2024 fourth quarter financial report

FocalTech Systems Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2024 and 2023

Notice to Readers

The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

This is the translation of the financial statements. CPAs do not audit or review on this translation.

REPRESENTATION LETTER

The entities included in the consolidated financial statements as of December 31, 2024 and for the year then ended prepared under the International Financial Reporting Standards, No.10 are the same as the entities to be included in the combined financial statements of the Company, if any to be prepared, pursuant to the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises (referred to as "Combined Financial Statements"). Also, the footnotes disclosed in the Consolidated Financial Statements have fully covered the required information in such Combined Financial Statements. Accordingly, the Company did not prepare any other set of Combined Financial Statements than the Consolidated Financial Statements.

Very truly yours,

FocalTech Systems Co., Ltd.

By

Genda James Hu Chairman

February 21, 2025

INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Shareholders FocalTech Systems Co., Ltd.

We have audited the accompanying consolidated financial statements of FocalTech Systems Co., Ltd. and its subsidiaries (the "Group"), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

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, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (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.

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by 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 of Professional 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 a basis for our opinion.

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 31,2024. 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.

Key audit matters for the Group's consolidated financial statements for the year ended December 31, 2024 are stated as follows:

Valuation of Inventory

Due to high market demand fluctuation and rapid technological development, the inventories may turn obsolete or have a lower net realizable value which may result in inventories being impaired. The Group has performed impairment assessment on inventories through evaluation of aging and net realizable value of inventories quarterly. The management has practiced their professional judgement in estimating the possible loss on impairment based on the sales performance of each product. Therefore, inventory valuation is considered as a key audit matter for the financial year ended December 31, 2024.

Refer to Notes 4 and 11 for the accounting policy, accounting estimation and disclosure information.

Our audit procedures related to the abovementioned Key Audit Matters included the following:

1. We obtained an understanding of the Group's accounting policies and procedures on the assessment of impairment through analyzing the net realizable value calculation report and inventory aging report prepared by the management. We have inspected the supporting documents of recent selling price, and re-calculated the net realizable value of inventory to ensure its accuracy and reasonableness of the management's estimation on impairment loss.

2. We obtained an understanding of the Group's judgement on the estimation of impairment loss for obsolete items information and discussed recent sales performance and the reasonableness on the estimates of inventory devaluation in the future. We also performed inspection on recent sales to evaluate the reasonableness of the impairment loss provided on obsolete stock.

We have also audited the parent company only financial statements of FocalTech Systems Co., Ltd. as of and for the years ended December 31, 2024 and 2023 on which we have issued an unmodified opinion.

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the 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 level 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 members of the Audit Committee) are responsible for overseeing the Group's financial reporting process.

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

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

We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

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

5. Evaluate the overall presentation, structure and content of the consolidated financial statements,

   including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2024 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 reviews resulting in this independent auditors' review report are Huei-Min Huang and Chih-Ming Shao.

Deloitte & Touche Taipei, Taiwan Republic of China February 21, 2025

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

December 31,2024 December 31,2023

ASSETS Amount % Amount %

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT (Notes 4, 22 and 27)

Share capital

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

(Continued)

Items that may be reclassified subsequently to profit

EARNINGS PER SHARE (Note 26)

The accompanying notes are an integral part of the consolidated financial statements

(Concluded)

FOCALTECH SYSTEMS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

Equity Attributable to Owners of the Parent

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

CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of financial asset at fair value through other

comprehensive income (9,750) -

Proceeds from disposal of financial asset at fair value through other

Net cash inflow (outflow) from investing activities 3,600,198 (1,485,840)

(Continued)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH

EQUIVALENTS 143,311 (23,244)

NET INCREASE (DECREASE) IN CASH AND CASH

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

(Concluded)

1. GENERAL INFORMATION

   FocalTech Systems Co., Ltd. ("FocalTech" or "the Company"), formerly named as Orise Technology Co., Ltd., was incorporated in the Republic of China ("ROC") in January 2006. The Company's shares have been listed on the Taiwan Stock Exchange ("TWSE") since July 2007. On January 2, 2015, the Company acquired FocalTech Corporation, Ltd. through a share swap and renamed on January 27, 2015. This acquisition was comprehensively considered as a reverse merger, where FocalTech Corporation, Ltd. was treated as the acquirer in the financial statements. The Company mainly engages in the research, development, design, manufacturing, and sales of Human-Machine Interface solutions, such as Display Driver IC, Touch Control IC and so on.

