Hiwin Technologies Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2026 and 2025 and Independent Auditors' Review Report

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders

Hiwin Technologies Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Hiwin Technologies Corporation (the "Corporation") and its subsidiaries (collectively, the "Group") as of March 31, 2026 and 2025, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months ended March 31, 2026 and 2025, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements"). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting". endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2026 and 2025, the combined total assets of these non-significant subsidiaries were NT$6,637,355 thousand and NT$9,443,500 thousand, representing 12% and 17%, respectively, of the consolidated total assets, and the combined total liabilities of these subsidiaries were NT$2,975,310 thousand and NT$5,787,623 thousand, representing 17% and 33%, respectively, of the consolidated total liabilities; for the three months ended March 31, 2026 and 2025, the amounts of combined comprehensive income (loss) of these subsidiaries were NT$(31,094) thousand and NT$(83,639) thousand, representing (4)% and (23)%, respectively, of the consolidated total comprehensive income.

Qualified Conclusion

Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly in all material respects, the consolidated financial position of the Group as of March 31, 2026 and 2025, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2026 and 2025 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Shu-Ching Chiang and Hsiao-Fang Yen.

Deloitte & Touche
Taipei, Taiwan
Republic of China
May 8, 2026

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS	March 31, 2026		December 31, 2025		March 31, 2025
	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 8,062,146	15	$ 7,624,371	14	$ 7,575,229	14
Financial assets at fair value through profit or loss - current (Note 7)	525	-	330	-	2	-
Notes receivable from unrelated parties, net (Notes 9 and 20)	392,933	1	530,430	1	515,232	1
Notes receivable from related parties, net (Notes 9, 20 and 28)	272	-	556	-	1,266	-
Trade receivables from unrelated parties, net (Notes 9 and 20)	3,910,648	7	3,886,960	7	3,518,266	7
Trade receivables from related parties, net (Notes 9, 20 and 28)	315	-	333	-	1,514	-
Inventories (Note 10)	7,240,181	13	7,093,796	13	7,535,948	14
Other current assets (Notes 6, 28 and 29)	734,981	1	727,115	2	745,514	1
Total current assets	20,342,001	37	19,863,891	37	19,892,971	37
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Note 8)	1,371,664	2	1,121,345	2	1,274,867	2
Investments accounted for using the equity method (Note 12)	387,164	1	368,670	1	310,768	1
Property, plant and equipment (Notes 13, 28 and 29)	29,717,907	54	29,835,615	55	29,755,775	55
Right-of-use assets (Notes 14, 28 and 29)	634,689	1	653,322	1	705,713	1
Goodwill	294,144	1	294,341	-	274,994	-
Deferred tax assets (Note 4)	419,431	1	414,789	1	436,408	1
Prepayments for machinery and equipment (Note 15)	1,161,886	2	1,228,545	2	1,258,579	2
Refundable deposits (Note 28)	91,670	-	93,041	-	99,655	-
Other non-current assets (Note 9)	370,091	1	302,437	1	305,688	1
Total non-current assets	34,448,646	63	34,312,105	63	34,422,447	63
TOTAL	$ 54,790,647	100	$ 54,175,996	100	$ 54,315,418	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 16 and 28)	$ 1,738,835	3	$ 2,033,445	4	$ 1,690,444	3
Financial liabilities at fair value through profit or loss - current (Note 7)	7,448	-	14,767	-	15,114	-
Contract liabilities - current (Note 20)	84,383	-	54,528	-	121,001	-
Notes payable	9,353	-	4,576	-	2,972	-
Trade payables to unrelated parties	3,090,248	6	3,089,606	6	2,865,040	5
Trade payables to related parties (Note 28)	169,335	-	156,410	-	107,142	-
Other payables (Notes 17 and 28)	1,658,890	3	1,739,239	3	1,595,579	3
Dividends payable (Notes 19 and 25)	707,584	1	-	-	849,101	2
Current tax liabilities (Note 4)	276,115	1	136,603	-	306,060	1
Lease liabilities - current (Notes 14 and 28)	92,448	-	99,384	-	101,733	-
Current portion of long-term borrowings (Notes 16, 28 and 29)	803,446	2	977,336	2	1,228,120	2
Other current liabilities	227,097	-	223,852	1	217,878	1
Total current liabilities	8,865,182	16	8,529,746	16	9,100,184	17
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 16, 28 and 29)	6,786,854	12	6,712,084	12	7,099,326	13
Deferred tax liabilities (Note 4)	910,965	2	902,908	2	860,561	2
Lease liabilities - non-current (Notes 14 and 28)	403,768	1	419,523	1	462,648	1
Net defined benefit liabilities - non-current (Notes 4 and 18)	138,090	-	104,267	-	172,240	-
Other non-current liabilities (Note 16)	38,219	-	33,848	-	37,309	-
Total non-current liabilities	8,277,896	15	8,172,630	15	8,632,084	16
Total liabilities	17,143,078	31	16,702,376	31	17,732,268	33
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION
Ordinary shares	3,537,923	6	3,537,923	7	3,537,923	6
Capital surplus	7,479,735	14	7,479,735	14	7,479,735	14
Retained earnings
Legal reserve	4,213,350	8	4,213,350	8	4,028,836	8
Unappropriated earnings	20,821,215	38	20,949,461	38	20,153,878	37
Other equity	1,497,832	3	1,165,297	2	1,262,543	2
Total equity attributable to owners of the Corporation	37,550,055	69	37,345,766	69	36,462,915	67
NON-CONTROLLING INTERESTS	97,514	-	127,854	-	120,235	-
Total equity	37,647,569	69	37,473,620	69	36,583,150	67
TOTAL	$ 54,790,647	100	$ 54,175,996	100	$ 54,315,418	100

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors' review report dated May 8, 2026)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended March 31
	2026		2025
	Amount	%	Amount	%
SALES (Notes 20 and 28)	$ 6,379,288	100	$ 5,838,780	100
COST OF GOODS SOLD (Notes 10, 21 and 28)	4,341,614	68	4,096,643	70
GROSS PROFIT	2,037,674	32	1,742,137	30
OPERATING EXPENSES (Notes 21 and 28)
Selling and marketing expenses	521,287	8	487,257	8
General and administrative expenses	633,932	10	576,739	10
Research and development expenses	251,934	4	259,390	5
Total operating expenses	1,407,153	22	1,323,386	23
PROFIT FROM OPERATIONS	630,521	10	418,751	7
NON-OPERATING INCOME AND EXPENSES
Subsidized revenue (Note 16)	2,759	-	8,352	-
Finance costs (Notes 21 and 28)	(54,429)	(1)	(48,282)	(1)
Share of profit of associates accounted for using the equity method (Note 12)	15,551	-	10,312	-
Interest income	18,614	-	14,840	-
Other income (Note 28)	22,755	-	47,063	1
Net foreign exchange gain (Note 31)	103,261	2	173,763	3
Other expenses	(2,993)	-	(3,237)	-
Loss on disposal of property, plant and equipment (Note 28)	(2,669)	-	(2,275)	-
Valuation loss on financial assets (liabilities) at fair value through profit or loss	(14,145)	-	(19,295)	-
Total non-operating income and expenses	88,704	1	181,241	3
PROFIT BEFORE INCOME TAX	719,225	11	599,992	10
INCOME TAX EXPENSE (Notes 4 and 22)	170,229	2	142,130	2
NET PROFIT FOR THE PERIOD	548,996	9	457,862	8

(Continued)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended March 31
	2026		2025
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income	$ 250,319	4	$ (326,562)	(6)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	103,873	1	282,771	5
Income tax relating to items that may be reclassified subsequently to profit or loss (Note 22)	(21,655)	-	(55,958)	(1)
	82,218	1	226,813	4
Other comprehensive income (loss) for the period, net of income tax	332,537	5	(99,749)	(2)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$ 881,533	14	$ 358,113	6
NET PROFIT (LOSS) ATTRIBUTABLE TO:
Owners of the Corporation	$ 579,338	9	$ 482,799	8
Non-controlling interests	(30,342)	-	(24,937)	-
	$ 548,996	9	$ 457,862	8
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
Owners of the Corporation	$ 911,873	14	$ 382,969	6
Non-controlling interests	(30,340)	-	(24,856)	-
	$ 881,533	14	$ 358,113	6
EARNINGS PER SHARE (Note 23)
Basic	$ 1.64		$ 1.36
Diluted	$ 1.64		$ 1.36

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors' review report dated May 8, 2026) (Concluded)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands of New Taiwan Dollars, Except Dividends Per Share)

