Consolidated Financial Statements First Quarter

Stock No: 4532

RECHI PRECISION CO., LTD. and its

subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2025 and 2024 and Independent Auditors' Review Report

Address: No. 943, Sec. 2, Chenggong Rd., Guanyin Dist., Taoyuan City, Taiwan (R.O.C.)

TEL: (03)483-7201

§Table of Contents§

Items Page

Notes to financial the statements No.

To RECHI PRECISION CO., LTD.:

We have reviewed the accompanying consolidated balance sheet of RECHI PRECISION CO., LTD. (the "Company") and subsidiary (collectively, the "Group") as of March 31, 2025 and 2024, and the related consolidated statement of income, consolidated statement of changes in equity, consolidated statement of cash flows, and notes to the consolidated financial statements (including major accounting policy) for the three months then ended. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulation Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Statement 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Except for those described in the paragraph of basis of a qualified conclusion, we conducted the review in accordance with the "Review of Financial Statements" of the Auditing Standard No. 2410. A review of consolidated financial statements consists of making inquiries (primarily of persons responsible for financial and accounting matters), and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As stated in Note 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the accompanying consolidated financial statements were not reviewed by independent auditors. The total assets of these non-significant subsidiaries amounted to NTD 3,737,023 thousand and NTD 3,032,508 thousand, constituting 12.05% and 11.59% of the consolidated total assets, and the total liabilities of these non-significant subsidiaries amounted to NTD 2,007,453 thousand and NTD 1,173,670 thousand, constituting 10.18% and 7.73% of the consolidated total liabilities, as of March 31, 2025 and 2024, respectively. The total comprehensive income of these non-significant subsidiaries and joint operations amounted to NTD 52,371 thousand and NTD 45,290 thousand, constituting 9.38% and 6.42% of the consolidated total comprehensive income for the three months ended March 31, 2025 and 2024. In addition, as stated in Note 12 to the Consolidated Financial Statements, the investments accounted for using the equity method amounted to NTD 195,971 thousand and NTD 172,518 thousand as of March 31, 2025 and 2024, respectively; and the shares of profit/loss on associates accounted for using the equity method amounted to NTD (2,053) thousand and NTD (779) thousand for the three months ended March 31, 2025 and 2024,

respectively. These amounts and relevant information disclosed in Note 29 to the Consolidated Financial Statements were based on the financial statements of these investees for the same period that were not reviewed by independent auditors.

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and associates as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2025 and 2024, and its consolidated financial performance and its cash flows for the three months ended March 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission.

Deloitte & Touche

CPA CHANG, CHING Hsia CPA CHENG, CHIN TSUNG

Financial Supervisory Commission Approval Document No.

Chin-Kuan-Cheng-Shen-Zi No.

1090347472

Financial Supervisory Commission Approval Document No.

Chin-Kuan-Cheng-Shen-Zi No.

1010028123

May 8, 2025

RECHI PRECISION CO., LTD. and its subsidiaries Consolidated Balance Sheet

As of March 31, 2025, December 31, 2024, and March 31, 2024

Unit: NTD thousand

March 31, 2025 December 31, 2024 March 31, 2024

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated May 8, 2025)

Chairman: CHEN, SHENG TIEN Manager: FENG, MING FA Accounting Manager: WU, CHIN MEI

- 5 -

RECHI PRECISION CO., LTD. and its subsidiaries Consolidated Statements of Comprehensive Income For the Three Months Ended March 31, 2025 and 2024

Unit: NTD thousand, except Earnings Per Share (NTD)

January 1 to March 31,

2025

January 1 to March 31,

2024

Code Amount % Amount % 4110 Sales revenue (Note 25) $ 6,622,170 100 $ 4,931,247 100

5000 Operating cost (Note 10, 20 &

25) ( 5,495,323 ) ( 83 ) ( 4,196,362 ) ( 85 )

5900 Operating gross margins 1,126,847 17 734,885 15

Operating expenses (Note 20 & 25)

(Continued on next page)

(Continued from previous page)

January 1 to March 31, 2025 January 1 to March 31, 2024

Code Amount % Amount % Other comprehensive income

8360 Accounts to be reclassified to profit or loss subsequently:

8361 Exchange differences from the translation of financial statements of foreign

operations (Note 19) $ 202,806 3 $ 542,349 11

8399 Income tax related to items that may be reclassified (Note 19

& 21) ( 37,976 ) ( 1 ) ( 102,026 ) ( 2 )

income for the

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated May 8, 2025)

Chairman: CHEN, SHENG TIEN Manager: FENG, MING FA Accounting Manager: WU, CHIN MEI

RECHI PRECISION CO., LTD. and its subsidiaries Consolidated Statements of Changes in Equity

For the Three Months Ended March 31, 2025 and 2024

Unit: NTD thousand

Equity of the company

Other equity

Share capital Retained earnings

Exchange differences from the translation of financial statements of

Unrealized gain on financial assets at fair value through other

Code

Shares (in

thousand shares) Amount Capital reserves

Statutory surplus

reserves

Special surplus

reserves

Undistributed

earnings

foreign

operations

comprehensive

profit or loss

Non-controlling

Treasury shares Total interests Total equity

A1 Balance as of January 1, 2024

Dividend allocation and distribution for 2023 B5 Cash dividend to the Company's

shareholders

2,340,079 ( $ 1,025,598 ) ( $ 71,810 ) ( $ 93,573 ) $ 9,638,894 $ 1,162,197 $ 10,801,091

499,995 ) - - - ( 499,995 ) - ( 499,995 )

Dividend allocation and distribution for 2024

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated May 8, 2025)

Chairman: CHEN, SHENG TIEN Manager: FENG, MING FA Accounting Manager: WU, CHIN MEI

- 8 -

RECHI PRECISION CO., LTD. and its subsidiaries Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2025 and 2024