   The consolidated financial statements are presented in the Company's functional currency of New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

   The consolidated financial statements were approved by the Company's board of directors on February 21, 2025.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

   1. Initial application of the International Financial Reporting Standards (IFRS), International Accounting

      Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC).

      The initial application of the amendments to the IFRSs endorsed and issued in to effect by the FSC did not have a significant impact on the Group's accounting policies.

   2. The IFRSs endorsed by the Financial Supervisory Commission (FSC) for application starting from 2025:

      Effective Date New, Revised or Amended Standards and Interpretations Announced by IASB

      Amendments to IAS 21 "Lack of Exchangeability" January 1, 2025 (Note 1)

      Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

      As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will not have impact on the Group's financial position and financial performance.

   3. The IFRSs issued by International Accounting Standards Board (IASB), but not yet endorsed and issued into effect by the Financial Supervisory Commission (FSC):

      New, Revised or Amended Standards and Interpretations

      Effective Date

      Announced by IASB (Note 1)

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

      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"

      Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

      January 1, 2026

      January 1, 2026

      To be determined by IASB

      IFRS 17 "Insurance Contracts" January 1, 2023

      Amendments to IFRS 17 January 1, 2023

      Amendments to IFRS 17 "Initial Application of IFRS 9 and IFRS 17-Comparative Information"

      January 1, 2023

      IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 IFRS 19 "Subsidiaries without Public Accountability: Disclosures" January 1, 2027

      Note 1: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates.

      As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have impact on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   1. Statement of compliance

      The present Consolidated Financial Report has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by Financial Supervisory Commission.

   2. Basis of Preparation

      The consolidated financial statements have been prepared on the historical cost basis, except for financial instruments measured at fair value and the net defined benefit liabilities recognized in the amount of the present value of defined benefit obligation less the fair value of any plan assets.

      The evaluation of fair value could be classified into Level 1 to Level 3 by the observable intensity and importance of related input value:

      1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

      2. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

      3. Level 3 inputs are unobservable inputs for the asset or liability.

   3. Standards in differentiating current and non-current assets and liabilities Current assets include:

      1. Assets held primarily for the purpose of trading;

      2. Assets expected to be realized within twelve months after the reporting period; and

      3. Cash and cash equivalents unless the asset are restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

         Current liabilities include:

         1. Assets expected to be realized within 12 months after the reporting period; and

         2. Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

         Those not as aforementioned current assets or current liabilities are classified as non-current assets or non-current liabilities.

   4. Basis of consolidation

      The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Applicable 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 on consolidation. Total comprehensive income of the subsidiaries is attributed both to the shareholders of the parent and the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

      Changes in the Company's ownership interests in subsidiaries that do not result in the Company losing controlling over the subsidiaries are accounted as equity transactions. The carrying amounts of the

      Company's interests and the non-controlling interests are adjusted to reflect the changes in their interests in the subsidiaries respectively. The amount adjusted for the non-controlling interests and the difference between fair value and the consideration paid or received are recognized directly in equity and attributed to shareholders of the parent.

      The detail information, holding percentages, and main business of the subsidiaries could be found in Note 12, TABLE 5 and TABLE 6.

   5. Foreign currencies

      In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

      At the end of each reporting period, 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.

      Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

      For the purpose of presenting consolidated financial statements, the functional currencies of the Company and the Group entities (including subsidiaries in other countries that use currency different from the currency of the Company) are translated into the presentation currency - New Taiwan dollars as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the

      reporting period. Income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

   6. Inventories

      Inventories consist of raw materials, supplies, finished goods and work-in-process and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date.

   7. Property, plant and equipment

      Property, plant and equipment are initially measured at cost, and subsequently measured at cost less accumulated depreciation.

      Depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful life, residual values and depreciation method are reviewed at the end of each reporting period, 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.

