2024Q4 Financial Statements Consolidated

Stock Code : 6168

Harvatek Corporation

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

and 2023 and

Independent Auditors' Report

Address: No. 18, Ln. 522, Sec. 5, Zhonghua Rd., Hsinchu City

Tel No.: (03) 539-9889

The reader is advised that these consolidated 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.

Table of contents

transactions

1. Information on investees 67、74 36

2. Information on investments in mainland China

3. Information on major shareholders

67、75 36

68、76 36

( 14). Segment information 68～ 69 37

Representation Letter of Consolidated Financial Statements of the Affiliates

The entities that are required to be included in the combined financial statements of Harvatek Corporation as of and for the year ended December 31, 2024, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, "Consolidated Financial Statements". In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Harvatek Corporation and Subsidiaries do not prepare a separate set of combined financial statements.

Very truly your

Harvatek Corporation

Chairman: Wang, Ping-Lung

March 25, 2025

The Board of Directors and Shareholders Harvatek Corporation

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

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 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 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 ("ROC").

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in 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 of the Group 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.

The description of the key audit matter of the Group's consolidated financial statements for the year ended December 31, 2024, is as follows:

Recognition of Revenue from Sales

In the fiscal year 2024, the main source of revenue for Harvatek Corporation and its subsidiaries is sales revenue from goods. Due to the decrease in demand in the light-emitting diode (LED) market in fiscal year 2024, which affected the revenue growth of certain sales customers, the Group identified the sales revenue from these customers as a potential source of significant fraud risk that could have a material impact on the consolidated financial statements. Therefore, the auditor categorized the recognition of this revenue as a key audit matter and performed the following audit procedures in response to the risks associated with these customers:

1. We reviewed and tested the relevant internal control systems and operating procedures of the sales transaction cycle to confirm and assess the effectiveness of internal controls when conducting sales transactions.

2. For the sales transactions involving the potentially risky sales entities identified above, we selected samples for testing and conducted sampling audits. We examined customer and external supporting documents to confirm the authenticity of sales revenue. Additionally, we investigated whether there were any abnormalities in the collection of payments from these sales entities after the period ended.

Other Metters

The Company has prepared the parent company only financial statements for the years 2024 and 2023. These have been audited by us, the accountants, and we have issued an unqualified opinion in our audit report, which is available for reference.

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 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, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concerned 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 auditing standards generally accepted in 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 auditing standards generally accepted in 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.

   Deloitte & Touche

   Accountant: Fang Su-lie Accountant: Zhang Ya-Yun

   Financial Supervisory Commission Approved-certified No.:

   Tai-Cai-Zheng-Liu-Certificate No. 0940161384

   Financial Supervisory Commission Approved-certified No.:

   Jin-Guan-Certificate No. 1110348898

   March 25, 2025

   Harvatek Corporation And Subsidiaries

   CONSOLIDATED BALANCE SHEETS

   DECEMBER 31, 2024 AND 2023

   (In Thousands of New Taiwan Dollars)

   December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023

   CODE ASSETS Amount ％ Amount ％ CODE LIABILITIES AND EQUITY Amount ％ Amount ％

   CURRENT ASSETS CURRENT LIABILITIES

   $ 573,197	14	$ 806,399	20	2100	Short-term borrowings (Notes 19 and 31)	$ 41,198	1	$ 15,584	-
   				2130	Current contract liabilities（Note 23）	70,980	2	73,575	2
   14,251	1	-	-	2170	Account payables (Note 31)	282,085	7	262,377	7
   				2180	Accounts payable - related parties (Notes 31, and 32)	14,923	-	12,034	-
   166,100	4	175,013	4	2219	Other payables(Note 20, 31 and 32)	182,015	5	182,013	5
   				2213	Payables on equipment(Note 31)	3,479	-	5,624	-
   776,576	19	611,576	15	2230	Current income tax liabilities (Note 4,25)	1,047	-	14,593	-
   				2280	Lease liabilities-current (Note 4, 15 and 31)	5,429	-	6,611	-

   1100 Cash and cash equivalents (Note 4, 6, and 31)

   1110 Financial assets at fair value through profit or loss (Note 4, 7, and 31)

   1120 Current financial assets at fair value through

   other comprehensive income(Note 4, 8, and 31)

   1136 Financial assets at amortized cost (Note 4, 9 and 31）

   1170 Net accounts receivable(Note 4, 5, 10, 23, 2320 Current portion of long-term borrowings (Note 19, 31 and 33)146,431 4 - -

   31） 409,893			10	429,681	11	2399	Other current liabilities(Note 20)	17,276	-	7,301	-
   1180 Accounts receivable - related parties, net (Note 4, 10, 23, 31 and 32) 21,325			1	13,646	-	21XX	Total current liabilities	764,863	19	579,712	14
   1200	Other receivables(Note 4, 5, 10 and 31)	9,933	-	6,043	-	NON-CURRENT LIABILITIES
   1210	Other receivables - related parties (Note					2542 Long-term notes payable - related
   parties(Note 31 and 32) 79,531									2	78,057	2
   4, 10, 31, and 32） 10,021			-	10,000	-	2570	Deferred income tax liabilities(Note 4 ,25)	4,158	-	4,807	-
   1220	Current income tax assets (Note 4 and 25)	3,003	-	6,925	-	2580	Lease liabilities - noncurrent (Note 15, 31)	49,836	1	49,695	1
   130X	Inventories(Note 4, 5 and 11)	372,389	9	303,565	8	2640	Net defined benefit liabilities (Note 4, 21)	8,301	-	17,915	1
   1410	Prepayments(Note 18 and 32)	30,674	1	16,661	1	2645	Guarantee deposits(Note 31)	6,722	-	3,752	-
   1470 Other current assets(Note 18) 39			-	63	-	25XX	Total noncurrent liabilities	148,548	3	154,226	4
   1482 Cost to fulfill contracts - current(Note 4,23) 4,155			-	452	-
   11XX Total current assets 2,391,556			59	2,380,024	59	2XXX	Total liabilities	913,411	22	733,938	18

   NONCURRENT ASSETS Equity attributable to the owners of the parent company (Note 4 and

   22)

   1510 Non-current financial assets at fair value Capital

   77,417 2 91,405 2 3110 Ordinary share 2,060,698							51	2,060,698	51
   3200 Capital surplus 490,863							12	489,514	12
   Retained earnings
   452,200	11	465,349	12
   				3310	Legal reserve	148,863	4	138,410	4
   8,358	-	8,286	-	3350	Unappropriated earnings	101,975	2	201,042	5
   				3400	Other equity 211,149 5 235,807 6
   142,361	3	165,345	4	3500	Treasury stock ( 5,521 ) - ( 5,521 ) -
   31XX Total equity attributable to the owners of the

   through profit or loss(Note 4, 7, and 31) 1517 Non-current financial assets at fair value

   through other comprehensive income(Note 4, 8, and 31)

