Interim report
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- 1 - Catcher Technology Co., Ltd. and Subsidiaries Consolidated Financial Statements for the Second Quarter of 2026 and 2025 Independent Auditors' Review Report
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- 2 - Independent Auditors’ Review Report The Board of Directors and Shareholders Catcher Technology Co., Ltd. Introduction We have completed our review of the consolidated financial statements of Catcher Technology Co., Ltd. and its subsidiaries (hereafter referred to as the “Group"), which comprise the consolidated balance sheets as of June 30, 2026 and 2025, the consolidated statements of comprehensive income for the periods from April 1 to June 30, 2026 and 2025, and from January 1 to June 30, 2026 and 2025, the consolidated statements of changes in equity and consolidated statements of cash flows for the periods from January 1 to June 30, 2026 and 2025, as well as the notes to the consolidated financial statements (including a summary of significant accounting policies). The 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 Financi al Supervisory Commission. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope We conducted our reviews in accordance with TWSRE 2410 “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Standards on Review Engagement. A review of consolidated financial statements consists of making inquiries (primarily to personnel responsible for financial and accounting matters) and applying analytical and other reviewi ng 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. Conclusion Based on our review (please see Other Matters), we are not aware of any material aspects in which the aforementioned consolidated financial statements fail to comply 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, and which therefore do not present fairly the consolidated financial conditions of Catcher Group as at June 30, 2026 and 2025, as well as the consolidated financial performance for the periods from April 1 to June 30, 2026 and 2025, and from January 1 to June 30, 2026 and 2025, and the consolidated cash flows for the periods from January 1 to June 30, 2026 and 2025. Other Matters Among the Group’s investments accounted for using the equity method and included in the consolidated financial statements for the second quarters of 2026 and 2025, the financial reports of certain investees were review ed by accountants other than our own. Thus, in forming our conclusion on the aforementioned consolidated financial statements, the investment amounts of the aforementioned investees accounted for using the equity method were based on the review reports of other accountants. The balances of the aforementioned investments accounted for using the equity method as at June 30, 2026 and 2025 were NT$2,260,095 thousand and NT$1,744,630 thousand, respectively, accounting for 0.99% and 0.81%, respectively, of total consolidated assets. For the periods of April 1 to June 30, 2026 and 2025 and of January 1 to
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- 3 - June 30, 2026 and 2025, the share of comprehensive income from associates and joint ventures accounted for using the equity method amounted to a gain of NT$82,984 thousand, loss of NT$3,246 thousand, gain of NT$151,758 thousand, and loss of NT$72,650 thousand, respectively. These amounts represent 1.71%, 0.02%, 1.64%, and (0.54%) of consolidated total comprehensive income, respectively. Emphasis of Matters As mentioned in Notes 14 and 29 to the consolidated financial statements, the Group obtained significant influence over United Orthopedic Corporation during the first quarter of 2025. As the acquisition price allocation report was not completed until the first qu arter of 2026, the consolidated financial statements for the second quarter of 2025 were retrospectively restated in accordance with the applicable requirements and then reviewed. Accordingly, our conclusion was not modified in respect of this matter. As mentioned in Notes 18 and 29 to the consolidated financial statements, the Group entered into an operating asset purchase contract with a non-related party in the fourth quarter of 2024. As the acquisition price allocation report was not completed until th e fourth quarter of 2025, the consolidated financial statements for the second quarter of 2025 were retrospectively restated in accordance with the applicable requirements and then reviewed. Accordingly, our conclusion was not modified in respect of this matter. As mentioned in Notes 13 and 29 to the consolidated financial statements, the Group had substantial control over Pacific Hospital Supply Co., Ltd. in the first quarter of 2025. As the acquisition price allocation report was not completed until the fourth quarter of 2025, the consolidated financial statements for the second quarter of 2025 were retrospectively restated in accordance with the applicable requirements and then reviewed. Accordingly, our conclusion was not modified in respect of this matter. The engagement partners on the audits resulting in this independent auditors’ review report are Hung-Ju Liao and Chang-Chun Wu. Deloitte & Touche Taipei, Taiwan Republic of China August 10, 2026 Notice to Readers The accompanying consolidated fi nancial 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 jurisdic tions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China. For the convenience of readers, the independent auditors’ report and the accompanying consoli dated 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 interp retation of the two versions, the Chinese -language independent auditors’ report and consolidated financial statements shall prevail.
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- 4 - CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2026, DECEMBER 31, 2025, and JUNE 30, 2025 (In Thousands of New Taiwan Dollars) June 30, 2026 December 31, 2025 June 30, 2025 (after restatement) Assets Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents (Note 6) $ 12,412,717 6 $ 43,747,619 19 $ 22,428,157 10 Financial assets at FVTPL - current (Note 7) 976,051 1 645,361 - 529,334 - Financial assets at FVTOCI - current (Note 8) 11,511,118 5 8,453,326 4 7,469,436 4 Financial assets at amortized cost - current (Notes 9 and 34) 73,828,876 32 52,177,096 23 68,707,898 32 Notes receivable (Note 11) 14,038 - 12,275 - 14,681 - Trade receivables (Notes 11 and 25) 2,356,668 1 4,064,478 2 4,718,708 2 Other receivables (Note 11) 816,358 - 1,152,103 - 1,192,260 1 Current tax assets 239,974 - 246,869 - 822 - Inventories (Notes 12 and 35) 4,573,087 2 3,436,696 2 2,048,867 1 Other current assets (Note 19) 563,561 - 436,497 - 294,966 - Total current assets 107,292,448 47 114,372,320 50 107,405,129 50 NON-CURRENT ASSETS Financial assets at FVTPL - non-current (Note 7) 3,232,791 1 3,126,895 1 2,688,940 1 Financial assets at FVTOCI - non-current (Note 8) 82,481,757 36 83,958,350 37 79,408,297 37 Financial assets at amortized cost - non-current (Note 9) 6,397,220 3 28,102 - 909 - Investments accounted for using the equity method (Note 14) 7,286,691 3 4,607,026 2 4,268,169 2 Property, plant and equipment (Notes 15 and 35) 14,457,821 6 14,187,150 6 13,828,952 6 Right-of-use assets (Note 16) 1,371,808 1 1,353,488 1 1,295,814 1 Investment properties (Note 17) 1,163,460 1 1,164,329 1 1,343,351 1 Intangible assets (Note 18) 972,603 - 1,014,965 - 1,066,675 1 Goodwill (Note 18) 738,366 - 738,366 - 738,366 - Deferred tax assets 2,458,428 1 2,262,552 1 2,661,733 1 Net defined benefit assets - non-current (Note 4) 25,908 - 26,368 - 19,922 - Other non-current assets (Note 19) 1,105,350 1 1,177,709 1 991,896 - Total non-current assets 121,692,203 53 113,645,300 50 108,313,024 50 TOTAL ASSETS $ 228,984,651 100 $ 228,017,620 100 $ 215,718,153 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 20 and 34) $ 68,392,000 30 $ 62,078,414 27 $ 54,539,353 25 Contract liabilities - current (Note 25) 106,426 - 98,695 - 53,521 - Notes payable (Note 21) 3,486 - 4,378 - 2,322 - Trade payables (Note 21) 1,308,334 1 2,353,021 1 1,662,818 1 Other payables (Note 22) 3,346,415 1 4,389,060 2 3,789,938 2 Dividends payable 4,045,476 2 1,871,007 1 5,436,068 3 Current tax liabilities 2,834,409 1 2,864,948 1 3,258,784 1 Lease liabilities - current (Note 16) 20,442 - 24,798 - 27,396 - Other current liabilities (Note 22) 84,417 - 758,792 1 892,752 - Total current liabilities 80,141,405 35 74,443,113 33 69,662,952 32 NON-CURRENT LIABILITIES Deferred tax liabilities 6,668,340 3 6,815,480 3 6,216,484 3 Lease liabilities - non-current (Note 16) 532,805 - 535,092 - 529,158 - Net defined benefit liabilities - non-current (Note 4) 6,549 - 6,550 - 6,550 - Other non-current liabilities (Note 22) 21,723 - 22,173 - 15,656 - Total non-current liabilities 7,229,417 3 7,379,295 3 6,767,848 3 Total liabilities 87,370,822 38 81,822,408 36 76,430,800 35 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 24) Share capital Ordinary shares 5,388,211 3 5,921,691 3 6,491,451 3 Capital surplus 14,176,327 6 15,576,725 7 17,073,093 8 Retained earnings Legal reserve 24,602,174 11 24,602,174 11 24,602,174 11 Special reserve 3,854,876 2 14,521,192 6 - - Unappropriated earnings 87,938,738 38 86,964,568 38 107,737,285 50 Total retained earnings 116,395,788 51 126,087,934 55 132,339,459 61 Other equity 2,422,484 1 ( 3,854,876 ) ( 2 ) ( 14,521,191 ) ( 7 ) Treasury shares - - ( 886,617 ) - ( 5,374,746 ) ( 2 ) Total equity attributable to owners of the Company 138,382,810 61 142,844,857 63 136,008,066 63 NON-CONTROLLING INTERESTS (Notes 24 and 29) 3,231,019 1 3,350,355 1 3,279,287 2 Total equity 141,613,829 62 146,195,212 64 139,287,353 65 TOTAL LIABILITIES AND EQUITY $ 228,984,651 100 $ 228,017,620 100 $ 215,718,153 100 The accompanying notes are an integral part of the consolidated financial statements. (Refer to the review report of Deloitte & Touche dated August 10, 2026)
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- 5 - CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME APRIL 1 to JUNE 30,2026 and 2025, and JANUARY 1 to JUNE 30, 2026 and 2025 (In Thousands of New Taiwan Dollars, Except Earnings per Share) April 1 to June 30, 2026 April 1 to June 30, 2025 (after restatement) January 1 to June 30, 2026 January 1 to June 30, 2025 (after restatement) Amount % Amount % Amount % Amount % OPERA TING REVENUE (Note 25) $2,681,204 100 $5,084,333 100 $6,455,149 100 $9,434,621 100 OPERA TING COSTS (Notes 12 and 26) 1,907,320 71 3,535,828 70 4,594,281 71 6,362,507 67 GROSS PROFIT 773,884 29 1,548,505 30 1,860,868 29 3,072,114 33 OPERA TING EXPENSES (Notes 11 and 26) Selling and marketing expenses 87,389 3 96,841 2 194,942 3 167,688 2 General and administrative expenses 314,915 12 308,254 6 665,012 11 634,517 7 Research and development expenses 321,215 12 274,466 5 696,362 11 572,888 6 Expected credit loss (gain) 2,554 - ( 2 ) - 13,313 - - - Total operating expenses 726,073 27 679,559 13 1,569,629 25 1,375,093 15 PROFIT FROM OPERA TIONS 47,811 2 868,946 17 291,239 4 1,697,021 18 NON-OPERA TING INCOME AND EXPENSES (Notes 14 and 26) Interest income 1,726,553 64 1,881,379 37 3,423,958 53 3,896,664 41 Other income 118,517 5 119,685 2 129,780 2 131,870 1 Foreign currency exchange gains (losses), net ( 265,563 ) ( 10 ) ( 3,447,989 ) ( 68 ) ( 43,638 ) ( 1 ) ( 2,829,871 ) ( 30 ) Other gains (losses), net 296,917 11 ( 8,974 ) - 234,525 4 706,344 8 Interest expense ( 310,733 ) ( 12 ) ( 251,340 ) ( 5 ) ( 613,260 ) ( 9 ) ( 497,361 ) ( 5 ) Share of profits (losses) from associates accounted for using the equity method 53,360 2 22,190 1 95,749 1 71,861 1 Total non-operating income and expenses 1,619,051 60 ( 1,685,049 ) ( 33 ) 3,227,114 50 1,479,507 16 PROFIT BEFORE INCOME TAX 1,666,862 62 ( 816,103 ) ( 16 ) 3,518,353 54 3,176,528 34 INCOME TAX EXPENSE (Notes 4 and 27) 256,294 9 232,719 5 572,251 9 1,258,187 14 CURRENT-PERIOD NET PROFIT 1,410,568 53 ( 1,048,822 ) ( 21 ) 2,946,102 45 1,918,341 20 (Continued)
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- 6 - (Continued from previous page) April 1 to June 30, 2026 April 1 to June 30, 2025 (after restatement) January 1 to June 30, 2026 January 1 to June 30, 2025 (after restatement) Amount % Amount % Amount % Amount % OTHER COMPREHENSIVE INCOME (LOSS) (Notes 14 and 24) 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 4,476,976 167 799,502 16 5,170,805 80 343,047 4 Share of other comprehensive income from associates accounted for using the equity method 856 - 798 - 319 - 497 - Items that may be reclassified subsequently to profit or loss: Exchange differences from translating the financial statements of foreign operations ( 491,496 ) ( 18 ) ( 19,413,359 ) ( 382 ) 2,588,617 40 ( 17,288,771 ) ( 183 ) Unrealized gain (loss) on investment in debt instruments at fair value through other comprehensive income ( 551,137 ) ( 21 ) ( 882,381 ) ( 17 ) ( 1,456,760 ) ( 22 ) 1,595,450 17 Share of other comprehensive income from associates accounted for using the equity method ( 3,356 ) - ( 44,058 ) ( 1 ) 3,828 - ( 33,822 ) ( 1 ) Current-period other comprehensive income (post-tax profit or loss) 3,431,843 128 ( 19,539,498 ) ( 384 ) 6,306,809 98 ( 15,383,599 ) ( 163 ) TOTAL COMPREHENSIVE INCOME $ 4,842,411 181 ($20,588,320) ( 405 ) $ 9,252,911 143 ($13,465,258) ( 143 ) NET PROFIT A TTRIBUTABLE TO: Owners of the Company $ 1,355,366 51 ( $ 1,052,439 ) ( 21 ) $ 2,839,850 43 $ 1,842,497 19 Non-controlling interests 55,202 2 3,617 - 106,252 2 75,844 1 $ 1,410,568 53 ( $ 1,048,822 ) ( 21 ) $ 2,946,102 45 $ 1,918,341 20 TOTAL COMPREHENSIVE INCOME A TTRIBUTABLE TO: Owners of the Company $ 4,787,209 179 ( $20,591,937 ) ( 405 ) $ 9,146,659 142 ($13,541,102) ( 144 ) Non-controlling interests 55,202 2 3,617 - 106,252 1 75,844 1 $ 4,842,411 181 ($20,588,320) ( 405 ) $ 9,252,911 143 ($13,465,258) ( 143 ) EARNINGS PER SHARE (Note 28) Basic $ 2.51 ( $ 1.64 ) $ 5.14 $ 2.84 Diluted 2.51 ( 1.64 ) 5.13 2.84 The accompanying notes are an integral part of the consolidated financial statements. (Refer to the review report of Deloitte & Touche dated August 10, 2026)
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- 7 - CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY JANUARY 1 TO JUNE 30, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Except Dividends per Share) Equity Attributable to Owners of the Company Retained Earnings Other Equity Share Capital Capital Surplus Legal Reserve Special Reserve Unappropriated Earnings Exchange Differences from Translating the Financial Statements of Foreign Operations Unrealized Valuation Gain (Loss) on Financial Assets at FVTOCI Total Treasury Shares Total Non-Controlling Interests Total Equity BALANCE A T JANUARY 1, 2026 $ 5,921,691 $ 15,576,725 $ 24,602,174 $ 14,521,192 $ 86,964,568 $ 1,193,327 ( $ 5,048,203 ) ( $ 3,854,876 ) ( $ 886,617 ) $ 142,844,857 $ 3,350,355 $ 146,195,212 Appropriation of 2025 second half earnings (Note 24) Special reserve - - - ( 10,666,316 ) 10,666,316 - - - - - - - Cash dividends - - - - ( 3,833,102 ) - - - - ( 3,833,102 ) - ( 3,833,102 ) Share of changes in associates recognized under the equity method - 9 - - ( 88 ) - - - - ( 79 ) - ( 79 ) Donations from shareholders - 837 - - - - - - - 837 - 837 Net profit from January 1 to June 30, 2026 - - - - 2,839,850 - - - - 2,839,850 106,252 2,946,102 Other comprehensive income after tax from January 1 to June 30, 2026 - - - - - 2,592,445 3,714,364 6,306,809 - 6,306,809 - 6,306,809 Total comprehensive income from January 1 to June 30, 2026 - - - - 2,839,850 2,592,445 3,714,364 6,306,809 - 9,146,659 106,252 9,252,911 Changes in capital surplus of subsidiaries - 10 - - - - - - - 10 17 27 Gain (loss) from disposal of investments in equity instruments at FVTOCI - - - - 29,449 - ( 29,449 ) ( 29,449 ) - - - - Actual acquisition of partial equity of subsidiaries - - - - ( 12,244 ) - - - - ( 12,244 ) ( 13,250 ) ( 25,494 ) Buyback of ordinary shares (Note 24) - - - - - - - - ( 9,764,128 ) ( 9,764,128 ) - ( 9,764,128 ) Cancellation of treasury shares (Note 24) ( 533,480 ) ( 1,401,254 ) - - ( 8,716,011 ) - - - 10,650,745 - - - Decrease in non-controlling interests - - - - - - - - - - ( 212,355 ) ( 212,355 ) Balance at June 30, 2026 $ 5,388,211 $ 14,176,327 $ 24,602,174 $ 3,854,876 $ 87,938,738 $ 3,785,772 ( $ 1,363,288 ) $ 2,422,484 $ - $ 138,382,810 $ 3,231,019 $ 141,613,829 Balance at January 1, 2025 $ 6,803,641 $ 17,878,365 $ 24,083,082 $ - $ 116,563,726 $ 7,508,967 ( $ 6,589,128 ) $ 919,839 ( $ 1,672,820 ) $ 164,575,833 $ - $ 164,575,833 Appropriation of 2024 second half earnings (Note 24) Legal reserve - - 519,092 - ( 519,092 ) - - - - - - - Cash dividends - - - - ( 5,193,161 ) - - - - ( 5,193,161 ) - ( 5,193,161 ) Share of changes in associates recognized under the equity method - 13,525 - - 267 - - - - 13,792 - 13,792 Donations from shareholders - 1,199 - - - - - - - 1,199 - 1,199 Net profit from January 1 to June 30, 2025 (after restatement) - - - - 1,842,497 - - - - 1,842,497 75,844 1,918,341 Other comprehensive income after tax from January 1 to June 30, 2025 - - - - - ( 17,322,593 ) 1,938,994 ( 15,383,599 ) - ( 15,383,599 ) - ( 15,383,599 ) Total comprehensive income from January 1 to June 30, 2025 (after restatement) - - - - 1,842,497 ( 17,322,593 ) 1,938,994 ( 15,383,599 ) - ( 13,541,102 ) 75,844 ( 13,465,258 ) Changes in capital surplus of subsidiaries - 11 - - - - - - - 11 22 33 Gain (loss) from disposal of investments in equity instruments at FVTOCI - - - - 57,431 - ( 57,431 ) ( 57,431 ) - - - - Actual acquisition of partial equity of subsidiaries - - - - ( 57,008 ) - - - - ( 57,008 ) ( 46,732 ) ( 103,740 ) Buyback of ordinary shares (Note 24) - - - - - - - - ( 9,791,498 ) ( 9,791,498 ) - ( 9,791,498 ) Cancellation of treasury shares (Note 24) ( 312,190 ) ( 820,007 ) - - ( 4,957,375 ) - - - 6,089,572 - - - Increase in non-controlling interest (after restatement) - - - - - - - - - - 3,250,153 3,250,153 BALANCE A T JUNE 30, 2025 (after restatement) $ 6,491,451 $ 17,073,093 $ 24,602,174 $ - $ 107,737,285 ( $ 9,813,626 ) ( $ 4,707,565 ) ( $ 14,521,191 ) ( $ 5,374,746 ) $ 136,008,066 $ 3,279,287 $ 139,287,353 The accompanying notes are an integral part of the consolidated financial statements. (Refer to the review report of Deloitte & Touche dated August 10, 2026)
