Stock Code:3563

MACHVISION INC. CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report For the Three Months Ended March 31, 2025 and 2024

Address: No. 2-3, Gongye East 2nd Road, Hsinchu Science Park, Hsinchu 30075, Taiwan, R.O.C

Telephone: (03)563-8599

The independent auditors' report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and consolidated financial statements, the Chinese version shall prevail.

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2

Table of contents

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors' Review Report	3
4. Consolidated Balance Sheets	4
5. Consolidated Statements of Comprehensive Income	5
6. Consolidated Statements of Changes in Equity	6
7. Consolidated Statements of Cash Flows	7
8. Notes to the Consolidated Financial Statements
(1) Company history	8
(2) Approval date and procedures of the consolidated financial statements	8
(3) New standards, amendments and interpretations adopted	8~9
(4) Summary of material accounting policies	10~11
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	11
(6) Explanation of significant accounts	12~28
(7) Related-party transactions	28~30
(8) Pledge assets	30
(9) Commitments and contingencies	30~31
(10) Losses due to major disasters	31
(11) Subsequent events	31
(12) Other	31
(13) Other disclosures
(a) Information on significant transactions	31~32
(b) Information on investees	32~33
(c) Information on investment in China	33~34
(14) Segment information	34

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3

Independent Auditors' Review Report

To the Board of Directors of Machvision Inc. Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Machvision Inc. Co., Ltd. and its subsidiaries as of March 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2025 and 2024, and notes to the consolidated financial statements (including meterial accounting policies). 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 Basis for Qualified Conclusion paragraph, we conducted ours 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 the 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 conducted in accordance with the generally accepted auditing standards 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. Therefore, we do not express an audit opinion.

Basis for Qualified Conclusion

As mentioned in note 4 (b), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $316,519 thousand and $249,915 thousand, constituting 5% and 4% of the consolidated assets; and the total liabilities amounting to $43,472 thousand and $13,371 thousand, constituting 3% and 1% of the consolidated total liabilities as of March 31, 2025 and 2024, respectively; as well as the total comprehensive income (loss) amounting to $(1,809) thousand and $1,997 thousand, constituting (1) % and 6% of the consolidated total comprehensive income (loss) for the three months ended March 31, 2025 and 2024, respectively.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Chung-Shun Wu and Chun-I Chang.

KPMG

Taipei, Taiwan (Republic of China)

April 29, 2025

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.

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4

Reviewed only, not audited in accordance with the generally accepted auditing standards

MACHVISION INC. CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

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

(In Thousands of New Taiwan Dollars)

Assets	March 31, 2025		December 31, 2024		March 31, 2024
	Amount	%	Amount	%	Amount	%
Current assets:
Cash and cash equivalents (note 6(a))	$ 915,643	14	770,992	13	928,896	16
Financial assets at amortized cost - current (note 6(b))	2,926,871	46	2,895,487	50	3,140,111	54
Notes receivable (notes 6(c) and (o))	31,225	-	43,565	1	48,134	1
Accounts receivable, net (notes 6(c) and (o))	1,181,599	19	816,347	14	741,553	13
Accounts receivable — related parties (notes 6(c), (o) and 7)	58,039	1	11,365	-	4,343	-
Other receivable	10,874	-	12,019	-	10,722	-
Current tax assets	279	-	254	-	140	-
Inventories (note 6(d))	347,927	6	313,755	6	274,324	5
Prepayments	27,406	-	16,695	-	14,777	-
Other current assets	15,997	-	8,750	-	2,537	-
Total current assets	5,515,860	86	4,889,229	84	5,165,397	89
Non-current assets:
Financial assets at fair value through profit or loss—non current (note 6(f))	-	-	9,644	-	9,644	-
Non-current financial assets at amortized cost (note 6(b))	56,661	1	56,578	1	-	-
Investments accounted for using equity method (note 6(e))	277,031	4	275,680	5	-	-
Property, plant and equipment (notes 6(g) and 9)	241,643	4	240,649	4	237,232	4
Right-of-use assets (note 6(h))	62,640	1	86,112	2	81,137	2
Deferred income tax assets	40,689	1	40,689	1	32,674	1
Refundable deposits	8,070	-	7,625	-	7,491	-
Long-term receivables (notes 6(c) and (o))	105,922	2	161,802	3	238,585	4
Long-term receivables — related parties (note 6(c), (o) and 7)	3,437	-	-	-	-	-
Prepayments for equipment	39,368	1	7,698	-	-	-
Other non-current assets (note 8)	7,209	-	8,200	-	7,129	-
Total non-current assets	842,670	14	894,677	16	613,892	11

Total assets

$ 6,358,530 100 5,783,906 100 5,779,289 100

Liabilities and Equity	March 31, 2025		December 31, 2024		March 31, 2024
	Amount	%	Amount	%	Amount	%
Current liabilities:
Current contract liabilities (notes 6(o) and 7)	$ 138,238	2	53,946	1	16,375	-
Notes payable	82	-	36	-	47	-
Accounts payable	318,904	5	244,446	4	125,174	2
Accounts payable — related parties (note 7)	-	-	14	-	-	-
Other payables (note 6(p))	283,015	4	219,616	4	202,836	3
Dividend payable (note 6(m))	290,731	5	-	-	348,877	6
Current tax liabilities	70,777	1	10,933	-	90,427	2
Provisions - current (note 6(j))	12,609	-	9,329	-	10,191	-
Current lease liabilities (note 6(i))	9,797	-	9,747	-	8,406	-
Other current liabilities	37,328	1	36,977	1	31,273	1
Total current liabilities	1,161,481	18	585,044	10	833,606	14
Non-current liabilities:
Deferred income tax liabilities	12,649	-	12,649	-	770	-
Non-current lease liabilities (note 6(i))	55,461	1	79,666	2	75,635	2
Long-term deferred income	6,784	-	3,505	-	-	-
Net defined benefit liabilities	9,615	-	9,615	-	8,421	-
Total non-current liabilities	84,509	1	105,435	2	84,826	2
Total liabilities	1,245,990	19	690,479	12	918,432	16
Equity attributable to shareholders of the Company (notes 6(e) and (m)):
Share capital	581,462	9	581,462	10	581,462	10
Capital surplus:
Additional paid-in capital	1,831,789	29	1,948,081	34	1,948,081	33
Changes in equity of associates accounted for using equity method	1,667	-	-	-	-	-
Other capital surplus	72	-	47	-	47	-
	1,833,528	29	1,948,128	34	1,948,128	33
Retained earnings:
Legal reserve	657,965	11	657,965	11	635,881	11
Special reserve	1,317	-	1,317	-	7,076	-
Unappropriated retained earnings	1,949,804	31	1,820,675	32	1,604,486	28
	2,609,086	42	2,479,957	43	2,247,443	39
Other equity interest:
Foreign currency translation differences for foreign operations	6,715	-	1,310	-	(4,366)	-
Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	(215)	-	290	-	-	-
	6,500	-	1,600	-	(4,366)	-
Total equity attributable to shareholders of the company	5,030,576	80	5,011,147	87	4,772,667	82
Non-controlling interests	81,964	1	82,280	1	88,190	2
Total equity	5,112,540	81	5,093,427	88	4,860,857	84
Total liabilities and equity	$ 6,358,530	100	5,783,906	100	5,779,289	100

See accompanying notes to consolidated financial statements.

