen, China 50.0 50.0 Universal Scientific Industrial (France) Engaged in investing activities France 100.0 100.0 Universal Global Industrial Co., Limited UNIVERSAL SCIENTIFIC INDUSTRIAL VIETNAM COMPANY LIMITED Universal Ample Technology Co., Limited Universal Scientific Industrial De Mexico S.A. De C.V. Engaged in IC assembly for wearable devices Holding company (disposed to Real Tech Holdings Limited in September 2025) Engaged in the assembling of motherboards and computer components Vietnam 100.0 100.0 Hong Kong 75.1 -Mexico (Note 1) (Note 1) UGTW Universal Scientific Industrial Co., Ltd. Engaged in the manufacturing, processing and sales of computers, computer peripherals and related accessories R.O.C. 100.0 100.0 Universal Global Electronics (Shanghai) Co., Ltd. USI Science and Technology (Shenzhen) Co., Ltd. Engaged in the design of electronic components, service of technical advisory; wholesale of electronic components and communication peripherals as well as business in import and export of goods and management of properties Shenzhen, China 100.0 100.0 Universal Scientific Industrial (France) FAFG Holding company France 89.6 89.6 FAFG MANUFACTURING POWER TUNISIA ASTEELFLASH MEXICO S.A. de C.V. ASTEELFLASH (BEDFORD) LIMITED Engaged in the design and manufacturing of electronic components Engaged in the design and manufacturing of electronic components Engaged in the design and manufacturing of electronic components Tunisia 99.9 99.9 Mexico 99.9 99.9 United Kingdom 100.0 100.0 ASTEELFLASH FRANCE Engaged in the design and manufacturing of electronic components ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components France 99.9 99.9 Tunisia 100.0 100.0 ASTEELFLASH HONG KONG LIMITED Holding company Hong Kong 100.0 100.0 Asteelflash Holding GmbH. Engaged in the design and manufacturing of electronic components Germany 100.0 100.0 ASTEELFLASH US HOLDING CORP. Holding company U.S.A. 100.0 100.0 AFERH TUNISIE Engaged in the management, training and consulting of organization and human resources Tunisia 0.5 0.5 ASTEEL ELECTRONICS MANUFACTURING SERVICES Engaged in the design and manufacturing of electronic components Tunisia 0.1 0.1 ASTEELFLASH PLZEN S.R.O. Engaged in the design and manufacturing of electronic components Czech Republic 100.0 100.0 (Continued) Establishment Percentage of Ownership (%) Tunisia (Note 1) (Note 1) France (Note 1) (Note 1) Tunisia 99.9 99.9 France 100.0 100.0 Tunisia (Note 1) (Note 1) Tunisia 99.5 99.5 Mexico 0.1 0.1 Tunisia 0.1 0.1 Suzhou, China 100.0 100.0 Hong Kong 100.0 100.0 and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2024 2025 ASTEELFLASH (BEDFORD) LIMITED ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components ASTEELFLASH TECHNOLOGIE ASTEELFLASH FRANCE Engaged in the design and manufacturing of electronic components ASTEELFLASH FRANCE ASTEEL ELECTRONICS MANUFACTURING SERVICES ASTEELFLASH TECHNOLOGIE Engaged in the design and manufacturing of electronic components Engaged in projection of plastic and the design and manufacturing of industrial components ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components AFERH TUNISIE Engaged in the management, training and consulting of organization and human resources ASTEELFLASH MEXICO S.A. de C.V. MANUFACTURING POWER TUNISIA Engaged in the design and manufacturing of electronic components Engaged in the design and manufacturing of electronic components ASTEELFLASH HONG KONG LIMITED Asteelflash Suzhou Co., Ltd. Engaged in the design and manufacturing of electronic components UGHK Engaged in accepting and outsourcing orders as well as sales of electronic components and service of technical advisory UGHK USI Asteelflash Poland Sp. z o.o. (renamed in May 2025, formerly named as Universal Scientific Industrial Poland Sp. z o.o.) Asteelflash Suzhou Co., Ltd. ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components and new electronic applications Poland 100.0 100.0 Engaged in the design and Tunisia manufacturing of electronic (Note 1) (Note 1) components Engaged in the design and Germany manufacturing of electronic components 100.0 100.0 Engaged in the design and Germany manufacturing of electronic 100.0 100.0 components Engaged in the design and Romania manufacturing of electronic 100.0 100.0 components Engaged in the design and Tunisia manufacturing of electronic (Note 1) (Note 1) components Engaged in the design and Tunisia manufacturing of electronic (Note 1) (Note 1) components Engaged in the design and U.S.A. manufacturing of electronic 100.0 100.0 components Engaged in the design and Tunisia manufacturing of electronic (Note 1) (Note 1) components Engaged in investing activities British Virgin 100.0 100.0 Engaged in the assembly and testing Islands Malaysia 100.0 100.0 Engaged in marketing activities in North U.S.A. 100.0 100.0 Asteelflash Holding GmbH. ASTEELFLASH Germany GmbH. (renamed in January 2024, formerly named as ASTEELFLASH HERSFELD GmbH) ASTEELFLASH DESIGN SOLUTIONS HAMBURG GmbH EN ELECTRONICNETWORK SRL ASTEELFLASH TUNISIE S.A. ASTEELFLASH MEXICO S.A. de C.V. ASTEELFLASH US HOLDING CORP. ASTEELFLASH USA CORP. ASTEELFLASH TUNISIE S.A. ASTEELFLASH USA CORP. ASTEELFLASH TUNISIE S.A. SPIL SPIL (B.V.I.) Holding Limited SPIL (B.V.I.) Holding Limited Siliconware Precision Malaysia Sdn. Bhd. Siliconware USA, Inc. America SPIL (Cayman) Holding Limited Engaged in investing activities British Cayman Islands 100.0 100.0 SPIL (Cayman) Holding Limited Siliconware Technology (Suzhou) Limited Engaged in the packaging and testing of semiconductors Suzhou, China 100.0 100.0 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2024 2025 ASE SOCIAL Goodcare Holdings Inc. Holding company, and was acquired in August 2025 Goodcare Holdings Inc. Goodcare Health Inc. Engaged in the social services, and was acquired in August 2025 TW Future Homecare Inc. Engaged in the social services, and was acquired in August 2025 TW Future Homecare Inc. TC SPRING CO.,LTD. Engaged in the social services, and was acquired in August 2025 R.O.C. - 67.2 R.O.C. - 100.0 R.O.C. - 100.0 R.O.C. - 100.0 (Concluded) Note 1: The number of shares held was 1 share and the percentage of ownership was less than 0.1%. Business combinations Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after re-assessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Where the consideration the Group transfers in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and considered as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with the corresponding adjustments being made against goodwill or gains on bargain purchases. