Billion Electric Co., Ltd.TWSE: 3027

Consolidated financial report

· MarketScreener

Stock Code:3027

Billion Electric Co., Ltd. and Subsidiaries Consolidated Financial Statements and Independent Auditors' Review Report

For the Six Months Ended June 30, 2025 and 2024

Address: 8F., No. 192, Sec. 2, Zhongxing Rd., Xindian Dist., New Taipei City 231, Taiwan (R.O.C.)

Tel: (02) 2914-5665

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

Contents

Item Page

  1. Cover Page 1

  2. Contents 2

  3. Independent Auditors' Review Report 3~4

  4. Consolidated Balance Sheets 5

  5. Consolidated Statements of Comprehensive Income 6

  6. Consolidated Statements of Changes in Equity 7

  7. Consolidated Statements of Cash Flows 8~9

  8. Notes to the Consolidated Financial Statements

    1. Company history 10

    2. Date and Procedures of Authorization of Financial Statements 10

    3. Applicability of Newly Issued and Revised Standards and

      Interpretations

      10~12

    4. Summary of significant accounting policies 13~15

    5. Significant accounting assumptions and judgments, and major 16

      sources of estimation uncertainty

    6. Explanation of significant accounts 16~51

    7. Related party transactions 52~53

    8. Pledged assets 53~54

    9. Significant contingent liabilities and unrecognized commitments

54~56

10. Significant disaster loss

56

11. Significant subsequent events

56

12. Others

56

13. Other disclosures

(1) Information on significant transactions

57~60

(2) Information on investees

61~63

(3) Information on investments in mainland China

63

14. Segment information

63~64

Independent Auditors' Review Report

To Board of Directors of Billion Electric Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Billion Electric Co., Ltd. and its subsidiaries as of June 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024, as well as the changes in equity and cash flows for the six months ended June 30, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to form a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would may not detect all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusions

As stated in Note 6 (8), the equity accounted investments of Billion Electric Co., Ltd. and its subsidiaries in its investee companies of $23,241 and $26,396 thousand as of June 30, 2025 and 2024, and the related share of loss of associates and joint ventures accounted for using equity method on these investee companies of $498 thousand, $402 thousand,

$1,074 thousand and $648 thousand for the three months and six months ended June 30, 2025 and 2024, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

Qualified Conclusions

Based on our review, except for the adjustment, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries described in the Basis for Qualified Conclusion paragraph been reviewed by independent auditors, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Billion Electric Co., Ltd. and its subsidiaries as of June 30, 2025 and 2024, and of its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, as well as its consolidated cash flows for the six months ended June 30, 2025 and 2024, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

KPMG Certified Public Accountants Firm

August 7, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Billion Electric Co., Ltd. and Subsidiaries

Consolidated Balance Sheets

June 30, 2025, December 31, 2024 and June 30, 2024

Unit: NT $thousands

2025.6.30 2024.12.31 2024.6.30 2025.6.30 2024.12.31 2024.6.30

Assets Amount % Amount % Amount % Liabilities and Equity Amount % Amount % Amount % Current assets: Current liabilities:

1100 Cash and cash equivalents (note 6 (1) and (30)) $ 507,079 17 660,036 17 964,350 23 2100 Short-term borrowings (note 6 (18), (30) and

(33))

$ 75,000 2 262,855 7 $ 412,308 10

1110 Current financial assets at fair value through profit or loss (note 6 (2) and (30))

2,988 - 3,126 - 10,458 - 2110 Short-term notes and bills payable (note 6 (17),

(30) and (33))

- - 79,914 2 79,903 2

1136 Current financial assets at amortized cost (note 6 (4), (30) and 8)

103,252 3 124,886 3 121,398 3 2130 Current contract liabilities (note 6 (27) and 7) 192,124 6 684,212 18 514,469 12

1140 Current contract assets (note 6 (27) and 7) 46,939 1 192,149 5 159,434 4 2150 Notes payable (note 6 (30)) 303 - 227 - 356 -

1150 Notes receivable, net (note 6 (5), (27) and (30)) 1,005 - 10,034 - 6,764 - 2170 Accounts payable (note 6 (30)) 120,622 4 106,436 3 275,038 7

1170 Accounts receivable, net (note 6 (5), (27) and

(30))

1180 Accounts receivable - related parties, net (note 6 (5), (27), (30) and 7)

216,486 7 129,073 3 109,114 3 2200 Other payable (note 6 (30)) 112,396 4 91,259 2 145,856 3

21,602 1 - - - - 2220 Other payable - related parties (note 6 (30) and 7) - - - - 1,638 -

1200 Other receivables (note 6 (5), (6) and (30)) 8,278 - 15,456 - 13,097 - 2230 Current income tax liabilities 17,576 1 19,007 - 21,877 1

1220 Current tax assets 4,422 - 7,034 - 3,697 - 2250 Current provisions (note 6 (21)) - - - - 9,646 -

130X Inventories (note 6 (7)) 427,837 14 286,767 7 324,331 8 2280 Current lease liabilities (note 6 (20), (30) and

(33))

1470 Other current assets (note 6 (16)) 49,446 2 46,986 1 79,425 2 2320 Current portion of long-term borrowings (note 6

(19), (30) and (33))

1482 Current costs of fulfil a contract (note 6 (27)) 190,095 6 848,227 22 968,991 23 2300 Other current liabilities

1,939

9,739

-

-

24,671

11,626

1

-

29,626

19,114

1

-

543,885

18

1,295,268

33

1,526,812

36

-

-

1,389

-

28,516

1

Total current assets 1,579,429 51 2,323,774 58 2,761,059 66 Total current liabilities Non-current assets: Non-Current liabilities:

14,186 1 15,061 - 16,981 -

1517 Non-current financial assets at fair value through other comprehensive income (note 6

(3) and (30))

65,799 2 66,017 2 75,248 2 2540 Long-term borrowings (note 6 (19), (30) and

(33))

1535 Non-current financial assets at amortized cost, 365,047

12

389,119

10

382,564

9

2570

Deferred tax liabilities

19,077

-

30,583

1

28,394

1

1550 Investments accounted for using equity method 23,241 (note 6 (8))

1600 Property, plant and equipment (note 6 (12), (33) 822,591

1

27

24,315

835,455

1

22

26,396

710,706

1

17

2580

2640

Non-current lease liabilities (note 6 (20), (30) and

(33))

Net defined benefit liability, non-current (note 6

55,227

8,663

2

-

58,767

9,377

2

-

63,920

15,613

2

-

and 8)

1755 Right-of-use assets (note 6 (13)) 66,932

2

71,779

2

79,337

2

2645

(22))

Guarantee deposits received

30,087

1

6,482

-

4,931

-

1760

Investment property (note 6 (14))

23,797

1

20,981

1

35,320

1

Total non-current liabilities

113,054

3

106,598

3

141,374

4

1780

Intangible assets (note 6 (15))

48,831

1

53,038

1

9,636

-

Total liabilities

656,939

21

1,401,866

36

1,668,186

40

1840 Deferred tax asset 19,195

1

21,593

1

21,112

-

Equity (note 6 (24)):

