ASE Technology : 2025 Financial Report (T-IFRS)

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

ASE Technology Holding Co., Ltd. and Subsidiaries Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024, and Independent Auditors' Report REPRESENTATION LETTER The entities that are required to be included in the consolidated financial statements of affiliates as of and for the year ended December 31, 2025, under the "Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standards No. 10, "Consolidated Financial Statements." In addition, the information required to be disclosed in the consolidated financial statements has all been disclosed in the consolidated financial statements of the parent and subsidiary companies. Consequently, ASE Technology Holding Co., Ltd. and its subsidiaries did not prepare a separate set of consolidated financial statements of affiliates. Very truly yours, ASE Technology Holding Co., Ltd. By JASON C.S. CHANG Chairman March 9, 2026 INDEPENDENT AUDITORS' REPORT The Board ofDirectors and Shareholders ASE Technology Holding Co., Ltd. Opinion We have audited the accompanying consolidated financial statements of ASE Technology Holding Co., Ltd. (the "Company") and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements"). In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Basis for Opinion We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm ofProfessional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The key audit matter of the Group's consolidated financial statements for the year ended December 31, 2025, is discussed as follows. Evaluation of Goodwill Allocated to the Packaging and Testing Segments for Impairment 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$51,886,100 thousand as of December 31, 2025, of which NT$34,867,397 thousand and NT$13,348,020 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. The operation of the packaging and testing segments is sensitive to changes in demand in the semiconductor industry which varies by economic trends. Given 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, performing audit procedures to evaluate the reasonableness of management's estimates and assumptions related to the selection of the discount rates and forecasts of future revenues for the packaging and testing segments required a high degree of auditors' judgment and an increased extent of effort, including the need to involve our valuation specialists. Please refer to Notes 4(k), 5 and 18 for the related accounting policy, critical accounting judgements and key sources of estimation uncertainty as well as other disclosures on the Group's evaluation of goodwill for impairment. 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 controls related to management's selection of the discount rates and assessment on the reasonableness of forecasts of future revenues when management determined the value inuse of the packaging and testing segments. 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. Other Matter We have also audited the Company's parent company only financial statements as of and for the years ended December 31, 2025 and 2024, respectively, on which we have issued an unmodified opinion. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation ofFinancial Reports by Securities Issuers and IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance, including the audit committee, are responsible for overseeing the Group's financial reporting process. Auditors' Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks ofmaterial misstatement ofthe consolidated financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk ofnot detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness ofmanagement's use of the going concern basis of accounting and, based on the audit evidence obtained, whether amaterial uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in amanner that achieves fair presentation. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express anopinion on the consolidated financial statements. We are responsible for the direction, supervision, andperformance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partners on the audit resulting in this independent auditors' report are Kai-Ning Hsu and Lee-Yuan Kuo. Deloitte & Touche Taipei, Taiwan Republic of China March 9, 2026 Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, consolidated financial performance and consolidated cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors' report and the accompanying consolidatedfinancial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any co flict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese version of the independent auditors' report and consolidatedfinancial statements shall prevail. ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) December 31, 2025 December 31, 2024 ASSETS NT$ % NT$ % CURRENT ASSETS Cash and cash equivalents (Note 6) $ 92,468,851 10 $ 76,492,824 10 Financial assets at fair value through profit or loss - current (Note 7) 7,754,182 1 8,390,606 1 Contract assets - current (Note 39) 7,568,112 1 5,640,317 1 Trade receivables, net (Note 10) 125,042,214 14 113,419,820 15 Other receivables 2,499,294 - 2,895,495 - Current tax assets 884,793 - 731,828 - Inventories (Note 11) 65,672,973 8 57,313,938 8 Inventories related to real estate business (Notes 12 and 35) 3,710,017 - 3,866,994 1 Other financial assets - current (Notes 13 and 35) 1,760,287 - 985,925 - Other current assets 6,434,369 1 5,547,339 1 Total current assets 313,795,092 35 275,285,086 37 NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Note 7) 2,433,310 - 2,441,436 - Financial assets at fair value through other comprehensive income - non-current (Note 8) 13,615,254 2 13,959,493 2 Investments accounted for using the equity method (Note 14) 25,520,228 3 20,716,883 3 Property, plant and equipment (Notes 15, 25, 35 and 36) 421,115,044 47 312,531,471 42 Right-of-use assets (Note 16) 12,636,536 1 11,851,087 2 Investment properties (Notes 17, 25 and 35) 18,736,891 2 20,055,044 3 Goodwill (Note 18) 51,886,100 6 51,869,537 7 Other intangible assets (Notes 19 and 25) 12,920,602 1 15,692,350 2 Deferred tax assets 7,698,208 1 7,175,371 1 Other financial assets - non-current (Notes 13 and 35) 4,108,146 1 4,691,997 1 Other non-current assets 4,867,943 1 4,428,052 - Total non-current assets 575,538,262 65 465,412,721 63 TOTAL $ 889,333,354 100 $ 740,697,807 100 (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) December 31, 2025 December 31, 2024 LIABILITIES AND EQUITY NT$ % NT$ % CURRENT LIABILITIES Short-term borrowings (Notes 20 and 35) $ 31,825,453 4 $ 34,988,758 5 Short-term bills payable (Note 20) 2,220,419 - - - Financial liabilities at fair value through profit or loss - current (Note 7) 966,484 - 324,278 - Financial liabilities for hedging - current (Notes 20 and 33) 9,282,400 1 12,456,104 2 Trade payables 88,753,993 10 78,221,100 11 Other payables (Note 22) 74,816,290 9 63,179,235 9 Current tax liabilities 7,462,989 1 5,404,308 1 Lease liabilities - current (Note 16) 969,441 - 986,489 - Current portion of bonds payable (Note 21) 3,499,748 - 14,997,976 2 Current portion of long-term borrowings (Notes 20 and 35) 3,188,061 - 3,884,906 1 Other current liabilities (Note 36) 21,363,305 3 16,496,364 2 Total current liabilities 244,348,583 28 230,939,518 33 NON-CURRENT LIABILITIES Financial liabilities at fair value through profit or loss - non-current (Note 7) 428,884 - 508,591 - Bonds payable (Note 21) 11,467,882 1 17,978,188 2 Long-term borrowings (Notes 20 and 35) 202,612,796 23 121,750,192 16 Non-current tax liabilities 2,702,639 - - - Deferred tax liabilities 4,616,646 1 6,456,358 1 Lease liabilities - non-current (Note 16) 7,878,666 1 6,825,534 1 Net defined benefit liabilities (Note 23) 4,324,806 - 3,396,161 - Other non-current liabilities (Note 36) 37,584,819 4 7,056,670 1 Total non-current liabilities 271,617,138 30 163,971,694 21 Total liabilities 515,965,721 58 394,911,212 54 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 24) Share capital Ordinary shares 44,361,420 5 44,120,643 6 Shares subscribed in advance 118,348 - 31,862 - Total share capital 44,479,768 5 44,152,505 6 Capital surplus Retained earnings 156,457,170 17 148,872,716 20 Legal reserve 25,076,564 3 21,817,390 3 Special reserve 2,791,960 - 2,791,960 - Unappropriated earnings 112,302,713 13 99,337,337 13 Total retained earnings 140,171,237 16 123,946,687 16 Other equity 7,750,840 1 8,510,211 1 Treasury shares (1,959,107 ) - (1,959,107 ) - Equity attributable to owners of the Company 346,899,908 39 323,523,012 43 NON-CONTROLLING INTERESTS (Note 24) 26,467,725 3 22,263,583 3 Total equity 373,367,633 42 345,786,595 46 TOTAL $ 889,333,354 100 $ 740,697,807 100 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 (In Thousands of New Taiwan Dollars Except Earnings Per Share) For the Year Ended December 31 2025 2024 NT$ % NT$ % OPERATING REVENUE (Note 39) $ 645,387,710 100 $ 595,409,585 100 OPERATING COSTS (Notes 11 and 25) 531,194,836 82 498,477,841 84 GROSS PROFIT 114,192,874 18 96,931,744 16 OPERATING EXPENSES (Note 25) Selling and marketing expenses 7,404,893 1 7,467,844 1 General and administrative expenses 23,180,987 4 21,467,202 4 Research and development expenses 32,851,461 5 28,830,313 5 Total operating expenses 63,437,341 10 57,765,359 10 PROFIT FROM OPERATIONS 50,755,533 8 39,166,385 6 NON-OPERATING INCOME AND EXPENSES Other income (Note 25) 3,265,473 - 3,902,939 1 Other gains and losses (Note 25) 3,969,369 1 4,523,427 1 Finance costs (Note 25) (7,503,269 ) (1 ) (6,777,032 ) (1 ) Share of the profit of associates and joint ventures 813,723 - 867,768 - Total non-operating income and expenses 545,296 - 2,517,102 1 PROFIT BEFORE INCOME TAX 51,300,829 8 41,683,487 7 INCOME TAX EXPENSE (Note 26) 9,460,293 2 7,757,845 1 NET PROFIT