Consolidated Financial Statements Third Quarter

Stock No: 4532

RECHI PRECISION CO., LTD. and its

subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 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 statements No.

To RECHI PRECISION CO., LTD.:

We have reviewed the accompanying consolidated balance sheet of RECHI PRECISION CO., LTD. (the "Company") and subsidiaries (collectively, the "Group") as of September 30, 2025 and 2024, and the related consolidated statement of income for the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2024 and 2023, consolidated statement of changes in equity, consolidated statement of cash flows for the nine months then ended, 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 3,140,403 thousand and NTD 3,297,167 thousand, constituting 11.66% and 11.74% of the consolidated total assets, and the total liabilities of these non-significant subsidiaries amounted to NTD 758,495 thousand and NTD 1,628,827 thousand, constituting 4.70% and 9.63% of the consolidated total liabilities, as of September 30, 2025 and 2024, respectively. The total comprehensive income of these non-significant subsidiaries and joint operations amounted to NTD 34,478 thousand, NTD 7,877 thousand, NTD 133,082 thousand and NTD 91,653 thousand, constituting 4.95%, 18.41%, 240.58% and 7.63% of the consolidated total comprehensive income for the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 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 199,427 thousand and NTD 168,978 thousand as of September 30, 2025 and 2024, respectively; and the shares of profit/loss on associates accounted for using the equity method amounted to NTD (1,443) thousand, NTD (3,176) thousand, NTD (5,926) thousand and NTD (4,569) thousand for the three months ended September 30, 2025 and 2024, and for the nine months ended September 30, 2025 and 2024, respectively. These amounts and relevant information disclosed in Note 30 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 September 30, 2025 and 2024, and its consolidated financial performance for the three months September 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission.

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

November 11, 2025

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

As of September 30, 2025, December 31, 2024, and September 30, 2024

Unit: NTD thousand

September 30, 2025 December 31, 2024 September 30, 2024

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated November 11, 2025)

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

RECHI PRECISION CO., LTD. and its subsidiaries Consolidated Statements of Comprehensive Income

For the Three months Ended September 30, 2025 and 2024 and For the Nine Months Ended September 30, 2025 and 2024

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

July 1 to September 30,

2025

July 1 to September 30,

2024

January 1 to September 30,

2025

January 1 to September 30,

2024

Components of other comprehensive income that will be reclassified to profit or loss:

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated November 11, 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 Nine Months Ended September 30, 2025 and 2024

Unit: NTD thousand

Equity attributable to the company's shareholders

Other equity

Share capital Retained earnings

Exchange differences from the translation of financial

Unrealized gain on financial assets at fair value through other

Code

Shares (in

thousand shares) Amount Capital surplus Legal reserve Special reserve

Unappropriated

retained earnings

statements of

foreign operations

comprehensive

income or loss

Treasury shares Total

Non-controlling

interests Total equity

A1 Balance as of January 1, 2024 504,915 $ 5,049,151 $ 1,355,324 $ 1,156,333 $ 928,988 $ 2,340,079 ( $ 1,025,598 ) ( $ 71,810 ) ( $ 93,573 ) $ 9,638,894 $ 1,162,197 $ 10,801,091

Dividend allocation and distribution for 2023

-

D3 Other comprehensive income after tax for the

nine months ended September 30, 2024 - - - - - - 392,573 ( 8,156 ) - 384,417 50,932 435,349

D5 Total comprehensive income for the nine months

ended September 30, 2024 - - - - - 723,752 392,573 ( 8,156 ) - 1,108,169 92,618 1,200,787

Q1 Disposal of equity instrument investments measured at fair value through other

comprehensive income - - - - - ( 29,966 ) - 29,966 - - - -

Z1 Balance as of September 30, 2024 504,915 $ 5,049,151 $ 1,367,729 $ 1,231,756 $ 1,097,408 $ 2,290,027 ( $ 633,025 ) ( $ 50,000 ) ( $ 93,573 ) $ 10,259,473 $ 915,409 $ 11,174,882

A1 Balance as of January 1, 2025 504,915 $ 5,049,151 $ 1,367,729 $ 1,231,756 $ 1,097,408 $ 2,576,593 ( $ 506,385 ) ( $ 50,000 ) ( $ 93,573 ) $ 10,672,679 $ 948,719 $ 11,621,398