1900 Other non-current assets (note 6 (16)) 55,390

2

75,229

2

71,989

2

3110

Ordinary shares

1,160,041

38

1,155,328

30

1,154,638

28

Total non-current assets 1,490,823

49

1,557,526

42

1,412,308

34

3140

Capital collected in advance

605

-

4,713

-

826

-

1,160,646

38

1,160,041

30

1,155,464

28

3200

Capital surplus

687,422

22

692,146

19

693,046

18

3310

Retained earnings: Legal reserve

227,462

8

227,462

6

227,462

5

3320

Special reserve

38,678

1

40,765

1

40,765

1

3350

Unappropriated earnings

31,581

1

45,533

1

84,521

2

297,721

10

313,760

8

352,748

8

Other equity:

net (note 6 (4), (30) and 8)

3410 Exchange differences on translation of foreign (11,032)

-

5,240

-

3,507

-

3420 Unrealized gains (losses) from financial assets (34,745) measured at fair value through other

comprehensive income

(1)

(34,616)

(1)

(25,515)

(1)

3500

Treasury stock

(24,677)

(1)

(25,057)

(1)

(25,057)

(1)

Total equity attributable to owners of parent

2,075,335

68

2,111,514

55

2,154,193

52

36XX

Non-controlling interests

337,978

11

367,920

9

350,988

8

Total equity 2,413,313

79

2,479,434

64

2,505,181

60

Total liabilities and equity $ 3,070,252

100

3,881,300

100

$ 4,173,367

100

financial statements

Total assets $ 3,070,252 100 3,881,300 100 $ 4,173,367 100

(See the attached notes to consolidated financial statements)

~5~

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Billion Electric Co., Ltd. and Subsidiaries Consolidated Statements of Comprehensive Income For the three months and six months ended June 30, 2025 and 2024

Unit: NT $thousands

For the three months ended June 30 For the six months ended June 30

2025

2024

2025

2024

Amount

%

Amount

%

Amount

%

Amount

%

4000

Operating revenue (notes 6 (27), 7 and 14)

$ 731,149

100

436,616

100

1,376,523

100

965,554

100

5000

Operating costs (notes 6 (7), (12), (13), (15), (22) and 12)

596,737

82

351,928

81

1,149,758

84

765,420

79

Gross profit

134,412

18

84,688

19

226,765

16

200,134

21

Operating expenses (notes 6 (5), (12), (13), (15), (20), (22),

(25), (28) and 12)

6100

Sales expenses

24,629

3

36,739

8

58,552

4

73,391

8

6200

Administrative expenses

65,859

9

46,256

11

112,173

8

84,411

9

6300

Research and development expenses

23,120

3

24,770

6

46,586

3

48,428

5

6450

Expected credit loss (profit)

9,501

1

837

-

7,560

1

(188)

-

Total operating expenses

123,109

16

108,602

25

224,871

16

206,042

22

Profit (loss) from operations

11,303

2

(23,914)

(6)

1,894

-

(5,908)

(1)

Non-operating income and expenses (notes 6 (8), (11), (14),

(20) and (29))

7100

Interest income

5,525

1

10,615

3

11,399

1

18,730

2

7010

Others

4,017

-

5,987

1

61,826

4

12,713

1

7020

Other gains and losses

(71,465)

(10)

9,730

2

(64,397)

(5)

41,944

5

7050

Finance costs

(1,197)

-

(2,895)

(1)

(3,730)

-

(4,831)

(1)

7060

Share of profit (loss) of associates accounted for using equity

(498)

-

(402)

-

(1,074)

-

(648)

-

method

Total non-operating income and expenses

(63,618)

(9)

23,035

5

4,024

-

67,908

7

7900

Profit (loss) before tax

(52,315)

(7)

(879)

(1)

5,918

-

62,000

6

7950

Less: Income tax expenses (note 6 (23))

(1,584)

-

9,754

2

14,163

1

17,602

2

8200

Net income (loss)

(50,731)

(7)

(10,633)

(3)

(8,245)

(1)

44,398

4

8300

Other comprehensive income (loss) (note 6 (23) and (24)

and (30))

8310

Items that will not be reclassified subsequently to profit

or loss

8316

Unrealized gains (loss) from investments in equity

41

- (316)

- (218)

- (316)

-

8349

instruments measured at fair value through other comprehensive income

Less: Income tax related to items that will not be

-

- -

- -

- -

-

subsequently reclassified to profit or loss

Total items that may not be reclassified subsequently

41

- (316)

- (218)

- (316)

-

to profit

8360

Items that will be reclassified subsequently to profit

or loss

8361

Exchange differences on translation of foreign financial statements

(25,622)

(4)

2,906

1

(22,550)

1

13,263

1

8399

Less: Income tax related to items that may be reclassified

subsequently to profit or loss

(4,643)

(1)

523

-

(4,112)

-

2,403

-

Total items that may be reclassified subsequently

(20,979)

(3)

2,383

1

(18,438)

(1)

10,860

1

to profit

8300

Other comprehensive income or loss

(20,938)

(3)

2,067

1

(18,656)

(1)

10,544

1

8500

Total comprehensive income or loss

$ (71,669)

(10)

(8,566)

(2)

(26,901)

(2)

54,942

5

Net income (loss) attributable to:

8610

Owners of parent

$ (52,239)

(7)

(20,476)

(5)

(16,039)

(2)

14,345

1

8620

Non-controlling interests

1,508

-

9,843

2

7,794

1

30,053

3

$ (50,731)

(7)

(10,633)

(3)

(8,245)

(1)

44,398

4

Comprehensive income attributable to:

8710

Owners of parent

$ (70,750)

(10)

(18,543)

(4)

(32,440)

(2)

23,800

2

8720

Non-controlling interests

(919)

-

9,977

2

5,539

-

31,142

3

$ (71,669)

(10)

(8,566)

(2)

(26,901)

(2)

54,942

5

Earnings (loss) per share (NT $) (Note 6 (26))

9750 Basic earnings (loss) per share $ (0.45) (0.18) (0.14) 0.13

9850 Diluted earnings (loss) per share $ (0.45) (0.18) (0.14) 0.12

(See the attached notes to consolidated financial statements)

~6~

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Billion Electric Co., Ltd. and Subsidiaries Consolidated Statements of Changes in Equity For the six months ended June 30, 2025 and 2024

Unit: NT $thousands

Equity attributable to owners of parent

Share capital Retained earnings Other equity

Unrealized

gain (loss)

from financial

assets

Exchange

measured at

differences on

fair value

translation of

through other

Total equity

Capital

Statutory

foreign

comprehensive

attributable to

Non-

Ordinary

collected in

Capital

earnings

Special surplus

Undistributed

Total retained

financial

income or

owners of

controlling

share capital

advance

surplus

surplus reserve

reserve

surplus

earnings

statements

(loss)

Treasury stock

parent

interests

Total equity

Balance as of January 1, 2024

$ 1,154,191

297

692,696

220,288

56,874

103,539

380,701

(6,106)

(25,357)

(25,057)

2,171,365

194,633

2,365,998

Profit

-

-

-

-

-

14,345

14,345

-

-

-

14,345

30,053

44,398

Other comprehensive income or loss for the period

-

-

-

-

-

-

-

9,613

(158)

-

9,455

1,089

10,544

Total comprehensive income or loss for the period

-

-

-

-

-

14,345

14,345

9,613

(158)

-

23,800

31,142

54,942

Appropriation and distribution of retained earnings: Legal reserve

-

-

-

7,174

-

(7,174)

-

-

-

-

-

-

-

Cash dividends of ordinary share

-

-

-

-

-

(42,298)

(42,298)

-

-

-

(42,298)

-

(42,298)