   1535 Financial assets measured at amortized

   cost (Notes 4, 9, 31 and 33)

   1550 Investments accounted for using equity

   method（Note 4 and 13）

   1600 Property, plant, and equipment(Note 4,14, 32

   and 33) 718,418 18 661,430 17

   company 3,008,027 74 3,119,950 78

   1755	Right-of-use assets (Note 4 and 15)	98,657	2	55,797	1
   1760	Investment properties, net(Note 4 ,16）	65,646	2	65,505	2	36XX	Non-controlling equity(Note 4 and 22)	145,177	4	159,685	4
   1780	Intangible assets (Notes 4, 17 and 32)	24,994	1	29,647	1
   1840	Deferred tax assets（Note 4 and 25）	40,649	1	40,397	1	3XXX	Total equity	3,153,204	78	3,279,635	82
   1915 Prepaid equipment expenses(Note 32) 37,496			1	28,277	1
   1940 Long-term receivables - installment(Note 31, 32) 3,782			-	17,679	-
   1990 Other non-current assets (Notes 4, 18 and 31) 5,081			-	4,432	-
   15XX Total non-current assets 1,675,059			41	1,633,549	41
   1XXX TOTAL $ 4,066,615			100	$ 4,013,573	100	TOTAL EQUITY AND LIABILITY		$ 4,066,615	100	$ 4,013,573	100

   The accompanying notes are an integral part of the consolidated f inancial s t atements. ( Please refer to the audit report issued by Deloitte & Touche on March 25 , 2025 )

   Chairman: Wang, Ping - Lung Manager: Wang, Ping - Lung Accounting Supervisor: Su Yu - Hui

   Harvatek Corporation And Subsidiaries

   CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

   FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

   (In Thousands of New Taiwan Dollars, Except Earnings(Loss) Per Share is 1 Dollar Per Share)

   2024 2023

   CODE		Amount		％		Amount		％
   4000	NET OPERATING REVENUE	$ 1,960,579		100		$ 2,033,098		100
   	(Note 4, 23, 32 and 37）
   5000	OPERATING COSTS (Note 4, 11, 24 and 32）	1,463,255		75		1,491,791		74
   5900	GROSS PROFIT	497,324		25		541,307		26
   5910	Unrealized sales profit(loss)	931		-		( 4,987 )		-

   5950 Realized gross profit from operations 498,255 25 536,320 26

   	OPERATING EXPENSES (Note 24, 32)
   6100	Selling and marketing
   	expenses	149,857	8	124,370	6
   6200	General and administrative expenses	172,325	9	150,687	7
   6300	Research and development
   	expenses	246,145	12	218,124	11
   6450	expected credit impairment loss (Note 10)	2,454	-	135	-
   6000	Total operating expenses	570,781	29	493,316	24
   6900	NET OPERATING (LOSS) PROFIT	( 72,526 )	( 4 )	43,004	2

   ON-OPERATING INCOME AND EXPENSES(Note 24 and 32)

   7100	Interest income		21,686	1	25,264	1
   7010	Other income		46,634	2	54,321	3
   7020	Other gains and losses		18,234	1	4,109	-
   7050	Finance costs	(	3,093 )	- (	2,102 )	-

   7060 Share of profit (loss) of associates accounted for using equity method,

   net(Note 4） ( 29,244 ) ( 1 ) ( 13,864 ) -

   7000 Total non-operating income and expenses

   54,217 3 67,728 4

   7900 PROFIT (LOSS) BEFORE INCOME TAX ( 18,309 ) ( 1 ) 110,732 6

   7950 INCOME TAX EXPENSE (Note 4 and

   25)

   1,845 - 18,953 1

   8200 NET PROFIT (LOSS) FOR THE YEAR ( 20,154 ) ( 1 ) 91,779 5

   （ Continued）

   （ Continued）

   2024							2023
   CODE	Amount			％			Amount			％
   	OTHER COMPREHENSIVE
   	INCOME (LOSS)(Note 22)
   8310	Items not reclassified to
   	profit or loss:
   8311	Remeasurement of defined benefit plans(note 21)		$ 6,467			-		( $	445 )		-
   8316	Unrealized gains and losses on equity instruments measured
   	at fair value through other comprehensive income	(	21,772 )		(	1 )			131,328		6
   8349	Income taxes related to items not reclassified	(	1,293 )			-			89		-
   	Items that may be reclassified
   	subsequently to profit or
   	loss:
   8361	Exchange differences in translation of financial
   	statements of foreign
   	operations (Notes 4 and
   	22)	7,078		-			( 859 )			-
   8300	Other comprehensive
   	income for the year
   	(net of tax)	( 9,520 )		( 1 )			130,113			6
   8500	TOTAL COMPREHENSIVE INCOME	( $ 29,674 )		( 2 )			$ 221,892			11
   	Net profit (loss) to:
   8610	Owner of the Company	$ 5,860		-			$ 107,089			6
   8620	Non-controlling equity	( 26,014 )		( 1 )			( 15,310 )			( 1 )
   8600		( $ 20,154 )		( 1 )			$ 91,779			5
   	Total comprehensive income attributable
   	to:
   8710	Owner of the Company	( $		10,391 )	(	1 )	$		227,605	11
   8720	Non-controlling equity	( 19,283 )		( 1 )			( 5,713 )			-
   8700		( $ 29,674 )		( 2 )			$ 221,892			11
   	EARNINGS PER SHARE（Note 26）
   9710	Basic	$ 0.03					$ 0.52
   9810	Dilution	$ 0.03					$ 0.52

   The accompanying notes are an integral part of the consolidated financial statements. ( Please refer to the audit report issued by Deloitte & Touche on March 25, 2025)

   Ch a i rman : Wang , Pin g - Lu n g M an ag e r : Wan g , Pin g - Lun g Acco u n t i n g Su perv i sor: Su Yu - Hu i

   Harv atek Corporation And Subsidiaries

   CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

   FOR THE YEARS ENDED DECEMBER 31 , 2024 AND 2023

   ( In Th o u san d s o f New Taiwa n Do l l a r s , Ex cep t Earn i n g s Per Sh a re)

   Equity attributable to the owners of the company

   Other equity

   Exchange from Unrealized gains or

   differences arising losses on equity

   Capital Retained earnings translation of instruments at fair

   Code Share(thousands） Amount Capital surplus Legal reserve Undistributed

   foreign operations value through other

   Treasury stock Total Non-controlling

   Total equity

   earnings

   comprehensive income

   equity

   $ 3,223,618 -		$ 139,657 -			$ 3,363,275 -
   309,105 )		-		(	309,105 )

