ELITE SEMICONDUCTOR

MICROELECTRONICS TECHNOLOGY INC.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2024 AND 2023

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Elite Semiconductor Microelectronics Technology Inc.

Opinion

We have audited the accompanying parent company only balance sheets of Elite Semiconductor Microelectronics Technology Inc. as at December 31, 2024 and 2023, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of Elite Semiconductor Microelectronics Technology Inc. as at December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the parent company only financial statements section of our report. We are independent of Elite Semiconductor Microelectronics Technology Inc. in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of Elite Semiconductor Microelectronics Technology Inc.’s 2024 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for Elite Semiconductor Microelectronics Technology Inc.’s 2024 parent company only financial statements are stated as follows:

Allowance for inventory valuation losses

Description

Refer to Note 4(13) for accounting policies on inventory valuation, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to inventory valuation, and Note 6(5) for details of inventories. As at December 31, 2024, the Company’s inventories and allowance for inventory valuation losses amounted to NT$8,152,306 thousand and NT$219,843 thousand, respectively.

Elite Semiconductor Microelectronics Technology Inc. is primarily engaged in researching, developing, manufacturing, selling integrated circuits. Elite Semiconductor Microelectronics Technology Inc. recognises inventories at the lower of cost and net realisable value. An allowance for inventory valuation losses is provided for those inventories aged over a certain period and those individually identified as obsolete or damaged. As the estimation of net realisable value for individually obsolete or damaged inventories is subject to management’s judgment, we considered the allowance for inventory valuation losses a key audit matter.

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How our audit addressed the matter

We have performed primary audit procedures for the above matter, including assessing the reasonability of the policies and procedures adopted to provide for inventory losses based on our understanding of Elite Semiconductor Microelectronics Technology Inc. operations and industry, validating the appropriateness of relevant information in the inventory aging report utilised by Elite Semiconductor Microelectronics Technology Inc., and evaluating and testing the reasonability of estimation of net realisable value. We then evaluated the reasonableness of the allowance for inventory valuation losses provided by the Elite Semiconductor Microellectronics Technology Inc..

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing Elite Semiconductor Microelectronics Technology Inc.’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate Elite Semiconductor Microelectronics Technology Inc. or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing Elite Semiconductor Microelectronics Technology Inc.’s financial reporting process.

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Auditor’s responsibilities for the audit of the parent company only financial

statements

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

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

A. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Elite Semiconductor Microelectronics Technology Inc.’s internal control.
C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

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D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Elite Semiconductor Microelectronics Technology Inc.’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause Elite Semiconductor Microelectronics Technology Inc. to cease to continue as a going concern.
E. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Elite Semiconductor Microelectronics Technology Inc. to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of parent company only audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Shu-Chien Pai[Liu, Chien-Yu ]

For and on behalf of PricewaterhouseCoopers, Taiwan February 26, 2025

------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Assets	December 31, 2024 AMOUNT % `$` `4,057,284` `23` `100` `-` `-` `-` `127` `-` `1,381,723` `8` `96,007` `-` `19,622` `-` `23,402` `-` `7,932,463` `45` `897,441` `5` `263` `-` `14,408,432` `81` `9,590` `-` `822,440` `5` `1,773,849` `10` `91,463` `-` `13,822` `-` `162,049` `1` `123,032` `1` `332,745` `2` `3,328,990` `19` `$` `17,737,422` `100`	December 31, 2023	December 31, 2023
	AMOUNT `$` `4,057,284` `100` `-` `127` `1,381,723` `96,007` `19,622` `23,402` `7,932,463` `897,441` `263` `14,408,432` `9,590` `822,440` `1,773,849` `91,463` `13,822` `162,049` `123,032` `332,745` `3,328,990` `$` `17,737,422`	AMOUNT `$` `3,713,204` `63,440` `31,791` `-` `1,132,044` `102,852` `25,200` `232,673` `6,876,277` `394,453` `2,862` `12,574,796` `11,460` `1,248,535` `1,894,390` `62,556` `14,791` `117,255` `256,076` `1,964,366` `5,569,429` `$` `18,144,225`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 1210 Other receivables-related parties 1220 Current income tax assets 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non- current 1550 Investments accounted for using equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets			`21` `-` `-` `-` `6` `1` `-` `1` `38` `2` `-`
			`69`
			`-` `7` `11` `-` `-` `1` `1` `11`
			`31`
			`100`

(Continued)

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ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Liabilities and Equity December 31, 2024
December 31, 2023
Notes
AMOUNT
%
AMOUNT
%
6(12)
$
1,600,000
9
$
2,620,000
15
6(21)
16,354
-
4,665
-
-
-
2,178
-
2,073,109
12
2,187,588
12
7(2)
265,413
1
39,981
-
6(14) and 7(2)
808,171
5
730,949
4
-
-
533,499
3
13,882
-
9,056
-
6(15)
231,200
1
-
-
8,226
-
7,895
-
5,016,355
28
6,135,811
34
6(13)
962,721
5
942,923
5
6(15)
1,049,700
6
643,400
4
21,781
-
21,055
-
6(28)
28,022
-
54,661
-
79,490
1
54,172
-
193,272
1
270,465
2
2,334,986
13
1,986,676
11
7,351,341
41
8,122,487
45
6(18)
2,861,722
16
2,861,711
16
6(19)
503,985
3
487,274
2
6(20)
2,118,375
12
2,118,375
12
36,380
-
46,310
-
5,033,456
29
4,688,916
26
(
27,776)
- (
36,380)
-
6(18)
(
140,061) (
1) (
144,468) (
1 )
10,386,081
59
10,021,738
55
9
11
$
17,737,422
100
$
18,144,225
100

Current liabilities
2100
Short-term borrowings
2130
Contract liabilities - current
2150
Notes payable
2170
Accounts payable
2180
Accounts payable - related parties
2200
Other payables
2250
Provisions for liabilities - current
2280
Lease liabilities - current
2320
Long-term liabilities, current portion
2399
Other current liabilities, others
21XX
Total current liabilities
Non-current liabilities
2530
Bonds payable
2540
Long-term borrowings
2550
Provisions for liabilities -non-current
2570
Deferred income tax liabilities
2580
Lease liabilities - non-current
2600
Other non-current liabilities
25XX
Total non-current liabilities
2XXX
Total Liabilities
Equity
Share capital
3110
Common stock
Capital surplus
3200
Capital surplus
Retained earnings
3310
Legal reserve
3320
Special reserve
3350
Unappropriated retained earnings
Other equity interest
3400
Other equity interest
3500
Treasury shares
3XXX
Total equity
Significant contingent liabilities and
unrecognised contract commitments
Significant events after the balance
sheet date
3X2X
Total liabilities and equity

Liabilities and Equity	December 31, 2024 December 31, 2023 Notes AMOUNT % AMOUNT % 6(12) `$` `1,600,000` `9` `$` `2,620,000` `15` 6(21) `16,354` `-` `4,665` `-` `-` `-` `2,178` `-` `2,073,109` `12` `2,187,588` `12` 7(2) `265,413` `1` `39,981` `-` 6(14) and 7(2) `808,171` `5` `730,949` `4` `-` `-` `533,499` `3` `13,882` `-` `9,056` `-` 6(15) `231,200` `1` `-` `-` `8,226` `-` `7,895` `-` `5,016,355` `28` `6,135,811` `34` 6(13) `962,721` `5` `942,923` `5` 6(15) `1,049,700` `6` `643,400` `4` `21,781` `-` `21,055` `-` 6(28) `28,022` `-` `54,661` `-` `79,490` `1` `54,172` `-` `193,272` `1` `270,465` `2` `2,334,986` `13` `1,986,676` `11` `7,351,341` `41` `8,122,487` `45` 6(18) `2,861,722` `16` `2,861,711` `16` 6(19) `503,985` `3` `487,274` `2` 6(20) `2,118,375` `12` `2,118,375` `12` `36,380` `-` `46,310` `-` `5,033,456` `29` `4,688,916` `26` `(` `27,776)` `- (` `36,380)` `-` 6(18) `(` `140,061) (` `1) (` `144,468) (` `1 )` `10,386,081` `59` `10,021,738` `55` 9 11 `$` `17,737,422` `100` `$` `18,144,225` `100`
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2250 Provisions for liabilities - current 2280 Lease liabilities - current 2320 Long-term liabilities, current portion 2399 Other current liabilities, others 21XX Total current liabilities Non-current liabilities 2530 Bonds payable 2540 Long-term borrowings 2550 Provisions for liabilities -non-current 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total Liabilities Equity Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury shares 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Year ended December 31
2024
2023
Notes
AMOUNT
%
AMOUNT
%
6(21) and 7(2)
$
13,485,168
100
$
11,884,121
100
6(5)(26)(27) and 7(2)(
11,925,360) (
88) (
11,608,742) (
98)
1,559,808
12
275,379
2
6(26)(27)
7(2)
(
305,088) (
2) (
278,286) (
2)
(
277,922) (
2) (
231,784) (
2)
7(2)
(
1,451,487) (
11) (
1,459,115) (
12)
(
2,034,497) (
15) (
1,969,185) (
16)
(
474,689) (
3) (
1,693,806) (
14)
6(22)
108,717
1
139,965
1
6(23) and 7(2)
83,160
1
61,877
1
6(24)
883,456
6
271,397
2
6(25)
(
71,109) (
1) (
82,612) (
1)
6(6)
(
1,210)
-
58,656
1
1,003,014
7
449,283
4
528,325
4
(
1,244,523) (
10)
6(28)
(
23,210)
-
21,678
-
$
505,115
4
($
1,222,845) (
10)
6(16)
$
1,198
-
$
101
-
6(3)
(
1,870)
-
4,965
-
(
1,870)
-
4,965
-
8,818
-
-
-
3,526
-
-
-
$
9,802
-
$
10,031
-
$
514,917
4
($
1,212,814) (
10)
6(29)
$
1.80
($
4.36)
$
1.79
($
4.36)

4000
Operating revenue
5000
Operating costs
5950
Gross profit
Operating expenses
6100
Selling expenses
6200
General and administrative expenses
6300
Research and development expenses
6000
Total operating expenses
6900
Operating loss
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7070
Share of profit of associates and joint
ventures accounted for using equity
method
7000
Total non-operating income and
expenses
7900
Profit (loss) before income tax
7950
Income tax (expense) benefit
8200
Profit (loss) for the year
Components of other comprehensive
income (loss)-net
Other comprehensive income (loss)
components that will not be reclassified to
profit or loss
8311
Remeasurement of defined benefit plans
8316
Unrealised (losses) gains from
investments in equity instruments
measured at fair value through other
comprehensive income
8330
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
Components of other comprehensive
income (loss) that will be reclassified to
profit or loss
8361
Financial statements translation
differences of foreign operations
8380
Share of other comprehensive income of
associates and joint ventures accounted
for using equity method, components of
other comprehensive income that will be
reclassified to profit or loss
8300
Other comprehensive income for the
year-net
8500
Total comprehensive (loss) income for the
year
Earnings (losses) per share (in dollars)
9750
Basic earnings (losses) per share
9850
Diluted earnings (losses) per share

Items	Year ended December 31 2024 2023 Notes AMOUNT % AMOUNT % 6(21) and 7(2) `$` `13,485,168` `100` `$` `11,884,121` `100` 6(5)(26)(27) and 7(2)`(` `11,925,360) (` `88) (` `11,608,742) (` `98)` `1,559,808` `12` `275,379` `2` 6(26)(27) 7(2) `(` `305,088) (` `2) (` `278,286) (` `2)` `(` `277,922) (` `2) (` `231,784) (` `2)` 7(2) `(` `1,451,487) (` `11) (` `1,459,115) (` `12)` `(` `2,034,497) (` `15) (` `1,969,185) (` `16)` `(` `474,689) (` `3) (` `1,693,806) (` `14)` 6(22) `108,717` `1` `139,965` `1` 6(23) and 7(2) `83,160` `1` `61,877` `1` 6(24) `883,456` `6` `271,397` `2` 6(25) `(` `71,109) (` `1) (` `82,612) (` `1)` 6(6) `(` `1,210)` `-` `58,656` `1` `1,003,014` `7` `449,283` `4` `528,325` `4` `(` `1,244,523) (` `10)` 6(28) `(` `23,210)` `-` `21,678` `-` `$` `505,115` `4` `($` `1,222,845) (` `10)` 6(16) `$` `1,198` `-` `$` `101` `-` 6(3) `(` `1,870)` `-` `4,965` `-` `(` `1,870)` `-` `4,965` `-` `8,818` `-` `-` `-` `3,526` `-` `-` `-` `$` `9,802` `-` `$` `10,031` `-` `$` `514,917` `4` `($` `1,212,814) (` `10)` 6(29) `$` `1.80` `($` `4.36)` `$` `1.79` `($` `4.36)`
4000 Operating revenue 5000 Operating costs 5950 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Operating loss Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit (loss) before income tax 7950 Income tax (expense) benefit 8200 Profit (loss) for the year Components of other comprehensive income (loss)-net Other comprehensive income (loss) components that will not be reclassified to profit or loss 8311 Remeasurement of defined benefit plans 8316 Unrealised (losses) gains from investments in equity instruments measured at fair value through other comprehensive income 8330 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 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8380 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income for the year-net 8500 Total comprehensive (loss) income for the year Earnings (losses) per share (in dollars) 9750 Basic earnings (losses) per share 9850 Diluted earnings (losses) per share

The accompanying notes are an integral part of these parent company only financial statements.