Dividend allocation and distribution for 2024

B1 Legal reserve - - - 101,031 - ( 101,031 ) - - - - - -

B3 Special reserve - - - - ( 541,023 ) 541,023 - - - - - -B5 Cash dividend to the Company's

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated November 11, 2025)

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

- 7 -

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

For the Nine Months Ended September 30, 2025 and 2024

Unit: NTD thousand

Code

Cash flow from operating activities

January 1 to

September 30, 2025

January 1 to

September 30, 2024

(Continued on next page)

Cash flow from investing activities

The notes attached shall constitute an integral part of this Consolidated financial statement. (Please refer to the review report by Deloitte & Touche dated November 11, 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 Nine Months Ended September 30, 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 November 11, 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)

      Amendments to IAS 21 "Lack of Exchangeability"

      The application of the amendments to the AS 21 "Lack of Exchangeability" 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"

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

      January 1, 2026

      January 1, 2026

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

      IFRS 17 "Insurance Contracts" (including amendments in 2020 and 2021)

      January 1, 2023

      The Group will continue to evaluate the effect of the amendment 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.

   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 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."

      IFRS 18 "Presentation and Disclosure in Financial Statements"

      IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (including amendments in 2025)

      IASB publication effective

      date (Note 1) To be determined

      January 1, 2027 (Note 2)

      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.

      Note 2: On September 25, 2025, the FSC announced that Taiwanese companies should apply IFRS 18 from January 1, 2028, or may choose to apply it earlier after FSC approval.

      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 Company 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

   Cash on hand and working

   September 30,

   2025

   December 31,

   2024

   September 30,

   2024

   capital	$ 1,602	$ 1,542	$ 1,569
   Bank checks and demand
   deposits	2,773,430	3,801,498	2,528,965

   Cash equivalents (Investment with the original maturity date

   within three months)
   Bank time deposit	1,273,364	2,036,099	1,342,007
   	$ 4,048,396	$ 5,839,139	$ 3,872,541

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

   September 30,			December 31,	September 30,
   2025			2024	2024
   Financial assets - current Mandatorily measured at FVTPL Wealth management products		$ 1,861,308	$ 1,805,772	$ 1,909,374
   Non-derivative financial assets - Listed stocks -
   	overseas	-	4,135	4,223
   	- Beneficial certificates	15,337	16,879	18,998
   		$ 1,876,645	$ 1,826,786	$ 1,932,595
   8.	Financial assets at amortized cost
   		September 30, 2025	December 31, 2024	September 30, 2024
   	Current Restricted bank deposits	$ 3,188,737	$ 3,450,581	$ 3,599,133
   	Time deposits with original maturity date of more than 3 months	155,942	364,866	135,499
   		$ 3,344,679	$ 3,815,447	$ 3,734,632

   Partly restricted bank deposits are restricted because bank regulations allow them to be matched and resold by the bank only on a specified date, and they are not redeemable on demand.

   Please refer to Note 27 for details of financial assets at amortized cost.

   9.	Note receivable and account receivable
   	September 30, 2025	December 31, 2024	September 30, 2024
   	Notes receivable At amortized cost Total book value $ 5,400,220	$ 3,107,510	$ 5,354,200
   	Less: Allowance for losses ( 4,098 )	( 2,760 )	( 5,164 )
   	$ 5,396,122	$ 3,104,750	$ 5,349,036
   	Accounts receivable At amortized cost Total book value $ 2,802,806	$ 4,297,506	$ 3,396,715
   	Less: Allowance for losses ( 75,615 )	( 40,963 )	( 15,744 )
   	2,727,191 Measured at fair values through other comprehensive income 78,988	4,256,543 36,995	3,380,971 18,005
   	$ 2,806,179	$ 4,293,538	$ 3,398,976

   1. Accounts receivable at amortized cost

      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 Group'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:

      September 30, 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%	18.2%～71.19%	34.31%～89.61%	39.12%～100%
      Total book value	$ 2,603,492	$ 84,465	$ 7,203	$ 53,574	$ 11,074	$ 42,998	$ 2,802,806
      Allowance for loss
      (expected credit
      loss of the given
      duration)	( 3,867 )	( 7,603 )	( 659 )	( 9,740 )	( 10,983 )	( 42,763 )	( 75,615 )
      Cost after
      amortization	$ 2,599,625	$ 76,862	$ 6,544	$ 43,834	$ 91	$ 235	$ 2,727,191

      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

      September 30, 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	$ 3,237,090	$ 120,831	$ 27,092	$ 150	$ 2,434	$ 9,118	$ 3,396,715
      Allowance for loss
      (expected credit
      loss of the given
      duration)	( 3,221 )	( 6,307 )	( 1,472 )	( 27 )	( 488 )	( 4,229 )	( 15,744 )
      Cost after
      amortization	$ 3,233,869	$ 114,524	$ 25,620	$ 123	$ 1,946	$ 4,889	$ 3,380,971

   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.

