2025 1st Quarter Consolidated Financial Statements

Balance Sheet

Code

Accounting Title

2025/3/31

2024/12/31

2024/3/31

Assets

Current assets

1100

Cash and cash equivalents

27,267,580

26,055,287

25,132,695

1110

Current financial assets at fair value through profit or loss

25,001

24,058

27,298

1120

Current financial assets at fair value through other comprehensive income

282,267

302,648

344,570

1139

Current financial assets for hedging

0

5,887

3,992

1140

Current contract assets

5,206,218

5,010,143

3,724,859

1150

Notes receivable, net

706,649

715,559

781,031

1160

Notes receivable due from related parties, net

229

21

174

1170

Accounts receivable, net

9,454,041

9,343,241

10,970,744

1180

Accounts receivable due from related parties, net

215,929

203,543

193,545

1200

Other receivables

385,443

370,450

363,782

1210

Other receivables due from related parties

68,671

76,774

29,700

130X

Current inventories

14,747,603

13,482,866

11,671,382

1410

Prepayments

1,009,019

890,288

806,387

1460

Non-current assets or disposal groups classified as held for sale, net

0

292,198

0

1470

Other current assets

553,697

493,129

451,544

11XX

Total current assets

59,922,347

57,266,092

54,501,703

Non-current assets

1510

Non-current financial assets at fair value through profit or loss

2,945,231

2,998,980

3,478,650

1517

Non-current financial assets at fair value through other comprehensive income

22,624,212

22,721,250

27,566,379

1535

Non-current financial assets at amortised cost

167,932

109,788

95,917

1550

Investments accounted for using equity method

3,601,919

3,560,452

3,546,992

1600

Property, plant and equipment

20,678,507

20,312,637

19,881,619

1755

Right-of-use assets

7,438,431

7,498,397

7,519,656

1760

Investment property, net

3,188,468

3,186,269

3,295,404

1780

Intangible assets

5,873,232

4,874,016

4,891,453

1840

Deferred tax assets

1,277,487

1,228,081

1,242,741

1900

Other non-current assets

367,346

554,155

446,892

15XX

Total non-current assets

68,162,765

67,044,025

71,965,703

1XXX

Total assets

128,085,112

124,310,117

126,467,406

Liabilities and equity

Liabilities

Current liabilities

2100

Current borrowings

1,237,636

1,137,121

1,202,704

2120

Current financial liabilities at fair value through profit or loss

1,410

1,305

310

2130

Current contract liabilities

2,140,496

2,075,068

2,205,554

2150

Notes payable

671,350

648,309

543,582

2160

Notes payable to related parties

123

466

335

2170

Accounts payable

9,664,409

9,479,935

8,389,736

2180

Accounts payable to related parties

56,166

56,107

29,680

2200

Other payables

11,078,630

6,148,768

10,757,014

2230

Current tax liabilities

847,730

679,980

1,181,121

2250

Current provisions

407,027

410,738

429,111

2260

Liabilities related to non-current assets or disposal groups classified as held for sale

0

27,770

0

2280

Current lease liabilities

638,134

608,975

531,468

2300

Other current liabilities

6,277,369

7,221,863

2,061,941

2320

Long-term liabilities, current portion

5,314,199

6,260,101

1,227,303

2399

Other current liabilities, others

963,170

961,762

834,638

21XX

Total current liabilities

33,020,480

28,496,405

27,332,556

Non-current liabilities

2530

Bonds payable

0

0

5,000,000

2540

Non-current portion of non-current borrowings

6,528,770

4,534,475

3,014,114

2550

Non-current provisions

90,761

88,413

242,135

2570

Deferred tax liabilities

2,837,887

2,557,785

2,767,688

2580

Non-current lease liabilities

5,316,150

5,411,415

5,357,570

2600

Other non-current liabilities

1,546,131

1,548,571

1,958,621

25XX

Total non-current liabilities

16,319,699

14,140,659

18,340,128

2XXX

Total liabilities

49,340,179

42,637,064

45,672,684

Equity

Equity attributable to owners of parent

Share capital

3110

Ordinary share

21,387,966

21,387,966

21,387,966

3100

Total Share Capital

21,387,966

21,387,966

21,387,966

Capital surplus

3210

Capital surplus, additional paid-in capital

9,003,384

9,003,384

9,003,384

3220

Capital surplus, treasury share transactions

24,388

24,388

24,388

3260

Capital surplus, changes in equity of associates and joint ventures accounted for using equity method