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ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

2023 Balance at January 1, 2023 Loss for the year Other comprehensive income for the year Total comprehensive income (loss) for the year Distribution of 2022 earnings: Legal reserve appropriated Cash dividends of ordinary shares Special reserve appropiated Disposal of parent company's share by a subsidiary recognised as treasury share Recognition of changes in ownership interests in subsidiaries - cash dividends distributed by subsidiaries Adjustment of capital surplus due to cash dividends that subsidiaries received from parent Change in equity of associates and joint ventures accounted for using equity method Issuance of new shares due to employee stock options exercised Expired cash dividends transferred to capital surplus Issuance of convertible bonds Balance at December 31, 2023 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income for the year Distribution of 2023 earnings: Cash dividends of ordinary shares Reversal of special reserve Disposal of parent company's share by a subsidiary recognised as treasury share Recognition of changes in ownership interests in subsidiaries - cash dividends distributed by subsidiaries Adjustment of capital surplus due to cash dividends that subsidiaries received from parent Change in equity of associates and joint ventures accounted for using equity method Expired cash dividends transferred to capital surplus Conversion of convertible bonds Balance at December 31, 2024	Notes		Common stock		Capital surplus				Retained Earnings				Other equityinterest	Other equityinterest	Other equityinterest		Treasuryshares		Total equity
							Legal reserve		Special reserve		Unappropriated retained earnings	t	Financial statements ranslation difference of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(20) 6(19) 6(19) 6(19) 6(19) 6(17)(18)(19) 6(19) 6(13)(19) 6(20) 6(19) 6(19) 6(19) 6(19) 6(19) 6(13)(18)(19)		`$` `2,861,570` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `141` `-` `-` `$` `2,861,711` `$` `2,861,711` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `11` `$` `2,861,722`		`$` `255,317` `-` `-` `-` `-` `-` `-` `8,540` `989` `10,329` `621` `611` `45` `210,822` `$` `487,274` `$` `487,274` `-` `-` `-` `-` `-` `11,544` `1,601` `3,265` `139` `79` `83` `$` `503,985`		`$` `2,014,288` `-` `-` `-` `104,087` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `2,118,375` `$` `2,118,375` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `2,118,375`		`$` `23,906` `-` `-` `-` `-` `-` `22,404` `-` `-` `-` `-` `-` `-` `-` `$` `46,310` `$` `46,310` `-` `-` `-` `-` `(` `9,930 )` `-` `-` `-` `-` `-` `-` `$` `36,380`		`$` `6,553,259` `(` `1,222,845 )` `101` `(` `1,222,744 )` `(` `104,087 )` `(` `515,108 )` `(` `22,404 )` `-` `-` `-` `-` `-` `-` `-` `$` `4,688,916` `$` `4,688,916` `505,115` `1,198` `506,313` `(` `171,703 )` `9,930` `-` `-` `-` `-` `-` `-` `$` `5,033,456`		`$` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `-` `$` `-` `-` `12,344` `12,344` `-` `-` `-` `-` `-` `-` `-` `-` `$` `12,344`		`($` `46,310 )` `-` `9,930` `9,930` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `($` `36,380 )` `($` `36,380 )` `-` `(` `3,740 )` `(` `3,740 )` `-` `-` `-` `-` `-` `-` `-` `-` `($` `40,120 )`		`($` `147,700 )` `-` `-` `-` `-` `-` `-` `3,232` `-` `-` `-` `-` `-` `-` `($` `144,468 )` `($` `144,468 )` `-` `-` `-` `-` `-` `4,407` `-` `-` `-` `-` `-` `($` `140,061 )`		`$` `11,514,330` `(` `1,222,845` `)` `10,031` `(` `1,212,814` `)` `-` `(` `515,108` `)` `-` `11,772` `989` `10,329` `621` `752` `45` `210,822` `$` `10,021,738` `$` `10,021,738` `505,115` `9,802` `514,917` `(` `171,703` `)` `-` `15,951` `1,601` `3,265` `139` `79` `94` `$` `10,386,081`

The accompanying notes are an integral part of these parent company only financial statements.

~11~

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation

Amortisation

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

Interest expense

Interest income

Dividend income

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

Gains on disposals of property, plant and equipment

Gain on reversal of onerous contracts

Gains on lease modifications

Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit and loss
Notes receivable
Accounts receivable
Accounts receivable - related parties
Other receivables
Other receivables - related parties
Inventories
Prepayments
Other current assets
Other non-current assets
Changes in operating liabilities
Contract liabilities
Notes payable
Accounts payable
Accounts payable-related parties
Other payables
Provisions for liabilities
Other current liabilities
Other non-current liabilities
Cash (outflow) inflow generated from operations
Interest received
Interest paid
Income taxes refund (paid)
Net cash flows from operating activities YearendedDecember 31
Notes
2024
2023
$
528,325 ($
1,244,523 )
6(7)(8)(9)(26)
444,084
527,980
6(10)(26)
153,445
167,417
6(2)(24)
(
473 ) (
15,171 )
6(25)
71,109
82,612
6(22)
(
108,717 ) (
139,917 )
6(23)
- (
513 )
6(6)
1,210 (
58,656 )
6(24)
(
56 ) (
281,765 )
6(24)
(
530,888 )
-
6(24)
(
24 ) (
51 )
63,813
47,844
(
127 )
9
(
249,679 ) (
245,493 )
-
1,482
(
3,189 ) (
15,403 )
5,578 (
25,100 )
(
1,056,186 )
1,470,639
(
502,988 )
46,401
2,599 (
2,041 )
840,046
195,621
11,689 (
1,431 )
(
2,178 ) (
221 )
(
114,479 )
54,837
225,432 (
48,191 )
26,996 (
624,932 )
(
2,611 )
2,611
331
929
(
150,197 )
255,933
(
347,135 )
150,907
118,751
134,024
(
50,627 ) (
79,842 )
292,467 (
33,958 )
13,456
171,131

(Continued)

~12~

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortised cost
Proceeds from disposal of financial assets at
amortised cost
Return of capital from investee accounted for under
the equity method

Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Dividends received
Acquisition of intangible assets

Decrease in refundable deposits
Net cash flows from (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings

Increase in long-term borrowings

Decrease in long-term borrowings

Increase in short-term notes and bills payable

Repayment of lease liabilities

Decrease in guarantee deposit received

Issuance of convertible bonds

Proceeds from exercise of employee stock options
Cash dividends paid

Expired cash dividends

Net cash flows (used in) from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year YearendedDecember 31
Notes
2024
2023
($
33,886 ) ($
31,791 )
65,677
-
6(6)
435,201
-
6(30)
(
400,642 ) (
516,503 )
400
281,765
21,113
263,243
6(10)(30)
(
110,727 ) (
233,262 )
920,926
585
898,062 (
235,963 )
6(30)
(
1,020,000 ) (
555,000 )
6(30)
680,000
-
6(30)
(
42,500 )
-
6(30)
-
1,723
6(30)
(
13,201 ) (
9,273 )
6(30)
(
113 ) (
1 )
6(30)
-
1,148,901
-
752
6(20)
(
171,703 ) (
515,108 )
6(19)
79
45
(
567,438 )
72,039
344,080
7,207
6(1)
3,713,204
3,705,997
6(1)
$
4,057,284 $
3,713,204

The accompanying notes are an integral part of these parent company only financial statements.

~13~

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANISATION

Elite Semiconductor Microelectronics Technology Inc. (the “Company”) was incorporated in May 1998 and commenced operations in December 1998. The Company is engaged in the research, development, production, manufacturing, and sales of dynamic and static random access memory, flash memory, analog integrated circuit, analog and digital mixed integrated circuit. The Company is also engaged in the related design and technical R&D services for the above products.

The Company merged with Ji Xin Technology Co., Ltd. on December 5, 2005, and merged with Eon Silicon Solution Inc. on June 8, 2016, with the Company as the surviving company.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only financial statements were authorised for issuance by the Board of Directors on February 26, 2025.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by FSC and became effective from 2024 are as follows:

Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by FSC and are as follows:	became effective from 2
New Standards,Interpretations andAmendments	Effective date by International Accounting Standards Board ("IASB")
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non- current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

~14~

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the

FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2025 are as follows:.

Effective date by New Standards, Interpretations and Amendments IASB Amendments to IAS 21, ‘Lack of exchangeability’ January 1, 2025 The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) Effect of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

Accounting Standards as endorsed by the FSC are as follows:
New Standards,Interpretations andAmendments	Effective date by 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’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment 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’ Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027 January 1, 2026

Accounting Standards as endorsed by the FSC are as follows:

New Standards,Interpretations andAmendments

Effective date by
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’
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets
between an investor and its associate or joint venture’
IFRS 17, ‘Insurance contracts’
Amendments to IFRS 17, ‘Insurance contracts’
Amendment 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’
Annual Improvements to IFRS Accounting Standards—Volume 11

January 1, 2026
January 1, 2026
To be determined by
IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2027
January 1, 2027
January 1, 2026

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

A. IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

~15~

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation
A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:
- (a) Financial assets (including derivative instruments) at fair value through profit or loss.
- (b) Financial assets at fair value through other comprehensive income.
- (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”), requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are estimates are significant to the parent company only financial statements are disclosed in Note 5.
(3) Foreign currency translation

Items included in the parent company only financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.

A. Foreign currency transactions and balances
(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair

~16~

value are translated using the historical exchange rates at the dates of the initial transactions.

  - (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.

B. Translation of foreign operations
- The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- (c) All resulting exchange differences are recognised in other comprehensive income.
(4) Classification of current and non-current items
A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
- (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;
- (b) Assets held mainly for trading purposes;
- (c) Assets that are expected to be realised within twelve months from the balance sheet date;
- (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.
B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
- (a) Liabilities that are expected to be settled within the normal operating cycle;
- (b) Liabilities arising mainly from trading activities;
- (c) Liabilities that are to be settled within twelve months from the balance sheet date;
- (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
(5) Cash equivalents
Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

~17~

B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.
(7) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
- (a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
- (b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value: The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment.
- Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.
(8) Financial assets at amortised cost
A. Financial assets at amortised cost are those that meet all of the following criteria:
- (a) The objective of the Company’s business model is achieved by collecting contractual cash flows.
- (b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

~18~

D. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.
(9) Accounts and notes receivable
A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(10) Impairment of financial assets
For financial assets at amortised cost, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(12) Operating leases(lessor)

Rental income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight -line basis over the lease term.

(13) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

(14) Investments accounted for using equity method / subsidiaries and associates
A. Subsidiaries are entities controlled by the Company (including structured entities). The Company controls the entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
B. All unrealised profit or loss resulting from transactions between the Company and its subsidiaries have been eliminated in full. Accounting policies of subsidiaries have been adjusted when necessary in order to be consistent with those of the Company.

~19~

C. The Company’s share of profit or loss in subsidiaries after acquisition is recognised in profit or loss, whereas its share of other comprehensive income in subsidiaries after acquisition is recognised in other comprehensive income. If the Company’s share of loss in a subsidiary exceeds its share of equity in such a subsidiary, the Company continues to recognise losses in its shareholding percentage.
D. If a change in shareholding in a subsidiary does not result in a loss o f control (i.e. transactions with non-controlling interests), such a change is accounted for as an equity transaction, that is, a transaction with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.
E. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.
F. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
G. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.
H. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
I. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

~20~

J. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.
K. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
L. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.
(15) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 3~50 years

Machinery and equipment 3~8 years

Testing equipment 3~8 years

Others 3~15 years

~21~

(16) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term.
- Starting from the lease date, the Company assesses whether it can reasonably determine its option to extend the lease or purchase the underlying asset, or not to terminate the lease. The Company considers all relevant facts and circumstances that will generate economic incentives to exercise or not exercise the options. Such circumstances include all expected changes in facts and situations from the start of the lease to the day when the option is exercised. Main factors to consider include contractual terms and conditions within the period of options and the importance of the underlying asset to the lessee’s operations, etc. The lease term will be reassessed if a significant change or a major change in circumstances occurs within the Company's control range. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.
C. At the commencement date, the right-of-use asset is stated at cost. The cost is the amount of the initial measurement of lease liability. The right -of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.
D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss.
(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Investment property is depreciated on a straight-line basis over its estimated useful life of 20 years.

(18) Intangible assets
A. Patents, professional technology, and customer relationship Separately acquired patent is stated at historical cost. Patents, professional technology, and customer relationship acquired in a business combination are recognised at fair value at the acquisition date, and amortised on a straight-line basis over their estimated useful lives of 3 years.

~22~

B. Goodwill

  - Goodwill arises in a business combination accounted for by applying the acquisition method.

C. Other intangible assets, mainly computer software, are stated at cost and amortised on a straightline basis over their estimated useful lives of 1 ~ 3 years.
(19) Impairment of non-financial assets
A. The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.
B. The recoverable amount of goodwill is evaluated periodically. An impairment loss is recognised for the amount by which the asset ’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.
C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or Company of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or Company of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(20) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.
(21) Notes and accounts payable
Notes and accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. However, for shortterm accounts payable without bearing interest, as the effect of discounting is insignificant, they are measured subsequently at original invoice amount.