September 30, 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

September 30, 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 $ 18,015 $ - $ - $ - $ - $ - $ 18,015 Allowance for loss

(expected credit loss of the given

duration) ( 10 ) - - - - - ( 10 )

Cost after

amortization $ 18,005 $ - $ - $ - $ - $ - $ 18,005

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

January 1 to September 30, 2025 Accounts

January 1 to September 30, 2024 Accounts

Notes receivable receivable Total

Balance, beginning $ 3,439 $ 25,295 $ 28,734 Add (less): Impairment

loss (reversal) for the period

Less: Actual write-off amount in the current period

Foreign currency translation differences

Balance, ending

As of September 30, 2025, December 31, 2024 and September 30, 2024, the amounts of notes receivable that have expired and have not been cashed were NTD 0 thousand.

1. Inventories

   	September 30, 2025	December 31, 2024	September 30, 2024
   Finished products	$ 1,403,965	$ 2,393,263	$ 1,460,376
   Work-in-process	149,388	306,259	243,768
   Raw materials	240,018	367,469	274,548
   Inventory in-transit	96,070	225,975	304,907
   	$ 1,889,441	$ 3,292,966	$ 2,283,599

   For the nine months ended September 30, 2025 and 2024, cost of goods sold includes inventory valuation losses of NTD 0 thousand in both periods.

2. Subsidiary

   Subsidiaries included in the consolidated financial statements

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

   Percentage of shareholdings

   September

   December

   September

   Investor Subsidiary name Nature of the operation 30, 2025 31, 2024 30, 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%	94.42%	(1), (2)
   Rechi Holdings Co., Ltd.	Rechi International Holdings	Investment business	100.00%	100.00%	100.00%	(1)
   	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	100.00%	100.00%	100.00%	(1)
   	Compressor Co., Ltd.	refrigerant compressors and
   		refrigerant compressor
   		accessories
   Rechi Holdings Co., Ltd.	TCL Rechi (Huizhou)	Manufacturing and sales of	77.78%	77.78%	77.78%	(3)
   	Refrigeration Equipment	air-conditioning compressors
   	Company Limited	and electric motors, and
   		providing after-sales service
   		and technical consulting
   		service

   (Continued on next page)

   (Continued from previous page)

   Percentage of shareholdings

   September

   December

   September

   Investor	Subsidiary name	Nature of the operation	30, 2025	31, 2024	30, 2024	Rema
   Rechi Holdings Co., Ltd.	Rechi Precision (Huizhou)	Production and sales of refrigerant	25.00%	25.00%	25.00%	(1)
   	Mechanism Company	compressors and refrigerant
   		compressor accessories
   Rechi Holdings Co., Ltd.	Rechi Precision (Jiujiang)	Production and sales of refrigerant	100.00%	100.00%	100.00%
   	Electric Machinery	compressors and refrigerant
   	Limited	compressor accessories
   Rechi International Holdings Co.,	GR Holdings (Hong Kong)	Investment business	100.00%	100.00%	100.00%	(1)
   Ltd.	Limited
   GR Holdings (Hong Kong)	Rechi Refrigeration	Production and sales of refrigerant	100.00%	100.00%	100.00%	(1)
   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 Equipment	Mechanism Company	compressors and refrigerant
   Company Limited		compressor accessories
   Rechi Investments Holdings Co.,	Rechi Precision (Qingdao)	Production and sales of new	100.00%	100.00%	100.00%
   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 Equipment	Machinery Sales
   Company Limited	Company
   Rechi Precision (Qingdao)	Qingdao Rechi Electric	Sales business	50.00%	50.00%	50.00%
   Electric Machinery Limited	Machinery Sales
   	Company
   Rechi Precision (Jiujiang) Electric	Dyna Rechi Jiujiang Co.,	Production and sales of refrigerant	35.50%	35.50%	35.50%	(1)
   Machinery Limited	Ltd.	compressor motors and BLDC motors
   Dyna Rechi Co., Ltd.	Dyna Rechi Holdings Co.,	Investment business	100.00%	100.00%	100.00%	(1)
   Dyna Rechi Holdings Co., Ltd.	Ltd. Dyna Rechi Jiujiang Co.,	Production and sales of refrigerant	64.50%	64.50%	64.50%	(1)
   	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., Ltd.	Ablek Technology Ltd.	Investment business	100.00%	100.00%	100.00%	(1)
   Ablek Technology Ltd.	Ablek Technology Ltd.	Manufacturing and sales of motors for	100.00%	100.00%	100.00%	(1)