	Equity Attributable to Owners of the Corporation (Note 19)
	Ordinary Shares	Capital Surplus	Retained Earnings		Other Equity
			Legal Reserve	Unappropriated Earnings	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total	Non-controlling Interests (Note 11)
BALANCE ON JANUARY 1, 2025	$ 3,537,923	$ 7,479,735	$ 4,028,836	$ 20,520,180	$ (115,755)	$ 1,478,128	$ 36,929,047	$ 145,091
Appropriation of 2024 earnings
Cash dividends - NT$2.4 per share	-	-	-	(849,101)	-	-	(849,101)	-
Net profit (loss) for the three months ended March 31, 2025	-	-	-	482,799	-	-	482,799	(24,937)
Other comprehensive income (loss) for the three months ended March 31, 2025, net of income tax	-	-	-	-	226,732	(326,562)	(99,830)	81
Total comprehensive income (loss) for the three months ended March 31, 2025	-	-	-	482,799	226,732	(326,562)	382,969	(24,856)
BALANCE ON MARCH 31, 2025	$ 3,537,923	$ 7,479,735	$ 4,028,836	$ 20,153,878	$ 110,977	$ 1,151,566	$ 36,462,915	$ 120,235
BALANCE ON JANUARY 1, 2026	$ 3,537,923	$ 7,479,735	$ 4,213,350	$ 20,949,461	$ 165,720	$ 999,577	$ 37,345,766	$ 127,854
Appropriation of 2025 earnings
Cash dividends - NT$2.0 per share	-	-	-	(707,584)	-	-	(707,584)	-
Net profit (loss) for the three months ended March 31, 2026	-	-	-	579,338	-	-	579,338	(30,342)
Other comprehensive income (loss) for the three months ended March 31, 2026, net of income tax	-	-	-	-	82,216	250,319	332,535	2
Total comprehensive income (loss) for the three months ended March 31, 2026	-	-	-	579,338	82,216	250,319	911,873	(30,340)
BALANCE ON MARCH 31, 2026	$ 3,537,923	$ 7,479,735	$ 4,213,350	$ 20,821,215	$ 247,936	$ 1,249,896	$ 37,550,055	$ 97,514

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors' review report dated May 8, 2026)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 719,225	$ 599,992
Adjustments for:
Depreciation expense	612,130	573,478
Amortization expense	17,312	12,717
Expected credit loss reversed on trade receivables	(2,925)	(317)
Net loss on fair value changes of financial assets and liabilities at fair value through profit or loss	6,923	15,112
Finance costs	54,429	48,282
Interest income	(18,614)	(14,840)
Share of profit of associates accounted for using the equity method	(15,551)	(10,312)
Loss on disposal of property, plant and equipment	2,669	2,275
Write-down of inventories	36,454	35,697
Unrealized gain on foreign currency exchange, net	(60,452)	(92,430)
Others	(1,466)	(1,019)
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through profit or loss	(14,437)	(5,311)
Notes receivable	144,825	70,336
Trade receivables	57,866	541,020
Inventories	(104,407)	58,882
Other current assets	(7,516)	9,392
Contract liabilities	29,855	(18,563)
Notes payable	4,777	341
Trade payables	(18,506)	(444,179)
Other payables	(32,075)	(334,473)
Other current liabilities	3,199	17,032
Net defined benefit liabilities	35,015	27,184
Cash generated from operations	1,448,730	1,090,296
Interest received	17,280	20,941
Interest paid	(57,485)	(51,002)
Income tax paid	(48,082)	(18,161)
Net cash generated from operating activities	1,360,443	1,042,074
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment	(261,206)	(317,896)
Proceeds from disposal of property, plant and equipment	5,373	4,911
Decrease in refundable deposits	799	1,330
Increase in other non-current assets	(85,993)	(48,301)
Increase in prepayments for machinery and equipment	(192,445)	(313,400)
Net cash used in investing activities	(533,472)	(673,356)

(Continued)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2026	2025
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings	$ (302,772)	$ 268,278
Proceeds from long-term borrowings	292,838	44,710
Repayments of long-term borrowings	(399,236)	(480,258)
Refund of guarantee deposits received	(313)	-
Repayment of the principal portion of lease liabilities	(36,942)	(38,279)
Increase (decrease) in other non-current liabilities	5,546	(26,857)
Net cash used in financing activities	(440,879)	(232,406)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	51,683	84,988
NET INCREASE IN CASH AND CASH EQUIVALENTS	437,775	221,300
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	7,624,371	7,353,929
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$ 8,062,146	$ 7,575,229

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche auditors’ review report dated May 8, 2026) (Concluded)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Hiwin Technologies Corporation (the "Corporation") was incorporated on October 11, 1989. It manufactures and sells ballscrews, linear guideways, industrial robots, aerospace automation equipment parts, computer numerical control (CNC) milling machines and medical equipment.

The Corporation obtained approval from the Securities and Futures Bureau (SFB) of the Financial Supervisory Commission (FSC) to become a public company on April 16, 1997. The shares of the Corporation have been listed on the Taiwan Stock Exchange (TWSE) since June 26, 2009.

The consolidated financial statements are presented in the Corporation's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation's board of directors on May 8, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the FSC

Except for the following, the initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Group's accounting policies:

Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"

1) The amendments to the application guidance of classification of financial assets

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

a) if a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if,

In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and
In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature.

b) To clarify that a financial asset has non-recourse features if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

c) To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches.

2) The amendments to the application guidance of derecognition of financial liabilities

The amendments mainly stipulate that a financial liability is derecognized on the settlement date. However, when settling a financial liability in cash using an electronic payment system, the Group can choose to derecognize the financial liability before the settlement date if, and only if, the Group has initiated a payment instruction that resulted in:

The Group having no practical ability to withdraw, stop or cancel the payment instruction;
The Group having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and
The settlement risk associated with the electronic payment system being insignificant.

The Group has elected not to restate prior reporting periods for the initial application of the above amendments.

b. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosures in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

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

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

11 -

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

3) Level 3 inputs are unobservable inputs for an asset or liability.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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

See Note 11, Tables 6 and 7 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

d. Other material accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2025.

1) Derecognition of financial liabilities

Financial liabilities are derecognized on the settlement date, which is the date on which the liability is extinguished because the Group's obligations are discharged, cancelled or have expired, or the liability is substantially modified or exchanged for a debt instrument with substantially different terms. The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

2) Retirement benefits

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

12 -

3) Income tax expense

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

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, management is required to make judgments, estimations and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When the Group develops material accounting estimates, management continually reviews the estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Group's management, the accounting policies, estimates, and assumptions adopted by the Group have not been subject to material accounting judgements, estimates and assumptions uncertainty.

CASH AND CASH EQUIVALENTS

	March 31, 2026	December 31, 2025	March 31, 2025
Cash on hand	$ 1,731	$ 1,470	$ 2,318
Checking accounts and demand deposits	5,395,142	5,201,971	5,402,702
Pledged time deposits	616	609	810
Cash equivalents
Time deposits (investments with original maturities of 3 months or less)	2,665,273	2,420,930	2,170,209
	8,062,762	7,624,980	7,576,039
Less: Pledged time deposits (classified as other current assets)	(616)	(609)	(810)
	$ 8,062,146	$ 7,624,371	$ 7,575,229
Rate of interest per annum (%)
Cash in bank	0.00-3.43	0.00-3.43	0.00-4.30
Time deposits (investments with original maturities of 3 months or less)	0.73-3.97	0.10-3.60	0.20-4.32
Pledged time deposits (Note 29)	0.48-1.58	0.28-1.68	0.05-1.68

13 -

FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

The Group’s financial assets and liabilities mandatorily designated as at fair value through profit or loss (FVTPL) are all generated from its derivative financial products of foreign exchange forward contracts. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting are as follows:

	Currency	Maturity Date	Notional Amount (In Thousands)
March 31, 2026
Sell	EUR/NTD	2026.4.30-2026.5.29	EUR3,500/NTD129,193
Sell	CNY/NTD	2026.4.17-2026.6.30	CNY130,000/NTD597,448
Sell	USD/NTD	2026.4.15-2026.6.30	USD3,100/NTD98,058
December 31, 2025
Sell	EUR/NTD	2026.1.23-2026.3.31	EUR6,200/NTD227,466
Sell	CNY/NTD	2026.1.22-2026.3.31	CNY135,000/NTD595,107
Sell	USD/NTD	2026.1.30-2026.3.31	USD4,300/NTD133,912
March 31, 2025
Sell	EUR/NTD	2025.4.10-2025.6.30	EUR3,300/NTD114,012
Sell	CNY/NTD	2025.4.10-2025.6.30	CNY160,000/NTD721,521
Sell	USD/NTD	2025.4.7-2025.6.30	USD4,100/NTD134,470

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

	March 31, 2026	December 31, 2025	March 31, 2025
Name of Investee Company
Domestic listed ordinary shares
Hiwin Mikrosystem Corp. (Hiwin Mikrosystem)	$ 1,247,864	$ 981,145	$ 1,119,267
Ever Fortune. AI Co., Ltd. (Ever Fortune)	123,800	140,200	155,600
Domestic unlisted ordinary shares
King Kong Iron Work Ltd.	-	-	-
	$ 1,371,664	$ 1,121,345	$ 1,274,867

These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

NOTES RECEIVABLE AND TRADE RECEIVABLES

	March 31, 2026	December 31, 2025	March 31, 2025
Notes receivable
At amortized cost
Gross carrying amount	$ 393,238	$ 531,018	$ 516,524
Less: Allowance for impairment loss	(33)	(32)	(26)
	$ 393,205	$ 530,986	$ 516,498
Trade receivables
At amortized cost
Gross carrying amount	$ 3,931,735	$ 3,912,626	$ 3,537,297
Less: Allowance for impairment loss	(20,772)	(25,333)	(17,517)
	$ 3,910,963	$ 3,887,293	$ 3,519,780

a. Notes receivable

The Group's aging of notes receivable is as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Not past due	$ 393,238	$ 531,018	$ 516,524
Past due	-	-	-
	$ 393,238	$ 531,018	$ 516,524

The above aging schedule was based on the past due days.

b. Trade receivables

The Group determines the credit period of sales of goods based on the counterparty's credit rating, location and transaction terms.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlooks. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.