   A1 Balance on January 1, 2023 206,070 $ 2,060,698 $ 496,303 $ 100,393 $ 443,633 ( $ 15 ) $ 123,926 ( $ 1,320 )

   Appropriation of 2022 earnings

   B1	Legal Reserve	-	-	- 38,017	(	38,017 )	-	-	-
   B5	Shareholder's Stock Dividend	-	-	- -	(	309,105 )	-	-	- (

   D1	2023 Net profit	-	-	-	- 107,089	-	-	-	107,089	(	15,310 )	91,779
   D3	2023 Other comprehensive income	-	-	-	-	( 356 )	( 95 )	120,967	-	120,516	9,597	130,113
   D5	2023 Total comprehensive income	-	-	-	-	106,733	( 95 )	120,967	-	227,605	( 5,713 )	221,892

   L3 Repurchase of treasury stock

   L7 The disposal of the parent company's shares by a subsidiary is treated as a treasury stock transaction

   Q1 Disposal of equity instruments measured at fair value through other comprehensive income

   -	- -	-	-	-	- (	5,521 )	(	5,521 )	- (	5,521 )
   -	- 610	-	-	-	-	1,320		1,930	-	1,930

   - - - - 8,976 - ( 8,976 ) - - - -

   Z1 Balance on December 31, 2023 206,070 2,060,698 489,514 138,410 201,042 ( 110 ) 235,917 ( 5,521 ) 3,119,950 Appropriation of 2023 earnings -											159,685 -			3,279,635 -
   102,881 )											-		(	102,881 )
   D1	2024 Net profit		-	-	- 5,860		-	-	-	5,860	(	26,014 )	(	20,154 )
   D3	2024 Other comprehensive income		-	-	-	5,174	7,092	( 28,517 )	-	( 16,251 )	6,731		( 9,520 )
   D5	2024 Total comprehensive income		-	-	-	11,034	7,092	( 28,517 )	-	( 10,391 )	( 19,283 )		( 29,674 )
   Q1	Disposal of equity instruments measured
   	at fair value through other
   comprehensive income -				-	-	-	3,233	-	( 3,233 ) - - - -

   M7 Changes in equities of subsidiaries - - ( 7,399 ) - ( 11,178 ) - - - ( 18,577 ) 25,741 7,164

   B1	Legal Reserve	-	-	- 10,453	(	10,453 )	-	-	-
   B5	Shareholder's Stock Dividend	-	-	- -	(	102,881 )	-	-	- (

   -

   -

   -

   M7	Changes in equities of subsidiaries	-	-	1,349	-	-	-	-	-	1,349	25	1,374
   O1	Increase in non-controlling interests	-	-	-	-	-	-	-	-	-	4,750	4,750
   Z1	Balance on December 31, 2024	206,070	$ 2,060,698	$ 490,863	$ 148,863	$ 101,975	$ 6,982	$ 204,167	( $ 5,521 )	$ 3,008,027	$ 145,177	$ 3,153,204

   The accomp anying notes are an integ ral p art o f the consolidated f in ancial statements. ( Please refer to the audit report i ssu ed by Deloitte & Touche on March 25 , 2025 )

   Chairman: Wang, Ping - Lu ng Manag er: Wang, Ping - Lung Accounting Supervisor: Su Yu - Hui

   Harvatek Corporation And Subsidiaries

   CONSOLIDATED STATEMENTS OF CASH FLOWS

   FOR THE YEARS ENDED DECEMBER 31 , 2024 AND 2023

   ( In Thousands of New Taiwan Dollars)

   C O D E	CASH FLOWS FROM OPERATING ACTIVITIES							2024		2023
   A10000	Profit before income tax							( $ 18,309 )		$ 110,732
   A20010	Adjustments for:
   A20100	Depreciation expenses							134,319		139,018
   A20200	Amortization expenses							10,993		14,903
   A20300 A20400	Reversal of expected credit losses Gain from financial assets at fair value through profit							2,454		135
   	or loss							11,718		( 10,900 )
   A20900	Interest expenses							3,093		2,102
   A21200	Interest income							( 21,686 )		( 25,264 )
   A21300	Dividend income							( 22,831 )		( 31,813 )
   A21900 A22300	Share-based payment compensation cost Share of profit of subsidiary recognized using equity							1,374		-
   	method.							29,244		13,864
   A22500	Losses (gains) equipment	on	disposal	of	property,	plant,	and	(	95 )	(	108 )
   A23700	Reversal of impairment loss on inventory					(			1,262 )	(	29,363 )
   A23900	Unrealized sales profit					(			931 )		4,987
   A24100	Unrealized foreign exchange (gain) loss					(			13,757 )	(	8,094 )
   A29900	Lease modification loss								-		72
   A30000 A31150	Changes in operating assets and liabilities Accounts receivable								37,264		5,159
   A31160	Accounts receivable - related parties								4,678	(	30,212 )
   A31180	Other receivables								4,460		14,956
   A31190	Other receivables - related parties								558	(	7,451 )
   A31200	Inventory					(			64,843 )		113,517
   A31230	Prepayments					(			13,738 )		31,928
   A31240	Contract costs								24		881
   A31280	Contract liabilities					(			3,703 )		10,338
   A32125	Accounts and notes payable					(			3,026 )		4,396
   A32150	Accounts payable - related parties								15,797		23,048
   A32180	Other payables								378	(	60,071 )
   A32230	Other current liabilities								9,975	(	11,543 )
   A32240	Net defined benefit liabilities					(			3,147 )	(	1,333 )
   A33000	Cash generated from operations								99,001		273,884
   A33100	Interest received								21,364		26,870
   A33300	Interest paid					(			2,122 )	(	1,069 )
   A33500	Income tax paid					(			21,506 )	(	12,168 )
   AAAA	Net cash generated from operating activities								96,737		287,517