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5

Reviewed only, not audited in accordance with the generally accepted auditing standards

MACHVISION INC. CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2025 and 2024

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

	For the three months ended March 31
	2025		2024
	Amount	%	Amount	%
Operating revenue (notes 6(o) and 7)	$ 791,985	100	267,582	100
Operating costs (notes 6(d), (g), (h), (i), (j), (k), (p) and 7)	282,365	36	122,945	46
Gross profit from operations	509,620	64	144,637	54
Operating expenses (notes 6(e), (g), (h), (i), (k), (p) and 7):
Selling expenses	81,135	10	27,264	10
Administrative expenses	41,498	5	28,466	11
Research and development expenses	100,867	13	54,457	20
Impairment loss (gain) determined in accordance with IFRS9	(27,915)	(4)	54,630	20
Total operating expenses	195,585	24	164,817	61
Net operating income (loss)	314,035	40	(20,180)	(7)
Non-operating income and expenses (note 6(e), (i) and (q)):
Interest income	13,024	1	15,908	6
Other income	652	-	380	-
Other gains and losses	40,090	5	41,359	15
Financial costs	(238)	-	(288)	-
Share of gain of associates accounted for using equity method	126	-	-	-
Total non-operating income and expenses	53,654	6	57,359	21
Net income before tax	367,689	46	37,179	14
Less: Income tax expenses (note 6(l))	64,567	8	7,041	3
Net income	303,122	38	30,138	11
Other comprehensive income (note 6(e)):
Items that will not be reclassified subsequently to profit or loss
Share of other comprehensive income of associates accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	(505)	-	-	-
Less: income tax related to items that will not be reclassified to profit or loss	-	-	-	-
Total items that will not be reclassified subsequently to profit or loss	(505)	-	-	-
Items that will be reclassified subsequently to profit or loss
Financial statements translation differences for foreign operations	5,472	1	1,834	1
Share of other comprehensive income of associates accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	63	-	-	-
Less: income tax related to items that will be reclassified to profit or loss	-	-	-	-
Total items that will be reclassified subsequently to profit or loss	5,535	1	1,834	1
Other comprehensive income, net of tax	5,030	1	1,834	1
Total comprehensive income	$ 308,152	39	31,972	12
Net income attributable to:
Shareholders of the parent	$ 303,568	38	28,861	11
Non-controlling interests	(446)	-	1,277	-
	$ 303,122	38	30,138	11
Total comprehensive income attributable to:
Shareholders of the parent	$ 308,468	39	30,480	11
Non-controlling interests	(316)	-	1,492	1
	$ 308,152	39	31,972	12
Earnings per share(note 6(n)):
Basic earnings per share (in New Taiwan dollars)	$ 5.22		0.50
Diluted earnings per share (in New Taiwan dollars)	$ 5.21		0.50

See accompanying notes to consolidated financial statements.

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6

Reviewed only, not audited in accordance with the generally accepted auditing standards

MACHVISION INC. CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

	Equity attributable to owners of parent
	Ordinary shares	Capital surplus	Retained earnings				Other equity interest			Total equity attributable to owners of parent	Non-controlling interests	Total equity
			Legal reserve	Special reserve	Unappropriate earnings	Total	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total
Balance at January 1, 2024	$ 581,462	2,006,263	635,881	7,076	1,866,356	2,509,313	(5,985)	-	(5,985)	5,091,053	86,698	5,177,751
Appropriation and distribution of retained earnings:
Cash dividends of ordinary share	-	-	-	-	(290,731)	(290,731)	-	-	-	(290,731)	-	(290,731)
Cash dividends from capital surplus	-	(58,146)	-	-	-	-	-	-	-	(58,146)	-	(58,146)
Other changes in capital surplus	-	11	-	-	-	-	-	-	-	11	-	11
Net income	-	-	-	-	28,861	28,861	-	-	-	28,861	1,277	30,138
Other comprehensive income	-	-	-	-	-	-	1,619	-	1,619	1,619	215	1,834
Total comprehensive income	-	-	-	-	28,861	28,861	1,619	-	1,619	30,480	1,492	31,972
Balance at March 31, 2024	$ 581,462	1,948,128	635,881	7,076	1,604,486	2,247,443	(4,366)	-	(4,366)	4,772,667	88,190	4,860,857
Balance at January 1, 2025	$ 581,462	1,948,128	657,965	1,317	1,820,675	2,479,957	1,310	290	1,600	5,011,147	82,280	5,093,427
Appropriation and distribution of retained earnings:
Cash dividends of ordinary share	-	-	-	-	(174,439)	(174,439)	-	-	-	(174,439)	-	(174,439)
Changes in equity of associates and joint ventures accounted for using equity method	-	1,667	-	-	-	-	-	-	-	1,667	-	1,667
Cash dividends from capital surplus	-	(116,292)	-	-	-	-	-	-	-	(116,292)	-	(116,292)
Other changes in capital surplus	-	25	-	-	-	-	-	-	-	25	-	25
Net income (loss)	-	-	-	-	303,568	303,568	-	-	-	303,568	(446)	303,122
Other comprehensive income	-	-	-	-	-	-	5,405	(505)	4,900	4,900	130	5,030
Total comprehensive income	-	-	-	-	303,568	303,568	5,405	(505)	4,900	308,468	(316)	308,152
Balance at March 31, 2025	$ 581,462	1,833,528	657,965	1,317	1,949,804	2,609,086	6,715	(215)	6,500	5,030,576	81,964	5,112,540

See accompanying notes to consolidated financial statements.

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7

Reviewed only, not audited in accordance with the generally accepted auditing standards

MACHVISION INC. CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Cash flows from operating activities:

Net income before tax

Adjustments:

Adjustments to reconcile profit and loss:

Depreciation expense

Impairment loss (gain) determined in accordance with IFRS9

Gains on financial assets at fair value through profit or loss.

Interest expense

Interest income

Share of gain of associates accounted for using equity method

Loss on disposal of property, plant and equipment

Loss on disposal of investments

Lease modification gains

Total adjustments to reconcile profit

Changes in assets / liabilities relating to operating activities:

Net changes in operating assets:

Notes receivable

Accounts receivables (including long-term)

Accounts receivable—related parties (including long-term)

Other receivables

Inventories

Prepayments

Other current assets

Total changes in operating assets, net

Net changes in operating liabilities:

Contract liabilities

Notes payable

Accounts payables

Accounts payables—related parties

Other payables

Provisions

Other current liabilities

Total changes in operating liabilities, net

Total changes in operating assets / liabilities, net

Total adjustments

Cash provided by operating activities

Interest income received

Income taxes paid

Net cash provided by (used in) operating activities

Cash flows from investing activities:

Acquisition of financial assets at amortized cost

Disposal of financial assets at amortized cost

Disposal of financial assets at fair value through profit or loss

Proceeds from disposal of subsidiaries

Acquisition of property, plant and equipment

Increase in refundable deposits

Decrease in refundable deposits

Decrease in other non current assets

Increase in prepaid equipment payments

Net cash (used in) provided by investing activities

Cash flows from financing activities

Payment of lease liabilities

Increase in long-term deferred income

Interest paid

Surplus not paid due to overdue

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

Net Increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents, end of the period

For the three months ended March 31
	2025	2024
$	367,689	37,179
8,008	9,553
(27,915)	54,630
(18,559)	(2,927)
238	288
(13,024)	(15,908)
(126)	-
22	17
-	4,638
(888)	-
(52,244)	50,291
12,340	8,305
(281,391)	(93,754)
(50,139)	(3,488)
1,357	(547)
(34,172)	(13,597)
(10,711)	1,481
(7,247)	515
(369,963)	(101,085)
84,292	2,798
46	(31)
74,458	21,423
(14)	-
63,399	(37,063)
3,280	(1,762)
351	(2,402)
225,812	(17,037)
(144,151)	(118,122)
(196,395)	(67,831)
171,294	(30,652)
12,691	16,242
(4,748)	(2,646)
179,237	(17,056)
(1,661,250)	(2,731,000)
1,629,866	2,831,000
28,203	-
-	1,846
(5,530)	(3,025)
(445)	-
-	3,210
991	60
(31,670)	-
(39,835)	102,091
(2,756)	(672)
3,279	-
(238)	(2,224)
25	11
310	(2,885)
4,939	1,353
144,651	83,503
770,992	845,393
$ 915,643	928,896

See accompanying notes to consolidated financial statements.