The Group writes off a trade receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables:

	Not Past Due	1 to 120 Days	121 to 360 Days	Over 360 Days	Total
March 31, 2026
Expected credit loss rate	0%-0.1%	0%-40%	0%-100%	100%
Gross carrying amount	$ 3,792,934	$ 111,232	$ 14,273	$ 13,296	$ 3,931,735
Loss allowance (Lifetime ECLs)	(465)	(3,058)	(3,953)	(13,296)	(20,772)
Amortized cost	$ 3,792,469	$ 108,174	$ 10,320	$ -	$ 3,910,963
December 31, 2025
Expected credit loss rate	0%-0.1%	0%-40%	0%-100%	100%
Gross carrying amount	$ 3,737,055	$ 135,747	$ 24,274	$ 15,550	$ 3,912,626
Loss allowance (Lifetime ECLs)	(328)	(5,073)	(4,382)	(15,550)	(25,333)
Amortized cost	$ 3,736,727	$ 130,674	$ 19,892	$ -	$ 3,887,293
March 31, 2025
Expected credit loss rate	0%-0.1%	0%-40%	0%-100%	100%
Gross carrying amount	$ 3,401,707	$ 117,025	$ 5,976	$ 12,589	$ 3,537,297
Loss allowance (Lifetime ECLs)	(411)	(2,466)	(2,051)	(12,589)	(17,517)
Amortized cost	$ 3,401,296	$ 114,559	$ 3,925	$ -	$ 3,519,780

The movements of the loss allowance were as follows (other receivables are classified as other non-current assets):

	For the Three Months Ended March 31, 2026
	Notes Receivable	Trade Receivables	Other Receivables
Balance on January 1, 2026	$ 32	$ 25,333	$ 27,395
Net remeasurement of loss allowance	1	(2,926)	-
Amounts written off	-	(1,635)	-
Foreign exchange gains and losses	-	-	-
Balance on March 31, 2026	$ 33	$ 20,772	$ 27,395

17 -

	For the Three Months Ended March 31, 2025
	Notes Receivable	Trade Receivables	Other Receivables
Balance on January 1, 2025	$ 49	$ 18,929	$ 27,395
Net reversal of impairment loss	(23)	(294)	-
Amounts written off	-	(1,938)	-
Foreign exchange gains and losses	-	820	-
Balance on March 31, 2025	$ 26	$ 17,517	$ 27,395

10. INVENTORIES

	March 31, 2026	December 31, 2025	March 31, 2025
Merchandise	$ 547	$ 1,574	$ 645
Finished goods	3,113,735	3,160,683	3,216,885
Work in process	1,756,851	1,534,707	1,588,192
Raw materials and supplies	2,122,340	2,142,880	2,414,224
Inventory in transit	246,708	253,952	316,002
	$ 7,240,181	$ 7,093,796	$ 7,535,948

The cost of inventories recognized as cost of goods sold for the three months ended March 31, 2026 and 2025 was $4,341,614 thousand and $4,096,643 thousand, respectively.

The cost of inventories recognized as cost of goods sold for the three months ended March 31, 2026 and 2025 included inventory write-downs of $36,454 thousand and $35,697 thousand, respectively, and unallocated fixed overhead of $91,238 thousand and $71,830 thousand, respectively.

11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Entities included in the Group’s consolidated financial statements were as follows:

Investor	Investee	Main Business	% of Ownership
			March 31, 2026	December 31, 2025	March 31, 2025
The Corporation	Hiwin Corporation, U.S.A. (“Hiwin USA”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Hiwin Corporation, Japan (“Hiwin Japan”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Hiwin GmbH (“Hiwin Germany”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Eterbright Solar Corporation (“Eterbright”)	Research, development, design, manufacture and sale of solar cell, electronic components, electric power supply, electric transmission and power distribution machinery products	89	89	89
					(Continued)

Investor	Investee	Main Business	% of Ownership
			March 31, 2026	December 31, 2025	March 31, 2025
The Corporation	Hiwin Singapore Pte. Ltd. (“Hiwin Singapore”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Hiwin Corporation (“Hiwin Korea”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Hiwin Technologies (China) Corporation (“Hiwin China”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Matrix Precision Co., Ltd. (“Matrix Precision”)	Research, development, production, manufacture and sale of gear cutting tools and machinery	67	67	61
	Hiwin Healthcare Corp.	Sale of medical robots	100	100	100
	Hiwin S.R.L. (“Hiwin Italy”)	Sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Matrix Machine Tool (Coventry) Limited (“Matrix England”)	Design, integrated application, research, development, manufacture and sale of thread forming machinery	100	100	100
	Hiwin (Schweiz) GmbH (“Hiwin Schweiz”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	81	81	81
Hiwin Germany	Hiwin Schweiz	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	19	19	19
	Hiwin S.R.O. (“Hiwin Czech”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
	Hiwin SAS (“Hiwin France”)	Sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100
Matrix Precision	Suzhou Matrix Precision Machinery Co., Ltd. (“Suzhou Matrix”)	Sale of gear cutting tools and machinery	100	100	100
Hiwin Schweiz	Hiwin Bulgaria Eood (“Hiwin Bulgaria”)	Sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100	100

Except for the financial statements of Hiwin China and Hiwin Germany for the three months ended March 31, 2026 and 2025, and the financial statements of Matrix Precision for the three months ended March 31, 2026, which were reviewed by the independent auditors, the remaining subsidiaries are considered immaterial. (Matrix Precision has been considered a material subsidiary since 2026) their financial statements have not been reviewed.

The resolution to liquidate and dissolve Eterbright was approved during the extraordinary meeting of shareholders on November 27, 2023. The base date for dissolution was set as February 29, 2024, and this was approved by the Ministry of Economic Affairs on March 20, 2024. As of March 31, 2026, the liquidation has not yet been completed.

b. Details of subsidiaries that have material non-controlling interests

Name of Subsidiary	Proportion of Ownership and Voting Rights Held by Non-controlling Interests
	March 31, 2026	December 31, 2025	March 31, 2025
Eterbright	11%	11%	11%
Matrix Precision (Note 24)	33%	33%	39%

See Tables 6 and 7 for the information on places of incorporation and principal places of business.

Name of Subsidiary	Profit (Loss) and Comprehensive Income (Loss) Allocated to Non-controlling Interests		Accumulated Non-controlling Interests
	For the Three Months Ended March 31		March 31, 2026	December 31, 2025	March 31, 2025
	2026	2025
Eterbright	$ 173	$ 95	$ 62,022	$ 61,849	$ 61,527
Matrix Precision	(30,513)	(24,951)	35,492	66,005	58,708
	$ (30,340)	$ (24,856)	$ 97,514	$ 127,854	$ 120,235

The summarized financial information below represents amounts before intragroup eliminations.

Eterbright

	March 31, 2026	December 31, 2025	March 31, 2025
Current assets	$ 580,634	$ 578,750	$ 575,927
Non-current assets	47,798	47,798	47,798
Current liabilities	(50,947)	(50,668)	(50,849)
Non-current liabilities	-	-	-
Equity	$ 577,485	$ 575,880	$ 572,876
Equity attributable to:
Owners of Eterbright	$ 515,463	$ 514,031	$ 511,349
Non-controlling interests of Eterbright	62,022	61,849	61,527
	$ 577,485	$ 575,880	$ 572,876
	For the Three Months Ended March 31
---	---	---
	2026	2025
Revenue	$ -	$ -
Net profit for the period	$ 1,605	$ 882
Other comprehensive income for the period	-	-
Total comprehensive income for the period	$ 1,605	$ 882
Profit and total comprehensive income attributable to:
Owners of Eterbright	$ 1,432	$ 787
Non-controlling interests of Eterbright	173	95
	$ 1,605	$ 882
Net cash inflow from:
Operating activities	$ 1,741	$ 1,364
Investing activities	-	-
Financing activities	-	-
Net cash inflow	$ 1,741	$ 1,364