   （ Continued）

   （ Continued）

   CODE 2024 2023

   CASH FLOWS FROM INVESTING ACTIVITIES
   B00010	Acquisitions of financial assets measured at						fair value
   	through other comprehensive income		( $	38,443 )	$ -
   B00020	Disposals of financial assets measured at fair value through other comprehensive income		38,733			44,509
   B00040	Acquisitions of financial assets measured at amortized cost	(	165,072 )		(	538,513 )
   B00100	Acquisitions of financial assets measured at fair value through profit or loss	(	30,190 )		(	80,000 )
   B00200	Disposals of financial assets measured at fair value through
   	profit or loss		18,209			80,221
   B02700	Acquisitions of property, plant, and equipment	(	59,101 )		(	41,655 )
   B02800	Disposals of property, plant, and equipment		103			3,228
   B03800	Increase in refundable deposits	(	2,260 )		(	1,094 )
   B04500	Acquisitions of intangible assets	(	4,655 )		(	11,848 )
   B02200	Net cash outflow on acquisition of subsidiaries	(	7,698 )			-
   B06700	Increase in other non-current assets		-		(	64 )
   B07600	Receipt of dividends		22,831			31,813
   BBBB	Net cash used in investing activities	(	227,543 )		(	513,403 )
   CASH FLOWS FROM FINANCING ACTIVITIES
   C03000	Increase in deposits received		2,970			-
   C04020	Repayment of lease principal	(	7,886 )		(	8,030 )
   C04500	Payment of cash dividends	(	102,881 )		(	309,105 )
   C04900	Cost of repurchasing treasury stock		-		(	5,521 )
   C05000	Disposals of treasury stock		-			1,930
   C05800	Changes in non-controlling equity		4,750			7,164
   CCCC	Net cash used in financing activities	(	103,047 )		(	313,562 )

   DDDD EFFECT OF EXCHANGE RATE CHANGES ON CASH AND

   CASH EQUIVALENTS 651 764

   EEEE NET INCREASE(DECREASE) IN CASH AND CASH

   EQUIVALENTS ( 233,202 ) ( 538,684 )

   E00100	CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	806,399	1,345,083
   E00200	CASH AND CASH EQUIVALENTS AT THE ENDING OF THE YEAR	$ 573,197	$ 806,399

   The accompanying notes are an integral part of the consolidated f inancial s tatements.

   ( Please refer to the audit report issued by Deloitte & Touche on March 25 , 2025 )

   Ch a i rman : Wang , Pin g - Lu n g M an ag e r : Wan g , Pin g - Lu ng Acco u n t i ng Su p e rv i so r : Su Yu - Hu i

   Harvatek Corporation And Subsidiaries

   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

   ( In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

   1. COMPANY HISTORY

      Harvatek Corporation (hereinafter referred to as "the Group") was organized and registered on March 21, 1995, in accordance with the provisions of the Company Act of the Republic of China, and primarily engaged in the research, development, design, manufacturing, testing, and import- export trade of light- emitting diode packaging.

      The Group's shares have been listed and traded on the Taiwan Stock Exchange since August 25, 2003.

      The consolidated financial statement is presented in New Taiwan Dollars (TWD), which is the functional currency of the Group.

   2. APPROVAL DATE AND PROCEDURES OF THE CONSOLIDATED FINANCIAL STATEMENTS

      The consolidated financial statements were approved by the Board of Directors

      and authorized for issue on March 7, 2025.

   3. NEW STANDARDS, AMENDMENTS, AND INTERPRETATIONS ADOPTED :

      1. Initial application of the International Financial Reporting Standards ( IFRS), International Accounting Standards ( IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) (collectively, the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC).

         1. Amendments to IAS 1 "Classification of Liabilities as Current or Non - current" (2020 amendments) and "Non- current Liabilities with Covenants" (2022 amendments)

            The 2020 amendments clarify that when determining whether a liability should be classified as non- current, the Group should assess whether it has the right to defer settlement of the liability for at least twelve months after the reporting period. If the Group has such a right at the end of the reporting period, the liability is classified as non - current regardless of whether the Group expects to exercise that right.

            The 2020 amendments also specify that if the Group' s right to defer settlement is subject to compliance with specified conditions, the Group must comply with those conditions at the end of the reporting period, even if the lender does not test compliance until a later date. The 2022 amendments further clarify that only covenant requirements that must be complied with before the end of the reporting period affect the classification of a liability. Although covenant requirements that must be complied with within twelve months after the reporting period do not affect the classification of a liability, related information must be disclosed to enable users of financial statements to understand the risk that the Group may be unable to comply with the contractual terms and may have to repay within twelve months after the reporting period.

            The 2020 amendments stipulate that for the purpose of liability classification, the aforementioned settlement refers to the transfer of cash, other economic resources, or the Group's own equity instruments to the counterparty that results in the extinguishment of the liability. However, if the terms of a liability that could, at the option of the counterparty, result in its settlement by the transfer of the Group' s own equity instruments, and if the

            option is recognized separately as equity in accordance with IAS 32 "Financial Instruments: Presentation", the aforementioned terms would not affect the classification of the liability.

      2. IFRSs endorsed by the Financial Supervisory Commission ( FSC) with an effective date starting 2025

         Interpretations

         (the "New IFRSs")

         Effective Date

         Announced by IASB

         Amendments to IAS 21 "Lack of Exchangeability" January 1, 2025 (Note 1) Amendments to IFRS 9 and IFRS 7 "Amendments to

         Classification and Measurement of Financial Instruments" regarding the revised application

         guidance on classification of financial assets January 1, 2026(Note 2)

         Note 1: Effective for annual reporting periods beginning on or after January 1, 2025 . Upon initial application of the amendments, comparative periods shall not be restated, and the effects shall be recognized in retained earnings or exchange differences on translation of foreign operations ( as appropriate) and the related affected assets and liabilities at the date of initial application.

         Note 2: Effective for annual reporting periods beginning on or after January 1, 2026 , with early application permitted from January 1, 2025. Upon initial application of the amendments, retrospective application is required without restating comparative periods, and the effects of initial application shall be recognized at the date of initial application. However, if an entity can restate comparative periods without the use of hindsight, i t may elect to do so.

         1. Amendments to IFRS 9 and IFRS 7 " Amendments to Classification and Measurement of Financial Instruments" regarding the revised application guidance on classification of financial assets

            The amendments mainly modify the classification requirements for financial assets, including:

            1. When a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows, and the nature of the contingency is not directly related to changes in basic lending risks and costs (such as whether the borrower achieves a specific carbon emission reduction), the contractual cash flows of such financial assets are still solely payments of principal and interest on the principal amount outstanding if the following two conditions are met:

               • The contractual cash flows in all possible scenarios ( before or after the contingent event occurs) are solely payments of principal and interest on the principal amount outstanding; and

               • The contractual cash flows in all possible scenarios do not significantly differ from the cash flows of a financial instrument with the same contractual terms but without the contingent feature.

            2. Clarification that a financial asset with non - recourse features refers to an entity's ultimate right to collect cash flows that is contractually limited to cash flows generated from specific assets.

            3. Clarification that contractually linked instruments establish multiple tranches of securities through a waterfall payment structure to establish payment priority for holders of financial assets, thereby creating credit risk concentration and resulting in disproportionate allocation of cash shortfalls from the underlying pool among different tranches of securities.

               Apart from the impact mentioned above, as of the date the parent company only financial statements were authorized for issue, the Company has assessed that the amendments to other standards and interpretations will not have a significant

               impact on the Group' s financial position and financial performance.