   rk

   household appliances

   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%. Please refer to Note 24 for equity transactions associated with non-controlling interests.

   3. The aforementioned companies are subsidiaries with material non-controlling interests; the material non-controlling interests of the Group did not change significantly for the nine months ended September 30, 2025 and 2024.

3. Investment accounted for using equity method Investments in the affiliated company

   Individual non-dominant associates Qingdao China Steel Precision

   September 30,

   2025

   December 31,

   2024

   September 30,

   2024

   Metal Co., Ltd. COMPRA FOR TRADE AND MANUFACTURING	$ 152,979	$ 169,724	$ 168,978
   S.A.E	46,448	25,572	-
   	$ 199,427	$ 195,296	$ 168,978

   The Group, 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, the Company invested US$780 thousand and US$678 thousand in October 2024 and June 2025, respectively.

4. Property, plant and equipment

   Machinery and Construction in

   Proprietary land Building equipment Other equipment progress Total

   Costs

   Balance as of January 1, 2025 $ 207,567 $ 3,929,216 $ 9,132,258 $ 1,624,905 $ 12,154 $ 14,906,100

   Additions - 33,924 353,708 68,351 4,267 460,250

   Disposal - ( 1,905 ) ( 94,350 ) ( 80,946 ) - ( 177,201 )

   Net exchange differences - ( 210,368 ) ( 542,033 ) ( 63,017 ) ( 631 ) ( 816,049 ) Other reclassification - 6,758 153,942 25,916 ( 10,563 ) 176,053 Balance as of September 30,

   2025 $ 207,567 $ 3,757,625 $ 9,003,525 $ 1,575,209 $ 5,227 $ 14,549,153

   Accumulated depreciation and impairment

   Balance as of January 1, 2025 $ - $ 1,788,456 $ 6,518,466 $ 1,294,003 $ - $ 9,600,925

   Depreciation expenses - 93,482 424,786 72,274 - 590,542 Disposal - ( 1,067 ) ( 86,646 ) ( 79,316 ) - ( 167,029 )

   Net exchange differences - ( 92,426 ) ( 390,589 ) ( 49,074 ) - ( 532,089 ) Other reclassification - - ( 25,656 ) ( 4,267 ) - ( 29,923 ) Balance as of September 30,

   2025 $ - $ 1,788,445 $ 6,440,361 $ 1,233,620 $ - $ 9,462,426

   Net amount as of September

   30, 2025 $ 207,567 $ 1,969,180 $ 2,563,164 $ 341,589 $ 5,227 $ 5,086,727

   December 31, 2024 $ 207,567 $ 2,140,760 $ 2,613,792 $ 330,902 $ 12,154 $ 5,305,175

   Costs

   Balance as of January 1, 2024 $ 207,567 $ 3,714,509 $ 8,672,008 $ 1,542,380 $ - $ 14,136,464

   Additions - 14,311 109,736 57,661 9,877 191,585

   Disposal - ( 10,062 ) ( 101,455 ) ( 74,028 ) - ( 185,545 )

   Net exchange differences - 135,003 351,888 40,943 22 527,856 Other reclassification - - 30,641 24,141 - 54,782 Balance as of September 30,

   2024 $ 207,567 $ 3,853,761 $ 9,062,818 $ 1,591,097 $ 9,899 $ 14,725,142

   Accumulated depreciation and impairment

   Balance as of January 1, 2024 $ - $ 1,608,999 $ 5,929,681 $ 1,229,986 $ - $ 8,768,666

   Depreciation expenses - 91,550 420,288 72,599 - 584,437 Disposal - ( 5,783 ) ( 73,047 ) ( 59,819 ) - ( 138,649 )