Matrix Precision and Matrix Precision's subsidiaries

	March 31, 2026	December 31, 2025	March 31, 2025
Current assets	$ 487,468	$ 496,126	$ 500,892
Non-current assets	2,449,197	2,463,962	2,437,931
Current liabilities	(945,052)	(841,692)	(828,232)
Non-current liabilities	(1,869,707)	(1,902,237)	(1,944,942)
Equity	$ 121,906	$ 216,159	$ 165,649
Equity attributable to:
Owners of Matrix Precision	$ 82,152	$ 145,669	$ 100,748
Non-controlling interests of Matrix Precision	39,754	70,490	64,901
	$ 121,906	$ 216,159	$ 165,649
		For the Three Months Ended March 31
		2026	2025
Revenue		$ 65,361	$ 33,623
Net loss for the period		$ (94,259)	$ (64,685)
Other comprehensive income for the period		6	206
Total comprehensive loss for the period		$ (94,253)	$ (64,479)
Loss attributable to:
Owners of Matrix Precision		$ (63,521)	$ (39,341)
Non-controlling interests of Matrix Precision		(30,738)	(25,344)
		$ (94,259)	$ (64,685)
Total comprehensive loss attributable to:
Owners of Matrix Precision		$ (63,517)	$ (39,216)
Non-controlling interests of Matrix Precision		(30,736)	(25,263)
		$ (94,253)	$ (64,479)
Net cash inflow (outflow) from:
Operating activities		$ (34,473)	$ (60,905)
Investing activities		(49,621)	(52,073)
Financing activities		110,102	107,215
Net cash inflow (outflow)		$ 26,008	$ (5,763)

20 -

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	March 31, 2026	December 31, 2025	March 31, 2025
Associates that are not individually material	$ 387,164	$ 368,670	$ 310,768
		For the Three Months Ended March 31
		2026	2025
The Group’s share of:
Profit for the period		$ 15,551	$ 10,312
Other comprehensive income for the period		-	-
Total comprehensive income for the period		$ 15,551	$ 10,312

Investments were accounted for using the equity method and the share of profit or loss and other comprehensive income (loss) of those investments were calculated based on the financial statements that have not been reviewed. Management believes there is no material impact on the equity method of accounting or the calculation of the share of profit or loss and other comprehensive income (loss) from the financial statements that have not been reviewed.

13. PROPERTY, PLANT AND EQUIPMENT

	For the Three Months Ended March 31, 2026
	Beginning Balance	Additions	Disposals	Reclassified Amount	Translation Adjustments	Ending Balance
Cost
Land	$ 5,498,985	$ -	$ -	$ -	$ (63)	$ 5,498,922
Buildings and improvements	21,216,600	11,623	(165)	339,523	54,849	21,622,430
Machinery and equipment	13,786,575	84,561	(286,943)	232,754	10,567	13,827,514
Transportation equipment	291,142	8,502	(12,809)	11,904	(1,098)	297,641
Leasehold improvements	66,093	-	-	-	(518)	65,575
Miscellaneous equipment	2,866,191	36,727	(30,613)	14,562	1,249	2,888,116
Construction in progress	497,199	77,433	-	(339,503)	715	235,844
	44,222,785	$ 218,846	$ (330,530)	$ 259,240	$ 65,701	44,436,042
Accumulated depreciation and impairment
Buildings and improvements	4,110,898	$ 147,627	$ (165)	$ -	$ 16,421	4,274,781
Machinery and equipment	8,248,031	392,777	(282,901)	-	4,728	8,362,635
Transportation equipment	179,350	10,902	(10,311)	-	(804)	179,137
Leasehold improvements	41,682	1,764	-	-	(608)	42,838
Miscellaneous equipment	1,807,209	79,923	(29,111)	(241)	964	1,858,744
	14,387,170	$ 632,993	$ (322,488)	$ (241)	$ 20,701	14,718,135
	$ 29,835,615					$ 29,717,907

For the Three Months Ended March 31, 2025

	Beginning Balance	Additions	Disposals	Reclassified Amount	Translation Adjustments	Ending Balance
Cost
Land	$ 5,504,601	$ -	$ -	$ -	$ 42,942	$ 5,547,543
Buildings and improvements	18,965,873	11,054	-	130,130	156,304	19,263,361
Machinery and equipment	13,935,317	69,436	(271,050)	292,320	53,021	14,079,044
Transportation equipment	265,989	7,324	(3,707)	2,344	10,227	282,177
Leasehold improvements	65,396	-	-	-	2,223	67,619
Miscellaneous equipment	2,525,704	58,283	(11,720)	28,172	27,302	2,627,741
Construction in progress	1,812,624	221,879	-	(124,393)	6,956	1,917,066
	43,075,504	$ 367,976	$ (286,477)	$ 328,573	$ 298,975	43,784,551
Accumulated depreciation and impairment
Buildings and improvements	3,569,161	$ 122,215	$ -	$ -	$ 37,147	3,728,523
Machinery and equipment	8,269,954	390,555	(265,454)	-	29,756	8,424,811
Transportation equipment	156,741	9,770	(2,891)	-	6,077	169,697
Leasehold improvements	34,574	1,777	-	-	1,297	37,648
Miscellaneous equipment	1,595,454	67,304	(10,946)	(3)	16,288	1,668,097
	13,625,884	$ 591,621	$ (279,291)	$ (3)	$ 90,565	14,028,776
	$ 29,449,620					$ 29,755,775

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings and improvements
Main buildings	8-55 years
Electrical power equipment	5-15 years
Engineering system	5-20 years
Machinery and equipment
Machinery equipment	3-20 years
Inspection equipment	3-20 years
Transportation equipment	2-10 years
Leasehold improvements	2-17 years
Miscellaneous equipment	1-15 years

Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 29.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	March 31, 2026	December 31, 2025	March 31, 2025
Carrying amount (Note 29)
Land	$ 353,378	$ 350,654	$ 367,761
Buildings	270,263	292,196	321,846
Transportation equipment	8,611	7,868	13,973
Miscellaneous equipment	2,437	2,604	2,133
	$ 634,689	$ 653,322	$ 705,713

For the Three Months Ended March 31

	2026	2025
Additions to right-of-use assets	$ 13,880	$ 20,099
Depreciation charge for right-of-use assets
Land	$ 4,965	$ 4,875
Buildings	30,186	31,315
Transportation equipment	664	959
Miscellaneous equipment	174	137
	$ 35,989	$ 37,286

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the three months ended March 31, 2026 and 2025.

b. Lease liabilities

	March 31, 2026	December 31, 2025	March 31, 2025
Carrying amount
Current	$ 92,448	$ 99,384	$ 101,733
Non-current	$ 403,768	$ 419,523	$ 462,648

Range of discount rate for lease liabilities was as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Land	1.50%-1.96%	1.50%-2.02%	1.50%-2.02%
Buildings	0.90%-6.37%	0.90%-6.37%	0.90%-5.35%
Transportation equipment	1.48%-2.38%	1.23%-2.38%	1.23%-4.10%
Miscellaneous equipment	1.48%-4.69%	1.48%-4.69%	1.48%-4.10%

c. Material leasing activities and terms

The Group leases certain transportation and miscellaneous equipment for the use of product manufacturing and marketing with lease terms of 1 to 7 years. These arrangements do not contain renewal or purchase options.

The Group also leases land and buildings for the use of plants and offices with lease terms of 1 to 50 years. The lease contract for land located in the Republic of China specifies that lease payments will be adjusted on the basis of changes in the consumer price index or announced land value prices. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

23 -

d. Other lease information

	For the Three Months Ended March 31
	2026	2025
Expenses relating to short-term leases	$ 2,835	$ 3,163
Expenses relating to low-value asset leases	$ 6,936	$ 4,567
Total cash outflow for leases	$ (46,713)	$ (46,009)

The Group's leases of certain equipment qualify as short-term leases and low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

15. PREPAYMENTS FOR MACHINERY AND EQUIPMENT

The aging of prepayments for machinery and equipment is as follows:

The Date of Initial Cost Contribution	March 31, 2026	December 31, 2025	March 31, 2025
Within 1 year	$ 650,999	$ 693,947	$ 684,232
1-2 years	324,558	331,278	265,292
2-5 years	102,052	103,356	179,437
More than 5 years	84,277	99,964	129,618
	$ 1,161,886	$ 1,228,545	$ 1,258,579

In order to maintain key manufacturing technologies, reduce product costs and improve automation of the equipment, the Group designed, developed, and assembled the equipment by itself. The abovementioned prepayments for machinery and equipment include both internally-developed and outsourced equipment.

16. BORROWINGS

a. Short-term borrowings

	March 31, 2026	December 31, 2025	March 31, 2025
Unsecured borrowings
Line of credit borrowings	$ 1,738,835	$ 2,033,445	$ 1,690,444
Rate of interest per annum (%)
Line of credit borrowings	1.44-4.62	1.29-5.28	0.87-6.28

b. Long-term borrowings

	March 31, 2026	December 31, 2025	March 31, 2025
Secured borrowings (Note 29)
Secured loans - Expires March 2027 to December 2042	$ 6,723,972	$ 7,082,740	$ 6,765,397
Unsecured borrowings
Unsecured loans - Expires March 2029 to October 2030	866,328	606,680	1,562,049
	7,590,300	7,689,420	8,327,446
Less: Current portion	(803,446)	(977,336)	(1,228,120)
Long-term borrowings	$ 6,786,854	$ 6,712,084	$ 7,099,326
Rate of interest per annum (%)
Secured loans	1.32-4.12	1.32-4.12	1.26-4.12
Unsecured loans	0.90-3.81	0.90-5.49	0.90-3.99

In August 2019, the Corporation received a qualification letter for the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan from the Ministry of Economic Affairs, and therefore received the subsidy for processing fee of long-term borrowings. As of March 31, 2026, $1,002,000 thousand was drawn down for building the plant, the purchase of machinery and equipment and the use of operating capital. The Corporation recognized $22,632 thousand as a government grant, which is the difference between the loan amount obtained at a lower-than-market interest rate and the fair value, which was accounted for as deferred revenue and would be subsequently recognized in profit or loss over the useful life of the asset.