488,369

431,011

497,484

3270

Capital surplus, net assets from merger

139,800

139,800

139,800

3271

Capital surplus, employee share options

212

212

212

3272

Capital surplus, share options

0

0

0

3280

Capital surplus, others

17,596

17,596

17,596

3200

?? Total capital surplus

9,673,749

9,616,391

9,682,864

Retained earnings

3310

Legal reserve

8,863,669

8,863,669

8,237,099

3320

Special reserve

3,640,779

3,640,779

3,640,779

3350

Unappropriated retained earnings (accumulated deficit)

19,381,933

23,089,108

18,850,332

3300

Total retained earnings

31,886,381

35,593,556

30,728,210

Other equity interest

3410

Exchange differences on translation of foreign financial statements

(556,432)

(1,301,814)

(1,570,869)

3420

Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income

10,631,494

10,677,750

14,630,457

3450

Gains (losses) on hedging instruments

0

20,070

7,423

3400

Total other equity interest

10,075,062

9,396,006

13,067,011

3500

Treasury shares

(620,067)

(511,710)

(511,710)

31XX

Total equity attributable to owners of parent

72,403,091

75,482,209

74,354,341

36XX

Non-controlling interests

6,341,842

6,190,844

6,440,381

3XXX

Total equity

78,744,933

81,673,053

80,794,722

3X2X

Total liabilities and equity

128,085,112

124,310,117

126,467,406

3997

Number of share capital awaiting retirement

0

0

0

3998

Equivalent issue shares of advance receipts for ordinary share

0

0

0

3999

Number of shares in entity held by entity and by its subsidiaries

29,513,022

29,513,022

29,513,022

Unit: NT$ thousands EPS Unit: NT$

Statement of Comprehensive Income

Code

Accounting Title

2025/1/1To3/31

2024/1/1To3/31

Operating revenue

4000

Total operating revenue

13,617,166

13,729,598

Operating costs

5000

Total operating costs

10,326,432

10,172,677

5900

Gross profit (loss) from operations

3,290,734

3,556,921

5910

Unrealized profit (loss) from sales

8,965

11,193

5920

Realized profit (loss) on from sales

10,953

10,419

5950

Gross profit (loss) from operations

3,292,722

3,556,147

Operating expenses

6100

Selling expenses

1,174,826

1,055,892

6200

Administrative expenses

658,718

625,726

6300

Research and development expenses

278,525

244,145

6450

Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9

(3,187)

(3,661)

6000

Total operating expenses

2,108,882

1,922,102

6900

Net operating income (loss)

1,183,840

1,634,045

Non-operating income and expenses

Interest income

7100

Total interest income

163,945

175,870

Other income

7010

Total other income

86,403

107,612

Other gains and losses

7020

Other gains and losses, net

271,728

(76,844)

Finance costs

7050

Finance costs, net

95,183

90,022

Share of profit (loss) of associates and joint ventures accounted for using equity method

7060

Share of profit (loss) of associates and joint ventures accounted for using equity method, net

32,183

19,220

7000

Total non-operating income and expenses

459,076

135,836

7900

Profit (loss) from continuing operations before tax

1,642,916

1,769,881

Tax expense (income)

7950

Total tax expense (income)

439,829

482,924

8000

Profit (loss) from continuing operations

1,203,087

1,286,957

8200

Profit (loss)

1,203,087

1,286,957

Other comprehensive income

Components of other comprehensive income that will not be reclassified to profit or loss

8311

Gains (losses) on remeasurements of defined benefit plans

(7,251)

(3,524)