      3. The IFRSs issued by IASB in issue but not yet endorsed and issued into effect by the FSC

         New, Amended, or Revised Standards and Interpretations

         Effective Date Announced by

         IASB (Note 1)

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

         Amendments to IFRS 9 and IFRS 7 "Amendments to Classification and Measurement of Financial Instruments" regarding the revised application guidance on derecognition of financial liabilities

         Amendments to IFRS 9 and IFRS 7 "Contracts Involving 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

         IFRS 17 "Insurance Contracts" January 1, 2023

         Amendments to IFRS 17 January 1, 2023

         Initial Application of IFRS 17 and IFRS 9- Comparative Information Proposed amendment to IFRS 17

         IFRS 18 "Presentation and Disclosure in Financial Statements"

         IFRS 19 "Subsidiaries without Public Accountability: Disclosures"

         January 1, 2023

         January 1, 2027

         January 1, 2027

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

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

            These amendments stipulate that when the Group sells or contributes assets to an associate ( or joint venture), or when the Group loses control of a subsidiary but retains significant influence ( or joint control) over that subsidiary, if the aforementioned assets or former subsidiary meet the definition of a "business" under IFRS 3 "Business Combinations," the Group shall recognize the full amount of gains or losses arising from such transactions.

            Furthermore, when the Group sells or contributes assets to an associate (or joint venture), or when the Group loses control of a subsidiary in a transaction with an associate ( or joint venture) but retains significant influence (or joint control) over that subsidiary, if the aforementioned assets or former subsidiary do not meet the definition of a "business" under IFRS 3, the Group shall recognize the gains or losses arising from such transactions only to the extent of unrelated investors' interests in the associate ( or joint venture), meaning that the portion attributable to the Group' s share of the gain or loss should be eliminated.

         2. IFRS 18 "Presentation and Disclosure in Financial Statements"

            IFRS 18 will replace IAS 1 "Presentation of Financial Statements." The main changes include:

            • The income statement should classify income and expense items into operating, investing, financing, income tax, and discontinued operations categories.

            • The income statement should present operating profit or loss, profit or loss before financing and income tax, as well as subtotals and totals of profit or loss.

            • Guidance is provided to strengthen aggregation and disaggregation requirements: The Group must identify assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and aggregate them based on common characteristics, so that each line item presented in the primary financial statements has at least one similar characteristic. Items with dissimilar characteristics should be disaggregated in the primary financial statements and notes. The Group shall label such items as " other" only when it cannot find a more informative label.

            • Enhanced disclosure of management- defined performance measures: When the Group communicates publicly outside financial statements and communicates management's view of an aspect of the Group's overall financial performance to financial statement users, the Group shall disclose information about management- defined performance measures in a single note to the financial statements, including a description of the measure, how it is calculated, its reconciliation to subtotals or totals specified by IFRS Standards, and the income tax and non -controlling interest effects of reconciling items.

         3. Amendments to IFRS 9 and IFRS 7 " Amendments to Classification and Measurement of Financial Instruments" regarding the revised application guidance on derecognition of financial liabilities

            These amendments mainly explain that when an entity uses an electronic payment system to settle financial l iabilities in cash, the entity may choose to derecognize financial liabilities before the settlement date if the following conditions are met:

            • The entity has no practical ability to withdraw, stop, or cancel the payment instruction;

            • The entity has no practical ability to access the cash that will be used for settlement as a result of the payment instruction; and

            • The settlement risk associated with the electronic payment system is not significant.

            The Group shall apply these amendments retrospectively without restating comparative periods and recognize the effect of initial application at the date of initial application.

            As of the date the parent company only financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have 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 consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

      2. Basis of preparation

         In addition to financial instruments measured at fair value, investment properties, and net defined benefit liabilities recognized by deducting the fair value of plan assets, this consolidated financial report is prepared on a historical cost basis.

         Fair value measurements are categorized into Level 1 to Level 3 based on the degree of observability and significance of relevant inputs:

         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 an 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 an asset or liability.

      3. Classification of 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 12 months after the reporting period; and

         3. Cash and cash equivalents unless the assets are restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

         Current liabilities include:

         1. Liabilities held primarily for the purpose of trading;

         2. Liabilities due to be settled within 12 months after the reporting period; and

         3. Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the balance sheet date.

            Items not classified as current assets or current liabilities are categorized as non-current assets or non- current liabilities.

         4. Basis of consolidation

            The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company ( its subsidiaries). Adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. All intra -company transactions, balances, income, and expenses are eliminated in full upon consolidation. The total comprehensive income of subsidiaries is attributed to the owners of the Company and the non - controlling interests even if this results in the non- controlling interests having a deficit balance.

            Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

            Refer to Notes 12 and 36 for detailed information, percentage of ownership, and main businesses of subsidiaries.

         5. Foreign currency

            In preparing the financial statements of the Group, transactions in currencies other than the Group's functional currency (i. e., 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 in which they arise.

            Non-monetary i tems measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of nonmonetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which case, the exchange differences are also recognized directly in other comprehensive income.

            Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

            In preparing the consolidated financial statements, assets and liabilities of foreign operations ( including subsidiaries and affiliated entities operating in countries or using currencies different from the Group) are translated into New Taiwan Dollars at the exchange rates prevailing on each balance sheet date. Income and expenses are translated at the average exchange rates for the period, and the resulting exchange differences are recognized in other comprehensive income (and separately attributed to the owners of the Group and non - controlling equities).

         6. Inventory

            Inventory includes raw materials, materials, finished goods, and work in progress. Inventory is measured at the lower of cost and net realizable value. When comparing cost and net realizable value, individual i tems are considered except for inventories of the same category. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventory is calculated using the weighted average method.

            An associate refers to an entity over which the Group has significant influence but is not a subsidiary or a joint venture.

         7. Investment in associates

            An associate refers to an entity over which the Group has significant influence but is not a subsidiary or a joint venture.

            The Group accounts for investments in associates using the equity method.

            Under the equity method, investments in associates are initially recognized at cost, and subsequently adjusted to reflect the Group' s share of the associates' profits or losses and other comprehensive income. Additionally, changes in the equity of associates are recognized based on the Group' s ownership percentage.

            Any excess of the cost of acquisition over the Group' s share of the identifiable net assets of the associate at the acquisition date is recognized as goodwill, which is included in the carrying amount of the investment and not amortized. Any excess of the Group' s share of the identifiable net assets of the associate over the cost of acquisition is recognized in profit or loss.