~23~

(22) Convertible bonds payable

Convertible bonds issued by the Company contain conversion options (that is, the bondholders have the right to convert the bonds into the Company’s common shares by exchanging a fixed amount of cash for a fixed number of common shares) and call options. The Company classifies the bonds payable upon issuance as a financial asset, a financial liability or an equity instrument in accordance with the contract terms. They are accounted for as follows:
(a) The embedded call options are recognised initially at net fair value as ‘financial assets or financial liabilities at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognised as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.
(b) The host contracts of bonds are initially recognised at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortised in profit or loss as an adjustment to ‘finance costs’ over the period of circulation using the effective interest method.
(c) The embedded conversion options which meet the definition of an equity instrument are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable as stated above. Conversion options are not subsequently remeasured.
(d) Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.
(e) When bondholders exercise conversion options, the liability component of the bonds (including bonds payable and ‘financial assets or financial liabilities at fair value through profit or loss’) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total book value of the abovementioned liability component and ‘capital surplus—share options’.

(23) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.
(24) Provisions
Provisions (including provision for decommissioning and onerous contracts) are recognised when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses.

~24~

(25) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans
- I. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds at the balance sheet date of a currency and term consistent with the currency and term of the employment benefit obligations.
- II. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as other equity.
- III. Past service costs are recognised immediately in profit or loss.
C. Employees’ compensation and directors’ remuneration
Employees’ compensation and directors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

- (26) Employee share based payment

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and nonvesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount

~25~

of compensation cost recognised is based on the number of equity instruments that eventually vest.

(27) Income tax
A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.
E. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(28) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.
B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are

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subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(29) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(30) Revenue recognition

A. The Company manufactures and sells integrated circuit. Sales are recognised when control of the products has transferred, being when the products are delivered to the customers, the customers has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customers’ acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customers, and either the customers has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.
B. The Company accepts sales orders from customers. Sales revenue is recognised according to the contract price, and the Company transfers the promised goods or services to customers. Since the customer's payment period does not exceed one year, the Company has not adjusted the monetary time value of the transaction price.
C. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

A. Critical judgements in applying the Group’s accounting policies

None.

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B. Critical accounting estimates and assumptions

Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, changes in the external economic environment and sales conditions may result in changes in the value of inventories, which may affect the evaluation of inventories. As at December 31, 2024, the carrying amount of inventories was $7,932,463.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December31,2024 115 $ 2,366,831 1,690,338 4,057,284 $	December31,2023
		115 $ 1,289,770 2,423,319
		3,713,204 $

A. The Company transacts with a various of financial institutions with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Details of the Company's cash and cash equivalents pledged to others as collateral are provided in Note 8.

(2) Financial assets at fair value through profit or loss

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Items December 31, 2024 December 31, 2023
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Note 8. Financial assets at fair value through profit or loss Items December31,2024	December 31, 2023
Current items: Financial assets mandatorily measured at fair value through profit or loss Call options of convertible bonds 1,300 $ Beneficiary certificates - Emerging stocks - Subtotal 1,300 Valuation adjustment 1,200) ( Total 100 $	1,300 $ 45,465 7,767
	54,532 8,908
	63,440 $

~28~

A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

loss are listed below:
			Years ended	December31,
			2024			2023
Financial assets mandatorily measured at fair
value through profit or loss
Equity instruments	($		1,085)		$	15,396
Debit instruments			-	(		426)
Beneficiary certificates			3,558	(		599)
Call options of convertible bonds	(		2,000)			800
Total		$	473		$	15,171

B. The Company has no financial assets at fair value through profit or loss pledged to others.
C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2)C(b).

(3) Financial assets at fair value through other comprehensive income

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Items December 31, 2024 December 31, 2023
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Non-current items:
Equity instruments
Unlisted stocks		$	29,650		$	29,650
Valuation adjustment	(		20,060)	(		18,190)
		$	9,590		$	11,460

A. The Company has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $9,590 and $11,460 as at December 31, 2024 and 2023, respectively.
B. The amounts of fair value changes recognised in other comprehensive income for the equity instruments measure at fair value through other comprehensive income amounted to ($1,870) and $4,965, respectively.

(4) Accounts receivable

Accounts receivable - general customers Less: Allowance for uncollectible accounts	December31,2024 1,381,723 $ - 1,381,723 $	December31,2023
		1,132,044 $ -
		1,132,044 $

~29~

A. The aging analysis of accounts receivable is as follows:

Not past due Up to 30 days 31 to 90 days 91 to 180 days Over 181 days	December31,2024 December31,2023 1,381,723 $ 1,125,533 $ - 6,511 - - - - - - 1,381,723 $ 1,132,044 $

The above aging analysis is based on past due date.

B. As at December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s accounts receivable were $1,381,723 and $1,132,044, respectively.
C. Information relating to credit risk of accounts receivable is provided in Note 12(2).
D. As at December 31, 2024 and 2023, accounts receivable were all from contracts with customers. As at January 1, 2023, the balance of receivables from contracts with customers amounted to $886,560.
E. The Company has no accounts receivable pledged to others.

(5) Inventories

Inventories
Raw materials Work in process Finished goods Inventory in transit Raw materials Work in process Finished goods Inventory in transit		December31,2024
	Allowance for Cost valuation loss 515,156 $ 1,680) ($ 6,044,838 91,369) ( 1,582,448 126,794) ( 9,864 - 8,152,306 $ 219,843) ($ December31,2023		Bookvalue
			513,476 $ 5,953,469 1,455,654 9,864
			7,932,463 $

	Allowance for Cost valuation loss 74,177 $ 1,232) ($ 6,091,559 243,709) ( 1,172,084 221,247) ( 4,645 - 7,342,465 $ 466,188) ($		Bookvalue
			72,945 $ 5,847,850 950,837 4,645
			6,876,277 $

~30~

The cost of inventories recognised as expense for the periods:

			Years ended	December31,	December31,	December31,
			2024			2023
Cost of goods sold		$	12,171,705		$	12,007,993
Gain on reversal of decline in value	(		246,345)	(		399,251)
		$	11,925,360		$	11,608,742

Due to the market recovery and the disposal of inventories previously written down, the Company recognised reversal gains of inventory valuation losses for the years ended December 31, 2024 and 2023.

(6) Investments accounted for using equity method

		31,2024		31, 2023
Subsidiaries:
Charng Feng Investment Ltd.	$	583,818	$	585,575
Jie Yong Investment Ltd.		163,007		160,817
Elite Investment Services Ltd.		55,831		483,183
Elite Semiconductor Memory Technology Inc.		21,267		20,517
Eon Silicon Solution Inc. USA	(	1,483)	(	1,557)
	$	822,440	$	1,248,535

A. Information about the subsidiaries is provided in Note 4(3) in the 2024 consolidated financial statements.
B. The Company’s subsidiary, Elite Investment Services Ltd., reduced its capital and returned cash in February 2024. As a result, the number of shares held by the Company decreased by 14 shares, and the Company received the proceeds from the capital reduction amounting to $435,201.

~31~

(7) Property, plant and equipment

At January 1, 2024 Cost Accumulated depreciation and impairment 2024 At January 1 Additions Transfers (Note) Disposals Depreciation charge At December 31 At December 31, 2024 Cost Accumulated depreciation and impairment At January 1, 2023 Cost Accumulated depreciation and impairment 2023 At January 1 Additions Transfers (Note) Depreciation charge At December 31 At December 31, 2023 Cost Accumulated depreciation and impairment	Buildings Machinery Land and structures equipment Test equipment Others Total 562,898 $ 1,023,474 $ 498,819 $ 529,459 $ 2,557,158 $ 5,171,808 $ - 512,594) ( 246,236) ( 269,536) ( 2,249,052) ( 3,277,418) ( 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $ 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $ - 12,280 16,405 6,279 224,559 259,523 - 27,800 5,474 6,945 8,714 48,933 - - - - 344) ( 344) ( - 38,148) ( 55,152) ( 51,710) ( 283,643) ( 428,653) ( 562,898 $ 512,812 $ 219,310 $ 221,437 $ 257,392 $ 1,773,849 $ 562,898 $ 1,008,019 $ 458,916 $ 399,020 $ 881,547 $ 3,310,400 $ - 495,207) ( 239,606) ( 177,583) ( 624,155) ( 1,536,551) ( 562,898 $ 512,812 $ 219,310 $ 221,437 $ 257,392 $ 1,773,849 $ Buildings Machinery Land and structures equipment Test equipment Others Total 562,898 $ 1,019,309 $ 756,256 $ 375,208 $ 2,319,650 $ 5,033,321 $ - 470,932) ( 470,167) ( 226,032) ( 1,874,843) ( 3,041,974) ( 562,898 $ 548,377 $ 286,089 $ 149,176 $ 444,807 $ 1,991,347 $ 562,898 $ 548,377 $ 286,089 $ 149,176 $ 444,807 $ 1,991,347 $ - 3,730 9,369 151,702 237,288 402,089 - 435 14,958 2,549 400 18,342 - 41,662) ( 57,833) ( 43,504) ( 374,389) ( 517,388) ( 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $ 562,898 $ 1,023,474 $ 498,819 $ 529,459 $ 2,557,158 $ 5,171,808 $ - 512,594) ( 246,236) ( 269,536) ( 2,249,052) ( 3,277,418) ( 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $	Buildings Machinery Land and structures equipment Test equipment Others Total 562,898 $ 1,023,474 $ 498,819 $ 529,459 $ 2,557,158 $ 5,171,808 $ - 512,594) ( 246,236) ( 269,536) ( 2,249,052) ( 3,277,418) ( 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $ 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $ - 12,280 16,405 6,279 224,559 259,523 - 27,800 5,474 6,945 8,714 48,933 - - - - 344) ( 344) ( - 38,148) ( 55,152) ( 51,710) ( 283,643) ( 428,653) ( 562,898 $ 512,812 $ 219,310 $ 221,437 $ 257,392 $ 1,773,849 $ 562,898 $ 1,008,019 $ 458,916 $ 399,020 $ 881,547 $ 3,310,400 $ - 495,207) ( 239,606) ( 177,583) ( 624,155) ( 1,536,551) ( 562,898 $ 512,812 $ 219,310 $ 221,437 $ 257,392 $ 1,773,849 $ Buildings Machinery Land and structures equipment Test equipment Others Total 562,898 $ 1,019,309 $ 756,256 $ 375,208 $ 2,319,650 $ 5,033,321 $ - 470,932) ( 470,167) ( 226,032) ( 1,874,843) ( 3,041,974) ( 562,898 $ 548,377 $ 286,089 $ 149,176 $ 444,807 $ 1,991,347 $ 562,898 $ 548,377 $ 286,089 $ 149,176 $ 444,807 $ 1,991,347 $ - 3,730 9,369 151,702 237,288 402,089 - 435 14,958 2,549 400 18,342 - 41,662) ( 57,833) ( 43,504) ( 374,389) ( 517,388) ( 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $ 562,898 $ 1,023,474 $ 498,819 $ 529,459 $ 2,557,158 $ 5,171,808 $ - 512,594) ( 246,236) ( 269,536) ( 2,249,052) ( 3,277,418) ( 562,898 $ 510,880 $ 252,583 $ 259,923 $ 308,106 $ 1,894,390 $
		1,894,390 $

Note: Transferred from prepayments for equipment (shown as “Other non-current assets”).

A. For the years ended December 31, 2024 and 2023, there was no capitalisation of borrowing costs attributable to the intangible assets.

~32~

B. Information about property, plant and equipment pledged to others as collateral is provided in Note 8.
－
(8) Leasing arrangements lessee
A. The Company leases various assets including land, buildings and structures, business vehicles, and printers. Rental contracts are typically made for periods of 2 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Shortterm leases with a lease term of 12 months or less comprise of business vehicles and staff dormitory.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings and structures Business vehicles Printers Land Buildings and structures Business vehicles Printers	Carrying	amount
	December31,2024 December31,2023 50,763 $ 54,338 $ 38,826 2,350 356 3,997 1,518 1,871 91,463 $ 62,556 $ Depreciationcharge	December31,2023 54,338 $ 2,350 3,997 1,871
		62,556 $
	2024 2023 3,575 $ 3,574 $ 6,499 1,441 3,641 3,984 747 623 14,462 $ 9,622 $ Years endedDecember31,
		3,574 $ 1,441 3,984 623
		9,622 $

C. For the years ended December 31, 2024 and 2023, the additions to right-of-use assets were $45,187 and $777, respectively.
D. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Gains on lease modifications	Years endedDecember31,	Years endedDecember31,
	2024 1,139 $ 1,099 $ 24 $	2023
		866 $
		2,228 $
		- $

E. For the years ended December 31, 2024 and 2023, the Company’s total cash outflow for leases were $15,439 and $12,367, respectively.