8316

Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income

(189,041)

(3,031,891)

8320

Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss

(10,731)

(177)

8310

Components of other comprehensive income that will not be reclassified to profit or loss

(207,023)

(3,035,592)

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

8361

Exchange differences on translation

865,894

875,698

8368

Gains (losses) on hedging instrument

2,715

12,448

8399

Income tax related to components of other comprehensive income that will be reclassified to profit or loss

115,089

147,751

8360

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

753,520

740,395

8300

Total other comprehensive income

546,497

(2,295,197)

8500

Total comprehensive income

1,749,584

(1,008,240)

Profit (loss), attributable to:

8610

Profit (loss), attributable to owners of parent

1,147,310

1,159,139

8620

Profit (loss), attributable to non-controlling interests

55,777

127,818

Comprehensive income attributable to:

8710

Comprehensive income, attributable to owners of parent

1,700,019

(1,142,030)

8720

Comprehensive income, attributable to non-controlling interests

49,565

133,790

Basic earnings per share

9710

Basic earnings (loss) per share from continuing operations

0.54

0.55

9750

Total basic earnings per share

0.54

0.55

Diluted earnings per share

9810

Diluted earnings (loss) per share from continuing operations

0.54

0.55

9850

Total diluted earnings per share

0.54

0.55

Unit: NT$ thousands

Statements of Cash Flows

Code

Accounting Title

2025/1/1To3/31

2024/1/1To3/31

Cash flows from (used in) operating activities, indirect method

A00010

Profit (loss) from continuing operations before tax

1,642,916

1,769,881

A10000

Profit (loss) before tax

1,642,916

1,769,881

Adjustments

Adjustments to reconcile profit (loss)

A20100

Depreciation expense

546,228

489,952

A20300

Expected credit loss (gain) / Provision (reversal of provision) for bad debt expense

(3,187)

(3,661)

A20400

Net loss (gain) on financial assets or liabilities at fair value through profit or loss

15,477

(10,551)

A20900

Interest expense

95,183

90,022

A21200

Interest income

(163,945)

(175,870)

A21300

Dividend income

(6,018)

(6,641)

A22300

Share of loss (profit) of associates and joint ventures accounted for using equity method

(32,183)

(19,220)

A22500

Loss (gain) on disposal of property, plan and equipment

(25,174)

(52,840)

A23100

Loss (gain) on disposal of investments

(335,476)

0

A29900

Other adjustments to reconcile profit (loss)

82,239

82,275

A20010

Total adjustments to reconcile profit (loss)

173,144

393,466

Changes in operating assets and liabilities

Changes in operating assets

A31125

Decrease (increase) in contract assets

(196,075)

133,893

A31130

Decrease (increase) in notes receivable

8,887

87,464

A31140

Decrease (increase) in notes receivable due from related parties

(207)

(75)

A31150

Decrease (increase) in accounts receivable

120,366

(481,865)

A31160

Decrease (increase) in accounts receivable due from related parties

(12,582)

16,066

A31180

Decrease (increase) in other receivable

(14,993)

(12,147)

A31190

Decrease (increase) in other receivable due from related parties

8,103

43,576

A31200

Adjustments for decrease (increase) in inventories

(1,241,231)

(121,864)

A31230

Decrease (increase) in prepayments

(118,731)

(231,157)

A31240

Adjustments for decrease (increase) in other current assets

41,903

(52,248)

A31000

Total changes in operating assets

(1,404,560)

(618,357)

Changes in operating liabilities

A32125

Increase (decrease) in contract liabilities

65,428

(100,307)

A32130

Increase (decrease) in notes payable

23,041

(3,562)

A32140

Increase (decrease) in notes payable to related parties

(343)

(753)

A32150

Increase (decrease) in accounts payable

(280,427)

(273,986)

A32160

Increase (decrease) in accounts payable to related parties

59

(8,509)

A32180

Increase (decrease) in other payable

21,431

(343,259)

A32200

Increase (decrease) in provisions

(1,363)

(74,533)