OTHER PAYABLES

	March 31, 2026	December 31, 2025	March 31, 2025
Payables for salaries and bonuses	$ 606,315	$ 751,344	$ 488,200
Payables for annual leave	273,006	247,098	238,372
Payables for compensation of employees	162,693	115,859	198,962
Payables for remuneration of directors	83,142	58,120	97,557
Payables for purchases of equipment	56,711	98,830	128,550
Others	477,023	467,988	443,938
	$ 1,658,890	$ 1,739,239	$ 1,595,579

RETIREMENT BENEFIT PLANS

For the three months ended March 31, 2026 and 2025, the pension expenses of defined benefit plans were $6,267 thousand and $6,526 thousand, respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2025 and 2024, respectively.

19. EQUITY

a. Ordinary shares

	March 31, 2026	December 31, 2025	March 31, 2025
Number of shares authorized (in thousands)	1,000,000	1,000,000	1,000,000
Shares authorized	$10,000,000	$10,000,000	$10,000,000
Number of shares issued and fully paid (in thousands)	353,792	353,792	353,792
Shares issued	$3,537,923	$3,537,923	$3,537,923

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

b. Capital surplus

	March 31, 2026	December 31, 2025	March 31, 2025
May be used to offset a deficit, distributed as cash dividends or transferred to share capital (Note)
Issuance of ordinary shares	$ 7,469,101	$ 7,469,101	$ 7,469,101
Invalid employee share options	10,634	10,634	10,634
	$ 7,479,735	$ 7,479,735	$ 7,479,735

Note: Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, until the accumulated legal reserve equals the Corporation’s paid-in capital, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit shall be distributed as dividends, where the dividends distributed should not exceed 6% of the remaining profit. The Corporation’s profit may be distributed in the form of cash or share dividends; however, the ratio of share dividends distributed shall not exceed two-thirds of the Corporation’s total amount of dividends and bonuses distributed to shareholders. A distribution plan is also to be made by the board of directors and should be resolved in the shareholder’s meeting. The dividends could be distributed in whole or in part by cash after the resolution has been passed by more than half of the directors present at the meeting of the board of directors, in which at least two-thirds of the total number of directors should be present. In addition, a report of such distribution shall be submitted to the shareholders’ meeting. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 21-c.

The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2025 and 2024 were as follows:

	Appropriation of Earnings		Dividends Per Share (NT$)
	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Legal reserve	$ 146,290	$ 184,514
Cash dividends	707,584	849,101	$ 2.0	$ 2.4

The appropriations of cash dividends per share for 2025 and 2024 had been approved by the board of directors on February 26, 2026 and 2025 respectively, the other appropriations of earnings for 2024 had been approved in the shareholders' meeting on May 28, 2025, and the other appropriation of earnings for 2025 is subject to the resolution of the shareholders in their meeting to be held on May 27, 2026.

20. REVENUE

		For the Three Months Ended March 31
		2026	2025
Revenue from contracts with customers
Revenue from the sale of goods		$ 6,379,288	$ 5,838,780
a. Contract balances
	March 31, 2026	December 31, 2025	March 31, 2025
Notes receivable and accounts receivable (Note 9)	$ 4,304,168	$ 4,418,279	$ 4,036,278
Contract liabilities - current Sale of goods	$ 84,383	$ 54,528	$ 121,001

b. Disaggregation of revenue

	For the Three Months Ended March 31
	2026	2025
Linear guideways	$ 3,820,856	$ 3,624,350
Ballscrews	1,259,785	1,114,116
Industrial robots	747,419	510,881
Others	551,228	589,433
	$ 6,379,288	$ 5,838,780

21. NET PROFIT FROM CONTINUING OPERATIONS

a. Finance costs

	For the Three Months Ended March 31
	2026	2025
Interest on bank loans	$ 51,875	$ 45,439
Interest on lease liabilities	2,554	2,843
	$ 54,429	$ 48,282

Information about capitalized interest is as follows:

	For the Three Months Ended March 31
	2026	2025
Capitalized interest	$ 2,146	$ 11,629
Capitalization rates (%)	1.65-4.89	1.38-6.28

b. Employee benefits expense, depreciation and amortization expenses

	Operating Costs	Operating Expenses	Non-business – Other Expenses	Total
For the Three Months Ended March 31, 2026
Short-term employee benefits	$1,056,890	$ 819,469	$ -	$1,876,359
Post-employment benefits
Defined contribution plans	32,163	20,695	-	52,858
Defined benefit plans (Note 18)	2,238	4,029	-	6,267
Other employee benefits	39,034	34,049	-	73,083
Depreciation expense	493,086	118,953	91	612,130
Amortization expense	5,102	12,210	-	17,312
For the Three Months Ended March 31, 2025
Short-term employee benefits	919,577	741,120	-	1,660,697
Post-employment benefits
Defined contribution plans	31,850	20,727	-	52,577
Defined benefit plans (Note 18)	2,402	4,124	-	6,526
Other employee benefits	39,908	22,246	-	62,154
Depreciation expense	474,443	99,035	-	573,478
Amortization expense	2,104	10,613	-	12,717

c. Compensation of employees and remuneration of directors

In accordance with the Corporation’s Articles of Incorporation, the Corporation is required to accrue employees compensation and directors’ remuneration at rates of no less than 1% and no more than 4%, respectively, of net profit before income tax, employees compensation, and directors’ remuneration. Pursuant to the amendments to the Securities and Exchange Act in August 2024, revisions to the Articles have been approved in the 2025 shareholders’ meeting. The Articles’ revisions stipulate that no less than 1% of net profit before income tax, employees compensation and directors’ remuneration shall be allocated, of which no less than 0.3% of the employees compensation is to be distributed to non-executive employees. For the three months ended March 31, 2026 and 2025, the compensation of employees (including non-executive employees) and the remuneration of directors were as follows:

For the Three Months Ended March 31
	2026		2025
	Accrual rate	Amount	Accrual rate	Amount
Compensation of employees	6.1%	$ 46,834	6.0%	$ 38,145
Remuneration of directors	3.1%	23,417	3.0%	19,073

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The appropriations of compensation of employees and remuneration of directors for 2025 and 2024 which have been resolved by the board of directors on February 26, 2026 and 2025, respectively, were as follows:

For the Year Ended December 31
Cash	2025		2024
	Accrual Rate	Amount	Accrual Rate	Amount
Compensation of employees	6.0%	$ 115,859	6.2%	$ 156,559
Remuneration of directors	3.0%	57,930	3.1%	78,279

There was no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2025 and 2024.

Information on the compensation of employees and remuneration of directors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

INCOME TAXES

a. Major components of income tax expense recognized in profit or loss

	For the Three Months Ended March 31
	2026	2025
Current tax
In respect of the current period	$ 180,942	$ 114,832
Adjustments for prior years	7,527	3,713
Deferred tax
In respect of the current period	(18,240)	23,585
Income tax expense recognized in profit or loss	$ 170,229	$ 142,130

b. Income tax expense in other comprehensive income

	For the Three Months Ended March 31
	2026	2025
Deferred tax
In respect of the current period
Translation of foreign operations	$ 21,655	$ 55,958

c. Income tax assessments

The tax returns of the Corporation, Eterbright and Matrix Precision through 2024 have been assessed by the tax authorities.

EARNINGS PER SHARE

| | Net Profit
Attributable to
Owners of the
Corporation | Number of
Shares
(In Thousands) | Earnings
Per Share
(NT$) |
| --- | --- | --- | --- |
| For the Three Months Ended March 31, 2026 | | | |
| Basic earnings per share | | | |
| Profit for the period attributable to owners of
the Corporation | $ 579,338 | 353,792 | $ 1.64 |
| Effect of potentially dilutive ordinary shares: | | | |
| Compensation of employees | - | 526 | |
| Diluted earnings per share | | | |
| Profit for the period attributable to owners of
the Corporation plus effect of potentially
dilutive ordinary shares | $ 579,338 | 354,318 | $ 1.64 |
| For the Three Months Ended March 31, 2025 | | | |
| Basic earnings per share | | | |
| Profit for the period attributable to owners of
the Corporation | $ 482,799 | 353,792 | $ 1.36 |
| Effect of potentially dilutive ordinary shares: | | | |
| Compensation of employees | - | 439 | |
| Diluted earnings per share | | | |
| Profit for the period attributable to owners of
the Corporation plus effect of potentially
dilutive ordinary shares | $ 482,799 | 354,231 | $ 1.36 |

The Group may settle compensation paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

31 -

24. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In July and December 2025, the Corporation acquired an additional equity interest and subscribed for additional new shares of Matrix Precision at a percentage different from its existing ownership percentage, thereby increasing its continuing interest from 60.82% to 67.39%, and recognized a decrease of $87,079 thousand in retained earnings.