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8

Reviewed only, not audited in accordance with the generally accepted auditing standards

MACHVISION INC. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

(1) Company history

MACHVISION INC. CO., LTD. (the Company) was incorporated in June 9, 1998 as a company limited by shares under the laws of (ROC). The address of the Company’s registered office is No. 2-3, Gongye East 2nd Road, Hsinchu Science Park, Hsinchu 30075, Taiwan, R.O.C. The consolidated entities in the consolidated financial statements dated March 31, 2025 include the Company and its subsidiaries (the Group). The Group is mainly engaged in the manufacturing and trading of optical inspection machinery equipment.

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were approved by the Board of Directors and published on April 29, 2025.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

• Amendments to IAS 21 “Lack of Exchangeability”

(b) Impact of IFRS Accounting Standards endorsed by the FSC but not yet in effect

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a material impact on its consolidated financial statements.

• Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7

(c) The impact of IFRS Accounting Standards issued by the International Accounting Standards Board (“IASB”) but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by IASB, but have yet to be endorsed by the FSC:

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9

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18
“Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.
• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027 |

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements.

• Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
• IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
• IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
• Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7
• Annual Improvements to IFRS Accounting Standards
• Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

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10

(4) Summary of material accounting policies

Except as described below, the summary statement of the significant accounting policies for this consolidated financial report is the same as the consolidated financial report for 2024, related information please refer to the note 4 from consolidated financial statements of 2024.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers ("the Regulations") and IAS 34, "Interim Financial Reporting" endorsed by FSC, and do not present all the disclosures required for a complete set of annual consolidated financial statements prepared in accordance with the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations, or SIC Interpretations endorsed by the FSC for a complete set of the annual consolidated financial statements.

(b) Basis of consolidation

(i) Principles of preparation of consolidated financial statements

The consolidated financial statements comprise the Company and its subsidiaries.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements.

(ii) List of subsidiaries included in the consolidated financial statements

The subsidiaries included in the consolidated financial statements are as follows:

Investor	Subsidiary	Nature of business	Percentage of ownership			Notes
			March 31, 2025	December 31, 2024	March 31, 2024
The Company	Machvision Inc. (Samoa)	Investment	100.00%	100.00%	100.00%
The Company	Machvision Korea Co., Ltd.	Maintaining and trading of machinery equipment	-%	-%	100.00%	1, 2
The Company	Machvision (Thailand) Co., Ltd.	Maintaining and trading of machinery equipment	99.99%	99.99%	99.99%	2
The Company	SISSCA Co.,Ltd	Manufacturing of optical inspection machinery equipment and computer peripheral products	52.86%	52.86%	52.86%	2
Machvision Inc. (Samoa)	Machvision (Dongguan) Inc.	Maintaining and trading of machinery equipment	100.00%	100.00%	100.00%

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11

Investor	Subsidiary	Nature of business	Percentage of ownership
			March 31, 2025	December 31, 2024	March 31, 2024	Notes
SISSCA Co.,Ltd.	SiSSCA (JIANG SU) Co., Ltd.	Manufacturing of optical inspection machinery equipment	100.00%	100.00%	100.00%	2

Note 1: The consolidated subsidiary applied for business closure in 2024 and has received approval.
Note 2: These companies are non-significant subsidiaries, and their financial reports have not been reviewed by accountants.

(c) Employee benefits

In the interim, the benefit scheme pension department uses the previous year's reporting date to determine the pension cost rate on an actuarial basis, based on the end of the reclassified period at the beginning of the year, and to adjust for major market fluctuations, major downsizing, liquidation or other major one-off matters.

(d) Income tax

The Group is measured and exposed for income tax expenses during the interim period in accordance with the paragraph B12 of interim financial report of IAS 34.

The income tax fee is in order to multiply the pre-tax net profit by the management during the reporting period by the best estimated street volume of the expected effective tax rate for the whole year, and is fully recognized as the current income tax fee.

The income tax fee, which is directly recognized as an equity item or other consolidated profit and loss item, is a temporary difference between the carrying amount of the relevant assets and liabilities for the purpose of reporting and its tax base, which is measured by the applicable tax rate at the time of expected realization or liquidation.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial reports in conformity with the Regulations and IAS 34 "Interim Financial Reporting" endorsed by the FSC requires management to make judgments, and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

In the preparation of consolidated financial reports, the management adopts the uncertainty of significant judgment and estimation of the consolidation of corporate accounting policies, the main source of which is consistent with the consolidated Financial Report Note 5 of 2024.

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12

(6) Explanation of significant accounts

(a) Cash and cash equivalents

	March 31, 2025	December 31, 2024	March 31, 2024
Cash on hand	$ 1,874	2,068	1,650
Saving deposits	664,006	476,619	463,842
Foreign currency deposits	239,112	181,835	221,404
Time deposits	10,651	110,470	242,000
Cash and cash equivalents per statements of cash flow	$ 915,643	770,992	928,896

The expiry date of three months to a year on deposit satisfy the highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value, and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes.

Please refer to note 6(r) for the interest rate risk and the fair value sensitivity analysis of the financial assets and liabilities of the Group.

(b) Financial assets measured at amortized cost

	March 31, 2025	December 31, 2024	March 31, 2024
Time deposits	$ 2,926,871	2,895,487	3,140,111
U.S Treasury Bonds	6,663	6,580	-
Corporate bond – China Steel Corporation	49,998	49,998	-
	$ 2,983,532	2,952,065	3,140,111
Current	$ 2,926,871	2,895,487	3,140,111
Non-current	56,661	56,578	-
	$ 2,983,532	2,952,065	3,140,111

The Group holds domestic time deposits with annual interest rates ranging from 1.445%~1.77% as of March 31, 2025, 0.815%~1.77% as of December 31, 2024 and 0.695%~1.690% as of March 31, 2024, maturing from April 2025 to January 2026, January to December 2025 and April to December 2024, respectively.

The Group has invested in U.S. Treasury bonds, with a face value of USD 200 thousand, and a coupon rate of 4.125%, as well as an effective interest rate of 4.007%, maturing in July 2028.

In November 2024, the Group purchased five year corporate bonds from China Steel Corporation for $49,998 thousand, with an interest rate of 1.84%, maturing in May 2029.

The Group has assessed that these financial assets are held to maturity to collect contractual cash flows, which consist solely of payments of principal and interest on principal amount outstanding. Therefore, these investments were classified as financial assets measured at amortized cost.

The Group's financial assets measured at amortized cost had not pledged as collateral.