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- 8 - CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS JANUARY 1 to JUNE 30, 2026 and 2025 (In Thousands of New Taiwan Dollars) January 1 to June 30, 2026 January 1 to June 30, 2025 (after restatement) CASH FLOWS FROM OPERA TING ACTIVITIES Profit before tax $ 3,518,353 $ 3,176,528 Income and expenses Depreciation expense 765,700 760,285 Amortization expense 59,790 62,180 Expected credit loss 13,313 - Net profit or loss of financial assets measured at fair value through profit or loss ( 240,921 ) ( 52,751 ) Interest expense 613,260 497,361 Interest income ( 3,423,958 ) ( 3,896,664 ) Dividend income ( 78,220 ) ( 110,747 ) Share of (profit) loss of associates accounted for using the equity method ( 95,749 ) ( 71,861 ) Proceeds from disposal of property, plant and equipment ( 86,559 ) ( 386,885 ) Net loss on disposal of financial assets 219 25,575 Gains on disposal of investments accounted for using the equity method - ( 480,772 ) Inventory write-down and obsolescence loss 133,072 14,788 Unrealized foreign exchange loss 685,468 2,483,277 Net changes in operating assets and liabilities Notes receivable ( 1,763 ) ( 4,416 ) Trade receivables 1,661,044 840,602 Other receivables 15,954 35,866 Inventories ( 1,186,625 ) ( 48,672 ) Other current assets ( 193,364 ) ( 38,302 ) Contract liabilities 7,731 ( 11,253 ) Notes payable ( 892 ) ( 2,118 ) Trade payables ( 1,111,647 ) ( 560,518 ) Other payables ( 859,220 ) ( 261,199 ) Other current liabilities ( 481,791 ) 23,683 Net defined benefit liabilities - 11 Other operating liabilities - 10,630 Cash generated from operations ( 286,805 ) 2,004,628 Dividends received 78,450 110,745 Income tax paid ( 894,448 ) ( 726,317 ) Net cash generated from operating activities ( 1,102,803 ) 1,389,056 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income ( 3,637,203 ) ( 994,184 ) Proceeds from sale of financial assets at fair value through other comprehensive income 5,351,964 222,176 (Continued)
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- 9 - (Continued from previous page) January 1 to June 30, 2026 January 1 to June 30, 2025 (after restatement) Purchase of financial assets at amortized cost ( $ 142,698,411 ) ( $ 88,702,837 ) Proceeds from disposal of financial assets at amortized cost 114,496,747 67,236,623 Purchase of financial assets at fair value through profit or loss ( 186,918 ) ( 390,513 ) Proceeds from disposals of financial assets at fair value through profit or loss 17,213 1,061 Acquisition of investments accounted for using the equity method ( 1,025,538 ) ( 499,695 ) Net cash inflow from acquisition of subsidiaries - 740,071 Acquisition of property, plant and equipment ( 539,782 ) ( 340,097 ) Proceeds from property, plant and equipment 89,820 378,222 Increase in refundable deposits ( 831 ) ( 12,297 ) Decrease in refundable deposits 1,804 8,950 Acquisition of intangible assets ( 15,394 ) ( 7,233 ) Interest received 3,760,813 3,760,088 Net cash outflows from investing activities ( 24,385,716 ) ( 18,599,665 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings 305,030,533 316,285,869 Repayments of short-term borrowings ( 298,644,269 ) ( 308,482,640 ) Proceeds from guarantee deposits received 468 1,516 Refunds of guarantee deposits received ( 450 ) ( 18,254 ) Repayment of principal of lease liabilities ( 16,174 ) ( 9,323 ) Distribution of cash dividends ( 1,870,988 ) ( 5,102,729 ) Purchase of treasury shares ( 10,075,891 ) ( 10,157,125 ) Acquisition of subsidiary shares ( 25,494 ) ( 100,415 ) Interest paid ( 636,163 ) ( 498,532 ) Other financing activities 864 1,232 Net cash outflows from financing activities ( 6,237,564 ) ( 8,080,401 ) EFFECTS OF EXCHANGE RA TE CHANGES ON THE BALANCE OF CASH AND CASH EQUIV ALENTS HELD IN FOREIGN CURRENCIES 391,181 ( 2,645,120 ) NET DECREASE IN CASH AND CASH EQUIV ALENTS ( 31,334,902 ) ( 27,936,130 ) OPENING CASH AND CASH EQUIV ALENTS 43,747,619 50,364,287 CLOSING CASH AND CASH EQUIV ALENTS $ 12,412,717 $ 22,428,157 The accompanying notes are an integral part of the consolidated financial statements. (Refer to the review report of Deloitte & Touche dated August 10, 2026)
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- 10 - CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS JANUARY 1 TO JUNE 30, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) 1. GENERAL INFORMATION Catcher Technology Co., Ltd. ( the “Company”) was incorporated in November 1984 under the laws of the Republic of China (R.O.C.). The Company mainly manufactures and sells aluminum and magnesium extrusion and stamping products and molds. It also provides leasing services. The Company’s shares were listed and traded on the Taipei Exchange (formerly called the GreTai Securities Market) from November 1999 until September 2001, when the Company listed its shares on the Taiwan Stock Exchange (TWSE) under stock number “2474” and ceased listing and trading on the Taipei Exchange. The consolidated financial statements of the Company and its subsidiaries are presented in the Company’s functional currency, the New Taiwan dollar. 2. APPROVAL OF FINANCIAL STATEMENTS The consolidated financial statements were published after approval by the Company’s Board of Directors on August 10, 2026. 3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS a. Initial application of the International Financial Reporting Standards (IFRS), International Accoun ting Standards (IAS), IFRIC interpretations (IFRIC) and SIC interpretations (SIC) (collectively, “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC). The application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have any material impact on the accounting policies of the Company and its subsidiaries (collectively referred to as the “Group”). b. The IFRS Accounting Standards endorsed by the FSC for application starting i n 2027 are as follows: New IFRSs Effective Date Announced by IASB IFRS 18 “Presentation and Disclosure of Financial Statements” January 1, 2027 (Note 1) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including 2025 amendments) January 1, 2027 Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency” January 1, 2027 Amendments to IAS 28 “Fair Value Option for Investments in Associates and Joint Ventures” January 1, 2027 (Note 2) Note 1: Companies in Taiwan shall apply IFRS 18 from January 1, 2028, and may elect to adopt it earlier.
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- 11 - Note 2: These amendments shall be applied concurrently with the adoption of IFRS 18. IFRS 18 "Presentation and Disclosure in Financial Statements" and related supporting amendments IFRS 18 will replace IAS 1 “Presentation of Financial Statements”. Major changes include: The consolidated company shall assess whether it has specified main business activities involving investments in particular types of assets and the provision of financing to customers, and accordingly classify the income and expense items in the statement of profit or loss into operating, investing, financing, income tax, and discontinued operations categories. The income statement shall report operating profit and loss, profit and loss before financing and income tax, as well as subtotals and totals of profit and loss. Guidelines are provided to enhance the requirements for aggregation and segmentation: The Group shall identify assets, liabilities, equity, revenues, expenses, and cash flows arising from individual transactions or other matters, and classify and aggregate them based on shared characteristics. This ensures that each line item reported in the primary financial statements reflects at least one common characteristic. Items with dissimilar characteristics shall be segmented in the primary financial statements and notes. The Group shall label such items as “Other” only when more informative labels are not available. Increase the disclosure of performance mea surements defined by management: When the Group engages in public communications outside of the financial statements and conveys management’s view on a particular aspect of the Group’s overall financial performance to users of the financial statements, it shall disclose, in a single note to the financial statements, information related to the performance measurement defined by management. This includes a description of the measurement, how it is calculated, a reconciliation to the subtotals or totals specified by IFRS, and the effects of the reconciliation items on income taxes and non-controlling interests. In addition, the following supporting amendments were made to IAS 7 “Statement of Cash Flows”: When preparing cash flows from operating activities using the indirect method, the Group shall use operating profit or loss as the starting point for reconciliation. Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If the Group determines that it has a specific main business activity, the classification of dividends received, interest received, and interest paid in the statement of cash flows shall be determined based on the nature of dividend income, interest income, and interest expense presented in the statement of profit or loss. However, each of the above cash flows may be classified into only one category of activities in the statement of cash flows. The Group does not expect to early adop t IFRS 18 and the related consequential amendments. In addition to the aforementioned impacts, as of the date these consolidated financial
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- 12 - statements were authorized for issue, the Group is still assessing the effects of the amendments to the standards and interpretations on its financial position and financial performance. The related impacts will be disclosed upon completion of the assessment. c. IFRS Accounting Standards issued by the IASB but not yet endorsed and issued into effect by the FSC. New IFRSs Effective Date Announced by IASB (Note) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” To be announced IFRS 20 “Regulatory Assets and Regulatory Liabilities” January 1, 2029 Note: Unless otherwise stated, the above newly issued/amended/revised Standards or Interpretations are effective for annual reporting periods beginning on or after the respective effective dates. As of the date on which these consolidated financial statements were authorized for issue, the consolidated company is continuing to assess the impact of the amendments to the respective Standards and Interpretations on its financial position and financial performance. The related impacts will be disclosed upon comple tion of the assessment. 4. SUMMARY OF MATERIAL ACCOUNTING POLICIES a. Statement of Compliance The consolidated financial statements have been prepared in accordance with the IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. The consolidated financial statements do not contain all of the disclosures required by IFRS Accounting Standards for the entire annual consolidated financial statements. b. Basis of Preparation The consolidated financial statements have been prepared on a histor ical cost basis, except for financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of the defined benefit obligations less the fair value of plan assets. The fair value measurements, which are group ed into Levels 1 to 3 based on the degree to which the relevant inputs are observable and significant, are described as follows: 1) Level 1 inputs: (unadjusted) prices quoted in active markets for identical assets or liabilities; 2) Level 2 inputs: other than qu oted prices classified as Level 1 inputs, observable inputs for assets or liabilities, either directly obtained (i.e. prices) or indirectly derived (from prices); 3) Level 3 inputs: unobservable inputs for assets or liabilities. c. Basis of Consolidation The con solidated financial statements incorporate the financial statements of the
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- 13 - Company and the entities controlled by the Company (i.e., its subsidiaries). The consolidated statement of comprehensive income includes the operating results of the acquired subsid iaries from the acquisition date during the period. Adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those of the Group. All intra -group transactions, balances, income, expenses and losses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and the non-controlling interests even if this leads to a deficit balance for the non -controlling interests. Changes in the Group’ s ownership interests in subsidiaries that do not result in the Group losing control over its subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non -controlling interests are adjusted to reflec t 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 Company. For details of subsidiaries, the parent’s shareholding ratios, and main businesses of subsidiaries, please refer to Note 13, Tables 6 and 7. d. Other material accounting policies In addition to the following descriptions, please re fer to the summary of material accounting policies in the 2025 Consolidated Financial Statements. 1) Derecognition of financial liabilities Financial liabilities are derecognized on the settlement date, which is the date when the obligation specified in the c ontract is discharged, cancelled, or expires, or when an exchange of debt instruments with substantially different terms occurs, or when the terms of an existing liability are substantially modified. Upon derecognition of a financial liability, the differe nce between the carrying amount of the liability and the consideration paid (including any non -cash assets transferred or liabilities assumed) is recognized in profit or loss. 2) Defined benefit retirement benefits The pension cost in the interim period is ca lculated based on the actuarially determined pension cost rate at the end of the previous year, from the beginning of the year to the end of the current period. Adjustments are also made for major market fluctuations in the current period, as well as major plan revisions, liquidations, or other major one-off events. 3) Taxation Income tax expense represents the sum of the tax currently payable and tax deferred. Income tax for the interim period is assessed on an annual basis and is calculated based on the inte rim pre-tax profit using the tax rate applicable to the expected total annual profit. 5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY Please refer to the description of the major sources of uncertainty in material accounting judgments, estimates and assumptions in the 2025 consolidated financial statements.