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(9) Investment property

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Years ended December 31,
2024 2023
At January 1
Cost $ 20,369 $ 20,369
Accumulated depreciation and impairment ( 5,578) ( 4,608)
$ 14,791 $ 15,761
At January 1 $ 14,791 $ 15,761
Depreciation charge ( 969) ( 970)
At December 31 $ 13,822 $ 14,791
At December 31
Cost $ 20,369 $ 20,369
Accumulated depreciation and impairment ( 6,547) ( 5,578)
$ 13,822 $ 14,791
----- End of picture text -----

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

property are shown below:
Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the period	Years endedDecember31,
	2024 2,594 $ 969 $	2023
		2,562 $
		970 $

B. The fair value of the investment property held by the Company as at December 31, 2024 and 2023 was $11,991 and $8,707, respectively, which was valued by income approach. Key assumptions are as follows:

assumptions are as follows:
Rate of net return on capital (Note)		December31,2024	December31,2023
		9.87%	17.45%

Note: Calculated based on the weighted average capital cost of capital.

C. For the years ended December 31, 2024 and 2023, there was no capitalisation of borrowing costs attributable to the investment property.
D. The Company has no investment property pledged to others.

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(10) Intangible assets

Intangible assets
			Patents and
		professional				Customer						Computer
			technology			relationship			Goodwill			software			Total
At January 1, 2024
Cost		$	34,478		$	11,000		$	80,758		$	871,164		$	997,400
Accumulated amortisation
and impairment	(		34,478)	(		11,000)	(		80,758)	(		753,909)	(		880,145)
		$	-		$	-		$	-		$	117,255		$	117,255
2024
At January 1		$	-		$	-		$	-		$	117,255		$	117,255
Additions			-			-			-			197,935			197,935
Transfers (Note)			-			-			-			304			304
Amortisation charge			-			-			-	(		153,445)	(		153,445)
At December 31		$	-		$	-		$	-		$	162,049		$	162,049
At December 31, 2024
Cost		$	-		$	-		$	-		$	849,791		$	849,791
Accumulated amortisation
and impairment			-			-			-	(		687,742)	(		687,742)
		$	-		$	-		$	-		$	162,049		$	162,049
			Patents and
		professional				Customer						Computer
			technology			relationship			Goodwill			software			Total
At January 1, 2023
Cost		$	34,478		$	11,000		$	80,758		$	637,902		$	764,138
Accumulated amortisation
and impairment	(		34,478)	(		11,000)	(		80,758)	(		586,492)	(		712,728)
		$	-		$	-		$	-		$	51,410		$	51,410
2023
At January 1		$	-		$	-		$	-		$	51,410		$	51,410
Additions			-			-			-			233,262			233,262
Amortisation charge			-			-			-	(		167,417)	(		167,417)
At December 31		$	-		$	-		$	-		$	117,255		$	117,255
At December 31, 2023
Cost		$	34,478		$	11,000		$	80,758		$	871,164		$	997,400
Accumulated amortisation
and impairment	(		34,478)	(		11,000)	(		80,758)	(		753,909)	(		880,145)
		$	-		$	-		$	-		$	117,255		$	117,255

Note: Transferred from prepayments for equipment (shown as “Other non-current assets”).

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A. Details of amortisation on intangible assets are as follows:

Operating costs Selling expenses General and administrative expenses Research and development expenses	2024 2023 32 $ 16 $ 90 155 3,776 3,114 149,547 164,132 153,445 $ 167,417 $ Years endedDecember31,

B. For the years ended December 31, 2024 and 2023, there was no capitalisation of borrowing costs attributable to the intangible assets.
C. The Company has no intangible assets pledged to others.

(11) Other non-current assets

Other non-current assets
Prepayments for equipment Prepayments for purchases Refundable deposits (Note) Pledged time deposits	December31,2024 175,624 $ 147,283 5,869 3,969 332,745 $	December 31, 2023
		46,273 $ 987,329 926,795 3,969
		1,964,366 $

Note: A portion of refundable deposits of the Company is a capacity reservation agreement with the supplier. According to the agreement, the Company promises to purchase wafer production capacity within the agreed period and quantities after the Company has paid the guaranty fund in advance, the supplier will then provide the agreed production capacity to the Company. If the Company’s actual purchased quantities does not meet the agreed requirements, the prepaid guaranty fund will be forfeited based on the agreement, and the agreement cannot be terminated. In response to the recent fluctuations in the overall market economic environment affecting market demand, the Company has made provision for onerous contracts liabilities (shown as “provisions for liabilities”). As at December 31, 2024, the Company’s actual purchased quantities had met the agreed requirements and the prepaid deposits had been fully recovered, therefore, gain of reversal (shown as “other gains and losses”) were recognised.

(12) Short-term borrowings

Short-term borrowings
Type ofborrowings Bank borrowings Credit borrowings Type ofborrowings Bank borrowings Credit borrowings	December31,2024 1,600,000 $ December31,2023 2,620,000 $	Interestraterange 1.8951%~1.95% Interestraterange 1.65%~1.87%	Collateral
			None Collateral
			None

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(13) Bonds payable

Bonds payable
			December31,2024		December31,2023
Convertible bonds payable		$	1,000,000	$	1,000,000
Less: Bonds payable converted	(		100)		-
Less: Discount on bonds payable	(		37,179)		(57,077)
		$	962,721	$	942,923

A. The issuance of domestic convertible bonds:
(a) The terms of the first domestic unsecured convertible bonds issued by the Company are as follows:
- i. The regulatory authority has approved the first domestic unsecured convertible bonds issued by the Company. The total issuance amount is $1,000,000 at 115.42% of the bond’s face value with coupon rate of 0%, covering a 3-year period of issuance and a circulation period from October 27, 2023 to October 27, 2026. The convertible bonds will be settled by cash with principal value at maturity. The bonds were listed on the Taipei Exchange on October 27, 2023.
- ii. The The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from three months after the bonds issuance date to the maturity date, except for the suspended transfer period as specified in the terms of the bonds or the regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.
- iii. The conversion price of convertible bonds was set at NT$85.6 (in dollars) per share. However, the conversion price is adjusted according to the formula set out in the indenture if the following events occurs after the issuance of the Company’s convertible bonds:
- (i) Increase in outstanding (or private placement) common shares.
- (ii) The conversion price should be reduced on the effective date of ex-dividend for distributing cash dividends of ordinary shares.
- (iii) Reissuance (or private placement) of various securities with conversion options or stock options to common shares at a conversion or an exercise price lower than the market price per share.
- (iv) Reduction in ordinary share capital that is not caused by the retirement of treasury shares.
- iv. The Company may repurchase all the bonds outstanding in cash at the bonds’ face value at any time during the period from the date after three months of the bonds issue to 40 days before the maturity date if the following events occur: (i) the closing price of the Company’s common shares is above the conversion price by 30% (including 30%) for 30 consecutive trading days, or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount.

~37~

  - v. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are retired and not to be sold or re-issued; the conversion options attached to the bonds are also extinguished.

(b) As at December 31, 2024, the Company’s first domestic unsecured convertible bonds with a face value of $100 were converted into 1 thousand ordinary shares. The Company’s Board of Director resolved on May 30, 2024 that in accordance with Article 11 of the Regulations Governing the Issuance and Conversion of the First Domestic Unsecured Convertible Bonds, the conversion price was adjusted from NT$85.6 to NT$85.1 starting from ex-dividend date (July 10, 2024).
B. Regarding the issuance of convertible bonds, the equity conversion options amounting to $210,801 were separated from the liability component and were recognised in ‘capital surplusshare options’ in accordance with IAS 32. The call options embedded in bonds payable were separated from their host contracts and were recognised in ‘financial assets or liabilities at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts.

(14) Other payables

contracts. Other payables
Accrued salaries and bonuses Accrued employees' compensation and directors' remuneration Payables on equipment Others	December31,2024 513,542 $ 10,782 138,399 145,448 808,171 $	December31,2023
		577,388 $ - 13,722 139,839
		730,949 $

- (15) Long term borrowings

Borrowing period and

Type ofborrowings	repayment term	Interestraterange	Collateral	December31,2024	December31,2024
Long-term bank borrowings
Secured borrowings	Note 1	1.675%~ 1.80%	Land, buildings and structures	$	643,400
Credit borrowings	Notes 2 and 3	2.008%~2.036%	None		637,500
					1,280,900
Less:Current portion				(	231,200)
				$	1,049,700

~38~

Borrowing period and Type of borrowings repayment term Interest rate range Collateral December 31, 2023 Long-term bank borrowings Land, buildings Secured borrowings Note 1 1.55%~1.675% and structures $ 643,400 - Less:Current portion $ 643,400

Note 1: Borrowing period is from October 2022 to October 2037, interest is repayable monthly, and starting from January, 2026, the same amount of principal is repayable every three months.
Note 2: Borrowing period is from September 2024 to August 2027, interest is repayable monthly, and starting from December 2024, the same amount of principal is repayable every three months.
Note 3: According to the unsecured borrowing contract, the Company is required to comply with certain financial ratios, such as current ratio and liability ratio, during the contract periods. As at December 31, 2024, the Company had not violated any of the required financial ratios.

(16) Pension

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

~39~

(b) The amounts recognised in the balance sheet are as follows:

			December31,2024	December	31,2023
Present value of defined benefit
obligations		$	8,394	($	9,235)
Fair value of plan assets	(		2,146)		812
Net defined benefit liability		$	6,248	($	8,423)

(c) Movements in net defined benefit liabilities are as follows:

2024 At January 1 Current servise cost Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution At December 31		Present value of defined benefit obligations	Fair value of plan assets		Net defined benefit liability
	9,235 $ 182 111 9,528 - 263) ( 871) ( 1,134) ( - 8,394 $		812) ($ - 10) ( 822) ( 64) ( - - 64) ( 1,260) ( 2,146) ($	8,423 $ 182 101 8,706 64) ( 263) ( 871) ( 1,198) ( 1,260) ( 6,248 $

~40~

2023 At January 1 Current servise cost Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution At December 31	Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability 8,817 $ 435) ($ 8,382 $ 178 - 178 115 6) ( 109 9,110 441) ( 8,669 - 226) ( 226) ( 79 - 79 46 - 46 125 226) ( 101) ( - 145) ( 145) ( 9,235 $ 812) ($ 8,423 $

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund ’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as at December 31, 2024 and 2023 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increase		Years ended December 31,	Years ended December 31,
		2024	2023
		1.60% 3.00%	1.20% 3.00%

~41~

Assumptions regarding future mortality experience are set based on the sixth life experience table in Taiwan for the years ended December 31, 2024 and 2023. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

			Discount rate	Discount rate		Future salaryincreases	Future salaryincreases
		Increase 0.25%		Decrease 0.25%	Increase 0.25%		Decrease 0.25%
December 31, 2024
Effect on present
value of defined
benefit obligation	($		159)	163 $	$	140	($	137)
December 31, 2023
Effect on present
value of defined
benefit obligation	($		197)	202 $	$	176	($	172)
The sensitivity analysis above is based on one assumption						which changed while the other
conditions remain		unchanged. In practice, more than one				assumption	may change all at
once. The method		of analysing sensitivity and the			method of calculating net pension
liability in the balance sheet are the				same.

The methodology and assumptions used in preparing the sensitivity analysis are same as prior year.

(f) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2025 amount to $115.
(g) As at December 31, 2024, the weighted average duration of the retirement plan is 8 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 1-2 years 2-5 years Over 5 years	463 $ 188 612 8,252
	9,516 $

B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) The pension costs under the above pension plans of the Company for the years ended December 31, 2024 and 2023 were $43,676 and $40,379, respectively.

~42~

(17) Share-based payment

A. For the year ended December 31, 2023, the Company’s share-based payment arrangements were as follows:

as follows:
Type of arrangement Grant date Quantity granted Contract period Succeeding of 2013 Eon Silicon Solution Inc.'s employee stock options August 19, 2013 7,500 thousand shares (Note 2) 10 years	Vesting conditions
	Note 1

Note 1: The accumulative proportion of the new shares that can be vested and exercised after fulfilling two years of service, three years of service, and four years of service are 50%, 75% and 100%, respectively.
Note 2: The quantities granted by the Company from the succeeding of Eon Silicon Solution Inc. employee stock option plan was the same quantities granted on the grant date of the original plan. After the merger, the succeeding of Eon Silicon Solution Inc.’s 2013 employee stock option plans was 688 thousand shares.
The above share-based payment arrangements are settled by equity.
B. Details of the share-based payment arrangements are as follows:
Succeeding of Eon Silicon Solution Inc.’s employee stock options:

the original plan. After the merger, the succeeding of Eon Silicon employee stock option plans was 688 thousand shares. The above share-based payment arrangements are settled by equity. Details of the share-based payment arrangements are as follows: Succeeding of Eon Silicon Solution Inc.’s employee stock options:	Solution Inc.’s 2013
No. of options Options outstanding at January 1 14 Options exercised 14) ( Options outstanding at December 31 - Option exercisable at December 31 -	Weighted-average exercise price (indollars) 2023
	53.3 $ 53.3 - $

C. The weighted average share price of the stock options executed from January 1 to December 31, 2023 was NT$85.65 on the execution date.
D. There was no expenses incurred on share-based payment transactions for the year ended December 31, 2023.
E. For the year ended December 31, 2024, there was no share-based payment agreements.

~43~

(18) Share capital

A. As at December 31, 2024, the Company’s authorised capital was $3,500,000, consisting of 350,000 thousand shares of ordinary stock (including 20,000 thousand shares reserved for employee stock options), and the paid-in capital was $2,861,772 with a par value of $10 (in dollars) per share.