   Net exchange differences - 55,009 244,056 32,184 - 331,249 Other reclassification - - ( 30,958 ) 1 - ( 30,957 ) Balance as of September 30,

   2024 $ - $ 1,749,775 $ 6,490,020 $ 1,274,951 $ - $ 9,514,746

   Net amount as of September

   30, 2024 $ 207,567 $ 2,103,986 $ 2,572,798 $ 316,146 $ 9,899 $ 5,210,396

   Depreciation expenses is appropriated in accordance with the straight-line method and 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 3 to 35 years

   Machinery and equipment 1 to 20 years

   Other equipment 1 to 20 years

   Please refer to Note 27 for the amount of property, plant and equipment pledged as guarantees for borrowings.

5. Lease arrangements

   1. Right-of-use assets.

      September 30,		December 31,	September 30,
      2025		2024	2024
      Carrying amount of right-of-use assets Land	$ 123,358	$ 134,593	$ 134,373
      Building	-	-	-
      Transportation equipment	5,278	1,819	2,242
      	$ 128,636	$ 136,412	$ 136,615

      	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
      Addition of right-of-use assets	$ -	$ 4	$ 4,912	$ 1,151

      Depreciation expense of right-of-use assets

      Land	$ 1,009	$ 1,090	$ 3,139	$ 3,246
      Building	-	1,382	-	5,469
      Transportation
      equipment	454	432	1,392	1,266
      	$ 1,463	$ 2,904	$ 4,531	$ 9,981

      Except for the additions and depreciation expenses recognized as listed above, the Group did not have any material subleases or impairments of the right-of-use assets during the nine months ended September 30, 2025 and 2024.

   2. Lease liabilities

      	September 30, 2025	December 31, 2024	September 30, 2024
      Carrying amount of lease liabilities Current	$ 1,804	$ 837	$ 1,238
      Non-current	$ 3,511	$ 871	$ 894
      The range of lease liability discount is as follows:
      	September 30, 2025	December 31, 2024	September 30, 2024
      Land	-	-	-
      Building	-	-	-
      Transportation equipment	1.35%~2.08%	1.35%~2.00%	1.35%~2.00%

   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.

      	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
      Short-term lease expense Variable lease payments not included in lease liability measurement	$ 2,986 $ 2,485	$ 3,718 $ 2,362	$ 9,219 $ 10,090	$ 10,789 $ 7,848
      Total cash (outflow) of leases	( $ 5,927 )	( $ 8,043 )	( $ 20,595 )	( $ 26,059 )

6. Other assets

   		September 30, 2025	December 31, 2024	September 30, 2024
   	Current Prepayment for purchase	$ 310,361	$ 318,545	$ 403,747
   	Other prepayments (Note)	346,217	476,679	391,904
   	Others	24,794	25,223	22,633
   		$ 681,372	$ 820,447	$ 818,284
   	Non-current Prepayments for equipment	$ 469,809	$ 414,677	$ 376,947
   	Refundable deposits	29,003	30,957	30,284
   		$ 498,812	$ 445,634	$ 407,231

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

7. Borrowings

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

1. Retirement benefits plan

   For the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, pension expenses in respect of the Group's defined benefit retirement plans were NTD 290 thousand, NTD 259 thousand, NTD 869 thousand and NTD 779 thousand, respectively, calculated using the actuarially determined pension cost rate as of December 31, 2024 and 2023.

2. Equity

   1. Share capital

      Common shares

      Authorized number of

      September 30,

      2025

      December 31,

      2024

      September 30,

      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) 504,895 504,915 504,915 Outstanding capital $ 5,048,951 $ 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 surplus

      September 30,		December 31,	September 30,
      2025		2024	2024
      May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Other capital surplus of shares	$ 279,945	$ 279,956	$ 279,956
      Corporate bond conversion premium	1,050,342	1,050,383	1,050,383
      Endowments	1,651	1,651	1,651
      Treasury stock trade Difference between consideration and carrying amount of subsidiaries acquired or disposed	- 23,850	11 23,850	11 23,850
      For covering loss carried
      forward only.
      Gains on disposal of assets Recognition of changes in ownership interests of subsidiaries (2)	21 11,693	21 11,693	21 11,693
      Others	164	164	164
      	$ 1,367,666	$ 1,367,729	$ 1,367,729

      1. Such capital surplus 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 surplus 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 legal reserve, and then appropriate or reverse a special reserve according to the laws or regulations of the competent authority. Regarding the special 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 unappropriated retained 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 unappropriated retained earnings for the current period.