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- 14 - 6. CASH AND CASH EQUIVALENTS June 30, 2026 December 31, 2025 June 30, 2025 Cash on hand $ 2,933 $ 1,973 $ 1,788 Bank checking and demand deposits 5,158,232 13,484,697 6,009,206 Cash equivalents (investments with initial maturities of less than 3 months) Time deposits 7,251,552 30,002,949 16,218,163 Repurchase agreements - 258,000 199,000 $ 12,412,717 $ 43,747,619 $ 22,428,157 7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL) June 30, 2026 December 31, 2025 June 30, 2025 Financial assets - current Mandatorily measured at FVTPL Non-derivative financial assets - Mutual funds $ 975,553 $ 644,757 $ 528,823 - Foreign listed stocks 498 604 511 $ 976,051 $ 645,361 $ 529,334 Financial assets - non-current Mandatorily measured at FVTPL Non-derivative financial assets - Private equity funds $ 2,926,202 $ 2,817,509 $ 2,411,475 - Limited partnerships 246,633 249,877 246,294 - Simple Agreement for Future Equity (SAFE) 26,072 26,072 - - Foreign non-listed stocks 33,884 33,437 31,171 $ 3,232,791 $ 3,126,895 $ 2,688,940 8. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI) June 30, 2026 December 31, 2025 June 30, 2025 Current Investments in equity instruments $ 11,511,118 $ 8,453,326 $ 7,469,436 Non-Current Investments in equity instruments $ 3,142,228 $ 2,241,428 $ 2,488,480 Investments in debt instruments 79,339,529 81,716,922 76,919,817 $ 82,481,757 $ 83,958,350 $ 79,408,297
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- 15 - a. Investments in equity instruments June 30, 2026 December 31, 2025 June 30, 2025 Current Domestic investments Listed stocks $ 8,080,260 $ 6,749,002 $ 6,661,860 Foreign investments Listed stocks 3,430,858 1,704,324 807,576 $ 11,511,118 $ 8,453,326 $ 7,469,436 Non-Current Domestic investments Non-listed stocks $ 391,557 $ 302,340 $ 243,067 Foreign investments Limited partnerships 1,825,374 1,548,752 1,902,661 Listed stocks 925,297 390,336 342,752 $ 3,142,228 $ 2,241,428 $ 2,488,480 The investments in equity instruments are held for medium - to long -term strategic purpose and are expected to generate long -term profits. Accordingly, t he management decided to designate and evaluate the investments in equity instruments at FVTOCI as they believe that recognizing profit or loss from short -term fair value fluctuations of these investments is not consistent with the Group’s long -term investment plan. The Group increased its investment in China Renewable Energy Fund, L.P. (the CREF) to 23.51%. Holding only 1 out of 5 seats in the Operation Committee of the CREF and considering this as having no significant influence over the investee, the management of the Group decided to classify the investment as financial assets at FVTOCI - non-current. The Group’s ownership interests in Long Precision Machinery Co., Ltd. and Taiwan Health Network Platform Co., Ltd. have reached 20%. The management of the Group believes that it does not have significant influence over these investments. Accordingly, these investments are classified as current and non -current financial assets at fair value through other comprehensive income, respectively. In January 2025, th e Group’s shareholding in United Orthopedic Corporation reached 20%. The Group assessed that it has significant influence over the investee. Accordingly, starting from January 15, 2025, the accounting treatment for the investment has been changed from fina ncial assets measured at fair value through other comprehensive income to investments accounted for using the equity method, based on the closing price on that date. Please refer to Note 14. The Group has been elected to hold two corporate director seats o n Intai Technology Corp. The Group assessed that it has significant influence over the investee . Accordingly, starting from June 26, 2026, the accounting treatment for the investment has been changed from financial instruments measured at fair value through other comprehensive income to investments accounted for using the equity method, based on the closing price on that date. Please refer to Note 14.
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- 16 - b. Investments in debt instruments June 30, 2026 December 31, 2025 June 30, 2025 Non-Current Corporate bonds $ 49,011 $ 2,022,665 $ 2,590,211 Government bonds 79,290,518 79,694,257 74,329,606 $ 79,339,529 $ 81,716,922 $ 76,919,817 Refer to Note 10 for information relating to the credit risk management and impairment of investments in debt instruments at FVTOCI. 9. FINANCIAL ASSETS MEASURED AT AMORTIZED COST June 30, 2026 December 31, 2025 June 30, 2025 Current Domestic investments Time deposits with original maturity of more than 3 months (1) $ 30,017,649 $ 34,690,583 $ 43,840,149 Restricted bank deposits (1 and 3) 26,135,312 - 1,047,150 Time deposits in offshore fund accounts (1) 17,670,417 17,481,065 23,815,537 Refundable deposits 5,498 5,448 5,062 $73,828,876 $ 52,177,096 $ 68,707,898 Non-Current Domestic investments Time deposits with original maturity of more than 1 year (1) $ 6,370,000 $ - $ - Corporate bonds (2) 9,850 9,820 - Refundable deposits 17,370 18,282 909 $ 6,397,220 $ 28,102 $ 909 a. The interest rate range of time deposits as of the balance sheet date was as follows: June 30, 2026 December 31, 2025 June 30, 2025 Time deposits 0.85%~4.29% 1.60%~4.53% 1.42%~4.65% b. In November 2025, the Group purchased NT$10,000 thousand of 2022 First Series Unsecured Ordinary Corporate Bonds issued by Taiwan Semiconductor Manufacturing Company Limited (TSMC) at the coupon rate of 0.72% and effective interest rate of 1.32767 %. The investment counterparties are financial institutions and corporations with strong credit quality. Accordingly, the probability of default is considered to be very low. c. For information on pledges of assets measured at amortized cost - current, please refer to Note 34. 10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS Debt instruments invested by the Group are financial assets measured at fair value through other comprehensive income (FVTOCI):
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- 17 - June 30, 2026 Financial Assets at FVTOCI Gross carrying amount $ 79,374,507 Allowance for impairment loss ( 34,978 ) $ 79,339,529 December 31, 2025 Financial Assets at FVTOCI Gross carrying amount $ 81,751,438 Allowance for impairment loss ( 34,516 ) $ 81,716,922 June 30, 2025 Financial Assets at FVTOCI Gross carrying amount $ 76,951,994 Allowance for impairment loss ( 32,177 ) $ 76,919,817 The Group invests in debt instruments with credit rating information supplied by independent rating agencies. The Group continues to track external rating information to monitor changes in the credit risk of the invested debt instruments, while reviewing other information such as bond yield curves and major information of the debtors to assess whe ther the credit risk of the debt instrument investments has increased significantly since initial recognition. The Group takes into consideration a variety of historical default risks and loss ratios provided by external rating agencies, the debtors’ curre nt financial status and the outlook of the industry where it belongs to, to measure the expected credit loss of 12 months or the expected credit loss for the duration of the investment in debt instruments. The Group currently adopts the following credit risk rating mechanism: Credit Rating Definition Recognition Basis for Expected Credit Loss Normal The debtor has low credit risk and sufficient ability to repay the contractual cashflows Expected credit losses for 12-month Abnormal Credit risk has increased significantly since initial recognition Expected credit loss for the duration of the debt instrument investment (without credit impairment) Default Evidence of credit impairment Expected credit loss for the duration of the debt instrument investment (with credit impairment) Offset There is evidence that the debtor is facing severe financial difficulties and that the Group has no reasonable expectation of recovery Direct write-off
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- 18 - The carrying amount of investments in debt instruments for each credit rating and the applicable expected credit loss ratio are as follows: June 30, 2026 Gross Carrying Amount Credit Rating Expected Credit Loss Ratio Financial Assets at FVTOCI Normal 0% $ 79,339,529 Abnormal 100% 34,978 December 31, 2025 Gross Carrying Amount Credit Rating Expected Credit Loss Ratio Financial Assets at FVTOCI Normal 0% $ 81,716,922 Abnormal 100% 34,516 June 30, 2025 Gross Carrying Amount Credit Rating Expected Credit Loss Ratio Financial Assets at FVTOCI Normal 0% $ 76,919,817 Abnormal 100% 32,177 Information on changes in loss allowances on debt instrument investments measured at fair value through other comprehensive income: Abnormal Credit Rating (Expected Credit Loss Without Credit Impairment, Over the Duration) Balance at January 1, 2026 $ 34,516 Exchange rate movement 462 Balance at June 30, 2026 $ 34,978 Balance at January 1, 2025 $ 36,004 Exchange rate movement ( 3,827 ) Balance at June 30, 2025 $ 32,177 11. TRADE RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES June 30, 2026 December 31, 2025 June 30, 2025 Notes receivable At amortized cost – incurred from operations Gross carrying amount $ 14,038 $ 12,275 $ 14,681 Trade receivables At amortized cost Gross carrying amount $ 2,378,290 $ 4,072,787 $ 4,727,017 Less: allowance for impairment loss ( 21,622 ) ( 8,309 ) ( 8,309 ) $ 2,356,668 $ 4,064,478 $ 4,718,708 (Continued)
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- 19 - (Continued from previous page) Other receivables Interest receivable $ 722,521 $ 1,071,146 $ 1,138,960 Others 93,837 80,957 53,300 $ 816,358 $ 1,152,103 $ 1,192,260 a. Notes receivable Loss allowance is not provided as historical experiences suggest that the possibility of recovery for notes receivables is extremely high. b. Trade receivables The average credit period for sales of goods is 30 to 180 days, and there is no interest charged on tr ade receivables. In order to minimize credit risk, the Group’s management has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that appropriate actions are taken to recover receivables past due. In addition, the Group reviews the recoverable amount of each individual receivable at the end of the reporting period to ensure that adequate loss allowance is provided against irrecoverable receivables. Thus, the management believes that the Group’s credit risk has been significantly reduced. The Group recognizes the loss allowance for trade receivables based on the lifetime expected credit losses (ECLs). The lifetime ECLs are calculated using a provision matrix by referring to clients’ past defa ult records, current financial status and industry conditions, while also taking into account the economic and industry outlook. The provision matrix determines the expected credit loss ratio based on the number of days that a trade receivable is past due, with no further client segmentation, considering there is no significant difference between the loss patterns of different customer groups. The Group writes off a trade receivable when seeing evidences that the debtor is in severe financial difficulties a nd there is no realistic prospect of recovery. For instance, when the trade counterpart is under liquidation. For trade receivables that have been written off, the Group continues to engage in enforcement activities in an attempt to recover the receivables past due. The recovered amount will be recognized as profit or loss. The following table details the loss allowance of trade receivables based on the Group’s provision matrix: June 30, 2026 Not past due 1-60 days past due 61-120 days past due 121-180 days past due More than 180 days past due Total Expected credit loss ratio 0%~0.029% 0%~22.385% 0%~25.218% 0%~18.874% 10%~100% Gross Carrying Amount $ 2,028,772 $ 344,483 $ 2,568 $ 1,178 $ 1,289 $ 2,378,290 Loss allowance (lifetime ECLs) ( 587 ) ( 19,652 ) ( 626 ) $ - ( 757 ) ( 21,622 ) Amortized cost $ 2,028,185 $ 324,831 $ 1,942 $ 1,178 $ 532 $ 2,356,668 December 31, 2025 Not past due 1-60 days past due 61-120 days past due 121-180 days past due More than 180 days past due Total Expected credit loss ratio 0%~0.05% 0%~20.071% 0%~26.514% 0%~17.165% 10%~100% Gross Carrying Amount $ 3,965,237 $ 97,952 $ 8,900 $ - $ 698 $ 4,072,787 Loss allowance (lifetime ECLs) ( 1,986 ) ( 3,781 ) ( 1,844 ) $ - ( 698 ) ( 8,309 ) Amortized cost $ 3,963,251 $ 94,171 $ 7,056 $ - $ - $ 4,064,478
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- 20 - June 30, 2025 Not past due 1-60 days past due 61-120 days past due 121-180 days past due Total Expected credit loss ratio 0%~0.189% 0%~2.031% 0%~4.762% 0%~4.348% Gross Carrying Amount $ 4,298,504 $ 414,994 $ 12,503 $ 1,016 $ 4,727,017 Loss allowance (lifetime ECLs) ( 8,134 ) ( 59 ) ( 71 ) ( 45 ) ( 8,309 ) Amortized cost $ 4,290,370 $ 414,935 $ 12,432 $ 971 $ 4,718,708 Information on changes in the loss allowance of trade receivables is as follows: January 1 to June 30, 2026 January 1 to June 30, 2025 Opening balance $ 8,309 $ 8,309 Plus: allowance recognized this period 13,313 2 Less: allowance reversed this period - ( 2 ) Ending balance $ 21,622 $ 8,309 c. Other receivables Loss allowance is not provided as historical experiences suggest that the possibility of recovery for notes receivables is extremely high. 12. INVENTORIES June 30, 2026 December 31, 2025 June 30, 2025 Merchandise $ 6,491 $ 7,794 $ 5,088 Finished goods 3,211,991 2,086,025 998,539 Work-in-process and semi-finished goods 817,996 921,774 726,812 Raw materials and supplies 536,609 421,103 318,428 $ 4,573,087 $ 3,436,696 $ 2,048,867 The nature of the cost of goods sold is as follows: April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Cost of inventories sold $ 1,782,567 $ 3,751,953 $ 4,545,753 $ 6,733,421 Inventory write-down 129,492 10,429 133,072 14,788 Others ( 4,739 ) ( 226,554 ) ( 84,544 ) ( 385,702 ) $ 1,907,320 $ 3,535,828 $ 4,594,281 $ 6,362,507 13. SUBSIDIARY a. Subsidiaries included in the consolidated financial statements The reporting entities of the consolidated financial statements were as follows: Shareholding Percentage (%) Investor Company Investee Main Business June 30, 2026 December 31, 2025 June 30, 2025 Remark Catcher Technology Co., Ltd. Nanomag International Co., Ltd. Investing activities 100 100 100 Gigamag Co., Ltd. Investing activities 100 100 100 Ke Y ue Co., Ltd. Investing activities 100 100 100 Yi Sheng Co., Ltd. Investing activities 100 100 100 Yi De Co., Ltd. Investing activities 100 100 100 Catcher Medtech Co., Ltd. Manufacturing and selling medical devices 100 100 100 Catcher Holdings International Inc. Investing activities 100 100 - Note 1 (Continued)