Movements in the number of the Company's ordinary shares outstanding are as follows:

Outstanding ordinary shares at January 1 Conversion of convertible bonds Employee stock options exercised Disposal of parent company's share by a subsidiary recognised as treasury shares Outstanding ordinary shares at December 31 Treasury shares at the end of the year Issued ordinary shares at December 31	Unit：Thousands of shares 2024 2023 272,762 272,448 1 - - 14 409 300 273,172 272,762 13,000 13,409 286,172 286,171

B. Treasury shares

Due to the Company’s business strategy, the number of the Company’s shares held by the Company’s subsidiary, Jie Young Investment Ltd., as at December 31, 2024 and 2023, were 13,000 thousand shares and 13,409 thousand shares with carrying amounts of $334,596 and $345,123, respectively; the average book value per share was $25.74, and the fair values per share were $62.0 and $98.0, respectively.

(19) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

~44~

==> picture [471 x 78] intentionally omitted <==

----- Start of picture text -----

2024
Changes in
Treasury ownership interests
Share share in subsidiaries Stock
premium transactions and associates options Others Total
----- End of picture text -----

	premium	transactions	and associates options	Others	Total
At January 1 Disposal of company's share by a subsidiary recognised as treasury share transaction Recognition of changes in ownership interests in subsidiaries - cash dividends distributed by subsidiaries Adjustment of capital surplus due to cash dividends that subsidiaries received from parent Change in associates and joint ventures accounted for using equity mothod Expired cash dividends transferred to capital surplus Conversion of convertible bonds At December 31	23,470 $ - - - - - 104 23,574 $	50,290 $ 11,544 - - - - - 61,834 $	198,570 $ 210,822 $ - - 1,601 - 3,265 - 139 - - - - 21) ( 203,575 $ 210,801 $	4,122 $ - - - - 79 - 4,201 $	487,274 $ 11,544 1,601 3,265 139 79 83
					503,985 $

~45~

2023

At January 1 Disposal of company's share by a subsidiary recognised as treasury share transaction Recognition of changes in ownership interests in subsidiaries - cash dividends distributed by subsidiaries Adjustment of capital surplus due to cash dividends that subsidiaries received from parent Change in associates and joint ventures accounted for using equity mothod Issuance of new shares due to employee stock options exercised Expired cash dividends transferred to capital surplus Issuance of convertible bonds At December 31		Share premium	Treasury share transactions	Treasury share transactions	Changes in ownership interests in subsidiaries and associates	Changes in ownership interests in subsidiaries and associates	Employee stock options		Stock options - $ - - - - - - 210,822 210,822 $	Others 4,077 $ - - - - - 45 - 4,122 $	Total
		20,162 $ - - - - 3,308 - - 23,470 $		41,750 $ 8,540 - - - - - - 50,290 $		186,631 $ - 989 10,329 621 - - - 198,570 $	2,697 $ - - - - 2,697) ( - - - $				255,317 $ 8,540 989 10,329 621 611 45 210,822
											487,274 $

(20) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall be appropriated in the following order:
(a) Payment of all taxes and dues.
(b) Offset previous years, operating losses, if any
(c) Setting aside 10% of remaining amount as legal reserve, unless the accumulated amount of the legal reserve has reached the total authorised capital of the Company
(d) Setting aside or reversing a special reserve according to relevant regulations.
(e) The remainder from this year and prior years may be appropriated as dividends according to a resolution in the shareholders’ meeting.

B. Dividend policy

The Company is in the growth phase. To meet future operation requirements, long-term financial

plan and the requirement of cash dividends distributing to the shareholders, the distributable

~46~

earnings for current year can be entirely distributed to the shareholders, which shall be proposed by the Board of Directors and resolved in the shareholders’ meeting every year. Dividends to the shareholders can be distributed in the form of cash or shares, and cash dividends shall account for at least 50% of the total dividends distributed.

If all or part of the Company's earnings distribution, legal reserve, or capital reserve is distributed in form of cash, the Board of Directors is authorised to approve and report to the shareholders' meeting, while in accordance with Articles 240 and 241 of the Company Act, in a meeting where two-thirds of directors shall be present, and more than half of the directors present shall agree.

C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reserved subsequently, the reversed amount could be included in the distributable earnings.
E. The Company’s appropriation of earnings and cash dividends per share as resolved by the Board of Directors, is as follows:

Directors, is as follows:
		Years ended December 31,
		2024		2023		2022
As approved by the Board of Directors		2025.2.26		2024.2.27		2023.2.23
Provision for legal reserve	$	50,631	$	-	$	104,087
Provision for`(`Reversal of) special reserve	($	8,603)	($	9,930)	$	22,404
Cash dividend	$	286,172	$	171,703	$	515,108
Cash dividend per share (in dollars)	$	1.0	$	0.6	$	1.8

Cash dividends per share may subsequently be affected by the number of outstanding shares, the final actual distributed amount per share will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(21) Operating revenue

at the website of the Taiwan Stock Exchange. Operating revenue
Revenue from contracts with customers	Years ended December 31,
	2024 2023 13,485,168 $ 11,884,121 $

~47~

A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of goods at a point in time in the following major geographical regions:

geographical regions:
Year ended December 31, 2024 Integrated circuits Year ended December 31, 2023 Integrated circuits	Domestic area 5,190,827 $ Domestic area 5,258,025 $	Asia 8,209,282 $ Asia 6,512,981 $	Others 85,059 $ Others 113,115 $	Total
				13,485,168 $
				Total
				11,884,121 $

B. Contract liabilities

The Company has recognised the following revenue-related contract liabilities:

Contract liabilities- advance sales receipts	December31,2024 16,354 $	December31,2023 4,665 $	January1,2023 6,096 $

Revenue recognised that was included in the contract liability balance at the beginning of the period:

Contract liabilities – advance sales receipts

Years ended December31,	Years ended December31,
2024 4,862 $	2023
	5,752 $

(22) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets at amortised cost Other interest income	Years endedDecember31,
	2024 108,071 $ 588 58 108,717 $	2023
		137,873 $ 524 1,568
		139,965 $

(23) Other income

Other income
Rent income Dividend income Other income, others	2024 2023 5,658 $ 6,568 $ - 513 77,502 54,796 83,160 $ 61,877 $ Years endedDecember31,
		2023
		6,568 $ 513 54,796
		61,877 $

~48~

(24) Other gains and losses

Other gains and losses
			Years ended	December31,
			2024			2023
Gains arising from lease modifications		$	24		$	51
Net foreign exchange gains			352,985			17,322
Gains on financial assets at fair value
through profit or loss			473			15,171
Gains on disposals of property, plant and equipment			56			281,765
Gain on reversal of onerous contracts			530,888			-
Miscellaneous disbursements	(		970)	(		42,912)
		$	883,456		$	271,397

(25) Finance costs

Finance costs
Interest expense: Bank borrowings Provisions for liabilities- amortisation of discount Lease liabilities Amortisation of discount on bonds payable Total interest expense Others	Years endedDecember31,
	2024 49,344 $ 726 1,139 19,892 71,101 8 71,109 $	2023
		75,265 $ 1,205 866 3,544
		80,880
		1,732
		82,612 $

(26) Expenses by nature

Expenses by nature
Employee benefit expenses Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation charges on intangible assets	Years endedDecember31,
	2024 1,388,323 $ 428,653 $ 14,462 $ 969 $ 153,445 $	2023
		1,272,967 $
		517,388 $
		9,622 $
		970 $
		167,417 $

~49~

(27) Employee benefit expenses

Employee benefit expenses
		Years ended	December31,
		2024		2023
Wages and salaries	$	1,232,522	$	1,126,801
Labor and health insurance fees		78,328		78,912
Pension costs		43,959		40,666
Directors' remuneration		11,023		7,605
Other personnel expenses		22,491		18,983
	$	1,388,323	$	1,272,967

A. According to the Company’s Articles of Incorporation, the Company shall allocate employees’ compensation and director’s remuneration not less than 1% and not more than 1% of annual profits during the period, respectively.
B. For the year ended December 31, 2024, employees’ compensation of the Company was accrued at $5,391; directors’ remuneration of the Company was accrued at $5,391. The aforementioned amounts were recognised in wages and salaries. For the year ended December 31, 2023, the Company did not accrue employees’ compensation and directors’ remuneration, due to net loss.
C. The information about the employees’ compensation and director’s remuneration as resolved by the Board of Director is available at the Market Observation Post System (MOPS) website.

(28) Income tax

A. Income tax expense (benefit)
(a) Components of income tax expense (benefit):

			Years ended	December31,	December31,
			2024		2023
Current tax:
Current tax on profit for the year		$	-		$	-
Prior year income tax (overestimation)
underestimation	(		83,195)			21,753
Total current tax	(		83,195)			21,753
Deferred tax:
Origination and reversal of temporary
differences			106,405	(		43,431)
Income tax expense (benefit)		$	23,210	($		21,678)

(b) The income tax charge relating to components of other comprehensive income: None.
(c) The income tax charged to equity during the period: None.

~50~

B. Reconciliation between income tax expense (benefit) and accounting profit:

			Years endedDecember	Years endedDecember	31,
			2024		2023
Tax calculated based on profit (loss) before tax and statutory tax rate		$	105,665	($	248,905)
Tax exempt income by tax regulation	(		615)		29,255
Prior year income tax (overestimation) underestimation	(		83,195)		21,753
Change in assessment of realisation of deferred tax assets			65,587		92,797
Taxable loss not recognized as deferred tax assets			-		181,504
Assessment of realisation of investment tax credits			-	(	98,082)
Effect from taxable loss	(		64,232)		-
Income tax expense (benefit)		$	23,210	($	21,678)

C. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

			2024
	January1	Recognised in profit or loss	Recognised in other comprehensive income
1,068 $ 55,943 3 3,247 97,733 98,082 256,076 51,627) ( 3,034) ( 54,661) ( 201,415 $		1,068) ($ 38,355) ( 10 259 52,680) ( 41,210) (	- $ - - - - - - - - - - $	- $ 17,588 13 3,506 45,053 56,872 123,032 27,927) ( 95) ( 28,022) ( 95,010 $
		133,044) (
		23,700 2,939 26,639 106,405) ($

~51~

							2023
					Recognised in		Recognised in other
		January1			profit or loss		comprehensive income		December31
Deferred tax assets:
- Temporary differences:
Unrealised exchange losses	$		116	$	952	$	-	$		1,068
Loss on market value
decline and obsolete
and slow-moving
inventories			103,853	(	47,910)		-			55,943
Pension liabilities			71	(	68)		-			3
Onerous contract losses			106,178	(	106,178)		-			-
Others			2,974		273		-			3,247
- Loss carryforward			-		97,733		-			97,733
- Investment tax credits			-		98,082		-			98,082
Subtotal			213,192		42,884		-			256,076
Deferred tax liabilities:
- Temporary differences:
Unrealised exchange gains	(		55,208)		3,581		-	(		51,627)
Others			-	(	3,034)		-	(		3,034)
Subtotal	(		55,208)		547		-	(		54,661)
Total	$		157,984	$	43,431	$	-	$		201,415

D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows:

tax assets are as follows:
Qualifyingitems	December 31,2024
	Unused tax credits	Unrecognised deferred tax assets tax amount	Expiry year
Expenditure of research and development Qualifyingitems
	Unused tax credits	Unrecognised deferred tax assets tax amount	Expiry year
Expenditure of research and development	122,603 $	24,521 $	2025

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E. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

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December 31, 2024
Unrecognised
Amount deferred tax
Year incurred estimated Unused amount assets amount Expiry year
2023 $ 1,396,187 $ 1,331,955 $ 1,106,690 2033
December 31, 2023
Unrecognised
Amount deferred tax
Year incurred estimated Unused amount assets amount Expiry year
2023 $ 1,396,187 $ 1,396,187 $ 907,522 2033
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F. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

Deductible temporary differences	December31,2024 469,264 $	December31,2023
		596,717 $

G. The Company’s income tax returns through 2022 have been assessed and approved by the Tax Authority.

(29) Earnings (losses) per share

Authority. Earnings (losses) per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent company Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares Employees' compensation Convertible bonds Profit attributable to ordinary shareholders of the parent company plus assumed conversion of all dilutive potential ordinary shares	Year ended December31,2024
	Amount after tax 505,115 $ - 17,514 522,629 $	Weighted average number of ordinary shares outstanding (shares inthousands) 280,704 87 11,750 292,541	Earnings per share (indollars)
			1.80 $
			1.79 $

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Year ended December 31, 2023
Weighted average number
of ordinary shares Losses per
Amount after outstanding (shares share
tax in thousands) (in dollars)
Basic and diluted losses per share (note)
Loss attributable to ordinary
shareholders of the parent company ($ 1,222,845) 280,432 ($ 4.36)
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Note: As the convertible bonds payable in 2023 had an anti-dilutive effect, it was not included in the calculation of diluted losses per share.