Reversal of special reserve

-

-

-

-

(16,109)

16,109

-

-

-

-

-

-

-

Actual disposal or acquisition of interests in subsidiaries

-

-

122

-

-

-

-

-

-

-

122

(17,502)

(17,380)

Share-based payment

150

826

228

-

-

-

-

-

-

-

1,204

67

1,271

Non-controlling interests

-

-

-

-

-

-

-

-

-

-

-

142,648

142,648

Capital collected in advance transferred to share capital

297

(297)

-

-

-

-

-

-

-

-

-

-

-

Balance as of June 30, 2024

$ 1,154,638

826

693,046

227,462

40,765

84,521

352,748

3,507

(25,515)

(25,057)

2,154,193

350,988

2,505,181

Balance as of January 1, 2025

$ 1,155,328

4,713

692,146

227,462

40,765

45,533

313,760

5,240

(34,616)

(25,057)

2,111,514

367,920

2,479,434

Profit or loss

-

-

-

-

-

(16,039)

(16,039)

-

-

-

(16,039)

7,794

(8,245)

Other comprehensive income or loss for the period

-

-

-

-

-

-

-

(16,272)

(129)

-

(16,401)

(2,225)

(18,656)

Total comprehensive income or loss for the period

-

-

-

-

-

(16,039)

(16,039)

(16,272)

(129)

-

(32,440)

5,539

(26,901)

Appropriation and distribution of retained earnings:

Reversal of special reserve

-

-

-

-

(2,087)

2,087

-

-

-

-

-

-

-

Actual disposal or acquisition of interests in subsidiaries

-

-

(5,256)

-

-

-

-

-

-

-

(5,256)

(24,260)

(29,516)

Share-based payment

-

605

532

-

-

-

-

-

-

380

1,517

6

1,523

Non-controlling interests

-

-

-

-

-

-

-

-

-

-

-

(11,227)

(11,227)

Capital collected in advance transferred to share capital

4,713

(4,713)

-

-

-

-

-

-

-

-

-

-

-

Balance as of June 30, 2025

$ 1,160,041

605

687,422

227,462

38,678

31,581

297,721

(11,032)

(34,745)

(24,677)

2,075,335

337,978

2,413,313

(See the attached notes to consolidated financial statements)

~7~

Cash flows from operating activities:

For the six months ended June 30

2025 2024

Profit before tax $ 5,918 62,000

Adjustments:

Income and expense items

Depreciation

31,911

27,859

Amortization

4,721

1,268

Expected credit loss (gain)

Net gain on financial assets at fair value through

7,560

(188)

profit or loss

(211)

(1,319)

Interest expense

3,730

4,831

Interest income

(11,399)

(18,730)

Dividend income

(2)

-

Share-based payment transactions

Share of loss of associates accounted for using equity

11,250

236

method

1,074

648

Gain on disposal of property, plant and equipment

(8)

(329)

Gain on disposal of subsidiary

(13)

-

Unrealized foreign exchange loss (gain)

57,060 (33,599)

Total income and expense items

105,673 (19,323)

Changes in operating assets and liabilities:

Financial assets mandatorily measured at fair value

through profit or loss

29

25,252

Contract assets

145,210

(90,458)

Notes receivable

9,029

10,216

Accounts receivable

(102,320)

14,253

Accounts receivable - related party

(21,602)

-

Other receivables

5,772

8,107

Inventories

(142,579)

12,976

Other current assets

(5,199)

(18,259)

Costs of fulfill a contract

658,132

(149,678)

Current contract liabilities

(495,093)

(70,727)

Notes payable

76

(1,653)

Accounts payable

14,897

86,633

Other payable

(6,214)

(4,556)

Other current liabilities

Net defined benefit liability

1,206

(714)

3,854

(555)

Total adjustments 166,303 (193,918)

(See the attached notes to consolidated financial statements)

For the six months ended June 30

2025

2024

Cash flows (outflow) generated from operations

$ 172,221

$ (131,918)

Interest received

12,622

16,635

Interest paid

(3,799)

(4,879)

Income taxes paid

(17,788)

(24,803)

Net cash flows from (used in) operating

activities 163,256 (144,965)

Cash flows from investing activities:

Acquisition of financial assets measured at amortized

cost

-

(53,301)

Proceeds from sale of financial assets at amortized cost

41,041

-

Disposal of subsidiaries

42,996

-

Acquisition of property, plant and equipment

(12,878)

(11,167)

Proceeds from disposal of property, plant and

equipment

432

329

Acquisition of intangible assets

(514)

(2,777)

Cash inflows generated from the merger

-

27,615

Increase in other non-current assets

(32,945)

(6,394)

Dividends received

2

155

Net cash flows from (used in) investing

activities 38,134 (45,540)

Cash flows from financing activities:

Increase (decrease) in short-term loans

Increase (decrease) in short-term notes and bills

(187,855)

248,608

payable

(79,914)

50,005

Increase in long-term borrowings

-

7,900

Decrease in long-term borrowings

(24,121)

(14,453)

Increase in guarantee deposits received

23,605

2,841

Payment of lease liabilities

(8,119)

(7,575)

Proceeds from employee stock options

1,062

1,035

Treasury stock transferred to employees

380

-

Acquisition of subsidiary equity

(32,704)

(18,380)

Disposal of ownership interests in subsidiaries (without

losing control)

3,188

1,000

Net cash flows from (used in) financing activities

(304,478)

270,981

Effect of exchange rate changes on cash and cash

equivalents

(49,869)

34,214

Net (decrease) increase in cash and cash equivalents

(152,957)

114,690

Cash and cash equivalents at beginning of period

660,036

849,660

Cash and cash equivalents at end of period $ 507,079 964,350

(See the attached notes to consolidated financial statements)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Billion Electric Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

  1. Company History

    Billion Electric Co. Ltd. (the "Company") was approved to be established on March 26, 1973. The main operating businesses of the Company and its subsidiaries (collectively referred herein as the "Group") are the manufacturing of electronic components, design, manufacturing and sales of Integrated Services Digital Network (ISDN) equipment, broadband communication network terminal equipment and systems (ADSL), and broadband routers (Router), as well as renewable energy self-use power generation and energy technology services.

  2. Date and Procedures of Authorization of Financial Statements

    The consolidated financial statements were adopted and issued by the Board of Directors on August 7, 2025.

  3. Applicability of Newly Issued and Revised Standards and Interpretations

    1. The impact of the International Financial Reporting Standards ("IFRSs") endorsed by the Financial Supervisory Commission, R.O.C. ("FSC") which have already been adopted.

      The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025.

      • Amendment to IAS 21 "Lack of Exchangeability"

      • Amendments to IFRS 9 and IFRS 7 regarding "Amendments to the Classification and Measurement of Financial Instruments" - specifically, the application guidance under Section 4.1 of IFRS 9 and the related disclosure requirements under IFRS 7

    2. The impact of not yet adopting the IFRSs recognized by the FSC

      The Group has assessed the applicability of the following newly amended IFRSs, effective from January 1, 2026, and determined that they will not have a significant impact on the consolidated financial statements.