A32230

Adjustments for increase (decrease) in other current liabilities

1,408

5,535

A32990

Increase (decrease) in other operating liabilities

(91,763)

(16,705)

A32000

Total changes in operating liabilities

(262,529)

(816,079)

A30000

Total changes in operating assets and liabilities

(1,667,089)

(1,434,436)

A20000

Total adjustments

(1,493,945)

(1,040,970)

A33000

Cash inflow (outflow) generated from operations

148,971

728,911

A33100

Interest received

163,945

175,870

A33300

Interest paid

(56,720)

(62,375)

A33500

Income taxes refund (paid)

(156,472)

(147,404)

AAAA

Net cash flows from (used in) operating activities

99,724

695,002

Cash flows from (used in) investing activities

B00010

Acquisition of financial assets at fair value through other comprehensive income

(33,155)

(29,988)

B00040

Acquisition of financial assets at amortised cost

(58,144)

(80,360)

B00100

Acquisition of financial assets at fair value through profit or loss

37,434

64,556

B00200

Proceeds from disposal of financial assets at fair value through profit or loss

55,625

13,298

B02300

Proceeds from disposal of subsidiaries

599,904

0

B02700

Acquisition of property, plant and equipment

(171,083)

(259,804)

B05000

Net cash inflows from business combination

(616,565)

0

B05400

Acquisition of investment properties

0

(178)

B06500

Increase in other financial assets

(54,298)

0

B06600

Decrease in other financial assets

0

38,300

B06800

Decrease in other non-current assets

198,784

53,696

B07600

Dividends received

6,018

6,641

BBBB

Net cash flows from (used in) investing activities

(35,480)

(193,839)

Cash flows from (used in) financing activities

C00100

Increase in short-term loans

100,515

0

C00200

Decrease in short-term loans

0

(154,407)

C01600

Proceeds from long-term debt

1,048,393

691,571

C04020

Payments of lease liabilities

(198,765)

(176,797)

CCCC

Net cash flows from (used in) financing activities

950,143

360,367

DDDD

Effect of exchange rate changes on cash and cash equivalents

197,906

630,629

EEEE

Net increase (decrease) in cash and cash equivalents

1,212,293

1,492,159

E00100

Cash and cash equivalents at beginning of period

26,055,287

23,640,536

E00200

Cash and cash equivalents at end of period

27,267,580

25,132,695

E00210

Cash and cash equivalents reported in the statement of financial position

27,267,580

25,132,695

Unit: NT$ thousands

Statements of Change in Equity

3110

3100

3200

3310

3320

3350

3300

3410

3420

3450

3400

3500

31XX

36XX

3XXX

Ordinary share

Total share capital

Capital surplus

Legal reserve

Special reserve

Unappropriated retained earnings (accumulated deficit)

Total retained earnings

Exchange differences on translation of foreign financial statements

Unrealised gains (losses) on financial assets measured at fair value through

other comprehensive income

Gains (losses) on hedging instruments

Total other equity interest

Treasury shares

Total equity

attributable to owners of parent

Non-controlling interests

Total equity

A1

Equity at beginning of period

21,387,966

21,387,966

9,616,391

8,863,669

3,640,779

23,089,108

35,593,556

(1,301,814)

10,677,750

20,070

9,396,006

(511,710)

75,482,209

6,190,844

81,673,053

B5

Cash dividends of ordinary share

0

0

0

0

0

(4,705,353)

(4,705,353)

0

0

0

0

0

(4,705,353)

0

(4,705,353)

C7

Changes in equity of associates and joint ventures accounted for using equity method

0

0

57,358

0

0

0

0

0

0

0

0

0

57,358

0

57,358

D1

Profit (loss)

0

0

0

0

0

1,147,310

1,147,310

0

0

0

0

0

1,147,310

55,777

1,203,087

D3

Other comprehensive income

0

0

0

0

0

(6,933)

(6,933)

745,382

(188,455)

2,715

559,642

0

552,709

(6,212)

546,497

D5

Total comprehensive income

0

0

0

0

0

1,140,377

1,140,377

745,382

(188,455)