Unit: NTD thousand

Code

Cash flow from operating activities

January 1 to March

31, 2025

January 1 to March

31, 2024

(Continued on next page)

DDDD Impact of changes in exchange rate on cash and

cash equivalents 64,979 161,287

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated May 8, 2025)

Chairman: CHEN, SHENG TIEN Manager: FENG, MING FA Accounting Manager: WU, CHIN MEI

RECHI PRECISION CO., LTD. and its subsidiaries Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2025 and 2024 (Unless otherwise provided, Unit: NTD thousand)

1. Organization and operations

   RECHI PRECISION CO., LTD. (formerly known as RECHI INDUSTRIAL CO.,

   LTD., hereinafter referred to as the Company) was established in December 1989 in accordance with the Company Act of the Republic of China, mainly engaged in the assembly and processing, manufacturing and repairing, and trading of refrigerant compressors, and design services of relevant products, as well as import and export business.

   The Company's shares had been listed for trading on the Taipei Exchange since February 2002, and have changed to be listed on the Taiwan Stock Exchange since August 2003.

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

2. Financial reporting date and procedures

   The consolidated financial statements were approved by the board of directors and authorized for issue on May 8, 2025.

3. Application of new and revised standards and interpretation

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

      The application of the amendments to the IFRSs endorsed and issued into effect by the FSC does not have material impact on the Group's accounting policies:

   2. The IFRSs endorsed by the FSC for application starting from 2026

      The new/amended/revised standards or interpretation Effective Date per IASB

      Amendments to IFRS 9 and IFRS 7 - "Amendments to the Classification and Measurement of Financial Instruments" regarding the application of the classification of financial assets

      January 1, 2026 (Note 1)

      Note 1: Applicable to annual reporting periods beginning on or after January 1, 2026. Enterprises may also choose to apply the same earlier on January 1, 2025.

      As of the date the consolidated financial statements were authorized for issue, the consolidated company continues to evaluate the impact that the amendments have on its financial position and performance.

   3. The IFRSs released by the IASB but not yet approved and announced effective by the Financial Supervisory Commission

      The new/amended/revised standards or interpretation

      IASB publication effective

      date (Note 1)

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

      Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" regarding the application of derecognitions of financial liabilities

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

      Amendment to IFRS 10 and IAS 28, "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and Investment in Associates."

      January 1, 2026

      January 1, 2026 To be determined

      IFRS 17 "Insurance Contracts" January 1, 2023

      Amendments to IFRS 17 January 1, 2023

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

      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 periods beginning on or after their respective effective dates.

      IFRS 18 "Presentation and Disclosure in Financial Statements"

      IFRS 18 will supersede IAS 1 "Presentation of Financial Statements" and the main changes include:

      • Items of income and expenses included in the income statement shall be classified into operating, investing, financing, income tax, and discontinued operations categories.

      • The income statement shall present operating profit or loss, profit or loss before financing and income tax, as well as subtotal and total profit and loss.

      • Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses, and cash flows that arise from individual transactions or other events and classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. Items with non-similarity characteristics in the main financial statements and notes should be divided. The Group only marks "other" in the absence of more information.

      • Adds disclosures on management-defined performance measures: When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance

      of the Group as a whole, the Group shall disclose related information about its management-defined performance measures in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards, and the income tax and non-controlling interests effects of related reconciliation items.

      In addition to the aforementioned influence, the Group will continue to evaluate the effect of the amendment to each standard and interpretation on its financial position and performance up to the date when this consolidated company financial statement approved and released. The Group will make appropriate disclosures upon completing this evaluation.

4. Summary of significant accounting policies

   1. Compliance Statement

      The consolidated financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" indorsed and issued into effect by the FSC. The consolidated financial statements do not include all IFRSs disclosures required for the full-year financial statements.

   2. Basis of preparation

      Except for the financial instruments on the basis of fair value and the recognition of net defined benefit liabilities on the basis of the present value of net defined benefit obligation net of the fair value of planned assets, this consolidated financial statement was compiled on the basis of historical cost.

      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 input value: refers to the quotation of the same asset or liability in an active market as of the evaluation (before adjustment).

      2. Level 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.

      3. Level 3 input value: the unobservable input value of asset or liability.

   3. Basis of consolidation

      This consolidated financial statement contains the information of the financial statements of the Bank and its controlled entities (subsidiaries). The Consolidated Statement of Comprehensive Income already covered the operating profit and/or loss of the subsidiaries, which have been acquired or disposed of the current term, from the date of acquisition until the date of disposal. The subsidiaries' financial statements have been properly adjusted to keep the accounting policies consistent with the accounting policies of the Group. In preparing these consolidated financial statements, the transactions, account balances, incomes and loss and expenses among the individual entities are written off in full amount. The total comprehensive incomes of the subsidiaries were non-controlling interest attributed to the Company's owners and the non-controlling interest, to become the balance of loss even as the non-controlling interest.

      When the changes of interest of the subsidiaries' ownership by the Group do not lead to the loss of control, it is disposed of as interest transactions. The book value of the Group and non-controlling interest has been adjusted to reflect the changes of the relative interest of subsidiaries. The differential between the adjustment amount of non-controlling interest and the fair value of consideration received is directly recognized as interest and belongs to the owner of the Company.

      For details of subsidiaries, shareholding ratios, and business items, please refer to Note 11 and Table 7.

   4. Other significant accounting policies

      In addition to the information below, please refer to the summary of significant accounting policies in the 2024 consolidated financial statements.

      1. Defined benefits and retirement benefits

         Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and significant plan amendments, settlements, or other significant one-off events.

      2. Income tax expenses

         Income tax expense is the sum of the current income tax and deferred income tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. Main source of significant accounting judgment, estimates and assumptions uncertainty Please refer to the 2024 consolidated financial statements for descriptions of the main

   source of significant accounting judgment, estimates, and assumptions uncertainty.