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period about facts and circumstances existed as of the acquisition date. The measurement period does not exceed 1 year from the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration not classified as equity is remeasured at fair value at the end of subsequent reporting period with any gain or loss recognized in profit or loss. When a business combination is achieved in stages, the Group's previously held equity interest in an acquiree is remeasured to fair value at the acquisition date, and the resulting gain or loss, if any, is recognized in profit or loss or other comprehensive income. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized on the same basis as would be required had those interests been directly disposed of by the Group. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted retrospectively during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances existed at the acquisition date that, if known, would have affected the amounts recognized at that date. Business combination involving entities under common control is not accounted for using the acquisition method but is accounted for at the carrying amounts of the entities. The Group elected not to restate comparative information of the prior period in the financial statements as the business combination was an organization restructure under common control. Foreign currencies In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e. foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise except for exchange differences on transactions entered into in order to hedge certain foreign currency risks. Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period, except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which cases, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items denominated in a foreign currency and measured at historical cost are translated using the exchange rate at the date of the transaction, and are not retranslated. For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group's foreign operations (including subsidiaries, associates and joint ventures in other countries that use different currencies from the Company) are translated into the New Taiwan dollars using exchange rates prevailing at each balance sheet date. Income and expense items are translated and accumulated at the average exchange rates for each month of the period. The resulting currency translation differences are recognized in other comprehensive income and accumulated in equity attributed to the owners of the Company and non-controlling interests as appropriate. On the disposal of the Group's entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset, all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. In relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to the non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss. Goodwill and fair value adjustments recognized on identifiable assets and liabilities of acquired foreign operation are treated as assets and liabilities of the foreign operation and translated at the rates of exchange prevailing at the end of each reporting period. Exchange differences are recognized in other comprehensive income. Inventories and inventories related to real estate business Inventories, including raw materials, supplies, work in process, finished goods, and materials and supplies in transit, are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it is appropriate to group items of similar or related inventories. Net realizable value is the estimated selling prices of inventories less all estimated costs of completion and estimated costs necessary to make the sale. Raw materials and supplies are recorded at moving average cost while work in process and finished goods are recorded at standard cost. Inventories related to real estate business include land and buildings held for sale and construction in progress. Prior to the completion, the borrowing costs directly attributable to construction in progress are capitalized as part of the cost of the asset. Construction in progress is transferred to land and buildings held for sale upon completion. Land and buildings held for sale and construction in progress are stated at the lower of cost or net realizable value and related write-downs are made by item. The amounts received in advance for real estate properties are first recorded as advance receipts and then recognized as revenue when the construction is completed and the title and significant risk of the real estate properties are transferred to customers. Cost of sales of land and buildings held for sale are recognized based on the ratio of property sold to the total property developed. Investments in associates and joint ventures An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Joint venture is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the net assets of the arrangement. The Group applies the equity method to investments in an associate and joint venture. Under the equity method, investments in an associate and a joint venture are initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group's share of equity of associates and joint ventures. Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate or a joint venture at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition after reassessment is recognized immediately in profit or loss. When the Group subscribes for additional new shares of an associate and a joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate and joint venture. The Group records such a difference as an adjustment to investments with the corresponding amount charged to gain or loss on disposal of investments accounted for using the equity method. When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. When the Group's share of losses of an associate and a joint venture equals or exceeds its interest in that associate and joint venture (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group's net investment in the associate and joint venture), the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations or constructive obligations, or made payments on behalf of that associate and joint venture. The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate and a joint venture. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment's fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate and the joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and the joint venture. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate and joint venture on the same basis as would be required had that associate directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest. When the Group transacts with its associate and joint venture, profits and losses resulting from the transactions with the associate and joint venture are recognized in the Group' consolidated financial statements only to the extent that interests in the associate and the joint venture are not related to the Group. Property, plant and equipment Except for land which is stated at cost, property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment. Properties in the course of construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use. Freehold land is not depreciated. Depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis. On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss. Investment properties Investment properties are properties held to earn rental and/or for capital appreciation. Investment properties include right-of-use assets and properties under construction that meet the definition of investment properties. Freehold investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Investment properties acquired through leases are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made on or before the commencement date, plus initial direct costs incurred and an estimate of costs needed to restore the underlying assets, less any lease incentives received. These investment properties are subsequently measured at cost less accumulated depreciation and accumulated impairment loss and adjusted for any remeasurement of the lease liabilities. Depreciation is recognized using the straight-line method. Investment properties under construction are measured at cost less accumulated impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Depreciation of these assets commences when the assets are ready for their intended use. For a transfer of classification from investment properties to property, plant and equipment and to right-of-use assets, the deemed cost of the property for subsequent accounting is its carrying amount at the commencement of owner-occupation. For a transfer of classification from property, plant and equipment and right-of-use assets to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the end of owner-occupation. For a transfer of classification from inventories to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the inception of an operating lease. On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss. Goodwill Goodwill arising from an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss. For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units or groups of cash-generating units (referred to as "cash-generating unit") that is expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods. Other intangible assets Separate acquisition Other intangible assets with finite useful lives acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Other intangible assets are amortized using the straight-line method over their estimated useful lives. The estimated useful lives, residual values, and amortization methods are reviewed at each balance sheet date, with the effect of any changes in estimate being accounted for on a prospective basis. Acquired through business combinations Other intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date which is regarded as their cost. Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately. Derecognition On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss. Impairment of property, plant and equipment, right-of-use asset, investment properties and intangible assets other than goodwill At each balance sheet date, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset, investment properties and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis. The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss. When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. Financial instruments Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss. Financial assets All regular purchases or sales of financial assets are recognized and derecognized on a settlement date basis. Measurement categories Financial assets held by the Group are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost and investments in debt instruments and equity instruments at FVTOCI. Financial asset at FVTPL A financial asset is classified as at FVTPL when the financial asset is mandatorily classified. The Group's financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria. Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 34. Financial assets at amortized cost Financial assets that meet the following conditions are subsequently measured at amortized cost: The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost, other receivables and other financial assets, are measured at amortized cost, which equals to gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for: Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset; and Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods. A financial asset is credit-impaired when one or more of the following events have occurred: Significant financial difficulty of the issuer or the borrower; Breach of contract, such as a default; It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or The disappearance of an active market for that financial asset because of financial difficulties. Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments. Investments in debt instruments at FVTOCI For the Group's debt instruments that meet the following conditions are subsequently measured at FVTOCI: the debt instrument is held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of the financial assets; and the contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Investments in debt instruments at FVTOCI are subsequently measured at fair value. Changes in the carrying amounts of these debt instruments relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and impairment losses or reversals are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of. Investments in equity instruments at FVTOCI On initial recognition, the Group makes an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination. Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings. Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment. Impairment of financial assets and contract assets At each balance sheet date, the Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables) and investments in debt instruments that are measured at FVTOCI and contract assets. The Group always recognizes lifetime Expected Credit Loss ("ECL") for trade receivables and contract assets. For all other financial instruments, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL. Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset. Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss. Equity instruments Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company's own equity instruments is recognized in and deducted directly from equity and calculated separately by repurchase category. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments. Financial liabilities Subsequent measurement All financial liabilities are measured at amortized cost using the effective interest method except for: Financial liabilities are classified as at FVTPL when such financial liabilities are held for trading. Financial liabilities held for trading are stated at fair value, and any gains or losses on such financial liabilities are recognized in other gains or losses. Fair value is determined in the manner described in Note 34. Derecognition of financial liabilities The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including forward exchange contracts and swap contracts. Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability. Derivatives embedded in hybrid contracts that contain financial asset hosts within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g. financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at FVTPL. Convertible bonds issued by the subsidiaries The component parts of compound instruments (i.e., convertible bonds) issued by the subsidiary are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or upon the instrument's maturity date. Any embedded derivative liability is measured at fair value. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in non-controlling interests, and is not subsequently remeasured. When the conversion option remains unexercised at maturity, the balance recognized in non-controlling interests will be transferred to capital surplus - the change of interest in subsidiaries. Transaction costs that relate to the issuance of the convertible bonds are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in non-controlling interests. Transaction costs relating to the liability component are included in the carrying amount of the liability component. Hedge accounting The Group designates certain non-derivatives as hedging instruments in respect of foreign currency risk in fair value hedges and hedges of net investments in foreign operations. Fair value hedges Gains or losses on hedging instruments that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognized in profit or loss in the line item relating to the hedged item. The Group discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. Hedges of net investments in foreign operations Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized in other comprehensive income and accumulated under the heading of foreign currency translation reserve. The gains or losses relating to the ineffective portion are recognized immediately in profit or loss. The gains and losses on the hedging instrument relating to the effective portion of the hedge, which were accumulated in the foreign currency translation reserve, are reclassified to profit or loss on the disposal or partial disposal of a foreign operation. Revenue recognition The Group identifies the contracts with customers, allocates transaction prices to performance obligations and, when performance obligations are satisfied, recognizes revenues at fixed amounts as agreed in the contracts with taking estimated volume discounts into consideration. For contracts where the period between the date on which the Group transfers a promised good or service to a customer and the date on which the customer pays for that good or service is one year or less, the Group does not adjust the promised amount of consideration for the effects of a significant financing component. The Group's duration of contracts with customers is expected to be one year or less, and the consideration from contracts with customers is included in transaction price and, therefore, can apply the practical expedient that not to disclose the performance obligations including (i) the aggregate amount of the transaction price allocated to the performance obligations that are not fully satisfied or have partially completed at the end of the reporting period, and (ii) the expected timing for recognition of revenue. The Group's operating revenues include revenues from sale of goods and services as well as sale and leasing of real estate properties. When customers control goods while the packaging and testing are in progress, the Group measures the progress on the basis of costs incurred relative to the total expected costs as there is a direct relationship between the costs incurred and the progress of satisfying the performance obligations. Revenue and contract assets are recognized during the packaging and testing process and contract assets are reclassified to trade receivables when the packaging and testing are completed or when the goods are shipped upon customer's request. The Group recognizes revenues and trade receivables when the goods are shipped or when the goods are delivered to the customer's specified location because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Revenues from sale of real estate properties are recognized when customers purchase real estate properties and complete the transfer procedures. Revenues from leasing real estate properties are recognized during leasing periods on the straight-line basis. Leases At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. For a contract that contains a lease component and non-lease components, the Group elects to account for the lease and non-lease components as a single lease component. The Group as lessor Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. When the Group subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Group, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease. Lease payments (less any lease incentives payable) from operating leases are recognized as income on a stra...

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