2,715

559,642

0

1,700,019

49,565

1,749,584

L1

Purchase of treasury shares

0

0

0

0

0

0

0

0

0

0

0

(108,357)

(108,357)

0

(108,357)

O1

Changes in non-controlling interests

0

0

0

0

0

0

0

0

0

0

0

0

0

101,433

101,433

Q1

Disposal of investments in equity instruments designated at fair value through other comprehensive income

0

0

0

0

0

(142,199)

(142,199)

0

142,199

0

142,199

0

0

0

0

T1

Others

0

0

0

0

0

0

0

0

0

(22,785)

(22,785)

0

(22,785)

0

(22,785)

Y1

Total increase (decrease) in equity

0

0

57,358

0

0

(3,707,175)

(3,707,175)

745,382

(46,256)

(20,070)

679,056

(108,357)

(3,079,118)

150,998

(2,928,120)

Z1

Equity at end of period

21,387,966

21,387,966

9,673,749

8,863,669

3,640,779

19,381,933

31,886,381

(556,432)

10,631,494

0

10,075,062

(620,067)

72,403,091

6,341,842

78,744,933

Unit: NT$ thousands

Last year's Statements of Change in Equity

3110

3100

3200

3310

3320

3350

3300

3410

3420

3450

3400

3500

31XX

36XX

3XXX

Ordinary share

Total share capital

Capital surplus

Legal reserve

Special reserve

Unappropriated retained earnings (accumulated deficit)

Total retained earnings

Exchange differences on translation of foreign financial statements

Unrealised gains (losses) on financial assets measured at fair value through

other comprehensive income

Gains (losses) on hedging instruments

Total other equity interest

Treasury shares

Total equity

attributable to owners of parent

Non-controlling interests

Total equity

A1

Equity at beginning of period

21,387,966

21,387,966

9,629,730

8,237,099

3,640,779

22,400,066

34,277,944

(2,280,016)

17,649,701

(5,025)

15,364,660

(511,710)

80,148,590

6,294,190

86,442,780

B5

Cash dividends of ordinary share

0

0

0

0

0

(4,705,353)

(4,705,353)

0

0

0

0

0

(4,705,353)

0

(4,705,353)

C7

Changes in equity of associates and joint ventures accounted for using equity method

0

0

53,134

0

0

0

0

0

0

0

0

0

53,134

0

53,134

D1

Profit (loss)

0

0

0

0

0

1,159,139

1,159,139

0

0

0

0

0

1,159,139

127,818

1,286,957

D3

Other comprehensive income

0

0

0

0

0

(3,534)

(3,534)

709,147

(3,019,230)

12,448

(2,297,635)

0

(2,301,169)

5,972

(2,295,197)

D5

Total comprehensive income

0

0

0

0

0

1,155,605

1,155,605

709,147

(3,019,230)

12,448

(2,297,635)

0

(1,142,030)

133,790

(1,008,240)

O1

Changes in non-controlling interests

0

0

0

0

0

0

0

0

0

0

0

0

0

12,401

12,401

Q1

Disposal of investments in equity instruments designated at fair value through other comprehensive income

0

0

0

0

0

14

14

0

(14)

0

(14)

0

0

0

0

Y1

Total increase (decrease) in equity

0

0

53,134

0

0

(3,549,734)

(3,549,734)

709,147

(3,019,244)

12,448

(2,297,649)

0

(5,794,249)

146,191

(5,648,058)

Z1

Equity at end of period

21,387,966

21,387,966

9,682,864

8,237,099

3,640,779

18,850,332

30,728,210

(1,570,869)

14,630,457

7,423

13,067,011

(511,710)

74,354,341

6,440,381

80,794,722

Unit: NT$ thousands

Independent Auditors' (Review) Report

Name of CPA Firm

PricewaterhouseCoopers

Name of CPA 1

Hsu, Sheng-Chung

Name of CPA 2

Tu, Chan-Yuan

Date of Audit (Review)