6. Cash and cash equivalents

   March 31, 2025

   December 31,

   2024 March 31, 2024

   Cash on hand and working
   capital	$ 1,462	$ 1,542	$ 1,623
   Bank checks and demand
   deposits	2,827,999	3,801,498	1,672,654
   Cash equivalents (Investment
   with the original maturity
   date within three months)
   Bank time deposit	1,515,917	2,036,099	2,071,002
   	$ 4,345,378	$ 5,839,139	$ 3,745,279

7. Financial instruments measured at fair value through profit or loss

   December 31,

   Financial assets - current Measured at fair value through

   income under compulsion Wealth management

   March 31, 2025

   2024 March 31, 2024

   products $ 2,028,724 $ 1,805,772 $ 1,772,863

   Non-derivative financial assets

   -	4,135	3,536
   15,788	16,879	20,383
   $ 2,044,512	$ 1,826,786	$ 1,796,782

   • Listed stocks -overseas

   • Beneficial certificates

8. Financial assets based on cost after amortization

   March 31, 2025

   December 31,

   2024 March 31, 2024

   Current

   Restricted cash in banks $ 3,872,220 $ 3,450,581 $ 2,815,613 Time deposits with original

   maturity date of more than 3

   months 675,986 364,866 270,612

   $ 4,548,206 $ 3,815,447 $ 3,086,225

   For details of financial assets at amortized cost, refer to Note 26.

9. Note receivable and account receivable

   Notes receivable

   Measured on the basis of cost after amortization

   March 31, 2025

   December 31,

   2024 March 31, 2024

   Total book value	$ 4,670,609	$ 3,107,510	$ 4,478,795
   Less: Allowance for losses	( 2,583 )	( 2,760 )	( 2,790 )
   	$ 4,668,026	$ 3,104,750	$ 4,476,005

   Accounts receivable Measured on the basis of cost

   after amortization

   Total book value	$ 4,449,679	$ 4,297,506	$ 3,960,673
   Less: Allowance for losses	( 67,911 )	( 40,963 )	( 27,491 )
   	4,381,768	4,256,543	3,933,182
   Measured at fair values through
   other comprehensive income	69,203	36,995	16,168
   	$ 4,450,971	$ 4,293,538	$ 3,949,350

   1. Accounts receivable based on cost after amortization

      The Group's average credit period for sales open account with net 0 days to 285 days, and no interest is accrued on accounts receivable.

      In order to mitigate the credit risk, the Group has formulated credit management measures to regulate the determination of credit limits, credit approval, and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the Group will review the recoverable amount of receivables on each balance sheet date to ensure that appropriate impairment loss has been appropriated for the uncollectible receivables. Under the circumstance, the Company's management believes that the consolidated company's credit risk is significantly reduced.

      The Group will recognize the lifetime expected credit losses as loss allowance for accounts receivable. The full lifetime expected credit losses are calculated using Provision Matrix, which considers the historical default records and current financial status, industry economic conditions, as well as GDP forecast and industry outlook. Because of the different loss patterns of customer groups in different regions of the Group, the Group uses different provisions matrices for different customer groups by location, and determines the expected credit loss rate by taking into account the number of past due days of accounts receivable and the regional economic situation.

      If there is evidence that the counterparty is facing serious financial difficulties and the Group cannot reasonably expect to recover the amount, e.g. the counterparty is in liquidation, then the Group directly writes off the relevant accounts receivable, but will continue to try to collect the receivable. The recovered amount is recognized in profit or loss.

      The Group's allowance for loss of receivables is determined according to the preparation matrix as follows:

      March 31, 2025

      Overdue 1 to 30

      Overdue for 31 to

      Overdue 61 to 90

      Overdue 91 to

      Overdue over 121

      Not overdue days 60 days days 120 days days Total

      Expected credit loss

      rate	0%~0.15%	4.31%~23.47%	9.44%~55.36%	18.20%~71.19%	34.31%~89.61%	39.12%~100%
      Total book value	$ 4,152,154	$ 227,097	$ 26,114	$ 144	$ 8,088	$ 36,082	$ 4,449,679
      Allowance for loss
      (expected credit
      loss of the given
      duration)	( 9,154 )	( 12,482 )	( 2,143 )	( 26 )	( 8,082 )	( 36,024 )	( 67,911 )
      Cost after
      amortization	$ 4,143,000	$ 214,615	$ 23,971	$ 118	$ 6	$ 58	$ 4,381,768

      December 31, 2024

      Overdue 1 to 30

      Overdue for 31 to

      Overdue 61 to 90

      Overdue 91 to

      Overdue over 121

      Not overdue days 60 days days 120 days days Total

      Expected credit loss

      rate 0%～0.16% 0.52%～13.74% 5.84%～45.96% 17.76%～59.91% 22.63%～84.41% 33.08%～100%

      Total book value	$ 4,133,530	$ 80,759	$ 21,190	$ 24,868	$ 4,191	$ 32,968	$ 4,297,506
      Allowance for loss
      (expected credit
      loss of the given
      duration)	( 4,475 )	( 414 )	( 1,231 )	( 4,424 )	( 948 )	( 29,471 )	( 40,963 )
      Cost after
      amortization	$ 4,129,055	$ 80,345	$ 19,959	$ 20,444	$ 3,243	$ 3,497	$ 4,256,543