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- 21 - (Continued from previous page) Shareholding Percentage (%) Investor Company Investee Main Business June 30, 2026 December 31, 2025 June 30, 2025 Remark Yi Fa Co., Ltd. Investing activities 100 100 100 Yi Chuan Co., Ltd. Investing activities 100 100 100 Yi Zhu Co., Ltd. Investing activities 100 100 100 Xincher Precision Manufacturing Co., Ltd. Manufacturing and selling varied alloy products 100 100 100 Topo Technology (Thailand) Co., Ltd. Manufacturing and selling varied alloy products 100 100 100 Ke Y ue Co., Ltd. Pacific Hospital Supply Co., Ltd. Manufacturing and selling medical devices 10.42 10.42 10.42 Note 3 Yi Sheng Co., Ltd. Pacific Hospital Supply Co., Ltd. Manufacturing and selling medical devices 4.48 4.48 4.48 Note 3 Yi De Co., Ltd. Pacific Hospital Supply Co., Ltd. Manufacturing and selling medical devices 5.57 5.57 5.57 Note 3 Shareholding Percentage (%) Investor Company Investee Main Business June 30, 2026 December 31, 2025 June 30, 2025 Remark Catcher Medtech Co., Ltd. Ren He Medtech Co., Ltd. Selling medical devices 100 100 100 Ren Yi Medtech Co., Ltd. Selling medical devices 100 100 100 COFORCE Medical Inc. CDMO business for medical devices 100 100 100 Pacific Hospital Supply Co., Ltd. Manufacturing and selling medical devices 4.14 4.14 4.14 Note 3 Yi Fa Co., Ltd. Pacific Hospital Supply Co., Ltd. Manufacturing and selling medical devices 8.45 8.45 8.45 Note 3 Yi Chuan Co., Ltd. Pacific Hospital Supply Co., Ltd. Manufacturing and selling medical devices 1.94 1.51 0.02 Note 3 Nanomag International Co., Ltd. Castmate International Co., Ltd. Investing activities - - - Note 2 Stella International Co., Ltd. Investing activities 100 100 100 Uranus International Co., Ltd. Investing activities 100 100 100 Norma International Co., Ltd. Investing activities 100 100 100 Next Level Ltd. Investing activities 100 100 100 Cor V entures Pte. Ltd. Investing activities 100 100 100 Stella International Co., Ltd. Lyra International Co., Ltd. Investing activities 100 100 100 Uranus International Co., Ltd. Catcher Technology (Suqian) Co., Ltd. Manufacturing, selling and developing varied alloy products 100 100 100 Vito Technology (Suqian) Co., Ltd. Manufacturing, selling and developing varied alloy products 100 100 100 Norma International Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Manufacturing, selling and developing varied alloy products 100 100 100 Envio Technology (Suqian) Co., Ltd. Manufacturing, selling and developing varied alloy products 100 100 100 Catcher Holdings International Inc. Catcher V entures Inc. Investing activities 100 100 - Note 1 Note 1: The Company established Catcher Holdings International Inc. and Catcher Ventures Inc. in June 2022, and remitted the related investment funds in August 2025. Note 2: The Board of Directors resolved in February 2024 to liquidate Aquila International Co., Ltd., which was liquidated and deregistered in January 2025.
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- 22 - Note 3: In January 2025, the Group obtained de facto control over Pacific Hospital Supply Co., Ltd. Accordingly, starting from January 2025, the company has been included as a subsidiary in the consolidated financial statements. The original investment in Pacific Hospital Supply Co., Ltd. accounted for using the equity method was deemed disposed of, and a gain on disposal of investments accounted for using the equity method in the amount of NT$480,772 thousand was recognized under other gains and losses. The Group completed the pu rchase price allocation report during the fourth quarter of 2025 and has adjusted the initial accounting treatment and provisional amounts since the date of acquisition, with restatement of comparative information. Please refer to Note 29 for information o n the restatement. b. Significant information on subsidiaries of non-controlling interests Percentage of Ownership and Voting Rights Held by Non-controlling Interests Investee June 30, 2026 December 31, 2025 June 30, 2025 Pacific Hospital Supply Co., Ltd. 65.00% 65.44% 66.92% For information on the principal place of business and the country of incorporation, please refer to Table 6. Profit or Loss Allocated to Non-controlling Interests Investee April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Pacific Hospital Supply Co., Ltd. $ 55,202 $ 3,617 $ 106,252 $ 75,844 Non-controlling Interests Investee June 30, 2026 December 31, 2025 June 30, 2025 Pacific Hospital Supply Co., Ltd. $ 3,231,019 $ 3,350,355 $ 3,279,287 The summarized financial information of the following subsidiaries is presented before intercompany eliminations: Pacific Hospital Supply Co., Ltd. June 30, 2026 December 31, 2025 June 30, 2025 Current assets $ 2,124,422 $ 1,822,506 $ 1,963,671 Non-current assets 2,065,637 2,096,761 2,086,442 Current liabilities ( 903,830 ) ( 522,288 ) ( 887,795 ) Non-current liabilities ( 429,753 ) ( 429,540 ) ( 418,636 ) Equity $ 2,856,476 $ 2,967,439 $ 2,743,682 Equity attributable to: Owners of the Company $ 999,767 $ 1,025,688 $ 907,720 Non-controlling interests of Pacific Hospital Supply Co., Ltd. 1,856,709 1,941,751 1,835,962 $ 2,856,476 $ 2,967,439 $ 2,743,682 (Continued)
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- 23 - (Continued from previous page) April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Operating revenue $ 603,060 $ 565,738 $1,184,631 $1,170,275 Total net income and comprehensive income $ 111,242 $ 31,705 $ 215,710 $ 164,424 Total net income and comprehensive income attributable to: Owners of the Company $ 38,935 $ 10,426 $ 75,164 $ 53,056 Non-controlling interests of Pacific Hospital Supply Co., Ltd. 72,307 21,279 140,546 111,368 $ 111,242 $ 31,705 $ 215,710 $ 164,424 January 1 to June 30, 2026 January 1 to June 30, 2025 Cash flow Operating activities $ 236,022 $ 218,287 Investing activities ( 166,160 ) ( 29,180 ) Financing activities ( 9,131 ) ( 8,171 ) Effects of exchange rate changes on the balance of cash and cash equivalents - ( 18,318 ) Net cash inflow $ 60,731 $ 162,618 14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD June 30, 2026 December 31, 2025 June 30, 2025 Investments in associates Associates that are not individually material Bioteque Corporation $ 2,479,824 $ 2,256,976 $ 2,134,032 United Orthopedic Corporation 2,836,583 2,346,393 2,130,533 Intai Technology Corp. 1,547,546 - - Smart Ecare Inc. 3,669 3,657 3,604 Niche Biomedical Inc. 419,069 - - $ 7,286,691 $ 4,607,026 $ 4,268,169 Information of associates that are not individually material was as follows: April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 The Group’s share of: Current-period net profit $ 53,360 $ 22,190 $ 95,749 $ 71,861 Other comprehensive income ( 2,500 ) ( 43,260 ) 4,147 ( 33,325 ) Total comprehensive income $ 50,860 ( $ 21,070 ) $ 99,896 $ 38,536 As stated in Note 8, the Group held ordinary shares of United Orthopedic Corporation, which were reclassified from financial assets measured at fair value through other comprehensive income to investments using the equity method on January 15, 2025. The Group co mpleted the purchase price allocation report in the first quarter of 2026. Therefore, the previously issued consolidated financial statements were retrospectively restated in accordance with the applicable regulations. Please refer to Note 29 for information on the restatement.
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- 24 - The investment in Smart Ecare Inc., Niche Biomedical Inc. accounted for using the equity method, and the profit and loss as well as other comprehensive income shared with the Group, are calculated based on the financial statements wh ich were not reviewed by CPAs. The management of the Group nevertheless believes this would not have a material impact. 15. PROPERTY, PLANT AND EQUIPMENT All property, plant and equipment are used by the Group. Please refer to Table 9 for the changes in proper ty, plant, and equipment of the Group from January 1 to June 30, 2026 and 2025. The Group’s property, plant, and equipment are depreciated on a straight -line basis over their estimated useful lives as follows: Buildings Main buildings 20-51 years Mechanical and electrical power equipment 5-30 years Engineering systems 2-5 years Others 2-50 years Machinery and equipment 2-26 years Miscellaneous equipment 2-15 years All of the Group’s property, plant and equipment are not pledged as collateral. 16. LEASE ARRANGEMENTS a. Right-of-use assets June 30, 2026 December 31, 2025 June 30, 2025 Carrying amount Land $ 1,350,705 $ 1,325,207 $ 1,276,314 Buildings 18,801 25,625 16,489 Transportation equipment 2,302 2,656 3,011 $ 1,371,808 $ 1,353,488 $ 1,295,814 April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Addition to right-of-use assets $ 5,061 $ 14,897 Acquisition through business combination $ - $413,147 Depreciation charge Land $ 9,278 $ 8,804 $ 18,384 $ 17,951 Buildings 3,709 3,280 7,970 6,516 Transportation equipment 177 118 354 118 $ 13,164 $ 12,202 $ 26,708 $ 24,585 Except for the above additions and recognition of depreciation expenses, there were no significant sublease or impairment events for the right -of-use assets of the Group and its subsidiaries during the period from January 1 to June 30, 2026 and 2025, respectively.
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- 25 - b. Lease liabilities June 30, 2026 December 31, 2025 June 30, 2025 Carrying amount of lease liabilities Current $ 20,442 $ 24,798 $ 27,396 Non-Current $ 532,805 $ 535,092 $ 529,158 The range of discount rates for lease liabilities was as follows: June 30, 2026 December 31, 2025 June 30, 2025 Land 1.32~1.82% 1.32%~1.82% 1.32%~1.82% Buildings 1.79%~5% 1.79%~5% 1.79%~5% Transportation equipment 2.20% 2.20% 2.20% c. Material lease-in activities and terms The Group leases certain land and buildings for the use of plants and office spaces with lease terms of 3 to 50 years. The lease contract for land located in Taiwan specifies that lease payments wi ll be adjusted every year on the basis of changes in the announced land value prices. The lease contract for land located in China specifies that lease payments will be adjusted every year based on the lease contract. The Group does not have bargain purcha se options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without consent of the lessors. Furthermore, the subsidia ry, Pacific Hospital Supply Co., Ltd., has a renewal option for the leased land. d. Other lease information April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Expenses relating to short-term leases $ 1,467 $ 1,572 $ 3,398 $ 2,458 Expenses relating to low-value asset leases $ 519 $ 233 $ 659 $ 432 Expenses relating to variable lease payments not included in the measurement of lease liabilities $ 580 $ 26 $ 1,686 $ 947 Total cash outflow for leases $ 26,716 $ 4,655 The Group has elected to apply the recognition exemption to certain asset leases which qualify as short -term leases and low -value asset leases. Thus, right -of-use assets and lease liabilities are not recognized for these leases.
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- 26 - 17. INVESTMENT PROPERTIES Land Buildings Total Costs Balance at January 1, 2025 $ 1,108,694 $ 211,518 $ 1,320,212 Addition - 106 106 Acquisition through business combination (Note 29) 119,545 60,520 180,065 Balance at June 30, 2025 $ 1,228,239 $ 272,144 $ 1,500,383 Accumulated depreciation Balance at January 1, 2025 $ - $ 155,288 $ 155,288 Depreciation expense - 1,744 1,744 Balance at June 30, 2025 $ - $ 157,032 $ 157,032 Net amount as of June 30, 2025 $ 1,228,239 $ 115,112 $ 1,343,351 Costs Balance as of January 1 and June 30, 2026 $ 1,108,694 $ 212,478 $ 1,321,172 Accumulated depreciation Balance at January 1, 2026 $ - $ 156,843 $ 156,843 Depreciation expense - 869 869 Balance at June 30, 2026 $ - $ 157,712 $ 157,712 Net amount as of December 31, 2025 and January 1, 2026 $ 1,108,694 $ 55,635 $ 1,164,329 Net amount as of June 30, 2026 $ 1,108,694 $ 54,766 $ 1,163,460 Depreciation of investment properties are calculated using the straight -line method over their estimated useful lives as follows: Main buildings 25-50 years Elevators 15 years Heat dissipation system 5 years The fair values of the Group’s investment properties as of December 31, 2025 and 2024 were NT$2,856,399 thousand and NT$2,152,911 thousand, respectively. As assessed by the management of the Group, there was no significant change in the fair value as of June 30, 2026 and 2025 compared to December 31, 2025 and 2024. All of the Group’s investment properties were not pledged as collateral. The investment properties are leased for a period from February 2017 to July 2029. The lessees agree to extend lease contracts with the rental adjusted based on market conditions. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the leasing period.