The above transactions were accounted for as equity transactions, since the Corporation did not cease to have control over the subsidiary.

25. NON-CASH TRANSACTIONS

The cash dividends for the years of 2025 and 2024 resolved by the Corporation’s board of directors have not been paid as of March 31, 2026 and 2025, respectively (refer to Note 19).

26. CAPITAL MANAGEMENT

To support the needs for expansion and upgrade of its plant and equipment, the Group has to maintain an appropriate amount of capital. Therefore, the Group manages its capital to ensure it has the necessary financial resources and operating plan to support the required operating funds, capital expenditures, research and development fees, debt repayment and dividend payments in the next 12 months to achieve an overall balanced capital structure.

Key management personnel of the Group review the capital structure periodically. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders and the amount of new debt issued or existing debt redeemed.

27. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

The Group’s financial assets and liabilities at FVTPL are measured at fair value using Level 2 inputs, and the financial assets at FVTOCI are measured at fair value using Level 1 inputs and Level 3 inputs.

2) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments	Valuation Techniques and Inputs
Derivatives - foreign currency forward contracts	Discounted cash flow.
	Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

b. Categories of financial instruments

	March 31, 2026	December 31, 2025	March 31, 2025
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$ 525	$ 330	$ 2
Financial assets at amortized cost (1)	12,729,598	12,453,110	11,948,314
Financial assets at FVTOCI
Equity instruments	1,371,664	1,121,345	1,274,867
Financial liabilities
FVTPL
Mandatorily classified as at FVTPL	7,448	14,767	15,114
Financial liabilities at amortized cost (2)	13,840,786	13,541,984	14,417,732

1) The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable (including from related parties), trade receivables (including from related parties), other receivable and refundable deposits.

2) The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, notes payable, trade payables (including from related parties), other payables, dividends payable, long-term borrowings (including those due within one year) and refundable deposits.

c. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, lease liabilities and borrowings. The Group’s corporate treasury function provides services to the business, monitors and manages the financial risks relating to the operations of the Group. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

The plans for material treasury activities are reviewed by the audit and risk committee and the board of directors in accordance with procedures required by relevant regulations and internal controls.

1) Market risk

The Group entered into some derivative financial instruments, mainly forward foreign exchange contracts, to manage its exposure to foreign currency risk arising on translation of sales and receivables from the export of precision components to USA, Germany, Japan and China.

There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Group’s operating activities and net investment in foreign operations are denominated in foreign currencies. Consequently, the Group is exposed to foreign currency risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Group utilizes foreign exchange forward contracts to hedge its currency exposure. These instruments help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements.

32 -

Since the Group’s net investments in foreign operations are held for strategic purposes, they are not hedged.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities and derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 31.

Sensitivity analysis

The Group was mainly exposed to the USD, EUR, JPY and RMB.

The sensitivity analysis of foreign currency risk used when reporting foreign currency risk internally to key management personnel mainly focuses on foreign currency denominated monetary items at the end of the reporting period. When the NTD had increased by 1% against the relevant foreign currency, the post-tax profit for the three months ended March 31, 2026 and 2025 would have decreased by $38,755 thousand and $38,083 thousand, respectively.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Fair value interest rate risk
Deposits in bank	$ 2,665,889	$ 2,421,539	$ 2,171,019
Lease liabilities	496,216	518,907	564,381
Short-term borrowings	596,972	586,175	664,457
Long-term borrowings	263,869	293,963	377,243
Cash flow interest rate risk
Deposits in bank	5,225,514	5,033,383	5,238,765
Short-term borrowings	1,141,863	1,447,270	1,025,987
Long-term borrowings	7,326,431	7,395,457	7,950,203

Sensitivity analysis

For floating rate assets and liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher and all other variables were held constant, the Group’s post-tax profit for the three months ended March 31, 2026 and 2025 would have decreased by $6,486 thousand and $7,475 thousand, respectively.

33 -

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the reporting period, the counterparties are all creditworthy organizations; thus, no significant credit risk is expected.

The counterparties of the Group’s trade receivables cover a large number of customers, spread across diverse industries. Ongoing credit evaluation is performed on the financial condition of the counterparties of trade receivables.

The Group’s concentration of credit risk by geographical locations was mainly in Asia, which accounted for 68%, 72% and 66% of the total trade receivables as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of March 31, 2026, December 31, 2025 and March 31, 2025, the Group had available unutilized bank loan facilities of $14,889,600 thousand, $14,671,674 thousand and $14,961,015 thousand, respectively.

The following table details the Group’s remaining contractual obligations for its financial liabilities with agreed repayment periods. The tables below have been drawn up based on the undiscounted contractual maturities of the financial liabilities.

	Less Than 1 Year	1-5 Years	More Than 5 Years
March 31, 2026
Non-derivative financial liabilities
Non-interest bearing	$ 5,635,410	$ -	$ -
Lease liabilities	99,311	273,842	157,459
Fixed interest rate liabilities	731,876	150,589	-
Variable interest rate liabilities	1,982,142	3,811,905	3,428,446
	$ 8,448,739	$ 4,236,336	$ 3,585,905
Derivative financial liabilities
Foreign exchange forward contracts	$ 7,448	$ -	$ -
December 31, 2025
Non-derivative financial liabilities
Non-interest bearing	$ 4,989,831	$ -	$ -
Lease liabilities	106,943	291,388	162,595
Fixed interest rate liabilities	719,044	182,462	-
Variable interest rate liabilities	2,459,080	3,548,676	3,590,409
	$ 8,274,898	$ 4,022,526	$ 3,753,004
			(Continued)

35 -

	Less Than 1 Year	1-5 Years	More Than 5 Years
December 31, 2025
Derivative financial liabilities
Foreign exchange forward contracts	$ 14,767	$ -	$ -
March 31, 2025
Non-derivative financial liabilities
Non-interest bearing	$ 5,419,834	$ -	$ -
Lease liabilities	103,416	315,162	181,511
Fixed interest rate liabilities	805,242	275,057	-
Variable interest rate liabilities	2,300,721	3,272,328	4,244,670
	$ 8,629,213	$ 3,862,547	$ 4,426,181
Derivative financial liabilities
Foreign exchange forward contracts	$ 15,114	$ -	$ -

Further information on the maturity analysis of the above financial liabilities was as follows:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years
March 31, 2026
Lease liabilities	$ 99,311	$ 273,842	$ 106,040	$ 40,036	$ 11,383
Fixed interest rate liabilities	731,876	150,589	-	-	-
Variable interest rate liabilities	1,982,142	3,811,905	2,768,224	526,801	133,421
	$ 2,813,329	$ 4,236,336	$ 2,874,264	$ 566,837	$ 144,804
December 31, 2025
Lease liabilities	$ 106,943	$ 291,388	$ 107,274	$ 42,312	$ 13,009
Fixed interest rate liabilities	719,044	182,462	-	-	-
Variable interest rate liabilities	2,459,080	3,548,676	2,890,926	546,614	152,869
	$ 3,285,067	$ 4,022,526	$ 2,998,200	$ 588,926	$ 165,878
March 31, 2025
Lease liabilities	$ 103,416	$ 315,162	$ 113,970	$ 49,654	$ 17,887
Fixed interest rate liabilities	805,242	275,057	-	-	-
Variable interest rate liabilities	2,300,721	3,272,328	3,358,416	637,402	248,852
	$ 3,209,379	$ 3,862,547	$ 3,472,386	$ 687,056	$ 266,739

36 -

28. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Details of significant transactions between the Group and other related parties are disclosed below.

a. Related party name and categories

Related Party	Relationship with the Group
Hiwin Mikrosystem	Other related party
Hiwin Investment and Holding Corporation
(Hiwin Investment Corporation)	Other related party
Yong-Yin Investment and Holding Corp.
(Yong-Yin Investment Corporation)	Other related party
Hiwin Technologies Foundation in Education
(Hiwin Education Foundation)	Other related party
All Horng Gear Industry Co., Ltd.
Wen-Hen Chuo	Other related party
Key management personnel

b. Operating transactions

For the Three Months Ended March 31
2026	2025

1) Sales of goods

Other related parties	$ 30,084	$ 32,845

Due to the differences in product specifications, the selling prices of goods sold to related parties and those sold to third parties are not comparable. The selling price is quoted at cost plus a reasonable margin based on the market and competitor pricing.

For the Three Months Ended March 31
2026	2025

2) Purchases of goods

Other related parties	$ 189,486	$ 136,017

The products purchased from related parties and those from third parties are not the same; therefore, their prices are not comparable.