            When associates issue new shares and the Group does not subscribe to them in proportion to i ts ownership interest, resulting in changes in the equity of the investment, the adjustment to the investment and the related change in equity of the associates are recorded in capital surplus - equity method adjustments and the investment accounted for using the equity method. However, if the Group' s ownership interest decreases due to not subscribing to or acquiring shares, any amounts recognized in other comprehensive income related to the associate are reclassified proportionally to the decrease. The accounting treatment follows the same basis as if the associate were to directly dispose of the assets or l iabilities concerned. If an adjustment is required to be credited to capital surplus, and the capital surplus balance generated by investments accounted for using the equity method is insufficient, the difference is credited to retained earnings.

            When the Group' s share of losses in an associate equals or exceeds i ts interest in that associate ( including the carrying amount of the investment in the associate accounted for using the equity method and any other long -term interests that form part of the Group' s net investment in the associate), further losses are not recognized. The Group only recognizes additional losses and l iabilities within the scope of legal obligations, constructive obligations, or payments already made on behalf of the associate.

            When assessing impairment, the Group compares the carrying amount of the investment ( including goodwill) to the recoverable amount of the investment as a single asset. Any impairment loss recognized is not allocated to any assets that form part of the carrying amount of the investment, including goodwill. Any reversals of impairment losses are recognized to the extent that the recoverable amount of the investment increases subsequently.

            When the Group ceases to use the equity method for an investment, the retained interest in the former associate is measured at fair value. The difference between the fair value and the carrying amount of the investment on the date the equity method ceases is recognized in profit or loss. Additionally, any amounts recognized in other comprehensive income related to the former associate are accounted for on the same basis as if the former associate were to directly dispose of the assets or l iabilities concerned.

            Profits and losses resulting from transactions between the Group and its associates are recognized in the consolidated financial statements only to the extent that they do not relate to the Group's interest in the associates' equity.

         8. Property, plant, and equipment

            Property, plant, and equipment are recognized based on cost, and their value is subsequently measured by deducting accumulated depreciation and accumulated impairment losses from the cost.

            Except for land held for own use, depreciation on other property, plant, and equipment is recognized on a straight -line basis over their estimated useful lives, with each significant component depreciated separately. The Group reviews the estimated useful lives, residual values, and depreciation methods at least annually and defers the effects of changes in accounting estimates.

            When property, plant, and equipment are disposed of, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit and loss.

         9. Investment properties

            Investment properties are properties held for earning rental income, capital appreciation, or both.

            Owned investment property is initially measured at cost, which includes transaction costs. Subsequently, it is measured at cost less accumulated depreciation and accumulated impairment losses.

            Investment properties are depreciated on a straight -line basis.

            When investment properties are disposed of, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit and loss.

         10. Goodwill

             The goodwill acquired through business combinations is initially recognized at the acquisition date as the amount of goodwill. Subsequently, it is measured at cost less accumulated impairment losses.

             For impairment testing purposes, goodwill is allocated to the cash - generating units (CGUs) or groups of CGUs that are expected to benefit from the synergies of the combination.

             Each CGU containing goodwill is tested for impairment annually (or whenever there are indicators that it may be impaired) by comparing the carrying amount of the CGU, including the goodwill, with its recoverable amount. If the goodwill allocated to a CGU was acquired in the current year's business combination, the CGU should be tested for impairment before the end of the current year. If the recoverable amount of a CGU containing allocated goodwill is less than its carrying amount, the impairment loss is first allocated to reduce the carrying amount of the goodwill allocated to the CGU, and then proportionally to reduce the carrying amounts of the other assets within the CGU. Any impairment loss is recognized directly in profit or loss. Impairment losses on goodwill cannot be reversed in subsequent periods.

         11. Intangible assets

             1. Separately acquired

                Intangible assets with separately acquired finite useful l ives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets with finite useful lives are amortized on a straight - line basis over their estimated useful lives. The Group reviews the estimated useful l ives, residual values, and amortization methods at least annually and adjusts for the effects of any changes in accounting estimates.

             2. Derecognition

                When an intangible asset is derecognized, any difference between the net disposal proceeds and the carrying amount of the asset is recognized in the current period's income statement.

         12. Impairment of property, plant and equipment, right-of-use assets, investment property, and intangible assets (excluding goodwill)

             The Group evaluates at each balance sheet date whether there are any indications that property, plant and equipment, right - of-use assets, investment property, and intangible assets ( excluding goodwill) may be impaired. If any indication of impairment exists, the estimated recoverable amount of the asset is determined. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is estimated. Shared assets are allocated to the smallest group of cash -generating units on a reasonable and consistent basis.

             The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an individual asset or cash - generating unit is less than its carrying amount, the carrying amount of the asset or cash -generating unit is reduced to its recoverable amount, and an impairment loss is recognized in the income statement.

             When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, not exceeding the carrying amount that would have been determined had no impairment loss been recognized in prior years ( net of amortization or depreciation). The reversal of an impairment loss is recognized in the income statement.

         13. Financial instruments

             Financial assets and financial liabilities are recognized in the consolidated balance sheet when the Group becomes a party to the contractual provisions of the instrument.

             When initially recognizing financial assets or financial l iabilities that are not measured at fair value through profit or loss, their carrying amounts are measured at fair value plus transaction costs directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs are directly attributable to the acquisition or issue of financial assets or financial liabilities measured at fair value through profit or loss and are recognized in profit or loss immediately.

             1. Financial assets

                Conventional transactions of financial assets are recognized and derecognized on a trade date basis.

                1. Measurement categories

                   Financial assets of the Group are classified as financial assets at FVTPL, financial assets measured at amortized cost, and equity instrument investments at FVTOCI.

                   1. Financial asset at FVTPL

                      A financial asset is classified as at FVTPL when the financial asset is mandatorily classified or it is designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments that are not designated as at FVTOCI.

                      Financial assets at FVTPL are measured at fair value with any resulting benefits or losses (including any dividends or interest) recognized in other gains and losses. For the determination of fair value, please refer to Note 30.

                   2. Financial assets at amortized cost

                      Financial assets that meet the following conditions are subsequently measured at amortized cost:

                      1. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

                      2. The contractual terms of the financial assets give rise on a specified date to cash flow that is solely payments of principal and interest on the principal amount outstanding.

                         Financial assets at amortized cost (including cash and cash equivalents, financial assets at amortized cost, accounts receivable (including those from related parties), other receivables ( including those from related parties), and refundable deposits) are subsequently measured at amortized cost, which equals the gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

                         Except for the following two cases, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset:

                         1. Purchased or originated credit-impaired financial assets: for those financial assets, the Group applies the credit - adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

                         2. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets: for those financial assets, the

                         Group shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

                         Impairment of financial assets refers to the occurrence of significant financial difficulties, default, or a high l ikelihood of bankruptcy or another financial restructuring on the part of the issuer or debtor, or the disappearance of an active market for the financial asset due to financial difficulties.