      • IFRS 17 "Insurance Contracts" and amendments to IFRS 17

      • Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" regarding the application guidance requirements for Sections

        1. and3.3 of IFRS 9 and the related disclosure requirements of IFRS 7

      • Annual Improvements to IFRS Accounting Standards

      • Amendments to IFRS 9 and IFRS 7 " Contracts Referencing Nature-dependent Electricity"

    3. Newly issued and amended standards and interpretations not yet endorsed by the FSC

    The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

    New/Revised Standards Major Amended Content

    Effective date Announced by the International Accounting Standards

    Board

    Amendments to IFRS 18 "Presentation

    and Disclosure in Financial Statements"

    The new standards introduce three types of income and expenses, two subtotals for the income statement, and a single note regarding performance measures used by management. These three amendments, which strengthen the standards on how information is disaggregated in financial statements, lay the foundation for providing users with better and more consistent information, and will impact all companies.

    • More structured income statement: Under the current standards, companies use different formats to present their operating results, making it difficult for investors to compare the financial performance of different companies. The new standards adopt a more structured income statement, introducing a new subtotal called "operating profit," and require that all income and expenses be categorized into three new types based on the company's main operating activities.

      January 1, 2027

      New/Revised Standards Major Amended Content

      • Management Performance Measures (MPMs): The new standard introduces the definition of management performance measures and requires companies to explain in a single note to the financial statements for each measure why it provides useful information, how it is calculated, and how it reconciles with amounts recognized under International Financial Reporting Standards (IFRS).

      • More disaggregated information: The new standard includes guidance for companies on how to enhance the disaggregation of information in financial statements. This includes guidance on whether information should be included in the primary financial statements or further disaggregated in the notes.

    Effective date Announced by the International Accounting Standards

    Board

    The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

    The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

    • Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture"

    • Amendment to IFRS 19 "Subsidiaries without Public Accountability: Disclosures"

  4. Summary of Significant Accounting Policies

    1. Statement of compliance

      The Consolidated Financial Report has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as the "Preparation Regulations") and International Accounting Standard 34 "Interim

      Financial Reporting" as endorsed and issued into effect by the Financial Supervisory

      Commission (FSC). The Consolidated Financial Report does not include all the necessary information required for a complete set of annual consolidated financial statements prepared in accordance with the International Financial Reporting Standards, International Accounting Standards, Interpretations and Interpretive Announcements approved and issued into effect by the FSC (hereinafter referred to as the "IFRSs approved by the FSC").

      Except as described below, the significant accounting policies adopted in the consolidated financial report are consistent with those of the consolidated financial statements for the year ended December 31, 2024. For relevant information, please refer to Note 4 of the consolidated financial statements for the year ended December 31, 2024.

    2. Basis of consolidation

      1. Subsidiaries included in the consolidated financial statements Subsidiaries included in the consolidated financial statements:

        Name of Ownership (%)

        investor Name of Subsidiary Main business activities 2025.6.30 2024.12.31 2024.6.30 Explanation

        The Company

        BEC Technologies Inc.

        Sales businesses of

        91.76%

        91.76%

        91.76%

        (BEC Technologies)

        telecommunication related products

        The Company

        Billion Watts Technologies

        Provision of solar energy and energy

        61.98%

        62.14%

        59.74%

        Note 1

        Co., Ltd. (Billion Watts)

        storage solution services, power plant

        maintenance and management

        services

        The Company

        Billion Energy Storage

        Energy Storage Sales business

        100.00%

        100.00%

        100.00%

        Technologies Inc.

        (Billion Energy)

        The Company

        Pacific Solar Limited (Pacific)

        International investment

        100.00%

        100.00%

        100.00%

        Note 2

        The Company

        Billion EVC Technologies Co.,

        Distribution services of solar power

        51.00%

        51.00%

        51.00%

        Ltd. (Billion EVC)

        plant equipment and EV chargers

        The Company

        Billion Electric Holding Co.,

        Investment company

        100.00%

        100.00%

        100.00%

        Ltd. (Billion Electric Holding)

        The Company

        Billion EV Charging

        Community charging piles and energy

        100.00%

        100.00%

        100.00%

        Technologies Co., Ltd.

        storage supply services

        (Billion EV Charging)

        The Company

        Billion Kai Co., Ltd. (Billion

        Design, manufacturing, and sales

        100.00%

        100.00%

        100.00%

        Kai)

        business of solar power plant.

        The Company

        Billion Electric Japan Co., Ltd.

        Sales businesses of

        -%

        100.00%

        100.00%

        Note 3

        (Billion Electric JP)

        telecommunication related products

        The Company

        Noonspare Energy Technology

        Design and manufacturing of lithium

        58.58%

        49.89%

        49.89%

        Note 4

        Co., Ltd. (Noonspare)

        battery modules, integration of

        residential and commercial/industrial

        energy storage systems, and energy

        technology services.

        Name of Ownership (%)

        investor Name of Subsidiary Main business activities 2025.6.30 2024.12.31 2024.6.30 Explanation

        The Company

        Billion Sun Energy Storage

        Energy Storage Sales

        -%

        100.00%

        -%

        Note 5

        Technologies Inc. (Billion Sun)

        BEC

        BEC International, LLC

        International investment

        100.00%

        100.00%

        100.00%

        Technologies

        (BEC International)

        Inc.

        BEC

        Avantek Systems PTE. LTD

        Cloud software management services

        75.00%

        75.00%

        75.00%

        Technologies

        (AVANTEK SYSTEMS)

        Inc.

        Billion Watts

        Billion Power System

        Design of energy storage software

        51.00%

        51.00%

        51.00%

        Technologies

        Technologies Inc.

        and sales businesses

        Co., Ltd.

        (Billion Power System)

        Billion Watts

        Sheng Chuang Energy Co.,

        Energy storage sales business

        100.00%

        100.00%

        -%

        Note 6

        Technologies

        Ltd.

        Co., Ltd.

        (Sheng Chuang Energy)

        Billion Watts

        Billion Electric Japan Co., Ltd.

        Sales businesses of

        100.00%

        -%

        -%

        Note 3

        Technologies

        (Billion Electric JP)

        telecommunication related products

        Co., Ltd.

        Billion Watts

        Billion Watts Australia Pty Ltd.

        Energy storage sales business

        100.00%

        -%

        -%

        Note 7

        Technologies

        (BW AU)

        Co., Ltd.

        Billion Watts

        Billion AU Holing Pty Ltd.

        Energy storage sales business

        100.00%

        -%

        -%

        Note 8

        Technologies

        (AU Holding)

        Co., Ltd.

        Billion Electric

        Billion Sun Energy Storage

        Energy Storage Sales business

        -%

        -%

        100.00%

        Note 5

        Holding Co.,

        Technologies Inc.

        Ltd.

        (Billion Sun)

        Billion Electric

        Billion Energy Co., Ltd.

        Energy storage sales business

        100.00%

        -%

        -%

        Note 9

        Japan Co., Ltd.

        (Billion Energy)

        Billion Watts

        BL Anakie Solar Pty Ltd.

        Energy storage sales business

        100.00%

        -%

        -%

        Note 10

        Australia Pty

        (BL Anakie)

        Ltd.

        BL Anakie

        BL Anakie Solar Nominees Pty

        Energy storage sales business

        100.00%

        -%

        -%

        Note 11

        Solar Pty Ltd.

        Ltd.

        (BL Anakie Solar Nominees)

        Note 1: The Company disposed of 25 thousand shares, leading to a further decrease in its shareholding ratio from 62.14% to 61.98%.

        Note 2: Pacific was registered in March 2020. As of June 30, 2025, the Company has not invested any capital in it.