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- 27 - The lease payment receivables from investment properties under an operating lease were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Year 1 $ 20,991 $ 26,260 $ 29,684 Year 2 5,495 10,919 20,222 Year 3 5,257 5,257 5,495 Year 4 438 3,067 5,257 Year 5 - - 438 $ 32,181 $ 45,503 $ 61,096 18. GOODWILL AND INTANGIBLE ASSETS Goodwill Computer Software Technical Skills Patent Right Customer Relations Trademark Right Other Intangible Assets Total Costs Balance at January 1, 2025 $ 115,089 $ 387,812 $ 29,700 $ 940 $ - $ - $ 65,951 $ 599,492 Separate acquisition - 14,895 - - - - - 14,895 Acquisition through business combination (Note 29) 623,277 6,442 - 353,000 474,000 198,000 - 1,654,719 Disposal - ( 4,539 ) - - - - - ( 4,539 ) Effect of foreign currency exchange difference - ( 16,008 ) - - - - - ( 16,008 ) Balance at June 30, 2025 $ 738,366 $ 388,602 $ 29,700 $ 353,940 $ 474,000 $ 198,000 $ 65,951 $ 2,248,559 Accumulated amortization Balance at January 1, 2025 $ - $ 374,716 $ 29,700 $ - $ - $ - $ - $ 404,416 Amortization expense - 9,884 - 17,675 20,714 - 10,952 59,225 Disposal - ( 4,539 ) - - - - - ( 4,539 ) Effect of foreign currency exchange difference - ( 15,584 ) - - - - - ( 15,584 ) Balance at June 30, 2025 $ - $ 364,477 $ 29,700 $ 17,675 $ 20,714 $ - $ 10,952 $ 443,518 Net amount as of June 30, 2025 $ 738,366 $ 24,125 $ - $ 336,265 $ 453,286 $ 198,000 $ 54,999 $ 1,805,041 Costs Balance at January 1, 2026 $ 738,366 $ 404,778 $ 29,700 $ 354,428 $ 474,000 $ 198,000 $ 65,951 $ 2,265,223 Separate acquisition - 15,381 - - - - - 15,381 Disposal - ( 2,707 ) - - - - - ( 2,707 ) Effect of foreign currency exchange difference - 7,012 - - - - - 7,012 Balance at June 30, 2026 $ 738,366 $ 424,464 $ 29,700 $ 354,428 $ 474,000 $ 198,000 $ 65,951 $ 2,284,909 Accumulated amortization Balance at January 1, 2026 $ - $ 383,497 $ 29,700 $ 35,363 $ 41,429 $ - $ 21,903 $ 511,892 Amortization expense - 11,989 - 17,688 20,714 - 7,476 57,867 Disposal - ( 2,707 ) - - - - - ( 2,707 ) Effect of foreign currency exchange difference - 6,888 - - - - - 6,888 Balance at June 30, 2026 $ - $ 399,667 $ 29,700 $ 53,051 $ 62,143 $ - $ 29,379 $ 573,940 Net amount as of December 31, 2025 and January 1, 2026 $ 738,366 $ 21,281 $ - $ 319,065 $ 432,571 $ 198,000 $ 44,048 $ 1,753,331 Net amount as of June 30, 2026 $ 738,366 $ 24,797 $ - $ 301,377 $ 411,857 $ 198,000 $ 36,572 $ 1,710,969 The above intangible assets are amortized on a straight -line basis over their estimated useful lives as follows: Computer software 1-10 years Technical skills 5 years Patent right 3-18 years Customer relations 14 years Other intangible assets 1-14 years In the fourth quarter of 2024, the Group entered into an agreement with an unrelated party to purchase operating assets. The Group obtained the purchase price allocation report during the fourth quarter of 2025 and has adjusted the initial accounting treatment and provisional amounts since the date of acquisition, with restatement of comparative information. Please refer to Note 29 for information on the restatement.
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- 28 - 19. OTHER ASSETS June 30, 2026 December 31, 2025 June 30, 2025 Current Office supplies $ 243,440 $ 112,686 $ 74,385 Prepaid expenses 225,638 195,916 117,627 Net input V A T 82,480 115,761 87,286 Others 12,003 12,134 15,668 $ 563,561 $ 436,497 $ 294,966 Non-Current Prepaid equipment $ 205,975 $ 243,056 $ 59,070 Prepaid land payments 899,014 934,262 932,490 Others 361 391 336 $ 1,105,350 $ 1,177,709 $ 991,896 20. SHORT-TERM BORROWINGS June 30, 2026 December 31, 2025 June 30, 2025 Unsecured bank loans $45,230,000 $62,078,414 $53,539,353 Secured bank loans (Note 34) 23,162,000 - 1,000,000 $68,392,000 $62,078,414 $54,539,353 The interest rate ranges for short-term borrowings were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Unsecured bank loans 1.81%~2.15% 1.81%~2.40% 1.81%~2.55% Secured bank loans 1.73%~1.81% - 1.81% 21. NOTES PAYABLE AND ACCOUNTS PAYABLE The Group’s notes payable and accounts payable resulted from operating activities. The Group has stipulated financial risk management policies in place to ensure that all payables are paid in accordance with the pre-agreed credit terms.
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- 29 - 22. OTHER LIABILITIES June 30, 2026 December 31, 2025 June 30, 2025 Current Other payables Payables for technical service fees $ 1,100,640 $ 1,068,208 $1,034,910 Payables for compensation of employees 764,838 958,404 1,181,092 Payables for salaries and bonuses 559,456 941,838 654,840 Payables for purchases of equipment 190,985 101,515 52,302 Payables for unused annual leave 123,618 135,594 129,714 Payables for office supplies 89,100 149,614 130,409 Payables for utilities 53,425 75,702 88,169 Payables for taxes 51,260 71,040 55,734 Payables for maintenance 44,599 34,346 23,747 Payables for shipping and warehousing expenses 24,210 45,922 25,680 Payables for interest 23,182 44,911 32,613 Payables for meals 17,347 33,860 23,066 Payables on financial assets 6,841 - - Payables for professional service fees 6,162 11,995 24,204 Payable for purchase of treasury shares - 311,763 - Others 290,752 404,348 333,458 $ 3,346,415 $ 4,389,060 $ 3,789,938 Other liabilities Other advance receipts $ 37,956 $ 674,468 $ 811,659 Guarantee deposits received 14,269 13,197 10,442 Payables for value-added tax - 52,786 49,281 Others 32,192 18,341 21,370 $ 84,417 $ 758,792 $ 892,752 Non-Current Other liabilities Guarantee deposits received $ 13,459 $ 13,909 $ 15,656 Others 8,264 8,264 - $ 21,723 $ 22,173 $ 15,656 23. RETIREMENT BENEFIT PLANS The pension expenses related to the defined benefit plan recognized from April 1 to June 30 and from January 1 to June 30 in 2 026 and 2025, respectively, were NT$1,026 thousand, NT$893 thousand, NT$2,062 thousand and NT$1,768 thousand, respectively, calculated based on the pension cost ratio actuarially determined on December 31, 2025 and 2024, respectively.
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- 30 - 24. EQUITY a. Common share capital June 30, 2026 December 31, 2025 June 30, 2025 Number of shares authorized (in thousands) 1,000,000 1,000,000 1,000,000 Authorized capital $ 10,000,000 $ 10,000,000 $ 10,000,000 Number of shares issued and fully paid (in thousands) 538,821 592,169 649,145 Shares issued $ 5,388,211 $ 5,921,691 $ 6,491,451 Fully paid ordinary shares, with a par value of NT$10, carry one vote per share and carry a right to dividends. On April 16, 2025, the Company’s Board of Directors approved a capital reduction to cancel the Company’s 31,219 thousand treasury shares, and fixed the record date at April 18, 2025. The Company’s paid -in capital was NT$6,491,451 thousand after the capital reduction. On August 8, 2025, t he Company’s Board of Directors approved a capital reduction to cancel the Company’s 25,476 thousand treasury shares, and fixed the record date at August 13, 2025. The Company’s paid -in capital was NT$6,236,691 thousand after the capital reduction. On Dece mber 23, 2025, the Company’s Board of Directors approved a capital reduction to cancel the Company’s 31,500 thousand treasury shares, and fixed the record date at December 26, 2025. The Company’s paid -in capital was NT$5,921,691 thousand after the capital reduction. On March 3, 2026, the Company’s Board of Directors approved a capital reduction to cancel the Company’s 30,800 thousand treasury shares, and fixed the record date at March 5, 2026. The Company’s paid -in capital was NT$5,613,691 thousand after the capital reduction. On May 13, 2026, the Company’s Board of Directors approved a capital reduction to cancel the Company’s 22,548 thousand treasury shares, and fixed the record date at May 28, 2026. The Company’s paid -in capital was NT$5,388,211 thousand after the capital reduction. A total of 23,000 thousand shares of the Company’s authorized shares were reserved for the issuance of employee stock options.
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- 31 - b. Capital surplus June 30, 2026 December 31, 2025 June 30, 2025 May be used to offset deficits, distributed as cash dividends, or transferred to share capital (1) Issuance premium $ 5,217,814 $ 5,734,424 $ 6,286,165 Conversion premium 8,935,017 9,819,661 10,764,468 May only be used to offset deficits Donations from shareholders 9,463 8,626 8,514 Recognition of changes in ownership interests in subsidiaries (2) 43 33 11 Changes in equity of associates recognized using the equity method 13,990 13,981 13,935 $ 14,176,327 $ 15,576,725 $ 17,073,093 1) The capital surplus may be used to offset deficits, or may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s paid-in capital every year) when the Company has no deficits. 2) Such capital surplus represents the effects of equity transactions recognized due to changes in the associates’ equity when the Company did not actually acquire or dispose of the associates’ shares, or adjustments to the capital surplus of the associates recognized using the equity method. c. Retained earnings and dividend policy In accordance with the profit distribution policy as set forth in the Company’s Articles of Incorporation, profit distribution or offsetting of deficits shall be made at the end of every six months of a fiscal year. When the Company makes profits in the first half of a fiscal year, the profits shall be appropriated as follows: 1) To pay taxes, 2) To offset cumulative deficits, 3) To estimate compensation of employees and remuneration of directors, 4) To set aside 10% of the profits as legal reserve, unless the cumulative legal reserve equals the Company’s paid-in capital, 5) To set aside or reverse special reserves in accordance with the pertinent laws or operational needs, and 6) The Company’ s Board of Directors shall propose a plan to distribute any remaining profits together with cumulative retained earnings and retained earnings for the current period. For distribution in new shares, the proposal shall be approved at a shareholders’ meeting . For distribution in cash, it shall be approved at the Board meeting. When the Company makes profits in a fiscal year, the profits shall be appropriated as follows: 1) To pay taxes, 2) To offset cumulative deficits, 3) To set aside 10% of the profits as legal rese rve, unless the cumulative legal reserve equals the Company’s paid-in capital, 4) To set aside or reverse special reserves in accordance with the pertinent laws or
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- 32 - operational needs, and 5) The Company’s Board of Directors shall propose a plan to distribute any remaining profits together with cumulative retained earnings and retained earnings for the current period. For distribution in new shares, the proposal shall be approved at an Annual General Meeting of Shareholders. The Company is still in the growth stage . Looking forward, it will continue to monitor changes in the economic environment in order to achieve sustainable operations and long -term development. When proposing the appropriation of earnings, the Board of Directors shall focus on stability and grow th of dividends; cash dividends shall not be less than 10% of total dividends, while stock dividends may be distributed under the circumstances that the cash dividend per share is less than NT$0.5. With regard to the policies on distributing the compensatio n of employees and remuneration of directors, please refer to “Compensation of employees and remuneration of directors” in Note 26(h). The legal reserve may be used to offset deficits. Where there is no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash. The Company's semi -annual appropriations of earnings for the year 2024 and cash dividends per share were respectively approved by the Board of Directors as follows: July 1 to December 31, 2024 January 1 to June 30, 2024 Board resolution date April 16, 2025 November 6, 2024 Legal reserve $ 519,092 $ 802,413 Special reserve (reversal) $ - ( $ 2,669,364 ) Cash dividends $ 5,193,161 $ 5,102,731 Cash dividends per share (NT$) $ 8 $ 7.5 Distribution of the above cash dividends was resolved by the Board of Directors. The other earnings appropriations were approved at the General Meeting of Shareholders on May 27, 2025. The Company's semi -annual appropriations of earnings for the year 2025 and cash dividends per share were respectively approved by the Board of Directors as follows: July 1 to December 31, 2025 January 1 to June 30, 2025 Board resolution date April 8, 2026 November 6, 2025 Special reserve (reversal) ( $ 10,666,316 ) $ 14,521,192 Cash dividends $ 3,833,102 $ 1,871,007 Cash dividends per share (NT$) $ 7.11 $ 3.16 The aforementioned cash dividends have been approved for distribution by resolution of the Board of Directors, while the remaining earnings distribution items were approved by resolution of the Annual General Meeting of Shareholders held on May 27, 2026. d. Other equity 1) Exchange differences from translating the financial statements of foreign operations
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- 33 - January 1 to June 30, 2026 January 1 to June 30, 2025 Opening balance $ 1,193,327 $ 7,508,967 Exchange differences from translating the financial statements of foreign operations 2,588,617 ( 17,288,771 ) Share of differences of associates accounted for using the equity method 3,828 ( 33,822 ) Ending balance $ 3,785,772 ( $ 9,813,626 ) 2) Unrealized valuation gain (loss) on financial assets at FVTOCI January 1 to June 30, 2026 January 1 to June 30, 2025 Opening balance ( $ 5,048,203 ) ( $ 6,589,128 ) Unrealized gain (loss) Equity instruments 5,170,805 343,047 Debt instruments ( 1,456,979 ) 1,569,875 Share of differences of associates accounted for using the equity method 319 497 Reclassification adjustment Disposal of debt instruments 219 25,575 Cumulative gain (loss) from disposing of equity instruments transferred to retained earnings ( 29,449 ) ( 57,431 ) Ending balance ( $ 1,363,288 ) ( $ 4,707,565 ) e. Non-controlling interests January 1 to June 30, 2026 January 1 to June 30, 2025 Opening balance $ 3,350,355 $ - Current-period net profit 106,252 75,844 Acquisition of non-controlling interests of subsidiaries (Note 29) - 3,493,058 Cash dividends to shareholders of subsidiaries ( 212,355 ) ( 242,905 ) Purchase of non-controlling interests of subsidiaries ( 13,250 ) ( 46,732 ) Changes in subsidiaries’ equity 17 22 Ending balance $ 3,231,019 $ 3,279,287 f. Treasury shares Purpose of buy-back Shares Cancelled (in Thousands of Shares) Number of shares at January 1, 2025 8,810 Increase in the current period 47,885 Decrease in the current period 31,219 Number of shares at June 30, 2025 25,476 Number of shares at January 1, 2026 4,301 Increase in the current period 49,047 Decrease in the current period 53,348 Number of shares at June 30, 2026 -
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- 34 - On December 20, 2024, the Company’s Boa rd of Directors resolved to buy back 34,000 thousand shares from December 21, 2024 to February 20, 2025 at a price ranging from NT$126.00 to NT$296.40 per share in order to maintain the Company’s credibility and protect shareholders’ equity. The Company wi ll continue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, the Company had repurchased 31,219 thousand shares at a total cost of NT$6,089,572 thousand. On April 16, 2025, the Comp any’s Board of Directors resolved to buy back 33,000 thousand shares from April 17, 2025 to June 16, 2025 at a price ranging from NT$138 to NT$307 per share in order to maintain the Company’s credibility and protect shareholders’ equity. The Company will c ontinue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, the Company had repurchased 25,476 thousand shares at a total cost of NT$5,374,746 thousand. On October 17, 2025, the Compan y’s Board of Directors resolved to buy back 31,500 thousand shares from October 18, 2025 to December 17, 2025 at a price ranging from NT$125.5 to NT$277.5 per share in order to maintain the Company’s credibility and protect shareholders’ equity. The Compan y will continue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, the Company had repurchased 31,500 thousand shares at a total cost of NT$6,340,784 thousand. On December 13, 2025, t he Company’s Board of Directors resolved to buy back 30,800 thousand shares from December 24, 2025 to February 23, 2026 at a price ranging from NT$136.5 to NT$299 per share in order to maintain the Company’s credibility and protect shareholders’ equity. Th e Company will continue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, the Company had repurchased 30,800 thousand shares at a total cost of NT$6,328,755 thousand. On March 11, 2026, the Company’s Board of Directors resolved to buy back 28,400 thousand shares from March 12, 2026 to May 11, 2026 at a price ranging from NT$127.5 to NT$295 per share in order to maintain the Company’s credibility and protect shareholders’ equity. The C ompany will continue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, the Company had repurchased 22,548 thousand shares at a total cost of NT$4,321,990 thousand. On August 7, 2026, the Company’s Board of Directors resolved to buy back 33,000 thousand shares from August 10, 2026 to October 6, 2026 at a price ranging from NT$131.5 to NT$288 per share in order to maintain the Company’s credibility and protect shareholders’ equity. The Company will continue to buy back shares when the market price falls below the lower limit of the price range. In accordance with the Securities and Exchange Act, treasury shares shall not exceed 10% of the Company’s issued and outstanding shares, and the total amount of treasury shares shall not exceed total retained earnings plus additional paid -in capital and realized capital reserve. In accordance with the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareho lders’ rights on these shares, such as the rights to dividends and to vote.