                         Cash equivalents include highly liquid deposits with original maturities of three months or less that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value, and are used to meet short -term cash commitments.

                   3. Equity investments measured at fair value through other comprehensive income

                      Upon initial recognition, the Group has an irrevocable option to designate equity investments that are neither held for trading nor held for purposes of an association with another business entity as measured at fair value through other comprehensive income.

                      Equity investments measured at fair value through other comprehensive income are initially and subsequently measured at fair value, with subsequent fair value changes recognized in other comprehensive income and accumulated in other equity. Upon disposal of the investment, the cumulative gain or loss is reclassified directly to retained earnings and not reclassified to profit or loss.

                      Dividends from equity investments measured at fair value through other comprehensive income are recognized in profit or loss when the Group's right to receive payment is established unless the dividend represents a recovery of part of the investment's cost.

                2. Impairment of financial assets

                   At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable).

                   Accounts receivable are assessed for expected credit losses based on the period over which they are expected to be outstanding. For other financial assets, the Group first assesses whether the credit risk has significantly increased since initial recognition. If there is no significant increase, expected credit losses are recognized based on a 12-month expected credit loss. If there is a significant increase, expected credit losses are recognized based on the period over which they are expected to be outstanding.

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

                   The impairment loss for all financial assets is recognized by adjusting their carrying amounts through the allowance accounts.

                3. Derecognition of financial assets

                   The Group only derecognizes financial assets when the contractual rights to receive cash flows from the financial assets have expired or when it has transferred the financial assets and has transferred substantially all the risks and rewards of ownership to another entity. When a financial asset measured at amortized cost is derecognized in its entirety, any difference between the carrying amount and the consideration received is recognized in profit or loss. When equity investments measured at fair value through other comprehensive income are derecognized in their entirety, the cumulative gain or loss is reclassified directly to retained earnings and not reclassified to profit or loss.

             2. Equity instruments

                The equity instruments issued by the Group are classified as equity in accordance with the substance of the contractual arrangements and the definition of equity instruments.

                The equity instruments issued by the Group are recognized at the amount received, net of directly attributable issuance costs.

                The repurchase of the Group' s equity instruments is recognized and deducted from equity, and the carrying amount is calculated as the weighted average of the type of shares. Purchases, sales, issuances, or cancellations of the Group' s equity instruments are not recognized in the profit or loss.

             3. Financial liabilities

                1. Subsequent measurement

                   The effective interest method is used to measure all financial liabilities at amortized cost.

                2. De-recognition of financial liabilities

                   When financial l iabilities are derecognized, the difference between the carrying amount and the consideration paid (including any non - cash assets transferred or liabilities assumed) is recognized in the profit or loss.

         14. Provisions

             The amount recognized as a provision is the best estimate of the expenditure required to settle the obligation as of the balance sheet date, taking into account the risks and uncertainties associated with the obligation. Provisions are measured at the present value of the estimated cash flows required to settle the obligation.

             1. Warranty:

                The obligation to provide warranty for products to ensure compliance with agreed specifications is recognized based on management' s best estimate of the expenditure required to settle the Group' s obligation, at the t ime the related goods are recognized as revenue.

         15. Revenue recognition

             After identifying performance obligations in customer contracts, the Company allocates transaction prices to each performance obligation and recognizes revenue when the performance obligations are satisfied.

             If multiple contracts are signed almost simultaneously with the same customer (or related parties of the customer), and the goods or services promised in these contracts constitute a single performance obligation, the Group accounts for them as a single contract.

             For contracts where goods or services are transferred and consideration is received within a period of one year or less, significant financing components of the transaction price are not adjusted.

             1. Revenue from the sale of goods

                The revenue from the sale of light- emitting diode (LED) products is recognized when the products are delivered to the customer's specified location or point of shipment ( depending on the terms of the contract). Customers have already established pricing and the right to use the products, assuming primary responsibility for resale and bearing the risk of obsolescence. At that point, the Group recognizes revenue and accounts receivable.

             2. Labor revenue

                The service provided by the Group primarily involves accepting customer commissions to provide product processing services. According to the contract agreement, ownership of the in -process products belongs to the customer. The Group enhances the in-process products during the processing process, and control is transferred to the customer upon enhancement, constituting service revenue that is recognized over time as performance obligations are gradually fulfilled.

                The majority of the contractual agreements of the Group involve receiving consideration based on the payment terms specified in the contract. When the services have been transferred to the customer but the unconditional right to receive consideration has not yet been established, contract assets are recognized. Contract assets are also subject to impairment assessment in accordance with IFRS 9, based on the expected credit loss amount over the expected life of the asset. However, for some contracts, where partial consideration is received from the customer at the time of signing and the Group still has an obligation to provide services thereafter, such consideration is recognized as contract l iabilities.

                The period for which the aforementioned contract liabilities are recognized as revenue typically does not exceed one year and does not result in significant financial compositional changes.

             3. Engineering revenue

                The engineering revenue of the Group primarily involves providing integrated product services upon customer commission. The contract entails the integration of hardware equipment engineering and software services. Due to limitations imposed by hardware specifications and on -site conditions, these hardware and software integration services are highly interrelated. The Group cannot fulfill its commitments by independently transferring each product or service. Therefore, all products and services promised in the contract are treated as a single performance obligation. Regarding warranties for engineering quality provided within a specified period, the Group recognizes a liability provision in accordance with IAS 37.

                The Group recognizes accounts receivable when the engineering project is completed, accepted, control is transferred, and there is an unconditional right to receive consideration. These accounts receivable typically have short durations and do not constitute significant financial components. If partial consideration has been received from customers for engineering contracts but there is still an obligation to provide goods or services thereafter, the Group recognizes contract liabilities, which are subsequently transferred to revenue upon fulfilling the performance obligation. When costs directly relate to specific contracts, and it is expected that these costs will be recoverable and used to fulfill future performance obligations, the company recognizes these costs as contract fulfillment costs under assets. Revenue and costs are recognized when control is transferred to the customer to fulfill the performance obligation.

         16. Leases

             At the inception of a contract, the Group assesses whether the contract is, or contains a lease.

             1. The Group as lessor

                Leases that transfer substantially all the risks and rewards incidental to ownership of an asset to the lessee are classified as finance leases, while all other leases are classified as operating leases.

                Lease payments ( less any lease incentives payable) from operating leases are recognized as income on a straight -line basis over the terms of the relevant leases. The initial direct costs incurred due to obtaining operating leases are added to the carrying amount of the leased asset and recognized as expenses on a straight-line basis over the lease term.