   8. Goodwill

      Goodwill arising from the acquisition of a business is carried at cost, and subsequently measured at cost 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 units) 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 when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. 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 to the other assets of the unit pro rata 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.

   9. Intangible assets

      Intangible assets with finite useful life that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

      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.

      On derecognition of an intangible asset, the difference between the net disposal proceeds and the

      carrying amount of the asset are recognized in profit or loss.

   10. Impairment of property, plant and equipment and intangible assets other than goodwill

       At the end of each reporting period, the Group reviews the carrying amounts of Property, plant and equipment and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such 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 to.

       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 in profit or loss.

   11. Financial instruments

       Financial assets and financial liabilities are recognized when a group entity 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 issue of financial assets and financial liabilities 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 fair value through profit or loss are recognized immediately in profit or loss.

       1. Financial assets

          All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

          1. Measurement category

             The Group's financial assets include those measured at FVTPL, at amortized cost and investments in debt instruments measured at FVTOCI.

             1. Financial asset at FVTPL

                The equity instruments that are not specified as FVTOCI and debt instruments that do not meet the criteria of amortized cost or FVTOCI are mandatorily required to be measured at FVTPL.

                Any dividends, interest earned and gain or loss arising from the remeasurement is recognized in profit or loss at fair value. The determination methodology of fair value of financial instruments states in Note 30.

             2. Financial assets at amortized cost

                Financial assets that meet both two following conditions will subsequently be measured at amortized cost:

                1. The objective of the business model to hold the financial asset is to collect contractual cash flows; and

                2. The cash flows from contractual terms of the financial asset on specified dates are solely matched for payments of principal and interests on the principal amount outstanding.

                   Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, account receivables at amortized cost, other financial assets, and refundable deposits, are measured at amortized cost, which equals to gross carrying amount determined by the effective interest method, subtracting any impairment loss. Foreign 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.

                   Cash equivalents include time deposits with original maturities within 3 months from obtaining date, high liquidation level, readily convertible to a known amount of cash at any time, and low risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

             3. Investments in debt instruments at FVTOCI

                Investments in debt instruments that meet both the following conditions are subsequently measured at FVTOCI:

                1. The objective of the business model to hold the financial asset is to collect contractual cash flows and sell financial assets; and

                2. The cash flows from contractual terms of the financial asset on specified dates are solely matched for payments of principal and interests on the principal amount outstanding.

                   Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment losses or reversed gains on investments in debt instruments at FVTOCI 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 these debt instruments are disposed.

          2. Impairment of financial assets

             At the end of each reporting period, the impairment loss is recognized by expected credit loss method for financial assets at amortized cost (including accounts receivables) and for investments in debt instruments in FVTOCI.

             The loss allowance for accounts receivables is determined by the expected credit losses over the lifetime. For other financial assets at amortized cost and investments in debt instruments that are measured at FVTOCI, if the credit risk on the financial instrument has not increased significantly after initial recognition, a loss allowance is determined by the expected credit losses resulting from the possible default events within 12 months after the reporting date. If, on the other hand,

             there has been a significant increase in credit risk after initial recognition, a loss allowance is determined by the expected credit losses resulting from all possible default events over the expected life of a financial instrument.

             Expected credit losses (ECLS) reflect the weighted average of credit losses with the respective risks of default occurring as the weights. 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In contrast, Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

             All impairment loss of the financial instruments with a corresponding adjustment to their carrying amount are through an 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.

          3. 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 party.

             When a financial asset carried at amortized cost is derecognized in its entirety, the difference between the asset's carrying amount and the consideration is recognized in profit or loss. If the financial asset is an investment in debt instruments at FVTOCI and derecognized in its entirety, the difference between the asset's carrying amount and the sum of the consideration plus the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss.

       2. Equity instruments

          Debt and equity instruments issued by a group entity 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 a group entity 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. The carrying amount is calculated by weighted average of stock types. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.

       3. Financial liabilities

          1. Subsequent measurement

             All the financial liabilities are measured by amortized cost using the effective interest method.