        Note 3: Billion Electric JP was established in January 2024. The Group adjusted its organizational structure in March 2025, and transferred its 100.00% equity originally held by the Company to Billion Watts.

        Note 4: Noonspare was established in October 2018. The Company acquired 49.89% of its shares in April 2024. For the three months ended March 31, 2025, the Company acquired 2,415 thousand shares and disposed of 36 thousand shares, for the three months ended June 30, 2025, the Company disposed of 115 thousand shares, respectively, resulting in an increase in the Company's shareholding ratio from 49.89% to 58.58%.

        Note 5: The Group adjusted its organizational structure in August 2024, and transferred its 100.00% equity interest in Billion Sun, originally held by Billion Electric Holding, to the Company. In March 2025, the Group entered into a share transfer agreement with Foxwell Power Co., Ltd., and the transaction was completed in April 2025. Please refer to Note 6(11) for further details.

        Note 6: Sheng Chuang Energy was established in December 2024, and Billion Watts acquired 100.00% shareholding, and it was incorporated into the consolidated financial statements.

        Note 7: The Group acquired 100.00% equity interest in BW AU in January 2025. As of June 30, 2025, the Group has not invested any capital in it.

        Note 8: The Group acquired 100.00% equity interest in AU Holding in January 2025. As of June 30, 2025, the Group has not invested any capital in it.

        Note 9: Billion Energy was established in February 2025. As of June 30, 2025, the Group has not invested any capital in it.

        Note 10: The Group acquired 100% equity interest in BL Anakie in March 2025, and it was incorporated into the consolidated financial statements.

        Note 11: The Group acquired 100% equity interest in BL Anakie Solar Nominees in March 2025, and it was incorporated into the consolidated financial statements.

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

    3. Business combinations

      The Group accounts for each business combination using the acquisition method. Goodwill is measured as the excess of the fair value of the consideration transferred, including the amount of any non-controlling interests in the acquiree, over the net of the fair value of the identifiable assets acquired and the liabilities assumed. If the excess is negative, the Group reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed, and recognizes the resulting gain on a bargain purchase in profit or loss.

      If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group recognizes provisional amounts for the items for which the accounting is incomplete. During the measurement period, the Group retrospectively adjusts the provisional amounts or recognizes additional assets or liabilities to reflect new information obtained about facts and circumstances that existed at the acquisition date. The measurement period shall not exceed one year from the acquisition date.

    4. Employee benefits

      For the defined benefit retirement plan during the interim period, the retirement benefit costs are calculated using the retirement benefit cost rate determined by actuarial calculations from the previous reporting date as a basis, covering the period from the beginning of the year to the end of the current interim period, and adjusted for significant market fluctuations, significant curtailments, settlements or other significant one-time events occurring after the reporting date.

    5. Income tax

    The Group measure and disclose interim income tax expenses in accordance with paragraph B12 of International Accounting Standard 34 "Interim Financial Reporting".

    Income tax expense is measured by multiplying the pre-tax net income for the interim reporting period by management's best estimate of the expected effective annual tax rate.

  5. Significant accounting assumptions and judgements, and major sources of estimation uncertainty

    According to the IAS 34 "Interim Financial Reporting" approved by the FSC, the Management must make about the future (including climate-related risks and opportunities) judgments and estimates in preparing the Group only financial statement that will have an impact on the adoption of accounting policies and the reported amounts of assets, liabilities, income and expenses. The actual results may differ from the estimates.

    When preparing the consolidated financial statements, the significant judgments made by management in applying the accounting policies of the Group and the key sources of estimation uncertainty are consistent with those in Note 5 of the consolidated financial statements for the fiscal year 2024.

  6. Explanation of significant accounts

Except as described below, the significant accounting policies adopted in the consolidated financial report are consistent with those of the consolidated financial statements for the year ended December 31, 2024. For relevant information, please refer to Note 6 of the consolidated financial statements for the year ended December 31, 2024.

(1) Cash and cash equivalents

2025.6.30

2024.12.31

2024.6.30

Petty cash

$ 638

543

894

Bank deposits

381,524

361,226

644,498

Time deposits

41,624

69,857

199,672

Repurchase agreements collateralized

83,293

228,410

119,286

by bonds

$ 507,079

660,036

964,350

For the disclosure of interest rate risk and sensitivity analysis of the Group' financial assets and liabilities, please refer to Note 6(30).

(2) Financial assets at fair value through profit or loss-current

2025.6.30

2024.12.31

2024.6.30

Financial assets at fair value through

profit or loss:

Non-derivative financial assets

Foreign listed stock

$ 1,310

1,367

4,977

Fund beneficiary certificates

1,678

1,759

5,481

Total

$ 2,988

3,126

10,458

(3) Financial assets at fair value through other comprehensive income-non-current

2025.6.30 2024.12.31 2024.6.30

Equity instruments at fair value through other comprehensive income:

Domestic emerging markets stocks $ 5,398 - -Domestic unlisted stocks 60,401 66,017 75,248

$ 65,799 66,017 75,248

These equity instrument investments held by the Group are long-term strategic investments and are not held for trading purposes; therefore, they have been designated to be measured at fair value through other comprehensive income.

(4) Financial assets measured at amortized cost

2025.6.30

2024.12.31

2024.6.30

Current

Time deposits

$ 72,016

86,526

73,710

Restricted bank deposits

31,236

38,360

147,688

$ 103,252

124,886

121,398

Non-current Time deposits

$ 10,500

-

-

Restricted bank deposits

354,547

389,119

382,564

$ 365,047

389,119

382,564

As of June 30, 2025, December 31, 2024, and June 30, 2024, the details of the Group's collateral provided for short-term and long-term loans and credit facilities are disclosed in Note 8.

  1. Notes and accounts receivable

    2025.6.30

    2024.12.31

    2024.6.30

    Notes receivable

    $ 1,005

    10,034

    6,764

    Accounts receivable

    227,538

    133,734

    110,796

    Accounts receivable - related parties

    21,602

    -

    -

    Less: loss allowances

    (11,052)

    (4,661)

    (1,682)

    $ 239,093

    139,107

    115,878

    The Group adopt a simplified approach to the estimate the expected credit losses for all notes and accounts receivable, that is, it is measured using the expected credit losses during the lifetime, and for this purpose, these notes and accounts receivable are grouped according to the common credit risk characteristics representing the ability of customer to pay all amounts due under the terms of contract, and the loss rate established by historical and realistic information for a specific period is considered forward-looking.

    Analysis of expected credit losses of notes and accounts receivable of the Group is as follows:

    2025.6.30

    Notes and accounts receivable

    carrying amount

    Expected weighted average credit loss

    rate

    Allowance duration expected

    credit losses

    Not past due

    $ 239,093

    0%

    $ -

    Past due over 121 days

    11,052

    100%

    11,052

    $ 250,145

    $ 11,052

    2024.12.31

    Notes and accounts receivable

    carrying amount

    Expected weighted average credit loss

    rate

    Allowance duration expected

    credit losses

    Not past due

    $ 139,107

    0%

    $ -

    Past due over 121 days

    4,661

    100%

    4,661

    $ 143,768

    $ 4,661

    2024.6.30

    Notes and accounts receivable

    carrying amount

    Expected weighted average credit loss

    rate

    Allowance duration expected

    credit losses

    Not past due

    $ 115,878

    0%

    $ -

    Past due over 121 days

    1,682

    100%

    1,682

    $ 117,560

    $ 1,682

    The movement in the allowance for notes and accounts receivable of the Group is as follows:

    For the six months

    ended June 30

    2025 2024

    Beginning balance

    $ 4,661

    1,895

    Impairment loss recognized

    7,560

    -

    Reversal of impairment loss

    -

    (188)

    Amounts written off as uncollectible

    (74)

    (115)

    Foreign exchange gains and losses (1,095) 90

    Ending balance $ 11,052 1,682

    As of June 30, 2025, December 31, 2024, and June 30, 2024, the Group did not have any notes receivable or accounts receivable pledged as collateral.