      March 31, 2024

      Overdue 1 to 30

      Overdue for 31 to

      Overdue 61 to 90

      Overdue 91 to

      Overdue over 121

      Not overdue days 60 days days 120 days days Total

      Expected credit loss

      rate	0%~0.16%			0.52%~13.74%			5.84%~45.96%			17.76%~59.91%			22.63%~84.41%			33.08%~100%
      Total book value Allowance for loss	$ 3,827,015			$ 60,644			$ 14,107			$ 29,848			$ 2,561			$ 26,498			$ 3,960,673
      (expected credit loss of the given duration)	(		4,808 )	(		251 )	(		752 )	(		5,190 )	(		583 )	(		15,907 )	(		27,491 )
      Cost after amortization		$	3,822,207		$	60,393		$	13,355		$	24,658		$	1,978		$	10,591		$	3,933,182

   2. Accounts receivable at fair value through other comprehensive income.

For accounts receivable from specific clients, the Group signed the factoring agreement with financial institutions that determine whether to use non-recourse factoring to sell its receivables to the bank or not to sell regarding working capital. The business model of the Group managing this kind of accounts receivable is to complete its goal through receiving contractual cash flows and selling financial assets. Thus, these kinds of accounts receivable are measured through other comprehensive income in fair value.

March 31, 2025

Overdue 1 to 30

Overdue for 31 to

Overdue 61 to 90

Overdue 91 to

Overdue over 121

Not overdue days 60 days days 120 days days Total

Expected credit loss

December 31, 2024

Overdue 1 to 30

Overdue for 31 to

Overdue 61 to 90

Overdue 91 to

Overdue over 121

Not overdue days 60 days days 120 days days Total

Expected credit loss

rate 0.06% 0.52% 5.84% 17.76% 22.63% 33.08%～100%

Total book value $ 37,016 $ - $ - $ - $ - $ - $ 37,016 Allowance for loss

(expected credit loss of the given

duration) ( 21 ) - - - - - ( 21 )

Cost after

amortization $ 36,995 $ - $ - $ - $ - $ - $ 36,995

March 31, 2024

Overdue 1 to 30

Overdue for 31 to

Overdue 61 to 90

Overdue 91 to

Overdue over 121

Not overdue days 60 days days 120 days days Total

Expected credit loss

rate 0.06% 0.52% 5.84% 17.76% 22.63% 33.08%~100%

Total book value $ 16,177 $ - $ - $ - $ - $ - $ 16,177 Allowance for loss

(expected credit loss of the given

duration) ( 9 ) - - - - - ( 9 )

Cost after

amortization $ 16,168 $ - $ - $ - $ - $ - $ 16,168

The information on changes in the allowance for loss on notes receivable and accounts receivable is as follows:

January 1 to March 31, 2025 Accounts

January 1 to March 31, 2024 Accounts

As of March 31, 2025, December 31, 2024 and March 31, 2024, the amounts of notes receivable that have expired and have not been cashed were NTD 0 thousand, NTD 0 thousand and NTD 0 thousand, respectively.

Please refer to Note 26 for the amounts of notes receivable pledged by the Group as collateral for notes issued.

For the three months ended March 31, 2025 and 2024, cost of goods sold includes inventory valuation losses of NTD0 thousand in both periods.

1. Subsidiary

   Subsidiaries included in the consolidated financial statements

   The business entities of the consolidated financial statements are as follows:

   Percentage of shareholdings

   March

   December

   March 31,

   Investor Subsidiary name Nature of the operation 31, 2025 31, 2024 2024 Remark

   The parent company	Rechi Holdings Co., Ltd.	Investment business	100.00%	100.00%	100.00%
   The parent company	Rechi Investments Co., Ltd.	Investment business	100.00%	100.00%	100.00%
   The parent company	Dyna Rechi Co., Ltd.	BLDC Motor	94.42%	94.42%	65.65%	(1), (2),
   						(3)
   Rechi Holdings Co., Ltd.	Rechi International	Investment business	100.00%	100.00%	100.00%	(1)
   	Holdings Co., Ltd.
   Rechi Holdings Co., Ltd.	Rechi Investments Holdings	Investment business	100.00%	100.00%	100.00%
   	Co., Ltd.
   Rechi Holdings Co., Ltd.	Dongguan Rechi	Production and sales of refrigerant	100.00%	100.00%	100.00%	(1)
   	Compressor Co., Ltd.	compressors and refrigerant compressor
   		accessories
   Rechi Holdings Co., Ltd.	TCL Rechi (Huizhou)	Manufacturing and sales of air-conditioning	77.78%	77.78%	77.78%	(3)
   	Refrigeration Equipment	compressors and electric motors, and
   	Company Limited	providing after-sales service and technical
   		consulting service

   (Continued on next page)

   (Continued from previous page)