FOR THE YEAR 41,840,536 6 33,925,642 6 OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation (1,238,644 ) - 234,388 - Unrealized gain (loss) on equity investments at fair value through other comprehensive income (232,486 ) - 10,016 - (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars Except Earnings Per Share) For the Year Ended December 31 2025 2024 Share of other comprehensive income NT$ % NT$ % of associates and joint ventures $ 4,556,225 1 $ 167,333 - reclassified subsequently to profit or loss 249,889 - (62,184 ) - 3,334,984 1 349,553 - Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations (5,275,665 ) (1 ) 12,788,423 2 Unrealized loss on debt investments at fair value through other comprehensive income (17,620 ) - (17,145 ) - Gain (loss) on hedging instruments (1,117,589 ) - 562,598 - Share of other comprehensive income (loss) of associates and joint ventures 37,442 - (18,192 ) - (6,373,432 ) (1 ) 13,315,684 2 Other comprehensive income (loss) for the year, net of income tax (3,038,448 ) - 13,665,237 2 TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 38,802,088 6 $ 47,590,879 8 NET PROFIT ATTRIBUTABLE TO: Owners of the Company $ 40,658,196 6 $ 32,482,479 6 Non-controlling interests 1,182,340 - 1,443,163 - $ 41,840,536 6 $ 33,925,642 6 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company $ 37,909,410 6 $ 45,333,591 8 Non-controlling interests 892,678 - 2,257,288 - $ 38,802,088 6 $ 47,590,879 8 EARNINGS PER SHARE (Note 27) Basic $ 9.37 $ 7.52 Diluted $ 8.89 $ 7.23 Income tax relating to items that will not be 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 (In Thousands of New Taiwan Dollars) Equity Attributable to Owners of the Company Other Equity Exchange Differences on Share Capital Retained Earnings Translating Unrealized Gain (Loss) on Financial Equity Directly Assets at Fair Value G ain (Loss) Unearned Associated with Shares Unappropriated Foreign Through Other on Hedging Employee Disposal Groups Non-controlling (In Thousands) Amounts Capital Surplus Legal Reserve Special Reserve Earnings Total Operations Comprehensive Income Instruments Benefit Held for Sale Total Treasury Shares Total Interests Total Equity BALANCE AT JANUARY 1, 2024 4,385,450 $ 43,854,498 $ 144,407,128 $ 18,584,524 $ 2,959,573 $ 92,573,773 $ 114,117,870 $ (7,033,730 ) $ 4,166,017 $ 277,441 $ - $ (4,676 ) $ (2,594,948 ) $ (1,959,107 ) $ 297,825,441 $ 20,284,280 $ 318,109,721 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 ) Changes from investments in associates accounted for using the equity method - - 25,397 - - - - - - - - - - - 25,397 - 25,397 Other changes in the capital surplus - - 68 - - - - - - - - - - - 68 - 68 Net profit for the year ended December 31, 2024 - - - - - 32,482,479 32,482,479 - - - - - - - 32,482,479 1,443,163 33,925,642 Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax - - - - - 173,524 173,524 12,085,635 149,015 438,262 - 4,676 12,677,588 - 12,851,112 814,125 13,665,237 Total comprehensive income (loss) for the year ended December 31, 2024, net of income tax - - - - - 32,656,003 32,656,003 12,085,635 149,015 438,262 - 4,676 12,677,588 - 45,333,591 2,257,288 47,590,879 Cash dividends received by subsidiaries from the Company - - 379,462 - - - - - - - - - - - 379,462 - 379,462 Changes in percentage of ownership interest in subsidiaries (Note 30) - - (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 cash 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 subsidiaies (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 $ 148,872,716 $ 21,817,390 $ 2,791,960 $ 99,337,337 $ 123,946,687 $ 5,051,905 $ 4,373,860 $ 715,703 $ (1,631,257 ) $ - $ 8,510,211 $ (1,959,107 ) $ 323,523,012 $ 22,263,583 $ 345,786,595 BALANCE AT JANUARY 1, 2025 4,415,251 $ 44,152,505 $ 148,872,716 $ 21,817,390 $ 2,791,960 $ 99,337,337 $ 123,946,687 $ 5,051,905 $ 4,373,860 $ 715,703 $ (1,631,257 ) $ - $ 8,510,211 $ (1,959,107 ) $ 323,523,012 $ 22,263,583 $ 345,786,595 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 ) Changes 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 - - - - - 40,658,196 40,658,196 - - - - - - - 40,658,196 1,182,340 41,840,536 Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax - - - - - (997,790 ) (997,790 ) (5,189,939 ) 4,304,322 (865,379 ) - - (1,750,996 ) - (2,748,786 ) (289,662 ) (3,038,448 ) Total comprehensive income (loss) for the year ended December 31, 2025, net of income tax - - - - - 39,660,406 39,660,406 (5,189,939 ) 4,304,322 (865,379 ) - - (1,750,996 ) - 37,909,410 892,678 38,802,088 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 30) - - (68,093 ) - - - - - - - - - - - (68,093 ) 10,618 (57,475 ) Changes in percentage of ownership interest in subsidiaries (Note 30) - - 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 $ 156,457,170 $ 25,076,564 $ 2,791,960 $ 112,302,713 $ 140,171,237 $ (138,034 ) $ 8,693,666 $ (149,676 ) $ (655,116 ) $ - $ 7,750,840 $ (1,959,107 ) $ 346,899,908 $ 26,467,725 $ 373,367,633 The accompanying notes are an integral part of the consolidated financial statements. ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Year Ended December 31 2025 2024 NT$ NT$ CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax $ 51,300,829 $ 41,683,487 Adjustments for: Depreciation expense 63,607,075 55,995,198 Amortization expense 3,832,762 3,820,014 Net gain on fair value changes of financial assets and liabilities at fair value through profit or loss (340,984 ) (9,832,900 ) Finance costs 7,503,269 6,777,032 Interest income (1,879,685 ) (1,883,518 ) Dividend income (119,634 ) (194,812 ) Share-based compensations 2,481,787 2,188,600 Share of profit of associates and joint ventures (813,723 ) (867,768 ) Gain on disposal of property, plant and equipment (809,950 ) (208,980 ) Gain on disposal of investments accounted for using the equity method (15,310 ) - Impairment loss recognized on financial assets 236,942 195,455 Impairment loss recognized on non-financial assets 816,424 603,756 Gain on bargain purchase - (76,715 ) Net loss (gain) on foreign currency exchange (2,005,284 ) 3,377,808 Others (72,453 ) (65,671 ) Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss 7,875,427 7,767,363 Contract assets (1,927,795 ) (540,241 ) Trade receivables (11,899,300 ) (14,331,791 ) Other receivables 851,315 1,068,459 Inventories (8,515,201 ) 1,781,135 Other current assets (872,015 ) (620,913 ) Other financial assets 686,757 1,009,130 Other operating assets (18,486 ) 181,390 Financial liabilities held for trading (5,719,744 ) (2,966,792 ) Trade payables 10,498,543 7,694,702 Other payables 4,638,266 1,540,330 Other current liabilities 3,535,163 95,790 Other operating liabilities 31,961,760 (387,660 ) Cash generated from operations 154,816,755 103,801,888 Interest received 1,801,128 1,811,676 Dividend received 610,201 665,916 Interest paid (7,870,200 ) (6,419,091 ) Income tax paid (7,108,597 ) (9,072,635 ) Net cash generated from operating activities 142,249,287 90,787,754 (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Year Ended December 31 2025 2024 NT$ NT$ CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income $ (478,350 ) $ (13,560 ) Proceeds from sale of financial assets at fair value through other comprehensive income - 405 Return of capital from financial assets at fair value through other comprehensive income 32,675 184,050 Acquisition of associates accounted for using the equity - (14,700 ) Net proceeds outflow on acquisition of subsidiaries (258,554 ) (1,627,074 ) Payments for property, plant and equipment (164,642,502 ) (79,521,938 ) Proceeds from disposal of property, plant and equipment 2,493,114 908,053 Payments for intangible assets (1,017,558 ) (1,567,300 ) Proceeds from disposal of intangible assets 10,022 10,177 Payments for right-of-use assets (188,303 ) (593,496 ) Payments for investment properties (33,260 ) (15,145 ) Proceeds from disposal of investment properties - 34 Increase in other financial assets (2,645,136 ) (1,686,349 ) Decrease in other financial assets 1,120,247 1,530,701 Increase in other non-current assets (511,749 ) (473,350 ) Decrease in other non-current assets 475,095 140,976 Income tax paid - (1,170,149 ) Net cash used in investing activities (165,644,259 ) (83,908,665 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of short-term borrowings (5,839,428 ) (4,514,729 ) Proceeds from short-term bills payable 2,198,419 - Repayment of short-term bills payable - (2,787,340 ) Proceeds from bonds offering 4,376,855 1,035,014 Repayment of bonds payable (15,000,000 ) (13,902,400 ) Proceeds from long-term borrowings 459,416,458 244,731,255 Repayment of long-term borrowings (378,109,527 ) (208,074,986 ) Repayment of the principle portion of lease liabilities (1,063,297 ) (1,547,291 ) Dividends paid (23,033,989 ) (22,459,417 ) Proceeds from exercise of employee share options 3,480,455 1,103,058 Decrease in non-controlling interests (1,157,064 ) (872,613 ) Other financing activities 254 18,243 Net cash generated from (used in) financing activities 45,269,136 (7,271,206 ) (Continued) ASE TECHNOLOGY HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Year Ended December 31 2025 2024 NT$ NT$ EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS $ (5,898,137 ) $ 9,600,423 NET INCREASE IN CASH AND CASH EQUIVALENTS 15,976,027 9,208,306 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 76,492,824 67,284,518 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 92,468,851 $ 76,492,824 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 FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (Amounts in Thousands of New Taiwan Dollars, 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 consolidated financial statements were authorized by the board of directors on March 9, 2026. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (the "FSC"). The application of the IFRS Accounting Standards did not have material impact on the Group's accounting policies. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026 New, Revised or Amended Standards and Interpretations Effective Date Announced by International Accounting Standards Board (IASB) 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 As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group's financial position and financial performance. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC New, Revised or Amended Standards and Interpretations Effective Date Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture" To be determined by IASB IFRS 18 "Presentation and Disclosures in Financial Statements" January 1, 2027 (Note 2) Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates. Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC. 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. Except for the above impact, as of the date the 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. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Statement of compliance The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC. 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 twelve 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 twelve months after the balance sheet date. Current liabilities are obligations incurred for trading purposes or to be settled within twelve 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 that do not have the substantial right at the end of the reporting period to defer settlement for at least twelve 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 entity's own equity instruments do not affect its classification as current or non-current if the entity classifies the option as an equity instrument. The Group engages in the construction business which has an operating cycle of over one year. The normal operating cycle applies when considering the classification of the Group's construction-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 2025 2024 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 Co., Ltd. Engaged in marketing and sales services Japan 100.0 100.0 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 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2025 2024 Singapore 100.0 100.0 Malaysia 100.0 100.0 British Cayman Islands 100.0 100.0 R.O.C. 100.0 - British Virgin 100.0 100.0 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 ASEP Cayman Ltd. ("ASEPCAYMAN") Engaged in the packaging and testing of semiconductors, and was acquired in August 2024 (Note 29) HydroTron Power Co., Ltd. Micro hydro power generation, acquired in October 2025 ASET Alto Enterprises Limited Holding company Islands 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. 54.1 48.9 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 Europe Trading company Belgium 100.0 100.0 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 Holding company Kun Shan, China 100.0 100.0 Engaged in the packaging and testing of Shanghai, China 100.0 100.0 Alto Enterprises Limited ASE Investment (Kun Shan) Limited Super Zone Holdings Limited Advanced Semiconductor Engineering (China) Ltd. semiconductors, after-sale services, advisory and lease of factory ASE Investment (Labuan) Inc. ASE (Korea) Inc. Engaged in the packaging and testing of semiconductors Korea 100.0 100.0 ASE (Korea) Inc ASE Cheonan, Inc. ("CHE") Engaged in the packaging and testing of semiconductors, and was acquired in August 2024 (Note 29) 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 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. 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 Shanghai, China 100.0 100.0 Kun Shan, China 100.0 100.0 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2025 2024 Shanghai Ding Xu Property Management Co., Ltd. Shanghai Ding Yao Estate Development Co., Ltd. Shanghai Ding Fan Business Management Co., Ltd. Engaged in the management of real estate properties Shanghai, China 100.0 100.0 Shanghai, China 100.0 100.0 Shanghai, China 100.0 100.0 Engaged in the management of real estate properties Engaged in the management of commercial complex services and department store trading 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 Engaged in the trading of substrates Hong Kong 100.0 100.0 ASEEMSH Engaged in the leasing of properties and buildings Shanghai, China 91.5 91.5 Engineering (HK) Limited USISH Engaged in the designing, manufacturing and sales of electronic components ASEEMSH DH Engaged in the development, construction and sale of real estate properties Shanghai, China 0.8 0.8 Shanghai, China 40.0 40.0 ASEPCAYMAN Cyland Corp. Engaged in the leasing of real estate 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(was subsequently merged and absorbed 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 74.3 77.1 USISH Universal Global Technology Co., Limited Holding company Hong Kong 100.0 100.0 