    The Group enter into non-recourse accounts receivable sale agreements with financial institutions. Since the Group have transferred virtually all risks and rewards to the ownership of the accounts receivable and have no ongoing participation in them, it is eligible for the exclusion of financial assets. When accounts receivable claims are derecognized, claims against financial institutions are reported to other receivables. Information relating to the accounts receivable for sale that are not due as of the reporting date is as follows:

    Derecogniti

    2024.6.30

    Yet to be advanced

    Advanced

    Transferred to other accounts

    Range of interest

    Sale object on amount amount amount receivables rates

    Hua Nan Bank $ 52 - - 52 Note 1 to

    Note 4

    Note 1: Guarantee that the subject matter being purchased is legal and actually exists, and that no third party can claim any rights.

    Note 2: Guarantee that the subject matter being purchased has no offsets, pledges, or restrictions on transfer, and that it is an accounts receivable debt with a determined amount.

    Note 3: Guarantee that transactions involving sales contracts, service contracts, or other debt agreements are conducted in a normal and lawful manner. Furthermore, there are no sufficient grounds or defenses that would extinguish or hinder the rights of the financial institutions acquiring the accounts receivable.

    Note 4: Guarantee that there are no control subordinate relationship or other improper commercial interests with the accounts receivable subject during the current and future validity period of the contract.

  2. Other receivables

    2025.6.30

    2024.12.31

    2024.6.30

    Payments on behalf of others

    $ 156,170

    174,745

    172,960

    receivable

    Business tax refund receivable

    492

    3,889

    406

    Factoring of accounts receivable

    -

    -

    52

    Interest receivable

    1,512

    2,736

    5,430

    Other

    6,274

    8,831

    7,209

    Less: loss allowances

    (156,170)

    (174,745)

    (172,960)

    $ 8,278

    15,456

    13,097

    The movement allowance for other receivables of the Group is as follows:

    2025

    2024

    Beginning balance

    $ 174,745

    163,659

    Foreign exchange gains and losses

    (18,575)

    9,301

    Ending balance

    $ 156,170

    172,960

    For the six months ended June 30

    For further credit risk information, please refer to note 6 (30).

  3. Inventories

    2025.6.30

    2024.12.31

    2024.6.30

    Raw materials and supplies

    $ 34,316

    32,819

    55,398

    Work in progress

    11,928

    8,913

    5,236

    Finished goods

    45,104

    42,699

    23,979

    Merchandise inventory

    336,489

    202,336

    239,718

    $ 427,837

    286,767

    324,331

    Details of operating costs are as follows:

    2025

    2024

    2025

    2024

    Cost of goods sold

    $ 576,556

    360,034

    1,075,527

    760,249

    Loss on inventory market value

    (11,931)

    decline (Reversal Gain)

    5,120

    (15,612)

    52,224

    Inventory Write-off Loss

    68

    260

    699

    260

    Operating costs of solar energy and

    energy storage 14,993

    7,246

    21,308

    16,842

    $ 596,737

    351,928

    1,149,758

    765,420

    For the three months ended June 30

    For the six months ended June 30

    As of June 30, 2025, December 31, 2024, and June 30, 2024, no inventories of the Group were pledged as collateral.

  4. Investments accounted for using equity method

    The Group's financial information for investments accounted for using the equity method that are individually insignificant was as follows:

    2025.6.30 2024.12.31 2024.6.30

    Carrying amount of individually

    insignificant associates' equity $ 23,241 24,315 26,396

    2025

    2024

    2025

    2024

    Attributable to the Group

    Net loss

    $ (498)

    (402)

    (1,074)

    (648)

    Other comprehensive income

    -

    -

    -

    -

    Total comprehensive loss

    $ (498)

    (402)

    (1,074)

    (648)

    For the three months ended June 30

    For the six months ended June 30

    1. Guarantee

      No investments accounted for using the equity method were pledged as collateral as of June 30, 2025, December 31, 2024 and June 30, 2024.

    2. Investments accounted for using the equity method

      Investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on financial statements which have not been reviewed.

  5. Business combination

    The Group acquires the following companies to develop its energy storage related business.

    Company Name

    Major operating activities

    Date of Acquisition

    Acquisition Ratio

    Transfer consideration

    fair value

    Noonspare Energy Technology Co., Ltd.

    Design and manufacturing of lithium battery modules, integration of residential and commercial/industrial energy storage systems, and energy technology services.

    2024.04.01 49.89% $ 118,370

    The main types of transfer consideration, assets acquired and liabilities assumed on the acquisition date and the amounts admitted are as follows:

    1. The fair values of the major types of transfer consideration at the acquisition date are as follows:

      2024:

      Transfer Consideration

      Noonspare Energy Technology Co.,

      Ltd.

      Cash

      2. The fair value of identifiable net assets acquired and liabilities assumed:

      $ 188,370

      Noonspare

      Energy

      Technology Co.,

      Ltd.

      Cash and cash equivalents

      $ 215,985

      Accounts receivable and other

      receivables

      4,580

      Inventory

      1,570

      Current tax assets

      52

      Other current assets

      5,450

      Property, plant, and equipment

      92,772

      Financial assets at fair value through other comprehensive

      income

      6,283

      Right-of-use asset

      302

      Intangible assets

      32,419

      Other non-current assets

      6,810

      Short-term loans

      (15,000)

      Contract liabilities - current

      Notes payable, accounts payable

      (3,496)

      and other payables

      (8,699)

      Lease liabilities - current

      (305)

      Other current liabilities

      (113)

      Total

      $ 338,610

      3.Goodwill

      The goodwill recognized as a result of the acquisition is as follows:

      Noonspare Energy Technology Co.,

      Ltd.

      Transfer Consideration $ 188,370

      Add: Non-controlling interest 169,669

      Less: Fair value of identifiable net assets (338,610)

      $ 19,429

  6. Change of Ownership Interest in Subsidiaries

    1. The changes in the Group's interest in subsidiaries for the period from January 1 to June 30, 2025 and transactions without changing control of said subsidiaries are as follows:

      In March 2025, the Group disposed of 25 thousand shares of Billion Watts Technologies Co., Ltd. at a price of $40 per share, totaling $1,000 thousand, resulting in a decrease in the Group's ownership from 62.14% to 61.98%.

      In March 2025, the Group repurchased 2,415.36 thousand shares of Noonspare Energy Technology Co., Ltd. from non-controlling interests at a price of $13.54 per share, totaling $32,704 thousand. In addition, in March 2025, the Group disposed of 36 thousand shares of Noonspare Energy Technology Co., Ltd. at a price of $14.49 per share, totaling $522 thousand, resulting in an increase in the Group's ownership from 49.89% to 59.02%.

      In April 2025, the Group disposed of 115 thousand shares of Noonspare Energy Technology Co., Ltd. at a price of $14.49 per share, totaling $1,666 thousand, resulting in a decrease in the Group's ownership from 59.02% to 58.58%.