(30) Supplemental cash flow information

A. Investing activities with partial cash payments:

calculation of diluted losses per share. pplemental cash flow information Investing activities with partial cash payments:
2024 2023 Purchase of property, plant and equipment 308,456 $ 420,431 $ (including transferred amount) Add: Ending balance of prepayment for equipment 175,624 46,273 Add: Opening balance of prepayment for equipment being transferred to intangible assets 304 - Less: Opening balance of prepayment for equipment 46,273) ( 26,568) ( Add: Opening balance of payable on equipment 13,722 90,089 Less: Ending balance of payable on equipment 51,191) ( 13,722) ( Cash paid during the year 400,642 $ 516,503 $ Years endedDecember31, 2024 2023 Purchase of intangible assets 198,239 $ 233,262 $ (including transferred amount) Less: Opening balance of prepayment for equipment being transferred to intangible assets 304) ( - Less: Ending balance of payable on intangible assets 87,208) ( - Cash paid during the year 110,727 $ 233,262 $ Years ended December 31,	2024 2023 308,456 420,431 $ 175,624 46,273 304 - 46,273) 26,568) ( 13,722 90,089 51,191) 13,722) ( 400,642 516,503 $ Years endedDecember31, Years ended December 31,
	2024	2023
		233,262 $ - -
		233,262 $

~54~

B. Changes in liabilities from financing activities:

									Long-term	Long-term											Liabilities	Liabilities
									borrowings													from
							(including long-term											Guarantee			financing
	Short-term				Bonds			borrowings due						Lease				deposits			activities-
		borrowings			payable				within oneyear)				liabilities					received				gross
At January 1, 2024	$	2,620,000		$	942,923			$		643,400		$		63,228			$		6,252	$		4,275,803
Changes in cash flow
from financing
activities	(	1,020,000)				-				637,500		(		13,201)		(			113)	(		395,814)
Interest paid		-				-					-	(			1,139)				-	(		1,139)
Interest expense		-			19,892						-				1,139				-			21,031
Changes in other
non-cash items		-		(	94)						-			43,345					-			43,251
At December 31, 2024	$	1,600,000		$	962,721			$	1,280,900			$		93,372			$		6,139	$		3,943,132
																						Liabilities
			Short-term																			from
				notes and														Guarantee				financing
	Short-term				bills			Bonds		Long-term					Lease				deposits			activities-
	borrowings			payable				payable		borrowings				liabilities				received				gross
At January 1, 2023	$	3,175,000	$		-		$		-	$	643,400			$	71,645			$	6,253	$		3,896,298
Changes in cash flow
from financing
activities	(	555,000)			1,723			1,148,901					-	(	9,273)			(	1)			586,350
Interest paid		-			-				-				-	(	866)				-	(		866)
Interest expense		-			-				-				-		866				-			866
Changes in other
non-cash items		-	(		1,723)	(		205,978)					-		805				-	(		206,896)
Changes from lease
modifications		-			-				-				-		51				-			51
At December 31, 2023	$	2,620,000	$		-		$	942,923		$	643,400			$	63,228			$	6,252	$		4,275,803

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7. RELATED PARTY TRANSACTIONS

A. Names of related parties and relationship

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Names of related parties Relationship with the Company
Elite Semiconductor Memory Technology Inc. Subsidiary
Charng Feng Investment Ltd. "
Jie Yong Investment Ltd. "
Elite Investment Services Ltd. "
Eon Silicon Solutions Inc. USA "
Elite Memory Technology Inc. "
Elite Innovation Japan Ltd. "
Elite Semiconductor Microelectronics "
Technology (shenzhen) Inc.
Elite Semiconductor Microelectronics "
(Shanghai) Technology Inc.
CHI Microelectronics Limited "
Elite Semiconductor Microelectronics "
Technology (Xian) Inc.
Canyon Semiconductor Inc. Associate
ESMT Educational Foundation Substantive related party
B. Significant transactions and balances with related parties
A. Operating revenue
Years ended December 31,
2024 2023
Sales of goods:
Associates $ - $ 1,662
The transaction price and terms of sale of goods with related parties have no significant
difference with external parties.
B. Purchases
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B.	difference with external parties. Purchases
			Years endedDecember31,
			2024	2023
	Purchases of goods:
	Subsidiaries	$	1,076,138	471,866 $
	Goods are purchased from subsidiaries on normal commercial terms and conditions.
C.	Receivables from related parties:
		December31,2024		December31,2023
	Other receivable-supporting services:
	Subsidiaries	$	19,622	25,200 $

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D. Payables to related parties:

thers: Accounts payable: CHI Microelectronics Limited Other payables-supporting services: Subsidiaries Other income-supporting services: Subsidiaries Associates Research and development expenses: Subsidiaries Selling expenses: Subsidiaries Donation expense: Substantive related party	December31,2024 December31,2023 265,413 $ 39,981 $ 41,555 $ 22,442 $ 2024 2023 68,033 $ 46,500 $ 229 $ 343 $ 53,971 $ 55,500 $ 91,875 $ 80,422 $ 1,000 $ 1,000 $ Years endedDecember31,	December31,2024 December31,2023 265,413 $ 39,981 $ 41,555 $ 22,442 $ 2024 2023 68,033 $ 46,500 $ 229 $ 343 $ 53,971 $ 55,500 $ 91,875 $ 80,422 $ 1,000 $ 1,000 $ Years endedDecember31,
		46,500 $
		343 $
		55,500 $
		80,422 $
		1,000 $

E. Others:

C. Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits	Years ended December 31,
	2024 45,821 $ 587 46,408 $	2023
		29,077 $ 594
		29,671 $

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

Assetsitem Land, buildings and structures Time deposits (shown as "other non-current assets")	December31,2024 December31,2023 731,151 $ 738,052 $ 3,969 3,969 735,120 $ 742,021 $ Bookvalue	Purposes
	December31,2024 731,151 $ 3,969 735,120 $
		Long-term borrowings Guarantee deposits for land leasing

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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

The Company entered into capacity reservation agreements with suppliers. According to the agreements, the supplier shall provide agreed production capacity with the Company after prepayment made by the Company.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

A. On January 15, 2025, the Company’s Board of Directors resolved to enter into a syndicated borrowing agreement with a syndicated banking group consisting of Taishin International Bank Co., Ltd., Taipei Fubon Commercial Bank Co., Ltd. and others, with a credit line of NT$3 billion. The credit term is 5 years from the first drawing date. The syndicated borrowing would be used to fulfill its working capital and repay financial liabilities.
B. The appropriations of 2024 earnings had been approved by the Board of Directors on February 26, 2025. Please refer to Note 6(20).

12. OTHERS

(1) Capital management

Considering the current industry environment, future operating development, and changes in the external environment, the Company plans the future requirement of working capital, expenditure of research and development and dividends paid to shareholders to safeguard the Company’s ability to continue as a going concern, to provide returns for shareholders, to take care of the benefit of stakeholders, and to maintain an optimal capital structure, so as to promote the shareholders ’ value in the future.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, issue new shares or return capital to shareholders, or repurchase the Company’s shares.

The equity to assets ratios on December 31, 2024 and 2023 were as follows:

Total assets Total liabilities Total equity Equity to assets ratio	December31,2024	December31,2023
	17,737,422 $ 7,351,341) ( 10,386,081 $ 59%	18,144,225 $ 8,122,487) ( 10,021,738 $ 55%

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(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost-current Notes receivable Accounts receivable Other receivables Other receivables - related parties Time deposits (shown as "Other non-current assets") Refundable deposits (shown as "Other non-current assets") Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Accounts payable - related parties Other payables Bonds payable (including current portion) Long-term borrowings (including current portion) Guarantee deposits received (shown as "Other non-current liabilities") Lease liabilities	December31,2024 100 $ 9,590 $ 4,057,284 $ - 127 1,381,723 96,007 19,622 3,969 5,869 5,564,601 $ 1,600,000 $ - 2,073,109 265,413 808,171 962,721 1,280,900 6,139 6,996,453 $ 93,372 $	December31,2023
		63,440 $
		11,460 $
		3,713,204 $ 31,791 - 1,132,044 102,852 25,200 3,969 926,795
		5,935,855 $
		2,620,000 $ 2,178 2,187,588 39,981 730,949 942,923 643,400 6,252
		7,173,271 $
		63,228 $

B. Financial risk management policies

(a) The Company implements comprehensive system of risk management and control to identify, measure and control all categories of risk, including market risk, credit risk, liquidity risk, and risk of cash flow so that management can effectively control and measure market risk, credit risk, liquidity risk, and risk of cash flow.

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(b) The Company’s objective in managing the market risk is to reach optimisation, maintain the proper liquidity and manage all market risks collectively by taking into account the economic environment, competitive edge and risk of market value.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

The Company operates internationally and is exposed to foreign exchange risk arising from the various currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities and net investments of foreign operations.
The foreign exchange risk management strategy involves regularly reviewing the net positions of assets and liabilities in various currencies and conducting risk control for the net positions. In addition to achieving natural hedge, the hedging costs and hedging period should be considered when selecting appropriate hedging instruments to effectively reduce the impact of foreign exchange variation on overall financial performance.
The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through deposits denominated in the relevant foreign currencies (see Note 6(1)).
The Company’s business involves some non-functional currency operations (the Company’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

Foreign currency amount (In thousands) Exchange rate Book value (NTD) 139,692 $ 32.785 4,579,802 $ 121,246 4.478 542,940 1,657 $ 32.785 54,348 $ 49,735 $ 32.785 1,630,562 $ 9,280 4.478 41,556 December31,2024	Foreign currency amount (In thousands) Exchange rate Book value (NTD) 139,692 $ 32.785 4,579,802 $ 121,246 4.478 542,940 1,657 $ 32.785 54,348 $ 49,735 $ 32.785 1,630,562 $ 9,280 4.478 41,556 December31,2024	Foreign currency amount (In thousands) Exchange rate Book value (NTD) 139,692 $ 32.785 4,579,802 $ 121,246 4.478 542,940 1,657 $ 32.785 54,348 $ 49,735 $ 32.785 1,630,562 $ 9,280 4.478 41,556 December31,2024
Foreign currency amount (In thousands) 139,692 $ 121,246 1,657 $ 49,735 $ 9,280	Exchange rate 32.785 4.478 32.785 32.785 4.478
		4,579,802 $ 542,940 54,348 $ 1,630,562 $ 41,556

~60~

		December31,2023	December31,2023
	Foreign currency
		amount			Book value
	(In	thousands)	Exchangerate		(NTD)
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD	$	206,185	30.705	$	6,330,910
RMB:NTD		95,664	4.327		413,938
Financial liabilities
Monetary items
USD:NTD	$	47,657	30.705	$	1,463,308

The total exchange gains, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2024 and 2023, amounted to $352,985 and $17,322, respectively.
Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD RMB:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD RMB:NTD	Year ended December31,2024
	Sensitivity analysis
	Effect on Degree ofvariation profit or loss 1% 45,798 $ 1% 5,429 1% 543 $ 1% 16,306) ($ 1% 416) (	Effect on other comprehensive income
		- $ - - $ - $ -

~61~

Year ended December 31, 2023

Sensitivity analysis Effect on other Effect on comprehensive Degree of variation profit or loss income (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% $ 63,309 $ - RMB:NTD 1% 4,139 - Financial liabilities Monetary items USD:NTD 1% ($ 14,633) $ -

Price risk

i. The Company’s equity securities, which are exposed to price risk, are the financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
ii. The Company’s investments in equity securities comprise shares and open-end funds issued by the domestic or foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the years ended December 31, 2024 and 2023 would have increased/decreased by $0 and $6,134, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $959 and $1,146, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Company’s cash flow interest rate risk arises from long-term borrowings and shortterm borrowings with variable rate. During the years ended December 31, 2024 and 2023, the Company’s borrowings at variable rate were denominated in the NTD.
ii. If the borrowing interest rate had increased/decreased by 0.2% with all other variables held constant, profit net of tax for the years ended December 31, 2024 and 2023 would have increased/decreased by $4,915 and $1,829, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

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(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial instruments stated at amortised cost and debt instruments at fair value through profit or loss.
ii. The Company manages its credit risk taking into consideration the entire Company’s concern. For banks and financial institutions, only these with good rating are accepted. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by management. The utilisation of credit limits is regularly monitored.
iii. The Company adopts the assumption under IFRS 9, the default occurs when the contract payments are past due over 90 days.
iv. The Company adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i)It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii)The disappearance of an active market for that financial asset because of financial difficulties;
(iii)Default or delinquency in interest or principal repayments;
(iv)Adverse changes in national or regional economic conditions that are expected to cause a default.
vi. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.
vii. The financial assets at amortised cost include time deposits and restricted time deposits. The banks have good rating and have no past due before. In addition to the above, the whole economic environment has not changed significantly, so the risk of credit risk is low and the effect to the financial statements is insignificant.