2025-05-14

Type of Report

Review Report

Y

Type of Opinion

Qualified Opinion or Conclusion

Y

Situations for not Issuing a Standard Unqualified Opinion or Conclusion

Financial statements of non-major subsidiary or investment accounted for using equity method have not been audited or reviewed

Y

Description of Matter Emphasized

Description of Other Matter

Content of Independent Auditors Report

To TECO Electric ＆ Machinery Co., Ltd. Introduction

We have reviewed the accompanying consolidated balance sheets of Teco Ele ctric ＆ Machinery Co., Ltd. and subsidiaries (the "Group") as at March 31,

2025 and 2024, and the related consolidated statements of comprehensive incom

e, of changes in equity and of cash flows for the three-month periods then en ded, and notes to the consolidated financial statements, including a summary

of material accounting policies. Management is responsible for the preparatio n and fair presentation of these consolidated financial statements in accorda

nce with the Regulations Governing the Preparation of Financial Reports by Se curities Issuers and International Accounting Standard 34, "Interim Financia

l Reporting" that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidat ed financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews

in accordance with the Standard on Review Engagements 2410, "Review of Finan cial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounti

ng 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 th at might be identified in an audit. Accordingly, we do not express an audit o pinion.

Basis for Qualified Conclusion

As described in Notes 4(3) and 6(7) to the consolidated financial stateme nts, the financial statements of certain consolidated subsidiaries and invest

ees accounted for under the equity method were not reviewed by independent au ditors. Those statements reflect total assets (including investments accounte

d for under the equity method) of NT$26,466,209 thousand and NT$23,723,242 th ousand, constituting 21% and 19% of consolidated total assets as of March 31, 2025 and 2024, respectively, total liabilities (including credit balance of investments accounted for under the equity method) of NT$5,968,434 thousand a nd NT$4,789,774 thousand, constituting 12% and 10% of consolidated total liab ilities as of March 31, 2025 and 2024, respectively, and total comprehensive income (including share of profit or loss and share of other comprehensive in come of associates and joint ventures accounted for under the equity method)

of NT$290,224 thousand and NT$125,571 thousand, constituting 17% and (12%) of the consolidated total comprehensive income (loss) for the three-month perio

ds then ended, respectively. These amounts and the related information disclo sed in Note 13 were based on the unreviewed financial statements of such cons olidated subsidiaries and investee companies.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if a

ny, as might have been determined to be necessary had the financial statement s of certain consolidated subsidiaries and investees accounted for under the

equity method been reviewed by independent auditors, that we might have becom e aware of had it not been for the situation described above, based on our re views, nothing has come to our attention that causes us to believe that the a ccompanying consolidated financial statements do not present fairly, in all m

aterial respects, the consolidated financial position of the Group as at Marc

h 31, 2025 and 2024, and of its consolidated financial performance and its co nsolidated cash

flows for the three-month periods then ended in accordance with "Regulat ions Governing the Preparation of Financial Reports by Securities Issuers" a nd International Accounting Standard 34,"Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission.

Hsu, Sheng-Chung Tu, Chan-Yuan

For and on behalf of PricewaterhouseCoopers, Taiwan May 14, 2025

Ending balance of assets of subsidiaries whose financial statements were audited or reviewed by other independent accountants

0

Total year-to-date revenues of subsidiaries whose financial statements were audited or reviewed by other independent accountants

0

Ending balance of investments accounted for using equity method whose financial statements were audited or reviewed by other independent accountants

0

Share of year-to-date profit (loss) of associates and joint ventures accounted for using equity method which audited by other independent accountants

0

Ending balance of assets of subsidiaries whose financial statements were on unaudited or unreviewed

26,466,209

Year-to-date comprehensive income of subsidiaries whose financial statements were unaudited or unreviewed

290,224

Ending balance of investments accounted for using equity method whose financial statements were unaudited or unreviewed

2,569,581

Share of year-to-date profit (loss) of associates and joint ventures accounted for using equity method whose financial statements were unaudited or unreviewed

33,748