---

(c) Notes, accounts and long-term accounts receivable

	March 31, 2025	December 31, 2024	March 31, 2024
Notes receivable	$ 31,225	43,565	48,134
Accounts receivable	1,290,430	951,725	855,459
Accounts receivable – related parties	58,039	11,365	4,343
Long-term accounts receivable	106,239	162,185	239,338
Long-term accounts receivable – related parties	3,465	-	-
Less: allowance for impairment	108,831	135,378	113,906
unrealized interest income	345	383	753
	$ 1,380,222	1,033,079	1,032,615

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected credit loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward-looking information, including macroeconomic and relevant industry information. The expected credit losses were determined as follows:

	March 31, 2025
	Gross carrying amount	Weighted-average expected credit loss rate	Loss allowance provision
Current	$ 1,079,654	0.0364%	393
1 to 90 days past due	151,974	0.5896%	896
91 to 180 days past due	69,632	2.0479%	1,426
181 to 270 days past due	61,291	9.8106%	6,013
271 to 365 days past due	38,052	30.6239%	11,653
Past due over 365 days	88,450	100.0000%	88,450
	$ 1,489,053		108,831
	December 31, 2024
---	---	---	---
	Gross carrying amount	Weighted-average expected credit loss rate	Loss allowance provision
Current	$ 791,890	0.0294%	233
1 to 90 days past due	97,202	0.4732%	460
91 to 180 days past due	72,060	1.7652%	1,272
181 to 270 days past due	43,406	7.6671%	3,328
271 to 365 days past due	49,374	31.5146%	15,560
Past due over 365 days	114,525	100.0000%	114,525
	$ 1,168,457		135,378

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14

March 31, 2024

	Gross carrying amount	Weighted-average expected credit loss rate	Loss allowance provision
Current	$ 683,696	0.0285%	195
1 to 90 days past due	139,258	0.5414%	754
91 to 180 days past due	78,900	1.8695%	1,475
181 to 270 days past due	84,494	8.8480%	7,476
271 to 365 days past due	88,916	36.8314%	32,749
Past due over 365 days	71,257	100.0000%	71,257
	$ 1,146,521		113,906

The movement in the allowance for accounts receivable was as follows:

	For the three months ended March 31
	2025	2024
Balance at the beginning of the period	$ 135,378	58,591
(Reversal) impairment losses recognized	(27,915)	54,630
Effect of movement in exchange rates	1,368	685
Balance at the end of the period	$ 108,831	113,906

The aforementioned notes and accounts receivables of the Group had not been pledged as collateral.

The carrying amounts of notes and accounts receivable with short maturity are not discounted under the assumption that the carrying amount approximates the fair value.

(d) Inventories

The components of the Group's inventories were as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Merchandise and finished goods	$ 55,220	47,860	51,744
Work in process	108,271	123,951	89,496
Raw material	184,436	141,944	133,084
	$ 347,927	313,755	274,324

The Group inventories were not provided as pledged assets.

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15

Except for operating costs arising from the ordinary sale of inventories, other gains and losses directly recorded under operating cost were as follows:

	For the three months ended March 31
	2025	2024
Loss on decline in market value of inventory	$ 842	3,459
Losses on scrapping of inventory	4,533	-
Total	$ 5,375	3,459

(e) Investments accounted for using the equity method—Associates

A summary of the Group's investments accounted for using the equity method at the reporting date was as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Associates	$ 277,031	275,680	-

In November 2024, the Group subscribed 4,901 thousand common shares of HYE Technology Co., Ltd. through a private placement at a price of $56 per share, totaling $274,433 thousand, representing an 11.5% ownership of the company. According to the subscription agreement, the Company will obtain significant influence by securing two board seats. In accordance with the Securities and Exchange Act, these privately placed common shares cannot be transferred within three years, except under circumstances specified in Article 43 8 of the Act. The Group has completed the identification of the difference between the investment cost and the share of the net fair value of identifiable assets and liabilities of the investee during 2024.

The Group applies the equity method to its associates, which are individually immaterial. The summarized financial information of these associates, included in the consolidated financial statements of the Group, is as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Carrying amount of individually insignificant associates' equity	$ 277,031	275,680	-
	For the three months ended March 31
---	---	---
	2025	2024
Attributable to the Group:
Profit from continuing operations	$ 126	-
Other comprehensive income	(442)	-
Total comprehensive income	$ (316)	-

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16

(f) Financial assets at fair value through profit or loss—non-current

	March 31, 2025	December 31, 2024	March 31, 2024
Mandatorily measured at fair value through profit or loss:
Unlisted stocks (domestic)
Yayatech Co., Ltd.	$ -	9,644	9,644
For Win Tech Co., Ltd.	-	-	-
Total	$ -	9,644	9,644

In March 2025 and March 2024, the Group sold all its shares in Yayatech Co., Ltd. and For Win Technology Co., Ltd., with the disposal proceeds amounting to $28,203 thousand and $9,027 thousand, respectively.

(g) Property, plant and equipment

The cost and depreciation of the property, plant and equipment of the Group were as follows:

	Buildings	Machinery equipment	Other equipment	Construction in progress	Total
Cost:
Balance at January 1, 2025	$ 281,213	9,147	32,527	30,111	352,998
Additions	1,464	75	3,991	-	5,530
Disposals	-	(173)	(513)	-	(686)
Reclassification	4,988	-	-	(4,988)	-
Effect of movement in exchange rates	939	9	110	-	1,058
Balance at March 31, 2025	$ 288,604	9,058	36,115	25,123	358,900
Balance at January 1, 2024	$ 306,382	10,459	30,107	25,123	372,071
Additions	2,666	-	359	-	3,025
Disposals	(2,574)	(620)	(628)	-	(3,822)
Reclassification	-	-	84	-	84
Effect of movement in exchange rates	782	8	81	-	871
Balance at March 31, 2024	$ 307,256	9,847	30,003	25,123	372,229
Depreciation:
Balance at January 1, 2025	$ 95,107	2,567	14,675	-	112,349
Depreciation	3,217	307	1,525	-	5,049
Disposals	-	(173)	(491)	-	(664)
Effect of movement in exchange rates	466	3	54	-	523
Balance at March 31, 2025	$ 98,790	2,704	15,763	-	117,257
Balance at January 1, 2024	$ 108,776	6,006	16,788	-	131,570
Depreciation	4,533	687	1,624	-	6,844
Disposals	(2,574)	(620)	(611)	-	(3,805)
Effect of movement in exchange rates	352	1	35	-	388
Balance at March 31, 2024	$ 111,087	6,074	17,836	-	134,997
Carrying amounts:
January 1, 2025	$ 186,106	6,580	17,852	30,111	240,649
March 31, 2025	$ 189,814	6,354	20,352	25,123	241,643
January 1, 2024	$ 197,606	4,453	13,319	25,123	240,501
March 31, 2024	$ 196,169	3,773	12,167	25,123	237,232

(h) The Right-of-use assets

The Group leases assets including land and buildings, and transportation equipment. Information about leases for which the Group as a lessee is presented below:

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17

Cost:	Land and buildings	Other equipment	Total
Balance at January 1, 2025	$ 108,822	13,371	122,193
Modification	(29,087)	-	(29,087)
Effect of changes in foreign exchange rates	229	26	255
Balance at March 31, 2025	$ 79,964	13,397	93,361
Balance at January 1, 2024	$ 107,727	33,173	140,900
Reduction	(2,994)	-	(2,994)
Effect of changes in foreign exchange rates	46	61	107
Balance at March 31, 2024	$ 104,779	33,234	138,013
Accumulated depreciation:
Balance at January 1, 2025	$ 31,584	4,497	36,081
Depreciation	1,844	1,115	2,959
Modification	(8,430)	-	(8,430)
Effect of changes in foreign exchange rates	91	20	111
Balance at March 31, 2025	$ 25,089	5,632	30,721
Balance at January 1, 2024	$ 30,769	26,323	57,092
Depreciation	1,664	1,045	2,709
Reduction	(2,994)	-	(2,994)
Effect of changes in foreign exchange rates	28	41	69
Balance at March 31, 2024	$ 29,467	27,409	56,876
Carrying amounts:
January 1, 2025	$ 77,238	8,874	86,112
March 31, 2025	$ 54,875	7,765	62,640
January 1, 2024	$ 76,958	6,850	83,808
March 31, 2024	$ 75,312	5,825	81,137

(i) Lease liabilities

The Group's lease liabilities were as follow:

	March 31, 2025	December 31, 2024	March 31, 2024
Current	$ 9,797	9,747	8,406
Non-current	$ 55,461	79,666	75,635

For the maturity analysis, please refer to note 6(r).