    2. The changes in the Group's interest in subsidiaries for the period from January 1 to June 30, 2024 and transactions without changing control of said subsidiaries are as follows:

      In March 2024, the Group disposed of 25 thousand shares of Billion Watts Technologies Co., Ltd. at a price of $40 per share, totaling NT$1,000 thousand, resulting in a decrease in the Group's ownership from 59.82% to 59.64%.

      In April 2024, the Group repurchased 6.25 and 7 thousand shares of Billion Watts Technologies Co., Ltd. from employees at prices of $40 and $48 per share,

      respectively, totaling $586 thousand, resulting in an increase in the Group's ownership from 59.64% to 59.74%.

      In March 2024, the Group repurchased 2,000 thousand shares of Billion EV Charging Technologies Co., Ltd. from the original shareholders, totaling $17,794 thousand, resulting in an increase in the Group's ownership from 60.00% to 100.00%.

  7. Disposal of subsidiaries

    On March 7, 2025, the Group entered into a share transfer agreement with Foxwell Power Co., Ltd. with the share transfer completion date on April 1, 2025. The Group sold all of its equity interests in its subsidiary, Billion Sun Energy Storage Technologies Inc., for

    $46,815 thousand. Following the completion of the transaction, the Group lost control over Billion Sun Energy Storage Technologies Inc.

    1. Consideration received from disposals

      April 1, 2025 Billion Sun Energy Storage Technologies Inc.

      Cash and cash equivalents $ 46,815

    2. Analysis of assets and liabilities on the date control was lost

      Billion Sun Energy Storage Technologies Inc.

      Net assets disposed of $ 46,802

    3. Gain on disposal of subsidiaries

      Billion Sun Energy Storage Technologies Inc.

      Consideration received $ 46,815

      Net assets disposed of 46,802

      Gain on disposals $ 13

    4. Net cash inflow on disposals of subsidiaries

      Billion Sun Energy Storage Technologies Inc.

      Consideration received in cash and cash equivalents $ 46,815

      Less: Cash and cash equivalent balances disposed of (3,819)

      $ 42,996

  8. Property, plant and equipment

    The cost and depreciation of the property, plant and equipment of the Group were as follows:

    Construction in progress

    Land

    Building

    Machinery and

    equipment

    Transportation equipment

    Office equipment

    Other equipment

    and equipment to

    be inspected

    Total

    Cost：

    Balance as of January 1, 2025

    $ 340,260

    219,494

    184,745

    7,113

    37,931

    326,746

    -

    1,116,289

    Additions

    -

    -

    2,475

    329

    231

    10,573

    -

    13,608

    Disposals

    -

    -

    (31)

    (639)

    (180)

    (1,614)

    -

    (2,464)

    Reclassified

    -

    (5,404)

    4,975

    -

    -

    1,902

    -

    1,473

    Effect of exchange rate changes

    (1,642)

    (6,701)

    -

    (125)

    (936)

    -

    -

    (9,404)

    Balance as of June 30, 2025

    $ 338,618

    207,389

    192,164

    6,678

    37,046

    337,607

    -

    1,119,502

    Balance as of January 1, 2024

    $ 200,288

    164,783

    89,211

    6,890

    33,917

    304,003

    -

    799,092

    Additions

    -

    820

    5,725

    -

    868

    4,434

    -

    11,847

    Disposals

    -

    (861)

    -

    -

    (10)

    (973)

    -

    (1,844)

    Reclassified

    19,721

    10,799

    -

    -

    -

    6,610

    -

    37,130

    Acquisition by merger

    -

    -

    89,391

    109

    2,756

    13,337

    -

    105,593

    Effect of exchange rate changes

    823

    3,356

    -

    96

    455

    -

    -

    4,730

    Balance as of June 30, 2024

    $ 220,832

    178,897

    184,327

    7,095

    37,986

    327,411

    -

    956,548

    Depreciation：

    Balance as of January 1, 2025

    $ -

    73,447

    57,982

    5,958

    31,406

    112,041

    -

    280,834

    Depreciation

    -

    2,969

    6,345

    251

    1,256

    12,315

    -

    23,136

    Disposals

    -

    -

    (31)

    (215)

    (180)

    (1,614)

    -

    (2,040)

    Reclassified

    -

    (2,364)

    -

    -

    -

    -

    -

    (2,364)

    Effect of exchange rate changes

    -

    (1,583)

    -

    (192)

    (880)

    -

    -

    (2,655)

    Balance as of June 30, 2025

    $ -

    72,469

    64,296

    5,802

    31,602

    122,742

    -

    296,911

    Balance as of January 1, 2024

    $ -

    62,157

    38,388

    5,519

    27,805

    75,164

    -

    209,033

    Depreciation

    -

    2,361

    4,105

    299

    1,121

    13,023

    -

    20,909

    Disposals

    -

    (861)

    -

    -

    (10)

    (973)

    -

    (1,844)

    Reclassified

    -

    3,713

    -

    (292)

    -

    292

    -

    3,713

    Acquisition by merger

    -

    -

    9,452

    43

    1,052

    2,274

    -

    12,821

    Effect of exchange rate changes

    -

    690

    -

    96

    424

    -

    -

    1,210

    Balance as of June 30, 2024

    $ -

    68,060

    51,945

    5,665

    30,392

    89,780

    -

    245,842

    Carrying Value： June 30, 2025

    $ 338,618

    134,920

    127,868

    876

    5,444

    214,865

    -

    822,591

    December 31, 2024

    $ 340,260

    146,047

    126,763

    1,155

    6,525

    214,705

    -

    835,455

    June 30, 2024

    $ 220,832

    110,837

    132,382

    1,430

    7,594

    237,631

    -

    710,706

    1

    As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group had been pledged as collateral for long-term and short-term borrowings, please refer to Note 8.

  9. Right-of-use assets

    The Group leases many assets including land, buildings and transportation equipment. Information about leases for which the Group as a lessee is presented below:

    Land

    Buildings and

    construction

    Machinery and

    equipment

    Transportation equipment

    Office equipment

    Total

    Cost of right-of-use assets:

    Balance as of January 1, 2025

    $ 14,705

    79,869

    987

    13,207

    251

    109,019

    Additions

    -

    492

    -

    3,212

    -

    3,704

    Disposals

    -

    -

    (143)

    (714)

    (251)

    (1,108)

    Balance as of June 30, 2025

    $ 14,705

    80,361

    844

    15,705

    -

    111,615

    Balance as of January 1, 2024

    $ 13,042

    58,606

    352

    11,765

    251

    84,016

    Additions

    -

    24,654

    987

    1,766

    -

    27,407

    Acquisition by merger

    -

    -

    -

    518

    -

    518

    Disposals

    -

    -

    -

    (1,027)

    -

    (1,027)

    Balance as of June 30, 2024

    $ 13,042

    83,260

    1,339

    13,022

    251

    110,914

    Depreciation of right-of-use

    assets:

    Balance as of January 1, 2025

    $ 3,656

    24,787

    424

    8,137

    236

    37,240

    Depreciation

    736

    5,324

    247

    2,229

    15

    8,551

    Disposals

    -

    -

    (143)

    (714)

    (215)

    (1,108)

    Balance as of June 30, 2025

    $ 4,392

    30,111

    528

    9,652

    -

    44,683

    Balance as of January 1, 2024

    $ 2,400

    17,426

    293

    5,365

    153

    25,637

    Depreciation

    618

    3,871

    200

    2,020

    42

    6,751

    Acquisition by merger

    -

    -

    -

    216

    -

    216

    Disposals

    -

    -

    -

    (1,027)

    -

    (1,027)

    Balance as of June 30, 2024

    $ 3,018

    21,297

    493

    6,574

    195

    31,577

    Carrying Value：

    June 30, 2025

    $ 10,313

    50,250

    316

    6,053

    -

    66,932

    December 31, 2024

    $ 11,049

    55,082

    563

    5,070

    15

    71,779

    June 30, 2024

    $ 10,024

    61,963

    846

    6,448

    56

    79,337

  10. Investment property

    Investment properties include land and buildings held by the Group. The leases of investment properties run for two to five years. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.