          2. Derecognition of financial liabilities

             The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

   12. Provisions

       Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

   13. Revenue recognition

       The Group recognizes revenue when customer's contract obligations are satisfied.

       Revenue comes from sales of human and machine interface devices ICs. Revenue is recognized when the ICs start to be shipped or are delivered to the specific locations instructed by customers, at which time the customer has full discretion over the ICs. Revenue and accounts receivables are recognized concurrently.

       The Group considers varying contractual terms to estimate sales returns and recognize refund liabilities, which is classified under other payables.

   14. Lease

       The Group evaluates if the contract belongs to or includes the lease the commencement date. The Group as a lessee

       Except for the leases of low-value asset or short-term leases recognized as expenses on a straight-line basis, the Group recognizes right-of-use assets and lease liabilities for all leases on the consolidated balance sheets from the commencement date.

   15. Government Grants

       Government grants are not recognized until it is assured reasonably that the Group will be able to comply with the conditions attaching to the subsidies and the grants will be received possibly.

       Government grants used as the compensation for expenses or losses already incurred are recognized in profit or loss in the period in which they become receivable and are not necessary to return.

   16. Employee benefits

       1. Short-term employee benefits

          Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

       2. Retirement benefits

          Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

          Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost, including current service cost and net interest on the net defined benefit liability (asset), is recognized as employee benefits expense in the period it occurs. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur and will not be reclassified to profit or loss.

          Net defined benefit liability represents the actual deficit in the Company's defined benefit plan.

   17. Share-based payment arrangements

       Equity-settled and share-based payment arrangements granted to employees

       The fair value at the grant date of the equity-settled and share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's optimal estimate number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options.

       The fair value at the grant date of the restricted shares for employees is expensed on a straight-line basis over the vesting period, based on the Group's best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in other equity - unearned employee benefits. For restricted stocks where employees have to pay to acquire those stocks, the Group will return their payments on the stocks to employees when they resign. It should be recognized in payables.

       When restricted shares for employees are issued, other equity - unearned employee benefits are recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees.

       At the end of each reporting period, the Group revises its estimate of the number of restricted shares for employees that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - restricted shares for employees.

       Cash-settled share-based payment arrangements

       For cash-settled share-based payments, a liability is recognized for the services acquired, measured at the fair value of the liability incurred. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognized in profit or loss.

   18. Taxation

       Income tax expense represents the sum of the tax currently payable and deferred tax.

       1. Current tax

          Income tax payable is calculated according to the applicable tax laws of each tax jurisdiction.

          The tax on unappropriated earnings according to the Income Tax Law should be accrued in the year when the resolution regarding to the appropriated earnings is made in the shareholder meeting.

          Any adjustment of prior years' tax liability is counted in the current year's tax provision.

       2. Deferred tax

          Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. In addition, a deferred tax liability is not recognized on taxable temporary difference arising from initial recognition of goodwill.

          Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is

          probable that taxable profits will be available against which those deductible temporary differences can be utilized.

          Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

          The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

          Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

       3. Current and deferred tax for the year

          Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income, in which case, the deferred tax is recognized in other comprehensive income.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

   In the application of the Group's accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

   Impairment of inventory

   Net realizable value of inventory is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value was based on current market conditions and the historical experience of selling products of a similar nature. Changes in market conditions may have a material impact on the estimation of net realizable value.

6. CASH AND CASH EQUIVALENTS

   December 31

   2024		2023
   Cash on hand	$ 4,599	$ 5,406
   Checking accounts and demand deposits	2,949,518	1,286,961
   Cash equivalent (time deposits with original maturities within three months)	5,293,762	3,152,437

   $ 8,247,879 $ 4,444,804

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

   December 31

   	2024	2023
   Current Mandatorily measured at fair value through profit or loss (FVTPL) Government bonds	$ 275,228	$ 246,194
   Beneficiary Certificate	5,472	4,011
   	$ 280,700	$ 250,205
   Non - Current Mandatorily measured at fair value through profit or loss (FVTPL) Listed preferred shares	$ 10,285	$ 10,183
   Private Funds	275,263	238,544
   Structured Investments	130,278	116,998
   	$ 415,826	$ 365,725