The amounts recognized in profit or loss were as follows:

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18

| | For the three months ended
March 31 | |
| --- | --- | --- |
| | 2025 | 2024 |
| Interest on lease liabilities | $ 238 | 288 |
| Expenses relating to short-term leases | $ 1,168 | 1,498 |
| Expenses relating to leases of low-value assets, excluding
short-term leases of low-value assets | $ 77 | 69 |

The amounts recognized in the statement of cash flows for the Group was as follows:

| | For the three months ended
March 31 | |
| --- | --- | --- |
| | 2025 | 2024 |
| Total cash outflow for leases | $ 4,239 | 4,463 |

(j) Provisions

	March 31, 2025	December 31, 2024	March 31, 2024
Warranty	$ 12,609	9,329	10,191

There is no significant change in the liability reserve of the Group for the three months ended March 31, 2025 and 2024. For information, please refer to Note 6 (i) of the consolidated financial report of 2024.

(k) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one time events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2024 and 2023.

The expenses recognized in profit or loss for the Group were as follows:

	For the three months ended March 31
	2025	2024
Operating costs	$ 29	30
Operating expenses	29	31
Total	$ 58	61

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19

(ii) Defined contribution plans

The Group’s expenses under the pension plan cost to the Bureau of Labor Insurance and local government were as follows:

	For the three months ended March 31
	2025	2024
Operating costs	$ 2,156	2,017
Operating expenses	3,203	2,980
Total	$ 5,359	4,997

(l) Income tax

The income tax expense is estimated by the profit before tax in the interim financial period multiplied by the best estimated effective interest rate of the whole year of the management.

The Group’s income tax expense is as follows:

	For the three months ended March 31
	2025	2024
Current tax expenses
Current period	$ 64,567	7,041
Income tax expense	$ 64,567	7,041

The tax authorities have examined income tax returns of the Company through 2022.

(m) Capital and other equity

Except for the following terms, there is no significant change in capital and other rights for the group for the three months ended March 31, 2025 and 2024. The relevant liability is referred to in note 6 (m) of the consolidated financial report of 2024.

(i) Capital surplus

For the appropriations of the capital surplus as cash dividends to stockholders, please reference to Retained earnings.

(ii) Retained earings

Cash dividends distributed by capital surplus and earnings distribution were as follows:

	From January 1 to June 30, 2024	From July 1 to December 31, 2024	Total
Resolution date of the board meeting	On July 30, 2024	On February 11, 2025
Dividends distributed to ordinary stockholders:
Cash—Retained earnings	$ 58,146	174,439	232,585
Cash—Capital surplus	-	116,292	116,292

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20

Total amounts
$ 58,146 290,731 348,877
Amount per share (NTD)
$ 1.00 5.00

	From January 1 to June 30, 2023	From July 1 to December 31, 2023	Total
Resolution date of the board meeting	On November 1, 2023	On February 5, 2024
Dividends distributed to ordinary stockholders:
Cash – Retained earnings	$ -	290,731	290,731
Cash – Capital surplus	58,146	58,146	116,292
Total amounts	$ 58,146	348,877	407,023
Amount per share (NTD)	$ 1.00	6.00

(n) Earnings per share

The calculation of the Company's basic and diluted earnings per is as follows:

(i) Basic earnings per share

	For the three months ended March 31
	2025	2024
Net income attributable to ordinary shareholders of the Company	$ 303,568	28,861
Weighted-average number of ordinary shares	58,146	58,146
Basic earnings per share (NTD)	$ 5.22	0.50

(ii) Diluted earnings per share

	For the three months ended March 31
	2025	2024
Net income attributable to ordinary shareholders of the Company (diluted)	$ 303,568	28,861
Weighted average number of ordinary shares (basic)	58,146	58,146
Effect of potential ordinary shares
Effect of remuneration to employees	129	68
Weighted-average number of ordinary shares (diluted)	58,275	58,214
Diluted earnings per share (in NTD)	$ 5.21	0.50

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21

(o) Revenue from contracts with customers

(i) Disaggregation of revenue

	For the three months ended March 31, 2025
	Taiwan	China	Total
Primary geographical markets:
Taiwan	$ 145,408	-	145,408
China	340,356	198,234	538,590
Others	107,987	-	107,987
	$ 593,751	198,234	791,985
Primary merchandises/services lines:
Sale of optical inspection machinery equipment	$ 579,516	155,049	734,565
Revenue from services	14,235	43,185	57,420
	$ 593,751	198,234	791,985
	For the three months ended March 31, 2024
	Taiwan	China	Total
Primary geographical markets:
Taiwan	$ 40,138	-	40,138
China	160,497	57,705	218,202
Others	9,242	-	9,242
	$ 209,877	57,705	267,582
Primary merchandises/services lines:
Sale of optical inspection machinery equipment	$ 202,739	18,879	221,618
Revenue from services	7,138	38,826	45,964
	$ 209,877	57,705	267,582

(ii) Contract balance

	March 31, 2025	December 31, 2024	March 31, 2024
Notes receivable	$ 31,225	43,565	48,134
Accounts receivable	1,290,430	951,725	855,459
Accounts receivable—related parties	58,039	11,365	4,343
Long-term receivables	106,239	162,185	239,338
Long-term receivables—related parties	3,465	-	-
Less: allowance for impairment	108,831	135,378	113,906
unrealized interest income	345	383	753
Total	$ 1,380,222	1,033,079	1,032,615
Contract liabilities—advance receipts	$ 138,238	53,946	16,375

Please refer to note 6(c) for the details on notes, accounts and long-term accounts receivables and allowance for impairments.

The contract liability is mainly due to advance receipts, wherein the Company will recognize revenue when the product is delivered to the customer. The amount of revenue recognized for the three months ended March 31, 2025 and 2024 that were included in the contract liability balance at the beginning of the period were $30,178 thousand and $7,671 thousand, respectively.

(p) Remuneration to employees and directors

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22

In accordance with the Company's Articles, the profit for the year should be reserved to offset the deficit, then, should contribute no less than 5% of the profit as employee remuneration, and less than 3% as directors' remuneration.

The remunerations to employees amounting to $41,089 thousand and $1,896 thousand, respectively, for the three-month period ended March 31, 2025 and 2024. The remunerations to directors amounting to $4,931 thousand and $114 thousand, respectively, for the three-month period ended March 31, 2025 and 2024. These amounts were calculated using the Company's net income before tax without the remunerations to employees and directors for each period, multiplied by the proposed percentage which is stated under the Company's proposed Article of Incorporation. These remunerations were expensed under operating costs or expenses for each period. If there are any subsequent adjustments to the actual remuneration amounts after the annual shareholder's meeting, the adjustment will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year.

In 2024 and 2023, the amount of employee remuneration is NT$33,568 thousand and NT$44,655 thousand, respectively, and that of directors is NT$4,196 thousand and NT$5,582 thousand, respectively. There is no difference from the distribution of board resolutions. The information is available on the Market Observation Post System website.