   Percentage of shareholdings

   March

   December

   March 31,

   Investor	Subsidiary name	Nature of the operation	31, 2025	31, 2024	2024	Rema
   Rechi Holdings Co.,	Rechi Precision (Huizhou)	Production and sales of refrigerant	25.00%	25.00%	25.00%	(1)
   Ltd.	Mechanism Company	compressors and refrigerant
   		compressor accessories
   Rechi Holdings Co.,	Rechi Precision (Jiujiang)	Production and sales of refrigerant	100.00%	100.00%	100.00%
   Ltd.	Electric Machinery	compressors and refrigerant
   	Limited	compressor accessories
   Rechi International	GR Holdings (Hong Kong)	Investment business	100.00%	100.00%	100.00%	(1)
   Holdings Co., Ltd.	Limited
   GR Holdings (Hong	Rechi Refrigeration	Production and sales of refrigerant	100.00%	100.00%	100.00%	(1)
   Kong) Limited	Dongguan Co., Ltd.	compressor motors and air conditioner
   		accessories
   TCL Rechi (Huizhou)	Rechi Precision (Huizhou)	Production and sales of refrigerant	67.86%	67.86%	67.86%	(1)
   Refrigeration	Mechanism Company	compressors and refrigerant
   Equipment Company		compressor accessories
   Limited
   Rechi Investments	Rechi Precision (Qingdao)	Production and sales of new	100.00%	100.00%	100.00%
   Holdings Co., Ltd.	Electric Machinery	electromechanical components, fine
   	Limited	blanking dies, precision bearings, and
   		relevant accessories
   TCL Rechi (Huizhou)	Qingdao Rechi Electric	Sales business	50.00%	50.00%	50.00%
   Refrigeration	Machinery Sales
   Equipment Company	Company
   Limited
   Rechi Precision	Qingdao Rechi Electric	Sales business	50.00%	50.00%	50.00%
   (Qingdao) Electric	Machinery Sales
   Machinery Limited	Company
   Rechi Precision	Dyna Rechi Jiujiang Co.,	Production and sales of refrigerant	35.50%	35.50%	35.50%	(1)
   (Jiujiang) Electric	Ltd.	compressor motors and BLDC motors
   Machinery Limited
   Dyna Rechi Co., Ltd.	Dyna Rechi Holdings Co.,	Investment business	100.00%	100.00%	100.00%	(1)
   	Ltd.
   Dyna Rechi Holdings	Dyna Rechi Jiujiang Co.,	Production and sales of refrigerant	64.50%	64.50%	64.50%	(1)
   Co., Ltd.	Ltd.	compressor motors and BLDC motors
   Dyna Rechi Co., Ltd.	Ablek Technology Co., Ltd.	Sales business	100.00%	100.00%	100.00%	(1)
   Ablek Technology Co.,	Ablek Technology Ltd.	Investment business	100.00%	100.00%	100.00%	(1)

   rk

   Ltd.

   Ablek Technology Ltd. Ablek Technology Ltd. Manufacturing and sales of motors for

   household appliances

   100.00% 100.00% 100.00% (1)

   1. The aforementioned companies are non-significant subsidiaries, whose financial statements have not been reviewed by independent auditors.

   2. In order to integrate the operation of the BLDC motor business, the Company acquired equity stake in its subsidiary, Dyna Rechi Co., Ltd., on April 17, 2024. The acquisition involves purchasing shares from directors and supervisors of Dyna Rechi Co., Ltd., Taiwan Sanyo Electric Co., Ltd., Richtek Technology Corporation, AccessTop Ltd., director HSU, YUNG FU and his first-degree relatives. The transaction involves acquiring a 28.77% equity stake in Dyna Rechi Co., Ltd., resulting in an increase in the Company's shareholding ratio from 65.65% to 94.42%.

   3. The aforementioned companies are subsidiaries with material non-controlling interests as of March 31, 2024; the material non-controlling interests of the Group did not change significantly for the three months ended March 31, 2024.

2. Investment under the equity method Investments in the affiliated company

   	March 31, 2025	December 31, 2024	March 31, 2024
   Individual non-dominant associates Qingdao China Steel Precision Metal Co., Ltd.	$ 170,071	$ 169,724	$ 172,518
   COMPRA FOR TRADE AND MANUFACTURING S.A.E	25,900	25,572	-
   	$ 195,971	$ 195,296	$ 172,518

   The merged company, in order to be closer to the market and customers, and to diversify the risk of concentrated production bases, has established COMPRA FOR TRADE AND MANUFACTURING S.A.E, a rotary compressor manufacturing and sales company in Egypt through its subsidiary Rechi International Holdings Co., Ltd. The planned capital is USD 10,000 thousand, with the merged company holding a 30% stake. To meet the company's capital requirements, investments will be made in installments, with the first installment of USD 780 thousand invested in October 2024.

3. Real property, plant and equipment

   Machinery and Construction in

   Costs Balance as of January 1, 2024	$ 207,567	$ 3,714,509		$ 8,672,008		$ 1,542,380	$ -	$ 14,136,464
   Additions	-	-		25,793		16,170	-	41,963
   Disposal	-	-	(	32,838 )	(	23,741 )	-	( 56,579 )
   Net exchange differences	-	130,781		338,235		39,433	-	508,449
   Other reclassification	-	-		726		6,832	-	7,558
   Balance as of March 31, 2024	$ 207,567	$ 3,845,290		$ 9,003,924		$ 1,581,074	$ -	$ 14,637,855
   Accumulated depreciation and impairment Balance as of January 1, 2024	$ -	$ 1,608,999		$ 5,929,681		$ 1,229,986	$ -	$ 8,768,666
   Depreciation expenses	-	30,680		137,219		24,080	-	191,979
   Disposal	-	-	(	22,100 )	(	20,831 )	-	( 42,931 )
   Net exchange differences	-	53,982		235,626		30,957	-	320,565
   Other reclassification -		-	( 11,530 )		1		-	( 11,529 )
   Balance as of March 31, 2024 $ -		$ 1,693,661	$ 6,268,896		$ 1,264,193		$ -	$ 9,226,750
   Net amount as of March 31, 2024 $ 207,567		$ 2,151,629	$ 2,735,028		$ 316,881		$ -	$ 5,411,105
   Costs Balance as of January 1, 2025	$ 207,567	$ 3,929,216		$ 9,132,258		$ 1,624,905	$ 12,154		$ 14,906,100
   Additions	-	10,430		98,379		12,945	1,168		122,922
   Disposal	- (	1,089 )	(	10,915 )	(	2,320 )	-		14,324 )
   Net exchange differences	-	49,309		127,039		15,072	120		191,540
   Other reclassification	-	5,289		49,568		2,974	( 6,961 )		50,870
   Balance as of March 31, 2025	$ 207,567	$ 3,993,155		$ 9,396,329		$ 1,653,576	$ 6,481		$ 15,257,108
   Accumulated depreciation and impairment
   Balance as of January 1, 2025	$ - $ 1,788,456		$ 6,518,466		$ 1,294,003		$ - $ 9,600,925
   Depreciation expenses	- 32,157		144,646		24,157		- 200,960

   Proprietary land Building equipment Other equipment progress Total

   (

   - ( 345 ) (	9,015 )	(	2,100 )	-	11,460 )
   - 21,498	91,465		11,896	-	124,859
   -	-	( 11,058 )	-	-	11,058 )
   $ -	$ 1,841,766	$ 6,734,504	$ 1,327,956	$ -	$ 9,904,226
   $ 207,567	$ 2,140,760	$ 2,613,792	$ 330,902	$ 12,154	$ 5,305,175
   $ 207,567	$ 2,151,389	$ 2,661,825	$ 325,620	$ 6,481	$ 5,352,882

   Disposal (

   Net exchange differences

   Other reclassification (

   Balance as of March 31, 2025

   Net amount as of December 31, 2024 and January 1,

   2025

   Net amount as of March 31, 2025

   Depreciation expense is calculated using the straight-line method, with the years of useful life illustrated below.