Universal Global Technology (Kunshan) Co., Ltd. ("UGKS") Engaged in the designing and manufacturing of electronic components Kun Shan, China 100.0 100.0 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2025 2024 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 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 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 - FINANCIERE AFG ("FAFG") Holding company France 10.4 10.4 Universal Global Technology Co., Limited Universal Global Industrial Co., Limited Engaged in manufacturing, trading and investing activity Hong Kong 100.0 100.0 Universal Scientific Industrial De Mexico S.A. De C.V. Universal Global Scientific Engaged in the manufacturing of R.O.C. 100.0 100.0 Industrial Co., Ltd. ("UGTW") components of telecommunication and cars and provision of related R&D services USI America Inc. Engaged in the manufacturing and U.S.A. 100.0 100.0 processing of motherboards and wireless network communication and provision of related technical service 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 Engaged in the design and manufacturing of electronic components Tunisia 99.9 99.9 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2025 2024 ASTEELFLASH MEXICO S.A. de C.V. ASTEELFLASH (BEDFORD) LIMITED Engaged in the design and manufacturing of electronic components Mexico 99.9 99.9 United Kingdom 100.0 100.0 France 99.9 99.9 Tunisia 100.0 100.0 Hong Kong 100.0 100.0 Germany 100.0 100.0 U.S.A. 100.0 100.0 Tunisia 0.5 0.5 Tunisia 0.1 0.1 Czech Republic 100.0 100.0 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 Poland 100.0 100.0 Tunisia (Note 1) (Note 1) Germany 100.0 100.0 Germany 100.0 100.0 Romania 100.0 100.0 Engaged in the design and manufacturing of electronic components ASTEELFLASH FRANCE Engaged in the design and manufacturing of electronic components ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components ASTEELFLASH HONG KONG LIMITED Holding company Asteelflash Holding GmbH Engaged in the design and manufacturing of electronic components ASTEELFLASH US HOLDING CORP. Holding company AFERH TUNISIE Engaged in the management, training and consulting of organization and human resources ASTEEL ELECTRONICS MANUFACTURING SERVICES Engaged in the design and manufacturing of electronic components ASTEELFLASH PLZEN S.R.O. Engaged in the design and manufacturing of electronic components 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.) Engaged in the design and manufacturing of electronic components and new electronic applications Asteelflash Suzhou Co., Ltd. ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components Asteelflash Holding GmbH. ASTEELFLASH Germany GmbH.(renamed in January 2024, formerly named as ASTEELFLASH HERSFELD GmbH) ASTEELFLASH DESIGN SOLUTIONS HAMBOURG GmbH EN ELECTRONICNETWORK SRL 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 (Continued) Establishment Percentage of Ownership (%) and Operating December 31 Name of Investor Name of Investee Main Businesses Location 2025 2024 ASTEELFLASH MEXICO S.A. de C.V. ASTEELFLASH TUNISIE S.A. ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components Engaged in the design and manufacturing of electronic components Tunisia (Note 1) (Note 1) Tunisia (Note 1) (Note 1) ASTEELFLASH US HOLDING CORP. ASTEELFLASH USA CORP. Engaged in the design and manufacturing of electronic components U.S.A. 100.0 100.0 ASTEELFLASH USA CORP. ASTEELFLASH TUNISIE S.A. Engaged in the design and manufacturing of electronic components Tunisia (Note 1) (Note 1) SPIL SPIL (B.V.I.) Holding Limited Engaged in investing activities British Virgin Islands 100.0 100.0 Siliconware Precision Malaysia Sdn. Bhd. Engaged in the assembly and testing Malaysia 100.0 100.0 SPIL (B.V.I.) Holding Limited Siliconware USA, Inc. Engaged in marketing activities in North America U.S.A. 100.0 100.0 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 packaging and testing of semiconductors Suzhou, China 100.0 100.0 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 or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Group's ownership interest is reduced due to its additional subscription of the new shares of the associate and joint venture, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate and joint venture is reclassified on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings. 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 A 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 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 33. 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 33. 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 they are manufactured 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 manufacture and contract assets are reclassified to trade receivables when the manufacture is 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 clas...

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