(q) Non-operating income and expenses

(i) Interest income

	For the three months ended March 31
	2025	2024
Interest income from bank deposits	$ 12,929	16,187
Others	95	(279)
Total interest income	$ 13,024	15,908

(ii) Other income

	For the three months ended March 31
	2025	2024
Others	$ 652	380

(iii) Other gains and losses

	For the three months ended March 31
	2025	2024
Losses on disposals of property, plant and equipment	$ (22)	(17)
Loss on disposal of investments	-	(4,638)
Lease modification gains	888	-
Foreign exchange gains	20,669	43,107
Gains on financial assets at fair value through profit or loss.	18,559	2,927
Others	(4)	(20)

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23

Other gains and losses, net

$ 40,090 41,359

(iv) Finance costs

For the three months ended March 31

	2025	2024
Interest expenses	$ 238	288

(r) Financial instruments

Except for the following, there is no significant change in the fair value of the financial instruments and the exposure to credit risks and market risks due to financial instruments. Please refer to note 6 (r) of the consolidated financial report of 2024.

(i) Credit risk

The credit receivable account of the credit risk Group in March 31, 2025, December 31, 2024 and March 31, 2024 was concentrated on single customers, accounting for 24%, 18% and 25% of the receivable and accounts receivable (including long-term receivables) respectively.

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

	Carrying Amount	Contractual cash flows	Within a year	1-5 years	Over 5 years
March 31, 2025
Non-derivative financial liabilities
Notes payable	$ 82	82	82	-	-
Accounts payable (including related parties)	318,904	318,904	318,904	-	-
Other payables	283,015	283,015	283,015	-	-
Dividend payables	290,731	290,731	290,731	-	-
Lease liabilities (including non-current)	65,258	80,414	9,797	15,132	55,485
	$ 957,990	973,146	902,529	15,132	55,485
	Carrying Amount	Contractual cash flows	Within a year	1-5 years	Over 5 years
December 31, 2024
Non-derivative financial liabilities
Notes payable	$ 36	36	36	-	-
Accounts payable (including related parties)	244,460	244,460	244,460	-	-
Other payables	219,616	219,616	219,616	-	-
Lease liabilities(including non-current)	89,413	114,118	9,747	11,923	84,448
	$ 553,525	578,230	473,859	11,923	84,448
	Carrying Amount	Contractual cash flows	Within a year	1-5 years	Over 5 years
March 31, 2024
Non-derivative financial liabilities
Notes payable	47	47	47	-	-
Accounts payable (including related parties)	125,174	125,174	125,174	-	-

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24

Other payables	202,836	202,836	202,836	-	-
Dividend payables	348,877	348,877	348,877	-	-
Lease liabilities(including non-current)	84,041	109,444	8,414	12,376	88,654
	$ 760,975	786,378	685,348	12,376	88,654

The Group is not expecting the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.

(iii) Currency risk

1) Exposure to foreign currency risk

The Group's financial assets and liabilities exposed to significant currency risk was as follows:

	Foreign currency	Exchange rate	NTD
March 31, 2025
Financial Assets
Monetary items
USD	$ 28,593	33.2050	949,434
CNY	115,430	4.5730	527,862
Financial liabilities
Monetary items
USD	$ 2,300	33.2050	76,359
CNY	15,601	4.5730	71,344
December 31, 2024
Financial Assets
Monetary items
USD	$ 23,539	32.7850	771,719
CNY	92,928	4.4780	416,131
Financial liabilities
Monetary items
USD	$ 1,981	32.7850	64,938
CNY	16,647	4.4780	74,547
March 31, 2024
Financial Assets
Monetary items
USD	$ 29,204	32.0000	934,537
CNY	$ 117,746	4.4080	519,023
Financial liabilities
Monetary items
USD	$ 1,191	32.0000	38,124
CNY	$ 14,951	4.4080	65,905

The Group's exposure to foreign currency risk arises from the translation of foreign currency exchange gains and losses on cash and cash equivalents, receivables, accounts payables that are denominated in foreign currency. A weakening or strengthening 3% appreciation or depreciation of the NTD against the USD and CNY as of March 31, 2025

---

and 2024, would have increased or decreased the net profit after tax by $31,910 thousand and $32,389 thousand, respectively. The analysis is performed on the same basis for both periods.

Since the Group has many kinds of functional currencies, the information on foreign exchange gains (loss) on monetary items is disclosed based on the total amount. For the three months ended March 31, 2025 and 2024, foreign exchange gains (including realized and unrealized portion) amounted to $20,669 thousand and $43,107 thousand.

2) Interest rate risk

Please refer to the notes on liquidity risk management and interest rate exposure of the Group's financial assets and liabilities.

The following sensitivity analysis is determined by the interest rate storm risk of derivative and non-derivative instruments in the reporting day. For floating rate liabilities, the way of analysis is to assume that the amount of debt in circulation outside the reporting day is in circulation throughout the year. The rate of change used to report interest rates to key management within the Group is an increase or loss of 1% per cent in interest rates, which also represents an assessment by management of the extent to which interest rates may vary reasonably.

If the interest rate had increased or decreased by 1%, the Group's net income before tax would have increase or decrease by $9,620 thousand and $10,186 thousand for the three months ended March 31, 2025 and 2024, respectively, with all other variable factors remain constant. This is mainly due from the Group's cash in bank, financial assets at amortized cost—current and restricted bank deposits on variable rates.

(iv) Information of fair value

1) Categories and fair value of financial instruments

Except for the following, the Group is not required to disclose fair value information in accordance with regulations because the remaining financial assets and financial liabilities are financial assets and liabilities measured at amortized cost and their carrying amounts are reasonable approximations of fair value:

	December 31, 2024
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 9,644	-	-	9,644	9,644
	March 31, 2024
	Carrying	Fair value

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26

	amount	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 9,644	-	-	9,644	9,644

2) Valuation techniques for financial instruments measured at fair value—Non derivative financial instruments

If the financial instruments have no quoted market price in an active market, the Group shall use the market comparison approach to evaluate the fair value. The main assumption used in computing the market price is based on the investee's equity and the quoted price from a competitor. The estimated price has been discounted due to the lack of liquidity in the price of securities.

3) Fair value hierarchy

The Group used the fair value that can be observed in the market to measure the value of assets and liabilities. Fair value levels are based on the degree in which the fair value can be observed and grouped in to Levels 1 to 3 as follows:

a) Level 1: quoted prices (unadjusted) in active markets for identified assets or liabilities.
b) Level 2: inputs, other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
c) Level 3: inputs for assets or liabilities that are not based on observable market data (unobservable inputs).

No transfers between the Group's fair value levels.

4) Reconciliation of leve3 fair values

	Unquoted equity instruments
Balance at January 1, 2025	$ 9,644
Recognized in profit or loss	18,559
Disposals	(28,203)
Balance at March 31, 2025	$ -
Balance at January 1, 2024	$ 15,744
Recognized in profit or loss	2,927
Disposals	(9,027)
Balance at March 31, 2024	$ 9,644

The amounts recognized in profit or loss as mentioned above are reported under

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other gains and losses.

5) Quantitative information of significant unobservable inputs (Level 3) through fair value

Item	Valuation technique	Significant unobservable inputs	Inter relationship between significant unobservable inputs and fair value measurement
Financial assets at fair value through profit or loss – Equity investments without an active market	Comparative listed company	• EV revenue ratio (As of December 31, 2024 were 4.01)
• Price book ratio (As of December 31, 2024 and March 31, 2024 were 3.25 and 2.01, respectively)
• P/E ratio (As of March 31, 2024 were 14.94)
• Market illiquidity discount rate (As of December 31, 2024 and March 31, 2024 were 30%)	The estimated fair value would increase (decrease) if
• the EV to revenue ratio, the price to book ratio and the P/E ratio were higher (lower)
• the market illiquidity discount were lower (higher)

Note: Due to losses incurred by the investee company, the valuation method was changed from the price-earnings (P/E) multiple to the enterprise value-to-revenue (EV Revenue) multiple as of December 31, 2024.