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

   December 31

   2024 2023

   Investments in debt instruments Current

   Foreign investments

   Fixed income bonds $ 54,014 $ 129,746

   Non - Current
   Domestic investments
   Fixed income bonds	$ 9,767	$ -
   Foreign investments Fixed income bonds	-	50,364
   	$ 9,767	$ 50,364

9. OTHER FINANCIAL ASSETS

   December 31

   2024 2023

   Time deposits with original maturities more than three months $ 912,274 $ 2,806,629

10. ACCOUNTS RECEIVABLES, NET

    December 31

    2024 2023

    Accounts receivables $ 1,339,654 $ 1,649,039

    The average credit term for sales of goods was 30-120 days. In order to minimize credit risk, management of the Group has delegated a team responsible for determining line of credit, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual accounts receivable at the end of the reporting period to ensure that adequate allowances are made for irrecoverable amounts. In this regard, the Group's management believes the Group's credit risk was significantly reduced.

    The Group applies the simplified approach prescribed by IFRS 9, which permits the use of allowances of expected credit losses over the lifetime for all accounts receivables. The expected credit losses on accounts receivables are estimated by using an allowance matrix with references to past customer default records, customer's current financial position, and general economic conditions of the industry. Due to the past experiences, there is no significant difference in the loss patterns of different customer groups. Therefore, the allowance matrix does not further distinguish the customer base, and only sets the expected credit loss rate based on the overdue days of accounts receivable.

    The following table details the loss allowance of accounts receivables based on the Group's allowance matrix.

    December 31, 2024
    	Non Past Due		Overdue 1-60 Days		Overdue 61-180 Days		Overdue Over 180 Days		Total
    Expected credit loss rate	0%		0%		0%		0%		0%
    Gross carrying amount and Amortized cost	$ 1,323,110		$ 16,544		$ -		$ -		$ 1,339,654
    December 31, 2023
    	Non Past Due		Overdue 1-60 Days		Overdue 61-180 Days		Overdue Over 180 Days		Total
    Expected credit loss
    rate	0%		0%		0%		0%		0%
    Gross carrying amount
    and Amortized cost	$ 1,649,039		$ -		$ -		$ -		$ 1,649,039

11. INVENTORIES

    December 31

    2024		2023
    Finished goods	$ 817,182	$ 842,838
    Work in progress	1,010,960	980,224
    Raw materials and supplies	745,786	852,030
    	$ 2,573,928	$ 2,675,092

    The cost of goods sold were including amounts of which write-down inventory cost to net realizable value and reverse of write-down inventories due to sales. The amounts are illustrated below:

    For the Years Ended December 31

    2024 2023

    Reversal gain on write-down of inventories $ 331,164 $ 1,159,428

12. SUBSIDIARIES

    Details of the Company's subsidiaries included in the consolidated financial statements were as follows:

    Proportion of

    Ownership December 31

    Investor Investee Nature of Activities 2024 2023 Note

    FocalTech Systems	FocalTech Corporation, Ltd.	Investment activity	100%	100%
    Co., Ltd.	FocalTech Electronics, Ltd.	Investment activity	100%	100%
    FocalTech Systems Co., Ltd. and	FocalTech Smart Sensors, Ltd.	Investment activity	66.45%	66.45%

    FocalTech Electronics Co., Ltd.

    FocalTech Smart Sensors, Ltd.	FocalTech Smart Sensors Co., Ltd.	Research, development, manufacturing and sale of integrated circuits	100%	100%
    FocalTech Corporation, Ltd.	FocalTech Systems, Inc.	Investment activity	100%	100%
    FocalTech Systems,	FocalTech Systems, Ltd.	Investment activity	100%	100%

    Inc.

    FocalTech Systems, Ltd.

    FocalTech Electronics Co., Ltd. Import and export of integrated circuits 100% 100%

    FocalTech Electronics, Ltd.

    FocalTech Electronics (Shanghai) Co., Ltd.

    FocalTech Electronics (Shanghai) Co., Ltd.

    FocalTech Electronics (Shenzhen) Co., Ltd.

    Chengdu FocalTech Systems Co., Ltd.