         Proposal for the Company's 2024 and 2023 earnings distribution are as follows: Distribution of retained

         earnings Dividend Per Share (NTD)

         	2024	2023	2024 2023
         Legal reserve
         appropriated	$ 101,031	$ 75,423
         Special reserve
         appropriated
         (reversed)	( 541,023 )	168,420
         Cash dividend	742,725	499,995	$ 1.5 $ 1.0

         The aforementioned cash dividend distributions were resolved by the board of directors on March 11, 2025 and March 12, 2024, respectively. The rest earnings appropriation items were resolved by the general shareholders meetings on June 11, 2025 and June 13, 2024, respectively.

      4. Special reserve

         A special 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 reserve shall be appropriated for the difference between the net deduction of other shareholders' equity and the special 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 September 30, 2025 and 2024, the special reserve provided by the Company in accordance with Letter Jin Guan-Zheng-Fa No. 1010012865 was NTD 556,385 thousand and NTD 1,097,408 thousand, respectively.

      5. Other equity

         1. Exchange differences from the translation of financial statements of foreign operations

            January 1 to

            September 30, 2025

            January 1 to

            September 30, 2024

            Balance, beginning ( $ 506,385 ) ( $ 1,025,598 )

            Incurred during the current period

            Exchange differences on translation of foreign

            operations	(	871,094 )	490,717
            Relating income tax		174,219	( 98,144 )
            Balance, ending	(	$ 1,203,260 )	( $ 633,025 )

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

            	January 1 to September 30, 2025	January 1 to September 30, 2024
            Balance, beginning Incurred during the current	( $ 50,000 )	( $ 71,810 )

            period

            Unrealized gains or losses -

            equity instruments - ( 8,156 )

            Cumulative unrealized gain (loss) of equity instruments transferred to retained

            earnings due to disposal - 29,966 Balance, ending ( $ 50,000 ) ( $ 50,000 )

      6. Non-controlling interests

         January 1 to

         September 30, 2025

         January 1 to

         September 30, 2024

         Balance, beginning $ 948,719 $ 1,162,197 Net income for the period 67,696 41,686 Other comprehensive income of the

         period

         Exchange differences on translation of foreign

         operations ( 58,960 ) 55,348 Relating income tax 661 ( 4,416 )

         Cash dividend to the subsidiary's

         shareholders ( 18,125 ) ( 14,752 ) Acquisition of non-controlling

         interests in subsidiaries (Note 24)	-	( 324,654 )
         Balance, ending	$ 939,991	$ 915,409
         (7) Treasury shares
         Cause		Transfer of shares to employees (thousand shares)
         Number of shares on January 1 and September 30, 2024		4,920

         Number of shares on January 1,

         2025 4,920

         Increase 5,000

         Decrease ( 20 )

         Number of shares on September 30,

         2025 9,900

         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.

3. Business units in continuing operation income

   1. Interest income

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      Bank deposits $ 27,920 $ 33,617 $ 93,604 $ 94,191

   2. Other income

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      Rent revenue $ 5,454 $ 5,945 $ 14,392 $ 17,437 Others (Note 23) 66,207 10,362 93,443 45,248

      $ 71,661 $ 16,307 $ 107,835 $ 62,685

   3. Other gains and losses

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      Profit or loss on financial assets mandatorily measured at fair value
      through profit or loss	$ 22,944		$ 18,146		$ 64,858	$ 53,362
      Net foreign exchange gain
      (loss)	24,747	(	27,656 )	(	54,093 )	44,306
      Gains (losses) on disposal
      of property, plant and
      equipment and
      right-of-use assets	1,759	(	6,425 )	(	4,249 )	(	22,700 )
      Gains on lease modification	-		904		-		904
      Others	( 3,788 )	(	3,432 )	(	12,487 )	(	5,856 )
      	$ 45,662	(	$ 18,463 )	(	$ 5,971 )		$ 70,016

      The components of financial assets at FVTPL are as follows:

      Interest income from wealth

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      management products $ 22,461 $ 18,965 $ 66,199 $ 54,503 Net gains and losses on

      changes in the fair value of stocks and fund

      beneficiary certificates 483 ( 819 ) ( 1,341 ) ( 1,141 )