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viii. The information regarding the aging analysis of the Company’s accounts receivable from customers is detailed in Note 6(4). The Company comprehensively considers factors such as the financial status of transaction counterparties, historical transaction experiences, the current economic environment, and the Company's internal rating standards to adopt measures such as prepayment, providing collateral, or other guarantees based on the risk. The group categorises accounts receivable from customers according to the nature of the risk and uses a simplified approach based on the loss rate method to estimate expected credit losses. On the balance sheet date, the Company individually reviews the recoverable amount of accounts receivable to ensure that appropriate impairment losses have been recognised for uncollectible receivables. Based on this assessment, the provision for loss to be recognised by the Company as at December 31, 2024 and 2023, was considered minimal.
ix. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable is as follows:

	2024
At January 1	- $		$	-
Provision for impairment	-			682
Reversal of impairment loss	-	(		682)
At December 31	- $		$	-

(c) Liquidity risk
I. The Company effectively manages and maintains sufficient cash and cash equivalents by forecasting and continuously monitoring requirements of liquidity capital in order to ensure that the Company has sufficient working capital and reduce the impact of cash flow variation on business operations.
II. Surplus cash held by the operating entities over and above balance required for working capital management should be invested in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.
III. The table below analyses the Company’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

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Non-derivative financial liabilities: December 31, 2024 Short-term borrowings Accounts payable Accounts payable - related parties Other payables Lease liabilities Bonds payable (including current portion) Long-term borrowings (including current portion) Guarantee deposits received Derivative financial liabilities: None. Non-derivative financial liabilities: December 31, 2023 Short-term borrowings Notes payable Accounts payable Accounts payable - related parties Other payables Lease liabilities Bonds payable (including current portion) Long-term borrowings (including current portion) Guarantee deposits received Derivative financial liabilities: None.	Less than 1 year 1,603,522 $ 2,073,109 265,413 808,171 15,204 - 253,955 - Less than 1 year 2,627,204 $ 2,178 2,187,588 39,981 730,949 9,789 - 10,777 -	Between 1 and 5 years - $ - - - 48,043 999,900 669,364 - Between 1 and 5 years - $ - - - - 18,502 1,000,000 201,409 -	Over5 years
			- $ - - - 36,011 - 460,514 6,139 Over5 years
			- $ - - - - 40,907 - 520,023 6,252

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks and emerging stocks, beneficiary certificates and debt securities are included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investment without active market is included in Level 3.

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B. Fair value information of investment property at cost is provided in Note 6(9).
C. Except for those listed in the table below, the carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, refundable deposits, short-term and long-term borrowings, notes payable, accounts payable, other payables, lease liabilities and guarantee deposits received are approximate to their fair values.

ues.
Financial liabilities: Bonds payable (including current portion) Financial liabilities: Bonds payable (including current portion)		December	31,2024
	Bookvalue 962,721 $ Book value 942,923 $	Level 1 - $ Level 1 - $ December	Level 2 962,004 $ Level 2 946,900 $ 31,2023	Level3
				- $
				Level3
				- $

D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:
(a) The related information of nature of the assets and liabilities is as follows:

December 31, 2024 Financial assets Financial assets at fair value through profit or loss Call options of convertible bonds Financial assets at fair value through other comprehensive income Equity securities Total Financial liabilities: None.	Level 1 - $ - - $	Level 2 - $ - - $	Level3 100 $ 9,590 9,690 $	Total 100 $ 9,590 9,690 $

~66~

December 31, 2023 Financial assets Financial assets at fair value through profit or loss Equity securities Beneficiary certificates Call options of convertible bonds Financial assets at fair value through other comprehensive income Equity securities Total Financial liabilities: None.	Level 1 5,930 $ 55,410 - - 61,340 $	Level 2 - $ - - - - $	Level3 - $ - 2,100 11,460 13,560 $	Total
				5,930 $ 55,410 2,100 11,460
				74,900 $

(b) The methods and assumptions that the Company used to measure fair value are as follows:
i. The instruments that the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed and emerging stocks Open-end fund Market quoted price Closing price Net asset value

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the parent company only balance sheet date.
E. For the years ended December 31, 2024 and 2023, there was no transfer between Level 1 and Level 2.
F. The following table is the movement of Level 3 for the years ended December 31, 2024 and 2023:

2023:
At January 1 Convertible bonds issued during the year Valuation adjustment At December 31				Equity instrument Call options of convertible bonds 6,495 $ - $ - 1,300 4,965 800 11,460 $ 2,100 $ 2023
		Equity instrument		Equity instrument
	11,460 $ - 1,870) ( 9,590 $		2,100 $ - 2,000) ( 100 $	6,495 $ - 4,965 11,460 $	- $ 1,300 800 2,100 $

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G. The valuation procedures for fair value measurements are categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.
H. The following table is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity instrument: Unlisted shares Financial assets at fair value through profit or loss - call options of convertible bonds Non-derivative equity instrument: Unlisted shares Financial assets at fair value through profit or loss - call options of convertible bonds	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	9,590 $ 100 Fair value at December 31, 2023	Market - comparable companies Binary tree convertible evaluation model Valuation technique	Discount for lack of marketability Stock price volatility Significant unobservable input	45.00% 35.72% Range (weighted average)	The higher the discount of lack of marketability, the lower the fair value The higher the volatility, the lower the fair value Relationship of inputs to fair value
	11,460 $ 2,100	Market - comparable companies Binary tree convertible evaluation model	Discount for lack of marketability Stock price volatility	45.00% 40.36%	The higher the discount of lack of marketability, the lower the fair value The higher the volatility, the lower the fair value

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I. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets categorised within Level 3 if the inputs used to valuation models have changed:

changed:
Financial assets Equity instrument Financial assets at fair value through profit or loss - call options of convertible bonds Financial assets Equity instrument Financial assets at fair value through profit or loss - call options of convertible bonds	Input	Change	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 785 $ 785) ($ - $ - $ - $ - $ December 31,2024 Recognised in profit or loss Recognised in other comprehensive income December 31,2023
			Favourable change
	Discount for lack of marketability Volatility Input	± 10% ± 1% Change		- $ - $				785) ($ - $
				Recognised in profit or loss			Recognised in other comprehensive income
			Favourable change		Unfavourable change	Favourable change		Unfavourable change
	Discount for lack of marketability Volatility	± 10% ± 1%		- $ 400 $	- $ 100) ($		938 $ - $	938) ($ - $

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 1.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or

~69~

20% of the Company’s paid-in capital: None.

E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paidin capital or more: Please refer to table 2.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more:
- Please refer to table 3.
I. Trading in derivative instruments undertaken during the reporting period: None.
J. Significant inter-company transactions during the reporting period: Please refer to table 4.
(2) Information on investees

Names, locations, and other information of investee companies (not including investees in Mainland China): Please refer to table 5.

(3) Information on investments in Mainland China
A. Basic information: Please refer to table 6.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.
(4) Major shareholders information

As at December 31, 2024, the Company had no shareholders who hold over 5% (including 5%) of the Company’s shares.

~70~

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC.

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Holding of marketable securities at the end of the period

December 31, 2024

Securities held by	Name and category of marketable securities	Relationship with the securities issuer	General ledger account		As at December 31,2024	As at December 31,2024		Footnote
				Number of shares	Book value (Note 1)	Ownership (%)	Fair value (Note 1)
Elite Semiconductor Microelectronics Technology Inc. Charng Feng Investment Ltd. Charng Feng Investment Ltd. Charng Feng Investment Ltd. Charng Feng Investment Ltd. Jie Yong Investment Ltd.	Turning Point Lasers Ltd, preferred stock M2 Communication Inc. stock Powership Semiconductor Manufacturing Corporation Turning Point Lasers Ltd, preferred stock StorArt Technology Co., Ltd, common stock Elite Semiconductor Microelectronics Technology Inc. stock	None None None None None Parent Company	Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	1,000,000 100,542 100,426 1,000,000 1,000,000 13,000,000	9,590 948 1,596 9,590 48,562 806,000	6.29 0.67 0.00 6.29 2.14 4.54	9,590 948 1,596 9,590 48,562 806,000

Note 1: Valuation adjustments of financial assets are included.

Table 1

Table 2

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC.

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more For the Year Ended December 31, 2024

Expressed in thousands of NTD

(Except as otherwise indicated)

Differences in transaction terms

compared to third party

							Differences in transaction terms compared to third party	Differences in transaction terms compared to third party
Purchase/seller	Counterparty	Relationship with the counterparty		Transaction			transactions		Notes/accounts receivable(payable)		Footnote
			Purchase (sales)	Amount	Percentage of total purchase (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
CHI Microelectronics Limited	Elite Semiconductor Microelectronics Technology Inc.	Ultimate parent company	Sales	1,076,138 $	7.98%	Monthly payment in 30 days	$ -	-	265,413 $	18.52%

Table 2

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC.

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

December 31, 2024

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December31,2024	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
CHI Microelectronics Limitd	Elite Semiconductor Microeletronics Technology Inc.	Ultimate parent company	265,413 $	7.05	$ -	-	265,413 $	- $

Table 3

Table 4

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. Significant inter-company transactions during the reporting period For the Year Ended December 31, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
`1` `1`	CHI Microelectronics Limited CHI Microelectronics Limited	Elite Semiconductor Microelectronics Technology Inc. Elite Semiconductor Microelectronics Technology Inc.	(2) (2)	Sales Accounts receivable	1,076,138 $ 265,413	Note 4 Note 4	7.98% 1.50%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: The transaction terms are decided by the mutual party through negotiation.

Note 5: The disclosure requirement for the above disclosed amount is 1% of the consolidated total assets for balance sheet accounts and 1% of the consolidated total revenue for income statement accounts. Note 6: The transaction between parent company to subsidiary and subsidiaries were eliminated when preparing consolidated financial statements.

Table 4

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC.

Information on investees (exclude investees in Mainland China)

For the Year Ended December 31, 2024

Initial investment amount

Shares held as at December 31, 2024

Investor	Investee	Location	Main business activities	Balance as at December31,2024	Balance as at December 31, 2023	Numberofshares	Ownership (%)	Bookvalue	Net profit (loss) of the investee for the year ended December31,2024	Investment income (loss) recognised by the Company for the year ended December31,2024	Footnote
Elite Semiconductor Microelectronics Technology Inc. Elite Semiconductor Microelectronics Technology Inc. Elite Semiconductor Microelectronics Technology Inc. Elite Semiconductor Microelectronics Technology Inc. Elite Semiconductor Microelectronics Technology Inc. Charng Feng Investment Ltd. Charng Feng Investment Ltd. Charng Feng Investment Ltd. Charng Feng Investment Ltd.	Elite Semiconductor Memory Technology Inc. Charng Feng Investment Ltd. Elite Investment Services Ltd. Jie Yong Investment Ltd. Eon Silicon Solutions, Inc. USA Elite Memory Technology Inc. Canyon Semiconductor Inc. Elite Innovation Japan Ltd. CHI Microelectronics Limited	Taiwan Taiwan British Virgin Islands Taiwan U.S.A. Taiwan Taiwan Japan Hong Kong	Research and development, production, sales and related consulting services of integrated circuit General investment General investment General investment Product design, development and test Product design, wholesale and retail of electronic materials, manufacturing of electronic compenents, information software services and international trade International trade, manufacturing of electronic components, product design and information software services Product design, wholesale and retail of electronic materials, manufacturing of electronic components, information software services and international trade General trading	$ 272 500,000 32,785 270,000 13,304 69,407 80,337 2,430 844	$ 272 500,000 491,775 270,000 13,304 69,407 80,337 2,430 844	100,000 50,000,000 1 3,600,000 200,000 10,000,000 8,350,000 200 20,000	100 100 100 41.86 100 100 36.69 100 100	$ 21,267 583,818 55,831 163,007 1,483) ( 24,693 144,615 2,583 977	3,580 $ 3,553) ( 1,070) ( 6,981 176 3,132 48,013 1,338 114) (	3,580 $ 3,553) ( 1,070) ( 343) ( 176 3,132 17,716 1,338 114) (

Note 1: The foreign investment amount was translated at the exchange rate as at December 31, 2024

Table 5

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC.

Information on investments in Mainland China For the Year Ended December 31, 2024

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Investeein Mainland China	Mainbusiness activities	Paid-in Capital (Note4)	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as at January1,2024	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year endedDecember31,2024	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year endedDecember31,2024	Accumulated amount of remittance from Taiwan to Mainland China as at December 31,2024	Net income (loss) of investee for the year ended December 31, 2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2024 (Note2)	Book value of investment in Mainland China as at December 31,2024	Accumulated amount of investment income remitted back to Taiwan as atDecember31,2024	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Elite Semiconductor Microelectronics Technology (shenzhen) Inc. Elite Semiconductor Microelectronics Technology (Shanghai) Inc. Elite Semiconductor Microelectronics Technology (Xian) Inc. Companyname	Trading of goods or technical services, develop and sale products of networking system, storage, and peripherals, technical consulting services of integrated circuit, and after - sales services Product design, wholesale and retail of electronic materials, information software services and international trade Product design,wholesale and retail of electronic materials, information software services and international trade Accumulated amount of remittance from Taiwan to Mainland China as at December31,2024	99,650 $ 6,557 2,239 Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)(Note6)	(1) (1) (3) Ceiling of investments in Mainland China imposed by the Investment Commission of MOEA	99,650 $ 6,557 -	- $ - -	- $ - -	99,650 $ 6,557 -	483 $ 512 729) (	100 100 100	483 $ 512 729) (	94,468 $ 10,483 1,506	- $ - -	Note 5 Note 6 Note 7
Charng Feng Investment Ltd.	106,207 $	106,207 $	$ 350,291

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

(3) Others.

Note 2: Investment income (loss) was recognised based on financial statements prepared by each company which were audited by independent auditors. Note 3: The amount of the statement should show as New Taiwan dollars.

Note 4: Paid-in capital and investment amount translated at the exchange rate as at December 31, 2024.