    Sales support and post-sales service for affiliates' IC products

    Research, development, manufacturing and sale of integrated circuits

    Design and research of integrated circuits

    100% 100%

    100% 100%

    100% - Note

    FocalTech Electronics	FocalTech Systems (Shenzhen)	Design and research of integrated	100%	100%
    (Shenzhen) Co.,	Co., Ltd.	circuits
    Ltd.
    	Hefei PineTech Electronics Co.,	Research, development and sale of	100%	100%
    	Ltd.	integrated circuits

    Note : Chengdu FocalTech Systems Co., Ltd. was established in August 2024.

13. PROPERTY, PLANT AND EQUIPMENT

    Development

    Office

    Information

    Leasehold

    Construction

    Land Buildings Equipment Equipment Equipment Improvements In progress Total

    Cost
    Balance, January 1, 2023	$ 557,110	$ 1,856,612	$ 476,829	$ 60,977	$ 43,345	$ 21,869	$ 56,640	$ 3,073,382
    Additions	-	-	26,814	32,481	29	-	-	59,324
    Disposals	-	-	( 9,506)	( 476 )	( 1,341)	-	-	( 11,323)
    Reclassification Effect of foreign currency	-	-	-	56,640	-	-	( 56,640)	-
    exchange differences -		( 22,192)	( 2,657)	( 161 )	( 627 )	( 237 )	-	( 25,874)
    2023 $ 557,110		$ 1,834,420	$ 491,480	$ 149,461	$ 41,406	$ 21,632	$ -	$ 3,095,509

    Balance, December 31,

    Accumulated depreciation

    Balance, January 1, 2023 $ - $ 199,720 $ 292,528 $ 12,980 $ 32,077 $ 21,869 $ - $ 559,174

    Depreciation - 36,898 59,764 14,583 2,440 - - 113,685

    Disposals - - ( 9,463) ( 432 ) ( 1,203) - - ( 11,098)

    Effect of foreign currency

    exchange differences - ( 3,681) ( 1,458) ( 121 ) ( 485 ) ( 237 ) - ( 5,982)

    Balance, December 31,

    2023 $ - $ 232,937 $ 341,371 $ 27,010 $ 32,829 $ 21,632 $ - $ 655,779

    Carrying amounts as of

    December 31, 2023 $ 557,110 $ 1,601,483 $ 150,109 $ 122,451 $ 8,577 $ - $ - $ 2,439,730

    Cost

    Balance, January 1, 2024 $ 557,110 $ 1,834,420 $ 491,480 $ 149,461 $ 41,406 $ 21,632 $ - $ 3,095,509

    Additions - - 164,654 6,041 1,231 - - 171,926

    Disposals - - ( 47,410) ( 225 ) ( 1,467) - - ( 49,102)

    Effect of foreign currency

    exchange differences - 67,478 18,531 533 1,915 721 - 89,178

    Balance, December 31,

    2024 $ 557,110 $ 1,901,898 $ 627,255 $ 155,810 $ 43,085 $ 22,353 $ - $ 3,307,511

    Accumulated depreciation

    Balance, January 1, 2024 $ - $ 232,937 $ 341,371 $ 27,010 $ 32,829 $ 21,632 $ - $ 655,779

    Depreciation - 37,306 78,723 17,090 2,305 - - 135,424

    Disposals - - ( 39,807) ( 202 ) ( 1,313) - - ( 41,322)

    Effect of foreign currency

    exchange differences - 11,234 14,146 374 1,480 721 - 27,955

    Balance, December 31,

    2023 $ - $ 281,477 $ 394,433 $ 44,272 $ 35,301 $ 22,353 $ - $ 777,836

    Carrying amounts as of

    December 31, 2024 $ 557,110 $ 1,620,421 $ 232,822 $ 111,538 $ 7,784 $ - $ - $ 2,529,675

    Property, plant and equipment were depreciated on a straight-line basis over the estimated useful life as follows:

    Buildings 45-50 years

    Development equipment 2-5 years

    Office equipment 3-5 years

    Information equipment 3-5 years

    Leasehold improvements 1-5 years

    Property, plant and equipment were pledged as collateral. Refer to Note 32.