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- 35 - 25. REVENUE April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Revenue from contracts with customers Metal casing and interior structured parts $ 2,066,055 $ 4,489,338 $ 5,250,020 $ 8,209,353 Medical consumables 565,035 523,071 1,121,511 1,105,243 Others 38,025 53,531 63,177 84,711 Rental income 7,260 8,012 14,519 16,023 Revenue from the rendering of services 4,829 10,381 5,922 19,291 $ 2,681,204 $ 5,084,333 $ 6,455,149 $ 9,434,621 a. Contract information The Group sells metal casing to brand customers. All goods are sold at resp ective fixed prices as agreed in the contracts. b. Contract balances June 30, 2026 December 31, 2025 June 30, 2025 January 1, 2025 Trade receivables Gross carrying amount $ 2,378,290 $ 4,072,787 $ 4,727,017 $ 5,648,925 Less: allowance for impairment loss ( 21,622 ) ( 8,309 ) ( 8,309 ) ( 8,309 ) $ 2,356,668 $ 4,064,478 $ 4,718,708 $ 5,640,616 Contract liabilities - current Sale of goods $ 106,426 $ 98,695 $ 53,521 $ 26,130 26. NET PROFIT a. Interest income April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Bank deposits $ 862,830 $1,038,868 $1,677,349 $2,109,207 Investments in debt instruments at FVTOCI 862,903 842,293 1,744,942 1,787,001 Repurchase agreements 820 218 1,667 456 $1,726,553 $1,881,379 $3,423,958 $3,896,664 b. Other income April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Government grants $ 1,610 $ 144 $ 4,702 $ 1,346 Recycling income 27,402 5,613 30,421 12,520 Dividend income 78,216 110,742 78,220 110,747 Other income 11,289 3,186 16,437 7,257 $ 118,517 $ 119,685 $ 129,780 $ 131,870 c. Other gains (losses) April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Gains (losses) on financial assets at FVTPL $ 300,123 $ 2,766 $ 240,921 $ 52,751 Losses on disposal of investments in debt instruments at FVTOCI - ( 15,646 ) ( 219 ) ( 25,575 ) Gains on disposal of investments accounted for using the equity method - - - 480,772 Others ( 3,206 ) 3,906 ( 6,177 ) 198,396 $ 296,917 ( $ 8,974 ) $ 234,525 $ 706,344
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- 36 - d. Interest expense April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Interest on bank loans $ 308,621 $ 249,270 $ 608,880 $ 493,175 Interest on lease liabilities 2,112 2,070 4,380 4,186 $ 310,733 $ 251,340 $ 613,260 $ 497,361 e. Depreciation and amortization April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Depreciation by function Operating costs $ 324,319 $ 300,784 $ 640,888 $ 620,024 Operating expenses 61,309 68,947 124,812 140,261 $ 385,628 $ 369,731 $ 765,700 $ 760,285 Amortization by function Operating costs $ 2,319 $ 2,281 $ 4,564 $ 4,625 Operating expenses 27,753 28,747 55,226 57,555 $ 30,072 $ 31,028 $ 59,790 $ 62,180 f. Operating expenses directly related to investment properties April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Direct operating expenses from investment properties generating rental income $ 1,241 $ 1,164 $ 2,544 $ 2,321 g. Employee benefits expense April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Short-term employee benefits $1,371,541 $1,582,316 $3,111,813 $3,210,122 Retirement benefits Defined contribution plan 83,613 91,380 208,698 192,692 Defined benefit plan (Note 23) 1,026 893 2,062 1,768 84,639 92,273 210,760 194,460 $1,456,180 $1,674,589 $3,322,573 $3,404,582 By function Operating costs $1,125,512 $1,349,506 $2,562,758 $2,718,698 Operating expenses 330,668 325,083 759,815 685,884 $1,456,180 $1,674,589 $3,322,573 $3,404,582 h. Compensation of employees and remuneration of directors The Company accrued the compensation of employees and remuneration of directors at the rates of no less than 1% and no higher than 1%, resp ectively, of net profit before income tax. In accordance with the amendment to the Securities and Exchange Act in August 2024, the Company resolved at the 2025 shareholders’ meeting to amend its Articles of Incorporation to specify that no less than 1% of the annual pre-tax profit, before deducting employees’ and directors’ remuneration, shall be allocated as employees’ remuneration. Of this amount, at least 10% shall be allocated to entry -level employees. Estimated employee compensation (including entry-level employees) and director remuneration from January 1 to June 30, 2026 and 2025 were as follows: Accrual rate January 1 to June 30, 2026 January 1 to June 30, 2025 Compensation of employees 1.04% 4.01% Remuneration of directors 0.42% 0.52%
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- 37 - Amount April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Compensation of employees $ 17,436 $ 49,927 $ 35,547 $ 111,671 Remuneration of directors $ 7,200 $ 7,200 $ 14,400 $ 14,400 If there are any further changes in the amounts after the publication of the annual consolidated financial statements, the difference will be treated as changes in accounting estimates and adjusted and recorded in the following year. The compensation of employee compensation and director remuneration for the years ended 2025 and 2024, approved by the Company’s Board of Directors on March 3, 2026 and February 24, 2025, respectively, were as follows: 2025 2024 Cash Cash Compensation of employees $ 170,505 $ 166,500 Remuneration of directors $ 28,800 $ 18,200 There was no difference between the actual amount of employee compensation and director remuneration distributed in 2025 and 2024 and the amount recognized in th e 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 Company’s Board of Directors is available on the Market Observation Post System website of the Taiwan Stock Exchange. i. Foreign currency exchange gains (losses), net April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Total foreign currency exchange gains $ 862,307 $ 3,593,640 $ 2,657,034 $ 5,057,457 Total foreign currency exchange losses ( 1,127,870 ) ( 7,041,629 ) ( 2,700,672 ) ( 7,887,328 ) Net income (loss) ( $ 265,563 ) ( $ 3,447,989 ) ( $ 43,638 ) ( $ 2,829,871 ) 27. TAXATION a. Income tax recognized in profit or loss Major components of income tax expense were as follows: April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Current tax Tax recognized in the current period $ 340,885 ( $ 303,124 ) $ 944,422 $ 178,873 Tax on unappropriated earnings - 215,767 - 215,767 Adjustments for prior years ( 78,189 ) 27,356 ( 79,626 ) 27,356 262,696 ( 60,001 ) 864,796 421,996 Deferred tax Tax recognized in the current period ( 6,402 ) 292,720 ( 292,545 ) 710,565 Adjustments for prior years - - - 125,626 ( 6,402 ) 292,720 ( 292,545 ) 836,191 Income tax expense recognized in profit or loss $ 256,294 $ 232,719 $ 572,251 $ 1,258,187 The applicable corporate income tax rate adopted by the Group is 20%; the tax rate applicable to the subsidiaries in China is 25%. The tax amounts incurred in other jurisdictions is calculated based on the applicable tax rate of each relevant jurisdiction.
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- 38 - b. Income tax determination The corporate income taxes declared by the Company and its subsidiaries Ke Yue, Yi Sheng, Yi De, Catcher Medtech, Yi Fa, Yih Chuan, Yi Zhu, Coforce Medic al and Pacific Hospital Supply Co., Ltd. have been approved by the tax collection authority up to the year of 2024. 28. EARNINGS PER SHARE The earnings and weighted average number of ordinary shares outstanding in the computation of earnings (losses) per share were as follows: Net profit April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Profit attributable to owners of the Company $ 1,355,366 ( $ 1,052,439 ) $ 2,839,850 $ 1,842,497 Number of shares In thousand shares April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Weighted average number of ordinary shares in computation of basic earnings per share 540,499 642,256 552,701 648,049 Potential dilution of ordinary shares: Compensation of employees 170 - 477 775 Weighted average number of ordinary shares in computation of diluted earnings per share 540,669 642,256 553,178 648,824 The Company may settle compensation paid to employees in cash or shares; therefore, the Company may assume that the compensation will be settled in shares and include the potentially dilutive ordinary shares in the weighted average number of shares outstanding when computing the diluted earnings per share. When computing the diluted earnings per share before determining the compensation paid to employees in shares in the following year, the Group shall continuously take into consideration the potential dilution of the ordinary shares. The consolidated company reported a net loss for the period from April 1 to June 30, 2025; therefore, the effect of potential ordinary shares related to employee compensation, which has an anti -dilutive effect, was not incl uded in the calculation of diluted net loss per share.
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- 39 - 29. CORPORATE MERGER a. Acquisition of subsidiary Principal Business Activities Acquisition Date Ownership Interest with Voting Rights/Percentage of Ownership Acquired (%) Consideration Transferred Pacific Hospital Supply Co., Ltd. Manufacturing and selling medical devices January 1, 2025 31.54 $ 2,232,652 b. Consideration transferred The consideration transferred is measured at its fair value on the acquisition date. c. Assets acquired and liabilities assumed on the acquisition date Pacific Hospital Supply Co., Ltd. Current assets Cash and cash equivalents $ 740,071 Trade receivables and other receivables 271,413 Inventories 338,154 Others 404,355 Non-current assets Property, plant and equipment 3,044,959 Right-of-use assets 413,147 Investment properties 180,065 Intangible assets 1,031,442 Deferred tax assets 8,793 Others 44,311 Current liabilities Trade payables and other payables ( 412,076 ) Others ( 104,153 ) Non-current liabilities Deferred tax liabilities ( 439,616 ) Others ( 418,432 ) $ 5,102,433 d. Non-controlling interests The non-controlling interests of Pacific Hospita l Supply Co., Ltd. were measured at the proportionate share of the recognized amount of the acquiree’s identifiable net assets. e. Goodwill from the acquisition Pacific Hospital Supply Co., Ltd. Consideration transferred $ 2,232,652 Plus: Non-controlling interests 3,493,058 Less: Fair value of identifiable net assets acquired ( 5,102,433 ) Goodwill from the acquisition $ 623,277
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- 40 - f. Impact of the retrospective restatement on the financial statements for 2025 Q2 The Group has complet ed a number of investment and acquisition transactions during different comparative periods, including the purchase of operating assets, financial asset reclassifications as investments using the equity method, and staged acquisition of subsidiary. Relevan t transactions have been allocated or the cost of investments measured according to their nature, and the acquisition price allocation report has been completed. The restatement of information is as follows: Effect on assets, liabilities, and equity items as of June 30, 2025 Item Amount Before Restatement Operating Assets Acquired (Note 18) Corporate Merger (Note 13) Significant Influence Acquired (Note 14) Amount After Restatement Investments accounted for using the equity method $ 4,286,328 $ - $ - ( $ 18,159 ) $ 4,268,169 Property, plant and equipment $ 12,369,206 $ - $ 1,459,746 $ - $ 13,828,952 Investment properties $ 1,255,119 $ - $ 88,232 $ - $ 1,343,351 Intangible assets $ 25,799 $ 54,240 $ 986,636 $ - $ 1,066,675 Goodwill $ 1,471,846 ( $ 52,122 ) ( $ 681,358 ) $ - $ 738,366 Deferred tax assets $ 2,661,581 $ 152 $ - $ - $ 2,661,733 Deferred tax liabilities $ 5,778,448 $ 11,000 $ 427,036 $ - $ 6,216,484 Non-controlling interests $ 1,835,962 $ - $ 1,443,325 $ - $ 3,279,287 Effect on comprehensive income from January 1 to June 30, 2025 Item Amount Before Restatement Amount Affected Amount After Restatement General and administrative expenses $ 563,303 $ 71,214 $ 634,517 Share of profits (losses) from associates accounted for using the equity method $ 90,020 ( $ 18,159 ) $ 71,861 Taxation $ 1,268,042 ( $ 9,855 ) $ 1,258,187 Effect of net profit for the current period $ 1,997,859 ( $ 79,518 ) $ 1,918,341 Effect of net profit attributable to: Owners of the Company $ 1,886,491 ( $ 43,994 ) $ 1,842,497 Non-controlling interests 111,368 ( 35,524 ) 75,844 $ 1,997,859 ( $ 79,518 ) $ 1,918,341 Effect of total comprehensive income attributable to: Owners of the Company ( $ 13,497,108 ) ( $ 43,994 ) ( $ 13,541,102 ) Non-controlling interests 111,368 ( 35,524 ) 75,844 ( $ 13,385,740 ) ( $ 79,518 ) ( $ 13,465,258 ) Effect on earnings per share Basic earnings per share $ 2.91 ( $ 0.07 ) $ 2.84 Diluted earnings per share $ 2.91 ( $ 0.07 ) $ 2.84
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- 41 - Effect on comprehensive income from April 1 to June 30, 2025 Item Amount Before Restatement Amount Affected Amount After Restatement General and administrative expenses $ 272,646 $ 35,608 $ 308,254 Share of profits (losses) from associates accounted for using the equity method $ 31,807 ( $ 9,617 ) $ 22,190 Taxation $ 237,647 ( $ 4,928 ) $ 232,719 Effect of net loss for the current period ( $ 1,008,525 ) ( $ 40,297 ) ( $ 1,048,822 ) Effect of net profit (loss) attributable to: Owners of the Company ( $ 1,029,804 ) ( $ 22,635 ) ( $ 1,052,439 ) Non-controlling interests 21,279 ( 17,662 ) 3,617 ( $ 1,008,525 ) ( $ 40,297 ) ( $ 1,048,822 ) Effect of total comprehensive income attributable to: Owners of the Company ( $ 20,569,302 ) ( $ 22,635 ) ( $ 20,591,937 ) Non-controlling interests 21,279 ( 17,662 ) 3,617 ( $ 20,548,023 ) ( $ 40,297 ) ( $ 20,588,320 ) Effect on loss per share Basic loss per share ( $ 1.60 ) ( $ 0.04 ) ( $ 1.64 ) Diluted loss per share ( $ 1.60 ) ( $ 0.04 ) ( $ 1.64 ) 30. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS From January 1 to June 30, 2026 and 2025, the Group acquired 316 thousand common shares and 1,120 thousand common shares of its subsidiary, Pacific Hospital Supply Co., Ltd., on the open market. The above transaction did not alter the Group’s control over the subsidiary, thus, it was accounted for as an equity transaction. January 1 to June 30, 2026 January 1 to June 30, 2025 Minority Interest Acquired Minority Interest Acquired Consideration paid ( $ 25,494 ) ( $ 103,740 ) Amount of non-controlling interests to be reclassified, calculated based on the relative change in ownership interests of the subsidiary’s net asset carry amount 13,250 46,732 Difference from equity transaction ( $ 12,244 ) ( $ 57,008 ) Difference adjustment of equity transaction Unappropriated earnings ( $ 12,244 ) ( $ 57,008 ) 31. CAPITAL RISK MANAGEMENT The Group manages its capital in a manner to ensure that it has sufficient and necessary financial resources as well as business plans to fund its working capital in need, capital expenditure, research and development activities, debt repayment and dividend distribution over the next 12 months.