3) Other operating transactions

For the Three Months Ended March 31
2026	2025

Non-operating income - other income

Other related parties	$ 641	$ 489

Manufacturing and operating expenses

Other related parties	$ 4,765	$ 6,971

		For the Three Months Ended March 31
		2026	2025
Operating expenses - donations
Hiwin Education Foundation		$ 4,500	$ 4,500
	March 31, 2026	December 31, 2025	March 31, 2025
4) Notes receivable
Other related parties	$ 272	$ 556	$ 1,266
5) Trade receivables
Other related parties	$ 315	$ 333	$ 1,514
6) Other receivables (classified as other current assets)
Other related parties	$ 305	$ 280	$ 342
7) Trade payables
Other related parties	$ 169,335	$ 156,410	$ 107,142
8) Other payables
Key management personnel	$ 1,677	$ 1,689	$ 1,683
Other related parties	1,276	356	56
	$ 2,953	$ 2,045	$ 1,739
9) Refundable deposits
Other related parties	$ 2,625	$ 2,625	$ 1,616

c. Disposal of property, plant and equipment

	Proceeds		Gain on Disposal
	For the Three Months Ended March 31		For the Three Months Ended March 31
	2026	2025	2026	2025
Other related parties	$ 168	$ -	$ 62	$ -

d. Lease arrangements

Lease arrangements represented the lease prices of the factory. The lease prices were determined in accordance with mutual agreements and were based on the market price of the nearby factories and the lease area. The rental expenses were paid monthly.

		For the Three Months Ended March 31
		2026	2025
Acquisition of right-of-use assets
Other related parties		$ 5,134	$ 12,853
	March 31, 2026	December 31, 2025	March 31, 2025
Lease liabilities
Other related parties	$ 29,850	$ 30,114	$ 21,830
		For the Three Months Ended March 31
		2026	2025
Finance costs
Other related parties		$ 155	$ 112
e. Endorsements and guarantees
Related Party Category	March 31, 2026	December 31, 2025	March 31, 2025
Key management personnel
Amount endorsed	$ 2,151,921	$ 2,151,638	$ 2,160,833
Amount utilized (classified as borrowings)	$ 1,866,546	$ 1,882,230	$ 1,896,865

f. Remuneration of key management personnel

	For the Three Months Ended March 31
	2026	2025
Short-term employee benefits	$ 82,980	$ 60,989
Post-employment benefits	322	264
	$ 83,302	$ 61,253

The remuneration of directors and key executives was determined by the remuneration and nomination committee based on the performance of individuals and market trends.

39 -

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets had been pledged or mortgaged as collateral for long-term bank loans and deposits for cooperation in the establishment of education:

	March 31, 2026	December 31, 2025	March 31, 2025
Property, plant and equipment	$19,512,923	$20,233,808	$18,523,521
Right-of-use assets	75,685	142,795	147,961
Pledged deposits (classified as other current assets)	616	609	810
	$19,589,224	$20,377,212	$18,672,292

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. As of March 31, 2026, December 31, 2025 and March 31, 2025, unused letters of credit for purchases of raw materials and machinery equipment amounted to $245,468 thousand, $298,838 thousand and $404,086 thousand, respectively.

b. As of March 31, 2026, December 31, 2025 and March 31, 2025, commitments for acquisition of property, plant and equipment amounted to $891,087 thousand, $1,097,321 thousand and $1,555,281 thousand, respectively.

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies are as follows:

	March 31, 2026			December 31, 2025
	Foreign Currency	Exchange Rate	Carrying Amount	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 29,198	31.995	$ 934,194	$ 28,915	31.43	$ 908,789
EUR	30,467	36.71	1,118,431	30,357	36.90	1,120,163
JPY	2,131,827	0.2005	427,431	1,913,376	0.2008	384,206
RMB	646,876	4.629	2,994,390	661,996	4.496	2,976,334
Non-monetary items
ILS	35,627	9.946	354,335	34,063	9.859	335,841
Financial liabilities
Monetary items
USD	13,854	31.995	443,263	15,445	31.43	485,428
EUR	1,488	36.71	54,622	1,088	36.90	40,140
JPY	554,753	0.2005	111,228	524,953	0.2008	105,411
RMB	4,524	4.629	20,942	5,075	4.496	22,818

March 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 33,191	33.205	$ 1,102,106
EUR	32,427	35.97	1,166,400
JPY	2,950,948	0.2227	657,176
RMB	562,065	4.573	2,570,324
Non-monetary items
ILS	33,045	8.411	277,939
Financial liabilities
Monetary items
USD	14,912	33.205	495,139
EUR	1,610	35.97	57,920
JPY	750,195	0.2227	167,068
RMB	3,377	4.573	15,443

The Group is mainly exposed to the USD, EUR, JPY and RMB. The following information was aggregated by the functional currencies of the entities in the Group, and the exchange rates between the respective functional currencies and the presentation currency were disclosed. The significant (realized and unrealized) foreign exchange gains (losses) are as follows:

Foreign Currency	For the Three Months Ended March 31, 2026		For the Three Months Ended March 31, 2025
	Exchange Rate	Net Foreign Exchange Gains	Exchange Rate	Net Foreign Exchange Gains
NTD	1 (NTD:NTD)	$126,698	1 (NTD:NTD)	$173,519

32. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and b. investees:

1) Financing provided to others. (None)
2) Endorsements/guarantees provided. (Table 1)
3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint controlled entities). (Table 2)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 3)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
6) Other: intercompany relationships and significant intercompany transactions. (Table 5)
7) Information on investees. (Table 6)

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 7)

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period. (None)

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period. (Tables 3 and 5)

c) The amount of property transactions and the amount of the resultant gains or losses. (None)

d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes. (None)

e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds. (None)

f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services. (None)

SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Group's reportable segments are linear guideways, ballscrews and others.

The following was an analysis of the Group's revenue and results from continuing operations by reportable segments.

	For the Three Months Ended March 31
	Segment Revenue		Segment Profit
	2026	2025	2026	2025
Linear guideways	$ 3,820,856	$ 3,624,350	$ 400,253	$ 360,840
Ballscrews	1,259,785	1,114,116	189,333	88,074
Industrial robots	747,419	510,881	120,417	50,933
Others	551,228	589,433	(79,482)	(81,096)
Total from continuing operations	$ 6,379,288	$ 5,838,780	630,521	418,751
Subsidized revenue			2,759	8,352
Finance costs			(54,429)	(48,282)
Share of profit of associates accounted for using the equity method			15,551	10,312
Interest income			18,614	14,840
Other income			22,755	47,063
				(Continued)

42 -

For the Three Months Ended March 31
Segment Revenue		Segment Profit
2026	2025	2026	2025
Net foreign exchange gain		$ 103,261	$ 173,763
Other expenses		(2,993)	(3,237)
Loss on disposal of property, plant and equipment		(2,669)	(2,275)
Valuation loss on financial assets (liabilities) at FVTPL		(14,145)	(19,295)
Profit before income tax		$ 719,225	$ 599,992
			(Concluded)

Segment revenue reported above represents revenue generated from external customers. The intersegment sales are eliminated for the three months ended March 31, 2026 and 2025.

Segment profit represented the profit before tax earned by each segment without subsidized revenue, finance costs, share of profit of associates accounted for using the equity method, interest income, other income, net foreign exchange gain, other expenses, loss on disposal of property, plant and equipment, valuation loss on financial assets (liabilities) at FVTPL and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

TABLE 1

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars and Foreign Currencies)

No.	Endorser/Guarantor	Endorsee/Guaranteed Party		Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/ Guaranteed During the Year (Note 3)	Outstanding Endorsement/ Guarantee at the End of the Year (Notes 3 and 4)	Actual Amount Borrowed (Note 4)	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	The Corporation	Matrix England	Subsidiary	$ 3,755,006	$ 43,350 (GBP 1,000)	$ 42,270 (GBP 1,000)	$ -	$ -	0.1	$ 13,142,519	Yes	-	-
0	The Corporation	Hiwin Italy	Subsidiary	3,755,006	1,143,590 (EUR 31,000)	1,138,010 (EUR 31,000)	703,275 (EUR 19,158)	-	3.0	13,142,519	Yes	-	-
0	The Corporation	Hiwin Singapore	Subsidiary	3,755,006	191,970 (USD 6,000)	191,970 (USD 6,000)	91,416 (USD 2,857)	-	0.5	13,142,519	Yes	-	-
0	The Corporation	Hiwin Korea	Subsidiary	3,755,006	383,940 (USD 12,000)	383,940 (USD 12,000)	225,565 (USD 7,050)	-	1.0	13,142,519	Yes	-	-
0	The Corporation	Hiwin Japan	Subsidiary	3,755,006	1,376,808 (JPY 6,725,978)	1,335,510 (JPY 6,660,896)	1,255,310 (JPY 6,260,896)	-	3.6	13,142,519	Yes	-	-
0	The Corporation	Matrix Precision	Subsidiary	3,755,006	1,150,000	1,150,000	715,000	-	3.1	13,142,519	Yes	-	-

Note 1: The limit on the endorsements/guarantees provided for a single enterprise is 10% of the Corporation's net assets as shown in its most recent financial statements. If approved by the board of directors, the amount of endorsements/guarantees provided by the Corporation for its subsidiaries is not subject to the foregoing limitations; however, it must not exceed 50% of the Corporation's net assets in its most recent financial statements.
Note 2: The aggregate endorsement/guarantee limit is 35% of the Corporation's net assets as shown in its latest financial statements.
Note 3: The ending balance has been approved by the board of directors.
Note 4: The amounts denominated in foreign currencies were translated into the New Taiwan dollar at the exchange rate prevailing at the end of last month.