14. GOODWILL

    December 31

    2024 2023

    Ending balance $ 1,237,268 $ 1,237,268

    Considering the synergy of integration of LCD driver and touch controller under the industry trend, the reverse merger was triggered by FocalTech Corporation, Ltd. on January 2, 2015, resulting the goodwill of

    $3,237,268 thousand. In 2018, the impacts of market improper competition and the shortage of wafer supply made the company a serious market share decline, which is expected to influence the market shares and gross margins in the future. Therefore, the recoverable amount from Display and Touch integrated chip less than the carrying value so the Company recognized the impairment loss of $2,000,000 thousand. In 2024 and 2023, based on the market growth and market share gain in smartphone market, the Group estimated cash flows from sales of Display and Touch integrated chip, and the recoverable amount exceeded the carrying value. Therefore, the Group did not recognize any impairment on goodwill.

    The recoverable amount is calculated by Display and Touch integrated chip projected net cash flows, discounted at 15.39% and 15.55% for the years ended December 31, 2024 and 2023, under the assumptions of management team judgments and historical experiences with regard to future growth rates and gross margin.

15. OTHER INTANGIBLE ASSETS

    	Licenses and Franchises	Software	Patents	Trademark	Total
    Cost
    Balance, January 1, 2023	$ 144,432	$ 229,600	$ 76,710	$ 74,000	$ 524,742
    Additions	-	145,821	-	-	145,821
    Disposal Effect of foreign currency	(18,656)	(60,784)	-	-	(79,440)
    exchange differences (19)		(127)	(4)	-	(150)
    Balance, December 31, 2023 $ 125,757		$ 314,510	$ 76,706	$ 74,000	$ 590,973
    Accumulated amortization
    Balance, January 1, 2023	$ 142,207	$ 200,676	$ 62,110	$ 59,200	$ 464,193
    Amortization expenses	2,225	74,890	7,300	7,400	91,815
    Disposal Effect of foreign currency	(18,656)	(60,784)	-	-	(79,440)
    exchange differences (19)		(91)	(4)	-	(114)
    Balance, December 31, 2023 $ 125,757		$ 214,691	$ 69,406	$ 66,600	$ 476,454
    Carrying amounts as of December 31, 2023 $ -		$ 99,819	$ 7,300	$ 7,400	$ 114,519

    	Licenses and Franchises	Software	Patents	Trademark	Total
    Cost
    Balance, January 1, 2024	$ 125,757	$ 314,510	$ 76,706	$ 74,000	$ 590,973
    Additions	-	158,438	-	-	158,438
    Disposal Effect of foreign currency	-	(24,084)	-	-	(24,084)
    exchange differences 8,217		9,682	12	-	17,911
    Balance, December 31, 2024 $ 133,974		$ 458,546	$ 76,718	$ 74,000	$ 743,238

    Accumulated amortization
    Balance, January 1, 2024	$ 125,757	$ 214,691	$ 69,406	$ 66,600	$ 476,454
    Amortization expenses	-	105,382	7,300	7,400	120,082
    Disposal Effect of foreign currency	-	(24,084)	-	-	(24,084)
    exchange differences 8,217		9,299	12	-	17,528
    Balance, December 31, 2024 $ 133,974		$ 305,288	$ 76,718	$ 74,000	$ 589,980
    Carrying amounts as of December 31, 2024 $ -		$ 153,258	$ -	$ -	$ 153,258

    Other intangible assets were amortized on a straight-line basis over the estimated useful life as follows: Licenses and franchises 1-5 years

    Software 1-5 years

    Patents 7-10 years

    Trademark 10 years

16. REFUNDABLE DEPOSITS

    December 31

    2024 2023

    Capacity guarantee deposits and others $ 459,603 $1,857,769

    Guarantee deposits mainly consists of cash paid to suppliers to ensure stable foundry capacity.