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- 42 - 32. FINANCIAL INSTRUMENTS a. Financial instruments not measured at fair value The carrying amounts of financial instruments not measured at fair value are recognized to reasonably approximate their fair value; these financial instrumen ts include cash and cash equivalents, financial assets at amortized cost, accounts receivable, other receivables, refundable deposits, short -term borrowings, accounts payable, other payables, and guarantee deposits received. b. Financial instruments measured at fair value on a recurring basis 1) Fair value hierarchy June 30, 2026 Level 1 Level 2 Level 3 Total Financial assets measured at FVTPL Foreign listed stocks $ 498 $ - $ - $ 498 Foreign non-listed stocks - - 33,884 33,884 Beneficiaries certificates 975,553 - - 975,553 Private equity funds - - 2,926,202 2,926,202 Limited partnerships - - 246,633 246,633 Simple Agreement for Future Equity (SAFE) - - 26,072 26,072 $ 976,051 $ - $ 3,232,791 $ 4,208,842 Level 1 Level 2 Level 3 Total Financial assets measured at FVTOCI Investments in equity instruments - Domestic listed stocks $ 8,080,260 $ - $ - $ 8,080,260 - Domestic non-listed stocks - - 391,557 391,557 - Foreign listed shares 4,356,155 - - 4,356,155 - Limited partnerships - - 1,825,374 1,825,374 Investments in debt instruments - Bonds - 79,339,529 - 79,339,529 $ 12,436,415 $ 79,339,529 $ 2,216,931 $ 93,992,875 December 31, 2025 Level 1 Level 2 Level 3 Total Financial assets measured at FVTPL Foreign listed stocks $ 604 $ - $ - $ 604 Foreign non-listed stocks - - 33,437 33,437 Beneficiaries certificates 644,757 - - 644,757 Private equity funds - - 2,817,509 2,817,509 Limited partnerships - - 249,877 249,877 Simple Agreement for Future Equity (SAFE) - - 26,072 26,072 $ 645,361 $ - $ 3,126,895 $ 3,772,256 Financial assets measured at FVTOCI Investments in equity instruments - Domestic listed stocks $ 6,749,002 $ - $ - $ 6,749,002 - Domestic non-listed stocks - - 302,340 302,340 - Foreign listed shares 2,094,660 - - 2,094,660 - Limited partnerships - - 1,548,752 1,548,752 Investments in debt instruments - Bonds - 81,716,922 - 81,716,922 $ 8,843,662 $ 81,716,922 $ 1,851,092 $ 92,411,676
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- 43 - June 30, 2025 Level 1 Level 2 Level 3 Total Financial assets measured at FVTPL Foreign listed stocks $ 511 $ - $ - $ 511 Foreign non-listed stocks - - 31,171 31,171 Beneficiaries certificates 528,823 - - 528,823 Private equity funds - - 2,411,475 2,411,475 Limited partnerships - - 246,294 246,294 $ 529,334 $ - $ 2,688,940 $ 3,218,274 Financial assets measured at FVTOCI Investments in equity instruments - Domestic listed stocks $ 6,661,860 $ - $ - $ 6,661,860 - Domestic non-listed stocks - - 243,067 243,067 - Foreign listed shares 1,150,328 - - 1,150,328 - Limited partnerships - - 1,902,661 1,902,661 Investments in debt instruments - Bonds - 76,919,817 - 76,919,817 $ 7,812,188 $ 76,919,817 $ 2,145,728 $ 86,877,733 There were no transfers between Level 1 and Level 2 fair value measurements during the period from January 1 to June 30, 2026 and 2025. 2) Reconciliation of Level 3 fair value measurements of financial instruments January 1 to June 30, 2026 Financial Assets Equity Instruments at FVTPL Equity Instruments at FVTOCI Total Opening balance $ 3,126,895 $ 1,851,092 $ 4,977,987 Purchases 186,536 321,545 508,081 Disposal ( 209 ) - ( 209 ) Recognized in profit or loss (other gains and losses) ( 99,459 ) - ( 99,459 ) Recognized in other comprehensive income (unrealized valuation gain/loss on financial assets at FVTOCI) - 22,768 22,768 Return of capital contribution ( 14,988 ) - ( 14,988 ) Effects of foreign currency exchange differences 34,016 21,526 55,542 Ending balance $ 3,232,791 $ 2,216,931 $ 5,449,722 January 1 to June 30, 2025 Financial Assets Equity Instruments at FVTPL Equity Instruments at FVTOCI Total Opening balance $ 2,523,403 $ 2,637,244 $ 5,160,647 Purchases 390,513 - 390,513 Recognized in profit or loss (other gains and losses) 37,625 - 37,625 Recognized in other comprehensive income (unrealized valuation gain/loss on financial assets at FVTOCI) - ( 264,086 ) ( 264,086 ) Effects of foreign currency exchange differences ( 262,601 ) ( 227,430 ) ( 490,031 ) Ending balance $ 2,688,940 $ 2,145,728 $ 4,834,668
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- 44 - 3) Valuation techniques and assumptions used for Level 2 fair value measurement The fair values of foreign corporate bonds and government bonds are measured based on open market quotations provided by the third party. 4) Valuation techniques and inputs used for Level 3 fair value measurement The fair values of non -listed domestic equity securities, limited partnerships, and private equity securities are estimated using the market approach or based on the most recent net worth of the investees. When the market approach is adopted, the selling prices of comparable companies are used for comparison, analysis and adjustment to derive the fair value of the investees. The fair value of private equity funds is estimated using the asset approach. c. Categories of financial instruments June 30, 2026 December 31, 2025 June 30, 2025 Financial assets Equity instruments measured at FVTPL Mandatorily measured at FVTPL $ 4,208,842 $ 3,772,256 $ 3,218,274 Financial assets measured at amortized cost (Note 1) 95,825,877 101,181,673 97,062,613 Financial assets measured at FVTOCI Investments in equity instruments 14,653,346 10,694,754 9,957,916 Investments in debt instruments 79,339,529 81,716,922 76,919,817 Financial liabilities Financial liabilities measured at amortized cost (Note 2) 73,077,963 68,851,979 60,020,529 Note 1: The balance comprises financial assets measured at amortized cost including cash and cash equivalents, note receivables, trade receivables, other receivables, and refundable deposits. Note 2: The balance comprises financial liabilities measured at amortized cost, including short -term borrowings, note payables, tr ade payables, other payables, and guarantee deposits received (recognized as other current liabilities and non-current liabilities). d. Objectives and policies of financial risk management The Group’s major financial instruments include equity and debt invest ments, trade receivables, trade payables, borrowings, and lease liabilities. The Group’s Finance Department serves various business units, coordinates access to domestic and international financial markets, and monitors as well as manages the financial ris ks relating to operations based on the internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Group’s material financial activities are reviewed by the Board of Directors in accordance with relevant regulations and internal control rules. Policy compliance and risk exposure are constantly reviewed by internal auditors. The Group does not trade financial instruments (including derivative financial instruments) for speculative purposes. 1) Market risk The Group’s operational activities are exposed primarily to the financial risks of movement in foreign currency exchange rates (see (a) below), inte rest rates (see (b) below) and other price risks (see (c) below).
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- 45 - There has been no change to the Group’s exposure to the market risks of financial instruments or the manner in which these risks were managed and measured. a) Exchange rate risk Engaging in for eign currency-denominated sales and purchases, the Group is exposed to exchange rate risk. Refer to Note 36 for the carrying amounts of the Group’s non -functional currency-denominated monetary assets and monetary liabilities (including the non-functional c urrency-denominated monetary items eliminated on consolidation) at the end of the reporting period. Sensitivity analysis The Group is mainly affected by exchange rate volatility of the US dollar (USD). The following table details the Group’s sensitivity to a 1% increase and decrease in the functional currency against relevant foreign currencies. The sensitivity analysis only applies to outstanding foreign currency -denominated monetary items. A positive number below indicates an increase in profit before income tax that would result from the depreciation of the NTD by 1% against the relevant foreign currencies. When the NTD appreciates by 1% against the relevant foreign currencies, there would be an equal and opposite impact on profit before income tax, with the balances below turning to negative. USD Impact January 1 to June 30, 2026 January 1 to June 30, 2025 Profit (loss) $ 314,715 $ 359,700 The aforementioned foreign currency -denominated monetary assets or liabilities are mainly the Group’s outstanding exposure to USD -denominated cash and cash equivalents, financial assets at amortized cost, as well as receivables and payables, without cash flow hedge, as at the end of the reporting period. The decrease in the Group’s sensitivity to the exch ange rates of USD is mainly due to the decrease in the USD -denominated net assets. The Group’s management believes that the sensitivity analysis cannot represent the inherent risk of exchange rates, because the foreign currency exposure at the reporting date does not reflect the mid -term risk exposure, where the USD -denominated sales revenue would vary along with customer orders and investment assets. b) Interest rate risk The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The Group manages interest rate risk by maintaining an appropriate mix of assets and liabilities at both fixed and floating interest rates. The carrying amounts of the Group’s financial assets and liabilities wit h exposure to interest rates at the end of the reporting period were as follows:
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- 46 - June 30, 2026 December 31, 2025 June 30, 2025 Fair value related interest rate risk Financial assets $ 166,784,459 $ 164,149,519 $ 162,039,816 Financial liabilities 553,247 5,233,400 4,445,907 Cash flow related interest rate risk Financial assets 5,152,203 13,472,144 6,009,206 Financial liabilities 68,392,000 57,400,000 50,650,000 Sensitivity analysis The sensitivity analysis below was conducted based on the Group’s exposure to interest rates for non -derivative instruments at the end of the reporting period. Analysis for the liabilities with floating interest rates was conducted assuming that the amount of t he outstanding liabilities at the reporting date was outstanding for the reporting period. If interest rates move 10 basis points higher/lower with all other variables held constant, the Group’s profit before income tax for the period from January 1 to June 30, 2026 and 2025 would decrease/increase by NT$31,620 thousand and NT$22,320 thousand, respectively. The change would have been mainly attributable to the Group’s exposure to interest rate risk associated with the cash flow from its variable-rate bank borrowings. c) Other price risks The Group was exposed to equity price risk due to its investment in listed equity securities and beneficial certificates of mutual funds. The Group has managed the underlying risks via holding different investment portfolios an d asset allocation. Sensitivity analysis The sensitivity analysis below is conducted based on the Group’s exposure to equity price risks at the end of the reporting period. If the equity price increases/decreases by 1%, the Group’s profit before tax for the period from January 1 to June 30, 2026 and 2025 would increase/decrease by NT$42,088 thousand and NT$32,183 thousand, respectively, due to the increase/decrease in the fair value of financial assets measured at fair value through profit and loss (FVTPL), and its other comprehensive profit and loss before tax for the period from January 1 to June 30, 2026 and 2025 would increase/decrease by NT$146,533 thousand and NT$99,579 thousand, respectively, due to the increase/decrease in the fair value of financial assets measured at fair value through other comprehensive income (FVTOCI). 2) Credit risk Credit risk refers to the risk that a counterparty defaults in its contractual obligations and results in financial losses to the Group. As at the balance sheet date, t he maximum credit risk exposure of the Group due to the failure of a counterparty to fulfill obligations is mainly the carrying amount of financial assets recognized in the consolidated balance sheets. The Group’s transaction counterparties are all corpora te organizations with good credit; hence, there is no significant credit risk expected. The Group also constantly evaluates the financial status of its trade receivables customers.