    The details of investment properties were as follow

    Cost：

    Land

    Buildings and

    structures Total

    Balance as of January 1, 2025

    $ 5,319

    18,390

    23,709

    Reclassification roll-in

    -

    5,404

    5,404

    June 30, 2025

    $ 5,319

    23,794

    29,113

    January 1, 2024

    $ 43,393

    25,134

    68,527

    Reclassification roll-out

    (19,721)

    (8,704)

    (28,425)

    June 30, 2024

    $ 23,672

    16,430

    40,102

    Land

    Buildings and

    structures

    Total

    Depreciation：

    Balance as of January 1, 2025

    $ -

    2,728

    2,728

    Depreciation

    -

    224

    224

    Reclassified

    -

    2,364

    2,364

    June 30, 2025

    $ -

    5,316

    5,316

    Balance as of January 1, 2024

    $ -

    8,296

    8,296

    Depreciation

    -

    199

    199

    Reclassified

    -

    (3,713)

    (3,713)

    June 30, 2024

    $ -

    4,782

    4,782

    Land

    Buildings and

    structures

    Total

    Carrying Value： June 30, 2025

    $ 5,319

    18,478

    23,797

    December 31, 2024

    $ 5,319

    15,662

    20,981

    June 30, 2024

    $ 23,672

    11,648

    35,320

    Fair Value：

    June 30, 2025

    $ 86,862

    December 31, 2024

    $ 60,151

    June 30, 2024

    $ 52,859

    The fair value of the investment property was not determined by an independent appraiser but was assessed by the Group's management with reference to existing lease agreements and market evidence from recent transactions of similar properties in the vicinity.

    As of June 30, 2025, December 31, 2024 and June 30, 2024, the above investment property has been provided as a guarantee for financing, please refer to Note 8 for details.

  11. Intangible assets

    The cost and amortization of the intangible assets of the Group were as follows:

    Goodwill

    Patents

    Computer

    software

    Other

    Total

    Costs:

    Balance as of January 1, 2025 $ 19,429 20,000 18,731 10,200 68,360

    Addition

    -

    -

    514

    -

    514

    Balance as of June 30, 2025

    $ 19,429

    20,000

    19,245

    10,200

    68,874

    Balance as of January 1, 2024

    $ -

    -

    13,772

    -

    13,772

    Addition

    -

    -

    2,777

    -

    2,777

    Acquisition by merger

    -

    -

    3,165

    -

    3,165

    Balance as of June 30, 2024

    $ -

    -

    19,714

    -

    19,714

    Amortization:

    Balance as of January 1, 2025

    $ -

    2,143

    11,139

    2,040

    15,322

    Current amortization

    -

    1,429

    1,932

    1,360

    4,721

    Balance as of June 30, 2025

    $ -

    3,572

    13,071

    3,400

    20,043

    Balance as of January 1, 2024

    $ -

    -

    7,864

    -

    7,864

    Current Depreciation

    -

    -

    1,268

    -

    1,268

    Acquisition by merger

    -

    -

    946

    -

    946

    Balance as of June 30, 2024

    $ -

    -

    10,078

    -

    10,078

    Book value:

    June 30, 2025

    $ 19,429

    16,428

    6,174

    6,800

    48,831

    December 31, 2024

    $ 19,429

    17,857

    7,592

    8,160

    53,038

    June 30, 2024

    $ -

    -

    9,636

    -

    9,636

  12. Other current assets and other non-current assets

    The other current assets and non-current assets of the Group were as follows:

    2025.6.30

    2024.12.31

    2024.6.30

    Current

    Prepayments for purchases

    $ 13,492

    3,681

    42,796

    Prepaid expenses

    24,250

    13,776

    12,882

    Offset against business tax payable

    7,374

    18,086

    19,309

    Other

    4,330

    11,443

    4,438

    Total

    $ 49,446

    46,986

    $ 79,425

    Non-current

    Prepayments for equipment

    $ 12,569

    9,930

    8,967

    Guarantee deposits paid

    42,262

    64,802

    27,958

    Long-term prepaid expenses

    559

    497

    537

    Other

    -

    -

    34,527

    Total

    $ 55,390

    75,229

    $ 71,989

  13. Short-term notes and bills payable

    The details of short-term notes and bills payable were as follows:

    2024.12.31

    Guarantee or acceptance

    Range of

    institute interest rates Amount

    Commercial paper payable

    Taiwan Finance Corporation

    1.92%

    $ 20,000

    Commercial paper payable

    Mega Bills Finance Co.,

    2.09%

    $ 30,000

    Commercial paper payable

    Ltd.

    Taiwan Cooperative Bills

    1.95%

    $ 30,000

    Finance Corporation

    Less: Unamortized

    discount on bills payable

    (86)

    Total

    $ 79,914

    2024.6.30

    Guarantee or acceptance Range of

    institute interest rates Amount

    Commercial paper payable

    China Bills Finance

    Corporation

    1.50%

    $ 50,000

    Commercial paper payable

    Less: Unamortized

    Taiwan Corporative Bills Finance Corporation

    1.99%

    30,000

    discount on bills payable

    (97)

    Total

    $ 79,903

  14. Short-term borrowings

    The details of short-term loans were as follows:

    2025.6.30

    2024.12.31

    2024.6.30

    Secured bank loans

    $ 65,000

    198,055

    291,508

    Unsecured bank loans

    10,000

    64,800

    120,800

    Total

    $ 75,000

    262,855

    412,308

    Unused Credit Facility

    $ 1,170,155

    893,301

    988,281

    Range of interest rates

    1.80%~2.175%

    1.98%~3.176%

    1.98%~2.58%

    For the collateral for short-term borrowings, please refer to note 8.

  15. Long-term borrowings

2025.6.30

Interest rate Year of

Currency (%) maturity Amount

Secured bank loans TWD 1.95% 2025 $ 1,939 Less: current portion (1,939)

Total $ -

Unused Credit Facility $ 20,000

2024.12.31

Interest rate Year of

Currency (%) maturity Amount

Secured bank loans TWD 3.95% 2025 $ 13,437 Unsecured bank loans TWD 2.17%~2.82% 2025~2026 12,623 Less: current portion (24,671)

Total $ 1,389

Unused Credit Facility $ 12,100

2024.6.30

Interest rate Year of

Currency (%) maturity Amount

Secured bank loans

TWD

1.95%

2025

$ 24,711

Unsecured bank loans

TWD

1.99%~2.70%

2025~2029

33,431

Less: current portion

(29,626)

Total

$ 28,516

Unused Credit Facility

$ 12,100

For the collateral for long-term borrowings, please refer to note 8.

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