17. BANK LOANS

    1. Short-term bank loans

       December 31

       2024 2023

       Unsecured bank loans $ 935,802 $ 860,242

       Annual interest rate

       Unsecured bank loans 1.85～3.15% 3.10～3.60%

    2. Long-term bank loans

       December 31

       	2024	2023
       Secured bank loans (1)	$ -	$ 786,840
       Unsecured bank loans (2)	22,576	172,107
       	22,576	958,947
       Less: reclassification to Current position of long-term borrowings	( 22,576)	( 198,493)
       Long-term borrowings	$ -	$ 760,454
       Annual interest rate Secured bank loans	-	1.75~1.875%
       Unsecured bank loans	3.00%	3.30~3.65%
       (1) For secured bank loans, the principals will be paid monthly	or quarterly after	three years from

       drawdown date. The period of loans is from September, 2021 to September, 2036. Commercial building is pledged as collateral for the long-term loans, please refer to Note 32. This loan was fully repaid early in December 2024.

       (2) For unsecured bank loans, the principals will be paid according to the contract. The period of loans is from January, 2024 to November, 2025.

18. ACCOUNTS PAYABLES

    December 31

    2024 2023

    Accounts payables $ 2,357,450 $ 1,478,429

    The average credit period on purchases was 30-60 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

19. OTHER PAYABLES

    December 31

    	2024	2023
    Payable for rebates	$1,132,417	$ 849,398
    Payable for salaries and bonus	576,337	380,430
    Payable for labor, health and social insurance	14,837	15,320
    Reserve for litigations	95,678	53,473
    Payable for professional services and others	200,384	157,763
    	$2,019,653	$1,456,384

20. RETIREMENT BENEFIT

    1. Defined contribution plans

       The Company、FocalTech Smart Sensors Co., Ltd. and FocalTech Electronics Co., Ltd. adopted a pension plan under the Labor Pension Act (the "LPA"), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

    2. Defined benefit plans

       The defined benefit plan adopted by the Company in accordance with the Labor Standards Law is operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor ("the Bureau"); the Company has no right to influence the investment policy and strategy.

       The amounts included in the consolidated balance sheets in respect of the Group's defined benefit plans were as follows:

       December 31

       2024 2023

       Present value of defined benefit obligation $ 35,106 $ 35,423

       Fair value of plan assets ( 24,289) ( 21,468)

       Net defined benefit liability $ 10,817 $ 13,955

       Movements in net defined benefit liability were as follows:

       Present Value of the Defined Benefit

       Obligation

       Fair Value of

       the Plan Assets

       Net Defined Benefit Liability

       (Asset)

       Balance at January 1, 2023	$ 33,968	( $		20,408 )	$ 13,560
       Net interest expense (income)	425	(		260 )	165
       Recognized in profit or loss	425	(		260 )	165
       Remeasurement
       Return on plan assets
       (excluding amounts
       included in net interest)	-	(	169 )	(	169 )
       Actuarial gain - experience
       adjustments	1,030		-		1,030
       Recognized in other
       comprehensive income	1,030	(	169 )		861
       Contributions from the employer	-	(		631 )	( 631	)
       Balance at December 31, 2023	$ 35,423	( $		21,468 )	$ 13,955
       Balance at January 1, 2024	$ 35,423	( $		21,468 )	$ 13,955

       	Present Value			Net Defined
       	of the Defined			Benefit
       	Benefit		Fair Value of	Liability
       	Obligation		the Plan Assets	(Asset)
       Net interest expense (income)	443		( 273 )	170
       Recognized in profit or loss	443		( 273 )	170
       Remeasurement
       Return on plan assets
       (excluding amounts
       included in net interest)		- (	1,884 )	(	1,884 )
       Actuarial gain - changes in
       financial assumptions	(	854 )	-	(	854 )
       Actuarial gain - experience
       adjustments		94	-		94
       Recognized in other comprehensive income	( 760 )		( 1,884 )	( 2,644 )
       Contributions from the employer	-		( 664 )	( 664 )
       Balance at December 31, 2024	$ 35,106		( $ 24,289 )	$ 10,817

       Through the defined benefit plans under the Labor Standards Law, the Group is exposed to the following risks:

       1. Investment risk: The plan assets are invested in domestic/foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

       2. Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.

       3. Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

December 31

If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

December 31

Discount rate