6) Fair value measurements in Level 3- sensitivity analysis of reasonably possible alternative assumptions

For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

	Other comprehensive income
	Input	Assumptions	Favorable	Unfavorable
December 31, 2024
Financial assets at fair value through profit or loss
Equity investments without an active market	Market illiquidity discount rate	10%	4,332	(4,332)
March 31, 2024
Financial assets at fair value through profit or loss
Equity investments without an active market	Market illiquidity discount rate	10%	5,880	(5,880)

The favorable and unfavorable effects represent the change in fair value, and the fair value is based on a variety of unobservable inputs calculated using a valuation technique.

(s) Financial risk management

Consolidation of corporate financial risk management objectives and policies there were no significant changes in the disclosure of Notes 6 (s) to the 2024 consolidated financial report.

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28

(t) Capital management

The Group’s capital management objectives, policies and procedures are consistent with those revealed in the 2024 consolidated financial report. For further information, please refer to note 6 (t) of the consolidated financial report of 2024.

The Group's debt-to-adjusted-capital ratio at the end of the reporting period was as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Liabilities	$ 1,245,990	690,479	918,432
Less: cash and cash equivalents	915,643	770,992	928,896
Net liabilities	$ 330,347	(80,513)	(10,464)
Total equity	$ 5,112,540	5,093,427	4,860,857
Debt-to-capital ratio	6.46%	- %	- %

As of March 31, 2025, there was no change in the Group's approach of capital management.

(u) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended March 31, 2025 and 2024 were to acquire right-of-use assets through leasing.

(v) Reconciliation of liabilities arising from financing activities

The Group’s liability adjustment associated with financing activities were as follows:

Non-cash adjustments
	January 1, 2025	Cash flows	Lease Modification	Foreign exchange movement	Interest expenses	March 31, 2025
Lease liabilities	$ 89,413	(2,994)	(21,545)	146	238	65,258
Total liabilities from financing activities	$ 89,413	(2,994)	(21,545)	146	238	65,258
Non-cash adjustments
---	---	---	---	---	---	---
	January 1, 2024	Cash flows	Lease Modification	Foreign exchange movement	Interest expenses	March 31, 2024
Lease liabilities	$ 86,609	(2,896)	-	40	288	84,041
Total liabilities from financing activities	$ 86,609	(2,896)	-	40	288	84,041

(7) Related-party Transactions

(a) Parent company and ultimate controlling party

The Company is both the parent company and the ultimate controlling party of the Group.

(b) Names and relationship with related parties

In this consolidated financial report, the related parties having transactions with the Consolidated Company are listed as below:

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29

Name of related party	Relationship with the Group
Advanced Semiconductor Engineering, Inc.	Entities with significant influence over the Group
ASE Electronics Inc.	Entities with significant influence over the Group
ASE (Shanghai) Inc.	Entities with significant influence over the Group
Siliconware Precision Industries Co., Ltd.	Entities with significant influence over the Group

(c) Significant transactions with related parties

(i) Operating revenue

The amounts of significant sales by the Group to related parties were as follows:

Entities with significant influence over the Group	March 31, 2025	March 31, 2024
	$ 103,636	17,026

The selling price and the credit terms for related parties were approximated for routine sales transactions. Amounts receivable from related parties were uncollateralized, and no expected credit loss were required after the assessment by the management.

(ii) Purchases

The amounts of significant purchases by the Group from related parties were as follows:

Entities with significant influence over the Group	March 31, 2025	March 31, 2024
	$ -	22

The terms and pricing of purchase transactions with related parties were not significantly different from those offered by other vendors.

(iii) Research and development expenses

The details of the expenses incurred by the Group for design and mold making commissioned by related parties were as follows:

Entities with significant influence over the Group	March 31, 2025	March 31, 2024
	$ -	6

(iv) Receivables from related parties

The receivables from related parties were as follows:

Account	Type of related parties	March 31, 2025	December 31, 2024	March 31, 2024
Accounts receivable — related parties	Entities with significant influence over the Group	$ 58,039	11,365	4,343

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Long term receivables — related parties	Entities with significant influence over the Group	3,437	-	-
		$ 61,476	11,365	4,343

(v) Payables to related parties

The Company’s payable to related parties were as follows:

Account	Type of related parties	March 31, 2025	December 31, 2024	March 31, 2024
Accounts payable — related parties	Entities with significant influence over the Group	$ -	14	-

(vi) Current contract liabilities

The Company’s current contract liabilities to related parties were as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Significant influence	$ 31,242	4,680	-

(d) Key management personnel transactions

The compensation of the key management personnel comprised the following:

	March 31, 2025	March 31, 2024
Short-term employee benefits	$ 25,178	6,467
Post-employment benefits	36	81
	$ 25,214	6,548

(8) Pledge assets

The carrying value of pledged assets were as follows:

Pledged assets	Object asset	March 31, 2025	December 31, 2024	March 31, 2024
Other non-current assets:
Time deposits	Guarantee for customs	$ 1,523	2,514	1,514
Time deposits	Guarantee for rent the land and buildings from the Hsinchu Science Park Bureau	5,686	5,686	5,615
		$ 7,209	8,200	7,129

(9) Commitments and contingencies:

In order to expand the business, the Board of Directors approved a resolution for leasing land to build a factory and office building in Hsinchu Science Park on May 26, 2022, and as of March 31, 2025, the amount invested is $24,682 thousand. However, due to the semiconductor industry is instability caused by covid 19 and U.S. China Trade War, the factory construction plan has been adjusted. And MediaTek Incorporated is actively seeking the opportunity to cooperate with the Company to build a new factory due to the lack of space in the factory, so the Board of Directors approved the cooperation with MediaTek

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Incorporated to build a new factory on April 28, 2023. However, the aforementioned collaboration was terminated with a contract signed on April 11, 2025. Under the termination agreement, MediaTek agreed to cover the rental and preliminary development expenses incurred during the collaboration period, totaling NT$39,409 thousand (including tax).

(10) Losses due to major disasters: None.
(11) Subsequent events: None.
(12) Others

(a) The following is a summary statement of employee benefits, depreciation and amortization expensed by function:

FunctionItem	For the three months ended March 31 2025			For the three months ended March 31 2024
	Operating costs	Operating expense	Total	Operating costs	Operating expense	Total
Employee benefits
Salaries	35,242	127,610	162,852	34,445	61,805	96,250
Labor and health insurance	2,566	5,540	8,106	2,828	4,759	7,587
Pension	2,236	3,208	5,444	2,047	3,011	5,058
Directors' remuneration	-	4,931	4,931	-	114	114
Other employee benefits	5,661	8,314	13,975	2,948	4,609	7,557
Depreciation	2,110	5,898	8,008	2,253	7,300	9,553
Amortization	-	-	-	-	-	-

(b) Seasonal of operations:

The operation of the Group is not affected by seasonal or cyclical factors.