   Building

   Plant building 10 to 55 years Electromechanical power

   equipment 5 to 35 years

   Engineering systems 2 to 55 years

   Others 2 to 35 years

   Machinery and equipment 1 to 20 years

   Other equipment 1 to 20 years

   Please refer to Note 26 for the amount of property, plant and equipment pledged as guarantees for borrowings.

4. Lease arrangements

   1. Right-of-use assets.

      Carrying amount of right-of-use assets

      March 31, 2025

      December 31,

      2024 March 31, 2024

      Land	$ 135,400	$ 134,593	$ 136,348
      Building	-	-	10,925
      Transportation equipment	1,818	1,819	1,932
      	$ 137,218	$ 136,412	$ 149,205
      	January 1 to March 31, 2025		January 1 to March 31, 2024
      Addition of right-of-use assets	$ 454		$ -
      Depreciation expense of
      right-of-use assets
      Land	$ 1,101		$ 1,063
      Building	-		2,015
      Transportation equipment	471		422
      	$ 1,572		$ 3,500

   2. Lease liabilities

      Carrying amount of lease liabilities

      March 31, 2025

      December 31,

      2024 March 31, 2024

      Current $ 612 $ 837 $ 10,624

      Non-current $ 1,104 $ 871 $ 3,338

      Ranges of discount rates for lease liabilities are as follow:

      December 31,

      	March 31, 2025	2024	March 31, 2024
      Land	-	-	-
      Building	-	-	1.35%～2.20%
      Transportation equipment	1.35%～2.08%	1.35%～2.00%	1.35%～2.70%

   3. Important rental activities and terms

      The Group leases land located in Mainland China for a lease term of 50 years. All rents have been paid at the time of the lease, and when the lease term is terminated, the Group has no preferential right to acquire the land leased.

   4. Other lease information

The Group has leased out part of the plant buildings, dormitories, machinery, and equipment, etc., under operating leases, with lease terms of 1 to 5 years.

The Group has elected to apply the recognition exemption for leases of dormitories and other equipment that meet short-term leases, and, thus, did not recognize said leases in right-of-use assets and lease liabilities.

Note: Other prepayments refer to input tax and retained tax credit.

1. Borrowings

   (1)	Short-term borrowings
   			December 31,
   		March 31, 2025	2024	March 31, 2024
   	Secured loans (Note 26)
   	- Bank borrowings	$ 1,010,000	$ 860,000	$ -
   	Unsecured loans
   	- Credit borrowings	2,244,000	1,890,000	570,000
   		$ 3,254,000	$ 2,750,000	$ 570,000
   	Interest rate collars - Secured borrowings	1.79%～1.87%	1.86%	-
   	- Unsecured borrowings	1.88%～2.10%	1.87%～2.10%	1.87%～1.92%

   March 31, 2025	December 31, 2024	March 31, 2024
   $ 150,000	$ 480,000	$ 300,000
   ( 109 )	( 944 )	( 544 )
   $ 149,891	$ 479,056	$ 299,456
   March 31, 2025	December 31, 2024	March 31, 2024

   1. Short-term notes payable

      Commercial papers payable Less: Discount of short-term

      notes and bills payable

   2. Long-term borrowings

      Secured loans (Note 26)

      Bank borrowings $ 79,082 $ 83,395 $ 1,696,337 Unsecured loans

      Bank borrowings 633,352 650,746 682,927

      712,434 734,141 2,379,264

      Less: Portion due within one

      year ( 86,829 ) ( 86,829 ) ( 1,786,830 )

      Long-term borrowings $ 625,605 $ 647,312 $ 592,434

      Interest rate collars 1.48%~2.08% 1.48%~2.08% 1.48%~1.99%

   3. Long-term notes payable

      March 31, 2025

      December 31,

      2024 March 31, 2024

      Commercial papers payable $ - $ - $ 350,000 Less: Discount of long-term

      notes payable - - ( 824 )

      - - 349,176

      Less: Portion due within one

      year - - ( 349,176 )

      $ - $ - $ -

2. Other payables

   March 31, 2025

   December 31,

   2024 March 31, 2024

   Salary and bonus payables $ 291,733 $ 356,563 $ 201,207 Remuneration to employees and

   directors payable 135,671 130,342 110,337

   Freight payables 86,938 99,525 42,613

   Payable tax 28,575 30,305 28,324

   Vacation benefit payable 21,398 19,931 18,827

   Equipment payables 61,695 70,381 33,874

   Dividends to be paid 742,725 - 499,995 Others (Note) 271,464 271,204 242,115

   $ 1,640,199 $ 978,251 $ 1,177,292

   Note: Others are commission, interest, and utilities expenses payable.

3. Retirement benefits plan

   For the three months ended March 31, 2025 and 2024, pension expenses in respect of the Group's defined benefit retirement plans were NTD 290 thousand and NTD 260 thousand, respectively, calculated using the actuarially determined pension cost rate as of December 31, 2024 and 2023.