             2. The Group as lessee

                Except for leases of low-value assets and short-term leases that qualify for recognition exemptions, lease payments for other leases are recognized on a straight-line basis over the lease term as expenses, and the right - of-use assets and lease liabilities are recognized at the commencement date of the lease.

                Right-of- use assets are initially measured at cost, which comprises the initial measurement of lease l iabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right- of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any re-measurement of the lease liabilities. The right - of-use assets are presented separately in the consolidated balance sheet.

                The right-of- use asset is depreciated on a straight-line basis from the lease commencement date to the earlier of the end of the useful life or the end of the lease term.

                The lease liability is initially measured at the present value of lease payments. If the implicit rate in the lease is readily determinable, the lease payments are discounted at that rate. If the implicit rate is not readily determinable, the lessee's incremental borrowing rate is used.

                Subsequently, the lease liability is measured using the effective interest method based on the amortized cost, and interest expense is recognized over the lease term. If changes in estimates for lease term, expected payments under residual value guarantees, assessment of purchase options for the leased asset, or changes in indices or rates used to determine lease payments result in changes to future lease payments, the Group reassesses the lease liability and adjusts the right- of-use asset accordingly. However, if the carrying amount of the right-of-use asset has been reduced to zero, any remaining adjustment is recognized in profit or loss. Lease liabilities are separately presented in the consolidated balance sheet.

         17. Borrowing Costs

             The borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are capitalized as part of the cost of those assets until such time as substantially all the activities necessary to prepare the asset for its intended use or sale are complete.

             Except for the above, all other borrowing costs are recognized in profit or loss in the year in which they are incurred.

         18. Employee benefits

             1. Short-term employee benefits

                The short-term employee benefits liability is measured by the non-discounted amount expected to be paid in exchange for services rendered by employees.

             2. Retirement benefits

                The retirement benefits payable under the defined benefit retirement plan are recognized as an expense during the period in which the employees provide service, in the amount of the retirement benefits that are expected to be provided.

                The defined benefit obligation (including service cost, net interest, and remeasurement) is determined using the projected unit credit method. The service cost and the net defined benefit liability (asset) net interest are recognized as employee benefit expenses when they occur, either upon plan amendments or curtailments, or upon settlement. Remeasurement amounts (including actuarial gains and losses, changes in the asset ceiling, and the return on plan assets, excluding interest) are recognized in other comprehensive income when they occur and are subsequently not reclassified to profit or loss.

                The net defined benefit liability ( asset) represents the deficit (surplus) in the defined benefit retirement plan's funding. The net defined benefit asset may not exceed the present value of the refunds from the plan or the reductions in future contributions.

         19. Income tax

             The income tax expense represents the sum of the tax currently payable and deferred tax.

             1. Current tax

                The current income tax (expense) is calculated based on the current income (loss) determined in accordance with the tax regulations of the tax jurisdiction where the Group operates, which is used to calculate the payable ( recoverable) income tax.

                The income tax on retained earnings calculated in accordance with the Income Tax Act of Republic of China is recognized annually based on the resolution of the shareholders' meeting.

                Adjustments for prior- year income taxes payable are included in the current year's income tax expense.

             2. Deferred tax

                Deferred income tax is calculated based on the temporary differences that arise from the carrying amount of assets and liabilities and the taxable basis for calculating taxable income.

                Deferred tax liabilities are generally recognized for all taxable temporary differences, while deferred tax assets are recognized when it is probable that taxable income will be available against which the deductible temporary differences or tax loss carryforwards can be utilized, such as for deductible temporary differences or tax loss carryforwards that can be utilized against future taxable income.

                For temporary differences related to investments in subsidiaries and associated companies, deferred tax liabilities are recognized, except when the Group can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deductible temporary differences related to such investments are recognized as deferred tax assets only when it is probable that there will be sufficient taxable income available to realize the temporary difference and within the scope of expected reversal in the foreseeable future.

                The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that i t is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets which originally not recognized are also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of 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 year in which the liability is settled or the asset is 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 or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

   5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

   In adopting accounting policies, the management of the Group must make judgments, estimates, and assumptions based on historical experience and other relevant factors when relevant information is not readily available from other sources. The actual results may differ from the estimates.

   When developing significant accounting estimates, the Group incorporates the potential impacts into consideration. The Management will continually review the estimates and underlying assumptions.

   Key Sources of Estimation and Uncertainty

   1. Impairment of Financial Assets

      The estimated impairment of accounts receivable is based on the Group's assumptions regarding probability of default and loss given default. The Group considers historical experience, current market conditions, and forward -looking information to make assumptions and select inputs for impairment assessment. Significant impairment losses may arise if actual cash flows in the future are less than the Group's expectations.

   2. Impairment of Inventory

   The net realizable value of inventory is estimated as the estimated selling price in the ordinary course of business, less the estimated costs to complete and the estimated costs necessary to make the sale, based on current market conditions and historical sales experience of similar products. Changes in market conditions may significantly affect these estimates.

   6. CASH AND CASH EQUIVALENTS
   	December 31, 2024		December 31, 2023
   Inventory cash and working fund	$ 403		$ 180
   Bank checks and current deposits Cash equivalents (investments	221,661		448,359

   with original maturities of three months or less)）

   Repurchase agreements	213,377	218,001
   Bank fixed deposits	137,756	139,859
   	$ 573,197	$ 806,399

   The interest rate range of the bank deposits as of the balance sheet date is as follows:

   December 31, 2024 December 31, 2023

   Bank deposits 0.03%~1.35% 0.10%~1.45%

   Fixed deposits 0.68%~1.76% 1.10%~5.32%

7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

   December 31, 2024 December 31, 2023

   Current financial assets

   Mandatorily measured at FVTPL Non-derivative financial assets

   - Domestic unlisted

   stocks $ 14,251 $ -

   Non-current financial assets

   Mandatorily measured at FVTPL Non-derivative financial assets

   - Domestic unlisted

   stocks $ 77,417 $ 91,405

8. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

   December 31, 2024 December 31, 2023

   Current

   Domestic investment

   Listed stocks $166,100 $175,013

   Non-current

   Domestic investment

   Listed stocks	$135,505	$130,633
   Unlisted stocks	316,695	334,716
   	$452,200	$465,349

   1. The Group strategically invests in equity interests of domestic listed and unlisted companies with the expectation of long-term profitability. Management believes that recognizing short-term fair value fluctuations of these investments in the income statement would contradict the long-term investment strategy. Therefore, the Group chooses to designate these investments as measured at fair value through other comprehensive income.

   2. In the fiscal years 2024 and 2023, the Group recognized dividend income of NT$22,507 thousand and NT$24,454 thousand, respectively, from equity instruments measured at fair value through other comprehensive income.