(13) Other Disclosure

(a) Information on significant transactions:

The following is the information on significant transactions required by the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the Group:

(i) Loans to other parties: None.
(ii) Guarantees and endorsements for other parties: None.
(iii) Securities held as of March 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

(Amounts in Thousands of New Taiwan Dollar)

Name of holder	Nature and name of security	Relationship with the security issuer	Account name	March 31, 2025				Notes
				Number of shares	Book value	Holding percentage	Market value
The Company	U.S Treasury Bonds	-	Financial assets at amortized cost – non-current	-	6,663	- %	6,663
The Company	P13 Corporate bond – China Steel Corporation	-	Financial assets at amortized cost – non-current	-	49,998	- %	49,998

(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

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			Transaction details				Status and reason for deviation from arm's length transaction		Amounts/ notes receivable (payable)		Remarks
Name of company	Counter-party	Relationship	Purchases/ Sale	Amount	Percentage of total purchases/ Sales	Credit period	Unit price	Credit period	Balance	Percentage of total accounts/ notes receivable(payable)
The Company	Machvision (Dongguan) Inc.	Subsidiaries of the Group	(Sale)	(125,903)	(17)%	Depending on the end customer's terms.	Approximates for routine transactions	Depending on the end customer's terms.	367,878	27%	Note1
Machvision (Dongguan) Inc.	The Company	Subsidiaries of the Group	Purchase	125,903	99%	Depending on the end customer's terms.	Approximates for routine transactions	Depending on the end customer's terms.	(367,878)	(99)%	Note1

Note 1: The transactions have been eliminated upon consolidation.

(v) Receivable from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital:

(Amounts in Thousands of New Taiwan Dollar)

Name of related party	Counter party	Relationship	Balance as March 31, 2025	Turnover rate	Past due receivables from related party		Subsequently received amount of receivable from related party	Allowance for Impairment Loss
					Amount	Action Taken
The Company	Machvision (Dongguan) Inc.	Subsidiaries	367,878	1.49	124,348	Depends on the end customer's credit period	25,048 (As of April 29, 2025)	-

(vi) Business relationships and significant intercompany transactions:

No.	Name of company	Name of counterparty	Existing relationship with the counter-party	Transaction details
				Account name	Amount	Trading terms	Percentage of the total consolidated revenue or total assets
0	The Company	Machvision (Dongguan) Inc.	1	Operating revenue	125,903	Depends on the Group overall profit allocation	15.90%
0	The Company	SiSSCA (JIANG SU) Co., Ltd.	1	Operating revenue	12,366	Depends on the Group overall profit allocation	1.56%
0	The Company	Machvision (Dongguan) Inc.	1	Operating cost	21,022	Depends on the Group overall profit allocation	2.65%
0	The Company	SISSCA Co.,Ltd.	1	Operating cost	12,514	Depends on the Group overall profit allocation	1.58%
0	The Company	Machvision (Dongguan) Inc.	1	Accounts receivable – related parties (including long-term accounts receivables)	367,878	Depends on the end customer's credit period	5.79%
0	The Company	Machvision (Dongguan) Inc.	1	Other payables – related parties	80,643	Dependent on capital budgeting	1.27%

Note 1: Company numbering is as follows:
(1) Parent company is 0.
(2) Subsidiary starts from 1.

Note 2: The number of the relationship with the transaction counterparty represents the following:
(1) 1 represents downstream transactions.
(2) 2 represents upstream transaction.

Note 3: For balance sheet items, over 1% of total consolidated assets, and for profit or loss items, over 1% total consolidated revenue were selected for disclosure.

Note 4: The transactions have been eliminated upon consolidation.

(b) Information On Investees:

The following is the information on investees for the three months ended March 31, 2025 (excluding information on investees in China):

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33

Name of Investor	Name of investee	Address	Scope of business	Original Cost		Ending balance			Net Income of Investee	Investment income (Losses)	Notes
				March 31, 2025	December 31, 2024	Shares	Percentage of ownership	Book value
The Company	Machvision Inc.	Samoa	Investment	105,433	105,433	3,463,650	100.00%	156,793	10,284	10,284	1&2
The Company	Machvision (Thailand)Co., Ltd.	Thailand	Maintaining and trading of machinery equipment	92,106	92,106	9,999,000	99.99%	88,009	(3,133)	(3,133)	2&3
The Company	Sissca Co., Ltd.	Taiwan	Manufacturing of optical inspection machinery equipment and computer peripheral products	123,348	123,348	11,477,463	52.86%	78,549	(946)	(500)	2&3
The Company	HYE Technology Co., Ltd.	Taiwan	Manufacturing and sales of inspection machinery equipment	274,433	274,433	4,900,584	11.48%	277,031	2,185	126	2&3

Note 1: The company is a limited company.
Note 2: The transactions within the Group were eliminated in the consolidated financial statements.
Note 3: The investment income was recognized under the equity method and based on the financial statements unreviewed by the auditor of the Company.

(c) Information on investments in China

(i) The names of investees in Mainland China, the main businesses and products, and other information:

Units: NTS thousand

Name of investment in China	Major operations	Issued capital	Method of Investment (Note 1)	Beginning remittance balance - cumulative investment (amount) from Taiwan	Current remittance / receivable investment (amount)		Ending remittance balance - cumulative investment (amount) from Taiwan	Net income of investee	Direct / indirect shareholdings or investments (%) in the Company	Current investment gains and losses (Note 3)	Book value (Note 2)	Remittance of investment income in current period
					Invested amount	Returned amount
Machvision (Dongguan) Inc.	Maintaining and trading of machinery equipment	105,361	(2)i	105,361	-	-	105,361	10,284	100.00%	10,284	157,974	-
SiSSCA (JIANG SU) Co., Ltd.	Manufacturing of optical inspection machinery equipment	80,018	(4)i	30,730	49,288	-	80,018	(3,359)	52.86%	(1,776)	8,743	-

Note 1: The method of investment is divided into the following four categories:

(1) Remittance from third region companies to invest in Mainland China.
(2) Through the establishment of third region companies then investing in Mainland China.
i. Through the establishment of Machvision Inc. then investing in Mainland China.
(3) Through transferring the investment to third region existing companies then investing in Mainland China.
(4) Other methods: Ex: delegated investments.
i. Through the establishment of SISSCA Co., Ltd then investing in Mainland China.

Note 2: The transactions within the Group were eliminated in the consolidated financial statements.

Note 3: The investment income was recognized under the equity method and based on the financial statements unreviewed by the auditor of the Company.

(ii) Limitation on investment in Mainland China:

Company Name	Accumulated investment amount in Mainland China as of End of the Period	Investment (amount) approved by Investment Commission, Ministry of Economic Affairs	Maximum investment amount set by Investment Commission, Ministry of Economic Affairs
The Company	185,379	185,379	3,018,346 (Note 1)

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Note 1: It represents 60% of the Company's net equity.

(iii) Significant transactions:

Please refer to details in the "Relationships between Parent Company and Subsidiaries and Significant Transactions" for the significant transactions directly or indirectly related to the investment in China for the three months ended March 31, 2025.

(14) Segment Information

The Group is mainly engaged in the manufacturing, trading and testing of optical inspection machinery equipment, as well as their related products. The operating decision maker focuses on the entirety of the Consolidated Company for the purpose of resource allocation and assessment performance. The Group is identified as a single reportable segment.

Information on reportable segments and reconciliation for the Consolidated Company is as follows:

	Taiwan	China	Adjustment and Elimination	Total
For the three months ended March, 2025
Revenue:
Revenue from external customers	$ 593,751	198,234	-	791,985
Inter-segment revenue	150,783	25,487	(176,270)	-
Total revenue	$ 744,534	223,721	(176,270)	791,985
Reportable segment profit or loss	$ 304,141	9,894	-	314,035
Non-operating income and expenses				53,654
Profit before income tax				$ 367,689
For the three months ended March, 2024
Revenue:
Revenue from external customers	$ 209,877	57,705	-	267,582
Inter-segment revenue or loss	36,909	15,738	(52,647)	-
Total revenue	$ 246,786	73,443	(52,647)	267,582
Reportable segment profit or loss	$ (4,367)	(15,813)	-	(20,180)
Non-operating income and expenses				57,359
Profit before income tax				$ 37,179

For the three months ended March, 2025 and 2024, inter segment revenues of $176,270 thousand and $52,647 thousand, respectively, should be eliminated from total revenue.