4. Equity

   1. Share capital

      Common shares

      Authorized number of

      March 31, 2025

      December 31,

      2024 March 31, 2024

      shares (thousand shares) 600,000 600,000 600,000 Authorized capital $ 6,000,000 $ 6,000,000 $ 6,000,000 Number of shares issued

      with fully paid-in capital (thousand

      shares) 504,915 504,915 504,915

      Outstanding capital $ 5,049,151 $ 5,049,151 $ 5,049,151

      Common stock shares issued at NTD 10 Par and each share is entitled to one voting right and dividends.

   2. Capital reserves

      March 31, 2025

      December 31,

      2024 March 31, 2024

      May be used to offset a
      deficit, distributed as
      cash dividends, or
      transferred to share
      capital (1)
      Other capital surplus of
      shares	$ 279,956	$ 279,956	$ 279,956
      Corporate bond conversion
      premium	1,050,383	1,050,383	1,050,383
      Endowments	1,651	1,651	1,651
      Treasury stock trade	11	11	11
      Difference between
      consideration and
      carrying amount of
      subsidiaries acquired or
      disposed	23,850	23,850	11,445
      For covering loss carried
      forward only.
      Gains on disposal of assets	21	21	21
      Recognition of changes in
      ownership interests of
      subsidiaries (2)	11,693	11,693	11,693
      Others	164	164	164
      	$ 1,367,729	$ 1,367,729	$ 1,355,324

      1. Such additional paid-in capital can be used to make up for losses; also, when the company is without any loss, it can be applied for cash distribution or capitalization. However, it is limited to a certain percentage of the annual paid-in capital for the purpose of capitalization.

      2. Such capital reserves are the effects of equity transactions recognized due to the changes in a subsidiary's equity when the Company has not actually acquired or disposed of the equity of the subsidiary.

      3. Retained earnings and Dividend Policy

         According to the earnings distribution policy of the Company's Articles of Association, if there are earnings in the Company's annual final accounts, the Company shall pay taxes, compensate the accumulated losses over the years, set aside 10% as a statutory surplus reserve, and then appropriate or reverse a special surplus reserve according to the laws or regulations of the competent authority. Regarding the special surplus reserve, if there are still earnings available, shareholder dividends shall be provided therefrom. For stock dividends, the Board of Directors draws up an earnings distribution proposal and submits it to the shareholders' meeting for resolution for distribution of shareholder dividends. If cash dividends are distributed, it shall be approved by a resolution by more than half of all directors present at a board meeting attended by two-thirds or more of all directors and reported to the shareholders' meeting. Please refer to Note 20 (7) regarding the policy for remuneration to the employees and the directors as stipulated in the Company's Articles of Association.

         For the Company's need for sustainable operation and business growth and to take into account the maintenance of profitability, the Company's capital budget plan is adopted to measure the capital needs of the following years. The board of directors drafts a shareholders' dividend distribution plan according to the law every year and submits it to the shareholders' meeting. Shareholders' dividends are distributed in two ways: cash dividends and stock dividends. The cash dividends must not be less than 10% of the total dividends distributed, and the rest are stock dividends.

         Legal reserve shall be allocated up to the amount equivalent to the paid-in capital of the company. Legal reserve could be allocated for covering loss carried forward. If there is no loss, the amount of legal reserve in excess of the paid-in capital by 25% could be allocated as capital stock and paid out as cash dividend.

         The Company has a special reserve appropriated and reversed in accordance with FSC.Certificate.Issue.Tzi No. 1010012865 Letter, FSC.Certificate.Issue.Tzi No. 1010047490 Letter, and "Special reserve appropriation Q&A after the adoption of International Financial Reporting Standards (IFRSs)."

         In the event that the Company sets aside a special reserve from the net deduction of other equity accumulated from the prior periods, if the undistributed earnings from the prior period are insufficient for provision, the special reserve shall be provided from the net income after tax for the current period, plus items other than net income after tax, included in the amount of the undistributed earnings for the current period.

         On March 11, 2025 and June 13, 2024, the Company held a board meeting and an annual shareholders' meetings, which proposed and resolved to pass the 2024 and 2023 earnings distribution proposals, respectively, as follows:

         Distribution of retained

         earnings Dividend Per Share (NTD)

         	2024	2023	2024	2023
         Legal reserve	$ 101,032	$ 75,423
         appropriated
         Special reserve	( 541,024 )	168,420
         appropriated
         (reversed)
         Cash dividend	742,725	499,995	$ 1.5	$ 1.0

         The Board of Directors has decided to distribute the above cash dividends by resolution and is pending resolution by the annual shareholders' meeting scheduled to be held on June 11, 2025.

      4. Special surplus reserves

         A special surplus reserve appropriated because of the first-time adoption of IFRSs for the exchange differences on translation of the financial statements of foreign operations (including subsidiaries) is reversed based on the percentage of the Company's disposal. When the Company loses significant influence, said reserve will be fully reversed. When distributing the earnings, a special surplus reserve shall be appropriated for the difference between the net deduction of other shareholders' equity and the special surplus reserve for the first-time application of IFRSs at the end of the reporting period. If the amount debited to the other shareholders' equity is reversed subsequently, the reversed amount can be distributed.

         As of March 31, 2025 and 2024, the special surplus reserve provided by the Company in accordance with Letter Jin Guan-Zheng-Fa No. 1010012865 was NTD 1,097,408 thousand and NTD 928,988 thousand, respectively.