Note 5: The Company's subsidiary, Charng Feng Investment Ltd., obtained the revised investment amount of USD 39,485.42, USD 2,500,000, and USD 500,000 approved by the Investment Commission, MOEA on February 6, 2020, July 10, 2020 and November 30, 2021, respectively. Note 6: The Company's subsidiary, Charng Feng Investment Ltd., obtained the investment amount of USD 200,000 approved by the Investment Commission of MOEA in May 20, 2020. Note 7: The Company’s subsidiary, Elite Semiconductor Microelectronics Technology (Xian) Inc, completed the registration of incorporation on September 29, 2024.

Table 6

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 1 Item Description Petty cash Bank deposits Demand deposits -New Taiwan Dollar -Foreign currency USD 63,972 exchange rate 32.785 EUR 1 exchange rate 34.14 RMB 2 exchange rate 4.478 Time deposits - New Taiwan Dollar Expiration date is from January 2, 2025 to February 3, 2025 at interests rate 1.23%~1.67% USD 4,007, exchange rate 32.785 expiration date is from January 6, 2025 to February 10, 2025 at interests rate 1.95%~3.90% CNY 121,052, exchange rate 4.478 expiration date is January 2, 2025 at interests rate 4.55% Total Time deposits - Foreign currency		Amount
		115 $ 269,472 2,097,329 21 9 1,016,900 131,367 542,071 4,057,284 $

Statement 1, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF TRADE RECEIVABLES

DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 2

Customer Name Description Amount Note General customer AA company $ 226,708 BB company 218,400 CC company 161,435 DD company 153,921 The balance of each customer has Others not exceeded 5% of the accounts 621,259 receivable. The accounts receivable past due over one year amounted 1,381,723 to $0. Less:Allowance for uncollectible account - $ 1,381,723

Statement 2, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF INVENTORIES

DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 3

Statement 3
				Amount
Item	Description		Cost	Net realisablevalue		Note
						The net realisable value
Raw materials		$	515,156	$	548,264	is net market value.
Work in progress			6,044,838		6,336,845	"
Finished goods			1,582,448		1,572,143	"
						The replacement cost is
Inventory in transit			9,864		9,864	net market value.
		$	8,152,306	$	8,467,116
Less: Allowance on market value decline
and obsolete and slow-moving
inventories		(	219,843)
		$	7,932,463

Statement 3, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 4

Name	BeginningBalance	BeginningBalance	Increase(note 1)	Increase(note 1)	Decrease(note 1)	Decrease(note 1)	Shares Ownership Amount 50,000,000 100% 583,818 $ 3,600,000 41.86% 163,007 1 100% 55,831 100,000 100% 21,267 200,000 100% 1,483) ( 822,440 $ EndingBalance	Shares Ownership Amount 50,000,000 100% 583,818 $ 3,600,000 41.86% 163,007 1 100% 55,831 100,000 100% 21,267 200,000 100% 1,483) ( 822,440 $ EndingBalance	Market Value or Net EquityValue	Market Value or Net EquityValue	Basis of valuation	Collateral orpledge	Note
	Shares	Amount	Shares	Amount	Shares	Amount			Unit Price	Total Amount
Charng Feng Investment Ltd. Jie Yong Investment Ltd. Elite Investment Services Ltd. Elite Semiconductor Memory Technology Inc. Eon Silicon Solutions Inc. USA	50,000,000 3,600,000 15 100,000 200,000	585,575 $ 160,817 483,183 20,517 1,557) ( 1,248,535 $	- - - - -	- 2,190 - 750 74 3,014 $	- - 14) ( - -	1,757) ($ - 427,352) ( - - 429,109) ($		583,818 $ 163,007 55,831 21,267 1,483) ( 822,440 $	12 $ 45 55,831,287 213 7) (	583,818 $ 163,007 55,831 21,267 1,483) ( 822,440 $	Equity method " " " "	None " " " "

Note 1: The amounts increased and decreased in the period include investment gains and losses, cumulative translation adjustments, valuation adjustment on financial assets and subsidiary owns the Company’s share.

Statement 4, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC.

STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 5

[Please refer to Note 6(7).]

Statement 5, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF TRADE PAYABLES

DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 6

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----- Start of picture text -----

Customer Name Description Amount Note
General customer:
A supplier $ 1,044,542
B supplier 480,639
C supplier 154,937
Others The balance of each supplier has
not exceeded 5% of the accounts
392,991 payable.
2,073,109
Related parties
CHI Microelectronics
Limited 265,413
$ 2,338,522
----- End of picture text -----

Statement 6, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 7

==> picture [754 x 14] intentionally omitted <==

----- Start of picture text -----

Creditor Description Amount Contract Period Interest Rate Collateral or pledge Note
----- End of picture text -----

Land Bank of Taiwan Credit loans Mega International Commercial Bank Co., Ltd. Credit loans Shin Kong Commercial Bank Co., Ltd. Credit loans Bank of Taiwan Credit loans	480,000 $ 2024.12.12~2025.3.12 1.91% None 420,000 2024.12.12~2025.1.15 1.90% None 400,000 2024.12.12~2025.1.15 1.8951%~1.8959% None 300,000 2024.12.12~2025.3.12 1.95% None 1,600,000 $

Statement 7, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF LONG-TERM BORROWINGS DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 8 Creditor Chang Hwa Commercial Bank, Ltd. Far Eastern International Bank, Ltd. Less:Current portion	Description Amount Long-term secured borrowings 643,400 $ Credit loans 637,500 1,280,900 231,200) ( 1,049,700 $	ContractPeriod Interest Rate 2022.10.7~2037.10.7 1.675% ~ 1.80% 2024.9.12~2027.8.19 2.008% ~ 2.036%	Collateralorpledge Note Land`、`building and structures None

Statement 8, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF BONDS PAYABLE

DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 9

Amount

Interest Total Unamortized Issuance Payment Coupon Issuance Repayment Ending Premiums Carrying Repayment Bonds Name Trustee Date Date Rate Amount Paid Balance (Discounts) Amount Term Collateral Note The first KGI Bank 2023.10.27 Not 0% domestic Co., Ltd. applicable unsecured Repayable convertible at maturity bonds $1,000,000 ($ 100) $ 999,900 ($ 37,179) $ 962,721 date None

Statement 9, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 10

Item Quantities Amount Note Sales revenue 1,400,514 thousands $ 13,513,322 Less: sales returns and discounts 818 thousands ( 28,154) Net sales revenue $ 13,485,168

Statement 10, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 11

Item
Direct material
Beginning raw materials
Add: Material purchased
Less: Transferred to expenses
Ending raw material
Raw material consumed
Direct labor
Manufacturing overhead
Manufacturing cost
Beginning Work in progress
Add: Work in progress purchased
Less: Transferred to expenses
Ending work in progress
Cost of finished goods
Add: Beginning finished goods
Finished goods purchased
Transferred from expenses
Less: Transferred to expenses
Ending finished goods
Others
Total cost of goods sold
Gain on reversal of market value
decline and slow-moving inventories
Total operating costs

Amount

74,177
$ 4,448,144
258)
(
515,156)
(
4,006,907
38,209
2,460,631

6,505,747
6,091,559
5,913,002
9,061)
(
6,044,838)
(
12,456,409

1,172,084

15,239
108,508
5,943)
(
1,582,448)
(
7,856
12,171,705
246,345)
(
11,925,360
$

Statement 11, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF MANUFACTURING OVERHEADS FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 12

Item Description Amount Note Processing fee $ 2,027,350 Depreciation charge 259,924 The balance of each accounts has not exceeded 5% of the Other expenses 173,357 manufacturing overhead. Total $ 2,460,631

Statement 12, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 13

Statement 13
Item	Description		Amount	Note
Salaries and wages		$	113,064
Professional service fees			100,318
Import and export charges			28,565
				The balance of each accounts has not
Other expenses			63,141	exceeded 5% of the selling expenses.
Total		$	305,088

Statement 13, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Statement 14

Item Description Salaries and wages Professional service fees Depreciation expense Other expenses Total	Description	Amount Note 159,152 $ 19,273 17,285 82,212 The balance of each accounts has not exceeded 5% of the administrative expenses. 277,922 $

Statement 14, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

==> picture [484 x 29] intentionally omitted <==

----- Start of picture text -----

Statement 15
Item Description Amount Note
----- End of picture text -----

Salaries and wages Depreciation expense Amortisation expenses Research and development expenses Other expenses Total	886,471 $ 160,188 149,547 72,905 182,376 The balance of each accounts has not exceeded 5% of the research and development expenses. 1,451,487 $

Statement 15, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2024 (Expressed in thousands of New Taiwan dollars)

Statement 16

Statement 16
Nature Employee Benefit Expense Wages and salaries Function	Year ended December 31,2024			Year ended December 31,2023
	$ 84,859 Classified as Operating Costs	$ 1,147,663 Classified as Operating Expenses	$ 1,232,522 Total	$ 87,870 Classified as Operating Costs	$ 1,038,931 Classified as Operating Expenses	$ 1,126,801 Total
Labor and health insurance fees	8,655	69,673	78,328	9,514	69,398	78,912
Pension costs	4,629	39,330	43,959	4,009	36,657	40,666
Directors'remuneration Other employee benefit expenses	- 2,828	11,023 19,663	11,023 22,491	- 2,615	7,605 16,368	7,605 18,983
Depreciation expense Amortisation expense	259,924 32	183,191 153,413	443,115 153,445	322,997 16	204,983 167,401	527,980 167,417

Note:

As at December 31, 2024 and 2023, the average number of the Company’s employee were 592 and 556, respectively, including 6 and 7 directors, who didn't concurrently serve as employees.
As at 2024 and 2023, the average employee benefit expense was $2,350 and $2,305, respectively.

3 .As at 2024 and 2023, the average employee salaries and wages for the current year was $2,103 and $2,052, respectively.

The average employee salaries and wages increased by 2.5% compared to the previous year.
The Company has set up audit committee, therefore, there was no supervisors’ remuneration.

Statement 16, Page1

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC.

SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION (Cont.) EXPENSES BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2024 (Expressed in thousands of New Taiwan dollars)

Statement 16

The Company’s compensation policies (including directors, supervisors, executive officers and employees).
According to the Company’s Articles of Incorporation, the Compensation Committee determine the salary for the directors, taking into account the extent and value of the services provided for the management of the Company and the standards of the industry within the R.O.C. then submitted to the Board of Directors for approval.

The Company could set different salaries between independent directors and general directors. According to the Company’s Articles of independent directors,

the salary for the independent directors should be based on Articles of Incorporation or have been approved by the shareholders' meeting, and could set reasonable salaries that different from general directors.

The Company’s compensation policies of executive officers and employees are based on fixed salary of salary structure, including base salary, meal allowance,

variable salary (including overtime wage and delay meal allowance), and bonus (including year-end bonus, supplemental bonus).

The salary of the position is in accordance with the salary standards of the industry, job responsibilities and the services provided for the operational objectives of the Company.

In addition to the operational performance, future business risk in industry and trend of development, the Company also takes personal performance and services provided to the Company for reference to determine reasonable salary.

The performance assessment and rationality of performance about executive officers are reviewed by Compensation Committee and Board of Directors, and the system of salary will be adjusted based on the Company's actual operations and related laws.

In accordance with the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses,

shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 1% for employees’ compensation and shall not be higher than 1% for directors’ remuneration.

Statement 16, Page2

AI assistant

Elite Semiconductor Microconsulting Inc. — Audit Report / Information 2024

52243_rns_2024-12-17_49506560-7e6f-4856-9110-40dbff8eed26.pdf

ELITE SEMICONDUCTOR

MICROELECTRONICS TECHNOLOGY INC.

PARENT COMPANY ONLY FINANCIAL

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Allowance for inventory valuation losses

Description

How our audit addressed the matter

Responsibilities of management and those charged with governance for the parent company only financial statements

Auditor’s responsibilities for the audit of the parent company only financial

statements

Shu-Chien Pai[Liu, Chien-Yu ]

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2024 AND 2023

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2024 AND 2023

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024 AND 2023

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024 AND 2023

ELITE SEMICONDUCTOR MICROELECTRONICS TECHNOLOGY INC. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2024 AND 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

FSC but not yet adopted by the Company

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(1) Compliance statement

(6) Financial assets at fair value through profit or loss

(11) Derecognition of financial assets

B. Goodwill

(20) Borrowings

(22) Convertible bonds payable

(23) Derecognition of financial liabilities

(25) Employee benefits

A. Short-term employee benefits

(a) Defined contribution plans

- (26) Employee share based payment

(28) Share capital

(29) Dividends

(30) Revenue recognition

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

A. Critical judgements in applying the Group’s accounting policies

B. Critical accounting estimates and assumptions

Evaluation of inventories

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at fair value through profit or loss

(3) Financial assets at fair value through other comprehensive income

(4) Accounts receivable

A. The aging analysis of accounts receivable is as follows:

(5) Inventories

(7) Property, plant and equipment

(9) Investment property

(10) Intangible assets

(11) Other non-current assets

(12) Short-term borrowings

(13) Bonds payable

(14) Other payables

- (15) Long term borrowings

Borrowing period and

(16) Pension

(c) Movements in net defined benefit liabilities are as follows:

(17) Share-based payment

(18) Share capital

B. Treasury shares

(19) Capital surplus

(20) Retained earnings

B. Dividend policy

(21) Operating revenue

A. Disaggregation of revenue from contracts with customers

B. Contract liabilities

(22) Interest income

Elite Semiconductor Microconsulting Inc. Audit Report / Information 2024