      $ 22,944 $ 18,146 $ 64,858 $ 53,362

   4. Finance costs

      Interest from bank

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      borrowings $ 32,106 $ 22,938 $ 78,111 $ 61,149 Other interest expenses 313 - 16,691 -Interest on lease liabilities 28 42 43 185

      Other finance costs 2,644 1,240 3,609 4,661

      $ 35,091 $ 24,220 $ 98,454 $ 65,995

   5. Depreciation and amortization

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      Consolidation of depreciation expenses based on functions

      Operating costs	$ 159,983	$ 160,776	$ 485,593	$ 481,726
      Operating expenses	35,921	37,714	109,480	112,692
      	$ 195,904	$ 198,490	$ 595,073	$ 594,418

      Consolidation of amortization expenses

      based on functions
      Operating costs	$ 90	$ 24	$ 219	$ 86
      Operating expenses	6,205	3,771	18,075	10,477
      	$ 6,295	$ 3,795	$ 18,294	$ 10,563

   6. Employee benefits expenses

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      Retirement benefits Defined

      pension plan	$ 2,926	$ 2,847	$ 9,059	$ 8,466
      Defined benefit
      plan (Note 18)	290	259	869	779
      	3,216	3,106	9,928	9,245
      r employee benefits 476,453		536,676	1,708,828	1,746,888
      penses $ 479,669		$ 539,782	$ 1,718,756	$ 1,756,133

      contribution

      Othe

      Total employee benefits ex

      Consolidation based on functions

      Operating costs	$ 283,658	$ 352,160	$ 1,046,946	$ 1,116,941
      Operating expenses	196,011	187,622	671,810	639,192
      	$ 479,669	$ 539,782	$ 1,718,756	$ 1,756,133

   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 nine months ended September 30, 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 passed an amendment to 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 and directors for the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024 is recognized as follows:

      Amount

      Remuneration to

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      employees $ 10,832 $ 9,966 $ 51,916 $ 48,777 Remuneration of

      Directors $ 3,125 $ 2,874 $ 14,976 $ 14,070

      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	Cash
      Remuneration to	$ 67,664	$ 47,332
      employees Remuneration of	19,519	14,791

      Directors

      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)

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      Total foreign exchange

      gains	$ 56,063	$ 39,594	$ 342,145	$ 167,201
      Total foreign exchange
      loss	( 31,316 )	( 67,250 )	( 396,238 )	( 122,895 )
      Net gains (losses)	$ 24,747	( $ 27,656 )	( $ 54,093 )	$ 44,306

4. Continuing department income tax

   1. Income tax recognized in income or loss

      The major components of income tax expense (income) are as follows:

      Income tax expenses in the current period Incurred in the

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      current period $ 60,401 Additional levy on		$ 88,225		$ 545,568		$ 545,780
      unappropriated retained earnings -		-		35,379		520
      Prior year
      adjustment	( 41,516 )	( 37,816 )		( 322,547 )		( 209,776 )
      	18,885	50,409		258,400		336,524
      Deferred tax
      Incurred in the
      current period	38,676	(	13,698 )	(	78,886 )	( 105,166 )
      Prior year
      adjustment	( 3,148 )	( 682 )		173,095		100,175
      	35,528	( 14,380 )		94,209		( 4,991 )
      Income tax expense
      recognized in the
      profit or loss	$ 54,413	$ 36,029		$ 352,609		$ 331,533

   2. Income tax recognized in the other comprehensive income or loss

      Deferred tax Incurred during the

      current period

      - Translation of foreign

      July 1 to

      September 30,

      2025

      July 1 to

      September 30,

      2024

      January 1 to

      September 30,

      2025

      January 1 to

      September 30,

      2024

      operations $ 122,817 ( $ 25,453 ) ( $ 174,880 ) $ 102,560

   3. Income tax audit

      The profit-seeking enterprise income tax returns filed by the Company and its domestic subsidiaries, Rechi Investments Co., Ltd., Dyna Rechi Co., Ltd., and Ablek Technology Co., Ltd., up to 2021, 2023, 2023, and 2023, respectively have been approved by the tax collection authority, and the remaining subsidiaries file local income tax returns in accordance with local regulations.

5. Earnings per share (EPS)

Unit: NTD per share