      5. Other equity

   1.	Exchange differences from operations	the translation of financial	statements of foreign
   		January 1 to March 31, 2025	January 1 to March 31, 2024
   	Balance, beginning Incurred during the current period Exchange differences on translation of foreign operations	( $ 506,385 ) 189,106	( $ 1,025,598 ) 497,775
   	Relating income tax	( 37,821 )	( 99,555 )
   	Balance, ending	( $ 355,100 )	( $ 627,378 )

   2. Unrealized gain on financial assets at fair value through other comprehensive

   	profit or loss
   		January 1 to March 31, 2025		January 1 to March 31, 2024
   Balance, beginning Incurred during the current period Unrealized gains or		( $ 50,000 )		( $ 71,810 )
   	losses on equity instruments	-		-
   	Balance, ending	( $ 50,000 )		( $ 71,810 )
   (6)	Non-controlling interests
   		January 1 to March 31, 2025		January 1 to March 31, 2024
   	Balance, beginning	$ 948,719		$ 1,162,197
   	Net income for the period Other comprehensive income of	33,212		15,650
   	the period Exchange differences on translation of foreign operations		13,700	44,574
   	Relating income tax Cash dividend to the subsidiary's shareholders	(	155 ) -	( 2,471 ) ( 14,752 )
   	Balance, ending		$ 995,476	$ 1,205,198
   (7)	Treasury shares

   Duration Number of shares on January 1

   Transfer of shares to employees

   (thousand shares)

   and March 31, 2024 4,920

   Number of shares on January 1,

   2025 4,920

   Increase 5,000

   Number of shares on March 31,

   2025 9,920

   The company's Treasury stock may not be pledged in accordance with the Security and Exchange Law; moreover, it is without the privilege of dividend and voting right.

5. Business units in continuing operation income

1. Interest revenue

   January 1 to March

   31, 2025

   January 1 to March

   31, 2024

   Bank deposits $ 35,597 $ 30,162

2. Other income

   Rent revenue

   Other operating leases

   January 1 to March

   31, 2025

   January 1 to March

   31, 2024

   (Note 14) $ 4,536 $ 4,170

   Others (Note 23) 14,350 23,956

   $ 18,886 $ 28,126

3. Other profits and losses

   January 1 to March

   31, 2025

   January 1 to March

   31, 2024

   Profit or loss on financial assets
   mandatorily measured at fair
   value through profit or loss	$ 20,583		$ 15,476
   Net foreign exchange gain
   (loss)	37,293		44,006
   Gains (losses) on disposal of
   property, plant and
   equipment and right-of-use
   assets	(	1,327 )	(	6,572 )
   Others	(	2,297 )	(	407 )
   		$ 54,252		$ 52,503

   The components of financial assets at FVTPL are as follows:

   	January 1 to March 31, 2025	January 1 to March 31, 2024
   Interest income from wealth management products	$ 21,474	$ 15,920

   Net gains and losses on changes in the fair value of stocks and fund beneficiary

   certificates ( 891 ) ( 444 )

   $ 20,583 $ 15,476

4. Financial costs

   January 1 to March

   31, 2025

   January 1 to March

   31, 2024

   Interest from bank borrowings $ 21,105 $ 17,512

   Other interest expenses 8,706 -

   Interest on lease liabilities 8 77

   Other financial costs 16 1,470

   $ 29,835 $ 19,059

5. Depreciation and amortization

   Consolidation of depreciation expenses based on functions

   January 1 to March

   31, 2025

   January 1 to March

   31, 2024

   Operating costs	$ 164,997	$ 158,422
   Operating expenses	37,535	37,057
   	$ 202,532	$ 195,479

   Consolidation of amortization expenses based on functions

   Operating costs $ 37 $ 25

   Operating expenses 5,834 3,167

   $ 5,871 $ 3,192

6. Employee benefits expenses

   Retirement benefits

   Defined contribution pension

   January 1 to March

   31, 2025

   January 1 to March

   31, 2024

   plan	$ 3,053	$ 2,824
   Defined benefit plan (Note 18)	290	260
   	3,343	3,084
   Other employee benefits	701,413	527,875
   Total employee benefits expenses	$ 704,756	$ 530,959
   Consolidation based on functions Operating costs	$ 435,290	$ 341,376
   Operating expenses	269,466	189,583
   	$ 704,756	$ 530,959

7. Remuneration to the employees and the directors

   According to the Company's Articles of Association, based on the current year's pre-tax income before deduction of the remuneration to employees and directors, no less than 1% and no greater than 8% of the balance is allocated as remuneration to employees, and no more than 3% for remuneration to directors. For the three months ended March 31, 2025 and 2024, the remuneration to employees and directors was estimated based on the aforementioned pre-tax profit and the possible distributable amount according to the past experience.

   According to the amendment to the Securities and Exchange Act in August 2024, the Company plans to amend the Articles of Incorporation in the 2025 shareholders' meeting, stipulating that no less than 15% of the employee remuneration appropriated for the current year should be set aside as the remuneration to the entry-level employees.

   The estimated remuneration to employees (including the remuneration to entry-level employees) and directors for the three months ended March 31, 2025 and 2024 is as follows:

   Amount

   	January 1 to March 31, 2025	January 1 to March 31, 2024
   Remuneration to employees	$ 25,256	$ 16,299
   Remuneration of Directors	$ 7,286	$ 4,702

   If there are still changes in the amount specified in the consolidated financial statement after announcement, proceed to the accounting of change and adjusted for booking in the next fiscal year.

   The remuneration to employees and directors for 2024 and 2023 was resolved by the board of directors on March 11, 2025 and March 12, 2024, respectively, as follows:

   	2024	2023
   	Cash Stock	Cash Stock
   Remuneration to employees	$ 67,664 $ -	$ 47,332 $ -
   Remuneration of Directors	19,519 -	14,791 -

   There is no difference between the remuneration to employees and directors actually distributed for 2024 and 2023 and the amount recognized in the consolidated financial statements for 2024 and 2023.

   For information on the remuneration to employees and directors as resolved by the Company's board of directors, please visit the Market Observatory Post System of the Taiwan Stock Exchange.

8. Foreign exchange gain (loss)