TABLE 2

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

MARCH 31, 2026

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	March 31, 2026
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Corporation	Shares
	Hiwin Mikrosystem	Other related party	Financial assets at FVTOCI - non-current	9,525,676	$ 1,247,864	8	$ 1,247,864
	Ever Fortune	-	Financial assets at FVTOCI - non-current	2,000,000	123,800	2	123,800

Note: For information on the investments in subsidiaries and associates, see Tables 6 and 7.

TABLE 3

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount (Note)	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance (Note)	% to Total
The Corporation	Hiwin China	Subsidiary	Sale	$ (1,102,645)	(24)	O/A 90 days	$ -	-	$ 1,124,668	25
	Hiwin Germany	Subsidiary	Sale	(334,498)	(7)	O/A 90 days	-	-	341,517	8
	Hiwin Italy	Subsidiary	Sale	(239,084)	(5)	O/A 180 days	-	-	441,358	10
	Hiwin Japan	Subsidiary	Sale	(175,150)	(4)	O/A 150 days	-	-	325,161	7
	Hiwin USA	Subsidiary	Sale	(116,570)	(3)	O/A 120 days	-	-	133,172	3
Hiwin China	The Corporation	Parent company	Purchase	1,102,645	88	O/A 90 days	-	-	(1,124,668)	(93)
Hiwin Germany	The Corporation	Parent company	Purchase	334,498	72	O/A 90 days	-	-	(341,517)	(82)
Hiwin Italy	The Corporation	Parent company	Purchase	239,084	92	O/A 180 days	-	-	(441,358)	(75)
Hiwin Japan	The Corporation	Parent company	Purchase	175,150	86	O/A 150 days	-	-	(325,161)	(94)
Hiwin USA	The Corporation	Parent company	Purchase	116,570	65	O/A 120 days	-	-	(133,172)	(63)

Note: Significant intercompany accounts and transactions have been eliminated.

TABLE 4

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

MARCH 31, 2026

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance (Note)	Turnover Rate (Times)	Overdue		Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
The Corporation	Hiwin China	Subsidiary	Trade receivables from related parties	$ 1,124,668	3.92	$ -	-	$ 326,603	$ -
	Hiwin Italy	Subsidiary	Trade receivables from related parties	441,358	2.33	-	-	31,519	-
			Other receivables from related parties	942	-	-	-	942	-
	Hiwin Japan	Subsidiary	Trade receivables from related parties	325,161	2.33	-	-	60,083	-
			Other receivables from related parties	1,140	-	-	-	1,140	-
	Hiwin Germany	Subsidiary	Trade receivables from related parties	341,517	3.93	-	-	131,759	-
	Hiwin USA	Subsidiary	Trade receivables from related parties	133,172	3.82	-	-	18,690	-

Note : Significant intercompany accounts and transactions have been eliminated.

TABLE 5

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars)

No.	Investee Company	Counterparty	Relationship (Note 1)	Transaction Details
				Financial Statement Account	Amount (Note 2)	Payment Terms	% to Total Sales or Assets
0	The Corporation	Hiwin Germany	1	Sales	$ 334,498	O/A 90 days	5
		Hiwin Japan	1	Sales	175,150	O/A 150 days	3
		Hiwin China	1	Sales	1,102,645	O/A 90 days	17
			1	Trade receivables	1,124,668	O/A 90 days	2
		Hiwin Italy	1	Sales	239,084	O/A 180 days	4
		Hiwin USA	1	Sales	116,570	O/A 120 days	2

Note 1: Relationship of investee company to counterparty: (1) parent company to subsidiary; (2) subsidiary to parent company.
Note 2: For balance sheet accounts, transactions exceeding $1\%$ of the consolidated total assets should be disclosed; for income statement accounts, transactions exceeding $1\%$ of the consolidated total revenue should be disclosed. The transactions within the Group were eliminated in the consolidated financial statements.
Note 3: Unrealized gains from Hiwin China totaled $214,144 thousand.

TABLE 6

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	As of March 31, 2026	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount
The Corporation	Hiwin Germany	Germany	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	$ 224,257	$ 224,257	-	100	$ 2,854,503
Hiwin USA	United States of America	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	353,844	353,844	2,148,000	100	1,255,850	52,194
Hiwin Japan	Japan	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	1,281,417	1,281,417	97,140	100	(88,822)	(41,127)
Mega-Fabs	Israel	Research, manufacture and sale of drivers and controllers	42,444	42,444	240,000	40	387,164	38,877
Eterbright	Taiwan	Research, development, design, manufacture and sale of solar cell, electronic components, electric power supply, electric transmission and power distribution machinery products	6,322,668	6,322,668	505,360,592	89	515,463	1,605
Hiwin Singapore	Singapore	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	117,550	117,550	5,000,000	100	(5,404)	12,450
Hiwin Korea	Korea	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	302,280	242,707	2,320,000	100	(179,474)	(31,956)
Matrix Precision	Taiwan	Research, development, production, manufacture and sale of gear cutting tools and machinery	1,707,055	1,707,055	102,733,163	67	250,524	(94,259)
Hiwin Healthcare Corp.	Samoa	Sale of medical robots	3,108	3,108	100,000	100	2,981	(15)
Hiwin Italy	Italy	Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots	296,580	296,580	-	100	287,323	(26,136)
Matrix England	United Kingdom	Design integrated application, research, development, manufacture and sale of thread forming machinery	812,334	812,334	8,249,500	100	324,656	(16,544)
Hiwin Schweiz	Switzerland	Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots	266,300	266,300	243,000	81	552,671	14,427
Hiwin Germany	Hiwin Czech	Czech Republic	Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots	256,154 (EUR 7,502)	256,154 (EUR 7,502)	-	100	424,255 (EUR 11,557)
Hiwin Schweiz	Switzerland	Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots	3,320 (EUR 72)	3,320 (EUR 72)	57,000	19	47,240	14,427
Hiwin France	France	Sale of aerospace parts, ballscrews, linear guideways, and industrial robots	35,520 (EUR 1,000)	35,520 (EUR 1,000)	-	100	(2,410) (EUR 66)	(5,868)
Hiwin Schweiz	Hiwin Bulgaria	Bulgaria	Sale of aerospace parts, ballscrews, linear guideways, and industrial robots	20,484 (EUR 600)	20,484 (EUR 600)	-	100	39,551 (CHF 989)

Note 1: Exempted from disclosure in accordance with regulations.
Note 2: Except for Mega-Fabs, the remaining investee companies are all consolidated entities and the significant intercompany accounts and transactions have been eliminated.
Note 3: For information on investments in mainland China, see Table 7.

TABLE 7

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2026	Remittance of Funds		Accumulated Outward Remittance for Investments from Taiwan as of March 31, 2026	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of March 31, 2026	Accumulated Repatriation of Investment Income as of March 31, 2026
					Outward	Inward
Hiwin China	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	$ 1,498,040 (RMB 300,000)	(Note 1)	$ 1,498,040 (RMB 300,000)	$ -	$ -	$ 1,498,040 (RMB 300,000)	$ 21,105	100	$ 21,105 (Notes 2 and 4)	$ 2,820,985 (Note 4)	$ -
Suzhou Matrix	Sale of gear cutting tools and machinery	36,192 (RMB 8,000)	(Note 1)	36,192 (RMB 8,000)	-	-	36,192 (RMB 8,000)	(3,113)	67	(2,098) (Notes 2 and 4)	(1,509) (Note 4)	-
Investor Company	Accumulated Outward Remittance for Investments in Mainland China as of March 31, 2026	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
---	---	---	---
The Corporation	$ 1,498,040 (RMB 300,000)	$ 1,498,040 (RMB 300,000)	(Note 3)
Matrix Precision	$ 36,192 (RMB 8,000)	$ 36,192 (RMB 8,000)	$ 73,144 (Note 3)

Note 1: The investment in mainland China was made directly.
Note 2: The investment gain (loss) is recognized according to the financial statements reviewed by the Corporation's independent auditors.
Note 3: Calculated in accordance with the "Regulations on Screening and Approval of Investment and Technical Cooperation in Mainland China" issued by the Investment Commission of the Ministry of Economic Affairs, the Corporation has been certified by the Industrial Development Bureau of the Ministry of Economic Affairs as an enterprise that has conformed to the scope of operations of the headquarters; therefore, there is no investment limit. The upper limit on the amount of investments in Matrix Precision is 60% of the net assets of Matrix Precision.
Note 4: Significant intercompany accounts and transactions have been eliminated.

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HIWIN TECHNOLOGIES CORP. — Interim / Quarterly Report 2026

51962_rns_2026-06-30_1c7afe4c-788d-4ce6-9e8c-b9a645403523.pdf

Hiwin Technologies Corporation and Subsidiaries

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

15. PREPAYMENTS FOR MACHINERY AND EQUIPMENT

16. BORROWINGS

19. EQUITY

20. REVENUE

21. NET PROFIT FROM CONTINUING OPERATIONS

24. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

25. NON-CASH TRANSACTIONS

26. CAPITAL MANAGEMENT

27. FINANCIAL INSTRUMENTS

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

28. TRANSACTIONS WITH RELATED PARTIES

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

32. SEPARATELY DISCLOSED ITEMS

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

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