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- 47 - Trade receivables with significantly concentrated credit risk were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Amount % Amount % Amount % Company A $ 777,465 33 $ 901,984 22 $ 559,589 12 Company B 422,991 18 401,907 10 520,344 11 Company C 157,316 7 819,267 20 1,852,236 39 Company D 86,916 4 505,619 12 725,591 15 Company E 23,179 1 445,138 11 - - 3) Liquidity risk The Group manages liquidity risk by maintaining an adequate level of cash and cash equiv alents to finance its operations and mitigate the impact of cashflow fluctuation. Management monitors the utilization of bank facilities and ensures to comply with the terms of loan covenants. The Group’s operating funds and bank facilities are deemed suff icient for future operations; therefore, there is no liquidity risk where the Group is unable to raise funds to fulfill its contractual obligations. a) Liquidity and interest rate risk for non-derivative financial liabilities The remaining contractual maturit y for the Group’s non -derivative financial liabilities is analyzed using the undiscounted cash flows of financial liabilities (including both principal and estimated interest) based on the earliest date on which the Group would be required to pay. Therefor e, the bank loans with a repayment on demand clause are included in the earliest time band regardless of the probability that the banks would choose to exercise their rights. The maturity analysis for other non -derivative financial liabilities is conducted based on the agreed repayment dates. Where interest cash flows are paid at floating rates, the undiscounted interest is derived based on the yield curve at the balance sheet date. June 30, 2026 Less than 3 months 3 months- 1 year 1-5 years More than 5 years Non-derivative financial liabilities Non-interest bearing liabilities $ 4,268,677 $ 4,449,303 $ 13,429 $ - Lease liabilities 5,569 22,860 85,392 589,259 Variable interest rate instruments 58,477,935 10,169,672 - - $ 62,752,181 $ 14,641,835 $ 98,821 $ 589,259 Maturity analysis of the aforementioned lease liabilities: Less than 1 year 1-5 years 5-10 years 10-15 years 15-20 years More than 20 years Lease liabilities $ 28,429 $ 85,392 $ 92,782 $ 114,799 $ 92,782 $ 288,896 December 31, 2025 Less than 3 months 3 months- 1 year 1-5 years More than 5 years Non-derivative financial liabilities Non-interest bearing liabilities $ 7,244,804 $ 1,385,859 $ 13,879 $ - Lease liabilities 7,398 25,467 86,438 592,371 Variable interest rate instruments 29,968,708 27,500,000 - - Fixed interest rate instruments 2,254,216 2,457,498 - - $ 39,475,126 $ 31,368,824 $ 100,317 $ 592,371
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- 48 - Maturity analysis of the aforementioned lease liabilities: Less than 1 year 1-5 years 5-10 years 10-15 years 15-20 years More than 20 years Lease liabilities $ 32,865 $ 86,438 $ 91,039 $ 113,056 $ 91,039 $ 297,237 June 30, 2025 Less than 3 months 3 months- 1 year 1-5 years More than 5 years Non-derivative financial liabilities Non-interest bearing liabilities $ 9,940,547 $ 961,041 $ 15,012 $ - Lease liabilities 6,042 21,274 75,501 598,971 Variable interest rate instruments 49,164,481 1,600,000 - - Fixed interest rate instruments 1,812,606 2,116,383 - - $ 60,923,676 $ 4,698,698 $ 90,513 $ 598,971 Maturity analysis of the aforementioned lease liabilities: Less than 1 year 1-5 years 5-10 years 10-15 years 15-20 years More than 20 years Lease liabilities $ 27,316 $ 75,501 $ 91,039 $ 113,056 $ 91,039 $ 303,837 Where variable interest rates differ from the interest rates estimated at the end of the reporting period, the carry amounts of the aforementioned variable interest rate instruments for both non-derivative financial assets and liabilities could change. b) Bank facilities June 30, 2026 December 31, 2025 June 30, 2025 Unsecured bank facilities Amount used $ 45,248,705 $ 62,096,301 $ 53,555,726 Amount unused 56,479,205 39,497,216 49,610,520 $101,727,910 $101,593,517 $103,166,246 Secured bank facilities Amount used $ 23,162,000 $ - $ 1,000,000 Amount unused 17,338,000 35,000,000 21,200,000 $ 40,500,000 $ 35,000,000 $ 22,200,000 33. TRANSACTIONS WITH RELATED PARTIES Transactions, account balance, income and expense, as well as gains and losses between the Company and its subsidiaries (which are related parties of the Company), have been eliminated on consolidation without being disclosed in this note. Unless otherwi se disclosed in other notes, the transactions between the Group and related parties were as follows: Compensation of key management personnel April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 Short-term employee benefits $ 48,647 $ 42,256 $ 97,295 $ 84,513 Retirement benefits 12,135 9,151 24,270 18,302 $ 60,782 $ 51,407 $ 121,565 $ 102,815
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- 49 - The remuneration of directors and key management personnel are de termined by the remuneration committee with due regard to industry practice, the performance of individuals and the Group, and reasonableness associated with future risks. 34. PLEDGED ASSETS Assets provided as collateral for financing loans were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Restricted bank deposits (financial assets measured at amortized cost - current) $ 26,135,312 $ - $ 1,047,150 35. MATERIAL CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS In addition to those disclosed in other notes, material commitments and contingent liabilities of the Group as of the balance sheet date were as follows: Unrecognized commitments of the Group June 30, 2026 December 31, 2025 June 30, 2025 Acquisition of property, plant and equipment $ 162,597 $ 947,381 $ 349,939 Acquisition of inventories $ 89,860 $ 238,023 $ 98,847 36. FOREIGN CURRENCY ASSETS AND LIABILITIES WITH MATERIAL IMPACT The information below is aggregated and presented in the foreign cur rencies other than the functional currencies adopted by the entities in the Group. The exchange rates disclosed are the rates used to convert the aforementioned foreign currencies into the respective functional currencies. Foreign currency assets and liabi lities with material impact are as follows: (In foreign currencies and New Taiwan dollars, all in thousands) June 30, 2026 Foreign Currency Assets Foreign Currency Exchange Rate Carrying Amount Monetary items USD $ 863,093 31.7978 (USD:NTD) $ 27,444,451 USD 145,276 6.8109 (USD:RMB) 4,640,567 JPY 37,445,652 0.0061 (JPY: USD) 7,298,168 JPY 2,496,261 0.1963 (JPY:NTD) 490,016 SGD 32,504 0.7724 (SGD:USD) 799,579 SGD 57,427 24.6077 (SGD:NTD) 1,413,149 Foreign Currency Liabilities Monetary items USD 11,125 31.8983 (USD:NTD) 354,865 USD 8,098 6.8109 (USD:RMB) 258,665
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- 50 - December 31, 2025 Foreign Currency Assets Foreign Currency Exchange Rate Carrying Amount Monetary items USD $ 922,526 31.3807 (USD:NTD) $ 28,949,478 USD 246,503 7.0288 (USD:RMB) 7,789,860 JPY 29,404,686 0.006335 (JPY:USD) 5,854,875 Foreign Currency Liabilities Monetary items USD 11,722 31.48 (USD:NTD) 369,017 USD 27,839 7.0288 (USD:RMB) 879,745 June 30, 2025 Foreign Currency Assets Foreign Currency Exchange Rate Carrying Amount Monetary items USD $ 984,508 29.25 (USD:NTD) $ 28,797,659 USD 276,647 7.1586 (USD:RMB) 8,101,826 JPY 14,250,488 0.0069 (JPY: USD) 2,874,954 JPY 1,024,868 0.2034 (JPY:NTD) 208,458 Foreign Currency Liabilities Monetary items USD 10,157 29.35 (USD:NTD) 298,094 USD 21,559 7.1586 (USD:RMB) 631,377 The Group is mainly exposed to the USD. The information as follows was an aggregation of the functional currencies adopted by the entities in the Group, and the exchange rates disclosed are the rates used to convert the respective functional currencies into the presentation currency. Material foreign currency exchange gains and losses (realized and unrealized) were as follows: April 1 to June 30, 2026 April 1 to June 30, 2025 Functional Currency Exchange Rate Net Foreign Exchange Gain (Loss) Exchange Rate Net Foreign Exchange Gain (Loss) USD 31.597 (USD:NTD) ( $ 101,593 ) 30.823 (USD:NTD) $ 100,067 NTD 1 (NTD:NTD) ( 75,703 ) 1 (NTD:NTD) ( 3,549,625 ) RMB 4.6201 (RMB:NTD) ( 82,449 ) 4.2861 (RMB:NTD) ( 12,914 ) THB 0.9753 (THB:NTD) ( 5,818 ) 0.936 (THB:NTD) 14,483 ( $ 265,563 ) ( $ 3,447,989 ) January 1 to June 30, 2026 January 1 to June 30, 2025 Functional Currency Exchange Rate Net Foreign Exchange Gain (Loss) Exchange Rate Net Foreign Exchange Gain (Loss) USD 31.614 (USD:NTD) ( $ 218,341 ) 31.859 (USD:NTD) $ 243,274 NTD 1 (NTD:NTD) 439,907 1 (NTD:NTD) ( 3,071,447 ) RMB 4.5856 (RMB:NTD) ( 243,019 ) 4.4351 (RMB:NTD) ( 17,988 ) THB 0.9906 (THB:NTD) ( 22,185 ) 0.9542 (THB:NTD) 16,290 ( $ 43,638 ) ( $ 2,829,871 )
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- 51 - 37. SEPARATELY DISCLOSED ITEMS a. Material transactions: 1) Loaning of funds to others. (Table 1) 2) Endorsements/guarantees provided. (Table 2) 3) Significant marketable securities held at the end of the period (excluding investments in subsidiaries and associates). (Table 3) 4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the Company’s paid-in capital. (Table 4) 5) Receivables from related parties amounting to at least NT$100 million or 20% of the Company’s paid-in capital. (Table 5) 6) Other: Business relationships, material transactions and the transaction amount thereof between the parent company and subsidiaries, and among subsidiaries (Table 8) b. Information on investees. (Table 6) c. Information on investments in Mainland China: 1) Including names, main businesses, paid -in capital, methods of investment, inward and outward remittances of funds, percentage of ownership, net profit or loss for the current period, investment profit or loss recognized, carrying amount of investment at the end of the reporting period, repatriations of investment profit or loss, and limitation of investment in the Mainland China area (Table 7) 2) Prices, payment terms, and unrealized gains or losses from the following material transactions with investee companies in Mainland China, either directly or indirectly through a third party. (Tables 1, 4, 5 and 8) a) Purchase amount and percentage, and the closing balance and percentage of related payables. b) Sales amount and percentage, and the closing balance and percentage of related receivables. c) Amount of property transactions and the resulting profit or loss. d) Ending balance of endorsements, guarantees, or pledges of collateral as well as the purposes thereof. e) Financing – the maximum balance, ending balance, interest rate range, and the total amount of interest charged for the current period. f) Other transactions having a material impact on profit or loss or financial position for the current period, such as the provision or receipt of services. 38. INFORMATION ON SEGMENTS Segment income and operation results The reportable segments of the Group are identified based on management’s operational management model, using product categories and major businesses as the basis. This information is provided to the main operating decision maker to allocate resources and to evaluate the performance of segments. The reportable segments of the Group are as follows:
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- 52 - Catcher Technology Co., Ltd. - Its main business is the manufacturing, processing, and sale of various alloy casings, including aluminum and magnesium alloys, molds, and land and plant leasing business. Pacific Hospital Supply Co., Ltd.: Its main business includes the manufacturing, processing, and trading of various medical equipment, as well as the installation and piping of medical gas equipment, and the construction and trading of related equipment. Catcher Technology Co., Ltd. Pacific Hospital Supply Co., Ltd. Adjustment and Write-off Total January 1 to June 30, 2026 Revenue from external customers $ 5,270,518 $ 1,184,631 $ - $ 6,455,149 Inter-segment revenue 6,766,832 - ( 6,766,832 ) - Total segment revenue $ 12,037,350 $ 1,184,631 ( $ 6,766,832 ) $ 6,455,149 Segment profit or loss $ 39,766 $ 251,473 $ - $ 291,239 Other non-operating revenue and expense 3,840,374 Interest expense ( 613,260 ) Profit before income tax $ 3,518,353 January 1 to June 30, 2025 Revenue from external customers $ 8,264,346 $ 1,170,275 $ - $ 9,434,621 Inter-segment revenue 7,725,524 - ( 7,725,524 ) - Total segment revenue $ 15,989,870 $ 1,170,275 ( $ 7,725,524 ) $ 9,434,621 Segment profit or loss $ 1,443,583 $ 253,438 $ - $ 1,697,021 Other non-operating revenue and expense 1,976,868 Interest expense ( 497,361 ) Profit before income tax $ 3,176,528 Segment profit or loss refers to the profit/loss of each segment, excluding the income tax expenses. The amount of measurement provided to the key operating decision maker for resource allocation and performance evaluation of departments. The main operating decision maker of the Group makes operating decisions based on the results of each segment and has not evaluated the classification of assets and liabilities that reflect the performance of other bu siness activities. Therefore, only the results of the reportable segments are disclosed.
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- 53 - Table 1 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES Loaning of Funds to Others JANUARY 1 TO JUNE 30, 2026 (In Thousands of New Taiwan Dollars) No. Lender Borrower Account Related Parties Highest Balance for the Period Ending Balance Actual Borrowing Amount Interest Rate Range (%) Nature of Financing Business Transaction Amount Reasons for Short Term Financing Allowance for Doubtful Accounts Collateral Limit of Loaning of Funds to Each Borrower (Note 1) Limit of Aggregate Amount of Loans (Note 2) Name Value 0 Catcher Technology Co., Ltd. Topo Technology (Thailand) Co., Ltd. Other receivables from related parties Yes $ 479,175 $ 477,000 $ 429,300 3.5 For short-term financing $ - Operating capital $ - － $ - $ 27,676,562 $ 55,353,124 0 Catcher Technology Co., Ltd. Xincher Precision Manufacturing Co., Ltd. Other receivables from related parties Yes 125,180 $ 63,600 19,080 2.6~3.5 For short-term financing - Operating capital - － - 27,676,562 $ 55,353,124 1 Catcher Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd. Other receivables from related parties Yes 327,341 $ 327,341 327,341 1.5 For short-term financing - Operating capital - － - 691,914,050 $ 691,914,050 2 Catcher Medtech Co., Ltd. COFORCE Medical Inc. Other receivables from related parties Yes 70,000 $ 70,000 70,000 2.0 For short-term financing - Operating capital - － - 615,016 $ 615,016 Note 1: In accordance with the provisions of the Regulations Governing Loaning of Funds, the aggregate amount of inter -company loaning of fund s between overseas companies in which the Company holds, directly or indirectly, 100% of shares shall be limited to no more than 500% of the Company’s net worth at the end of the period. Such loans between domestic subsidiaries shall not exceed 40% of the subsidiary’s net worth at the end of the period. For the companies which the Company has business contact with, the amount of individual loans shall not exceed the amount of the most recent annual business transactions between the two parties. Note 2: In accordance with the provisions of the Regulations Governing Loaning of Funds, the aggregate amount of inter -company loaning of funds between overseas companies in which the Company holds, directly or indirectly, 100% of shares shall be limited to no more t han 500% of the Company’s net worth at the end of the period. Such loans between domestic subsidiaries shall not exceed 40% of the subsidiary’s net worth at the end of the period. Note 3: The Company’s total amount of loans to others shall not exceed 40% of its net worth. For any individual company with short -term financing needs, the amount loaned shall not exceed 20% of the Company’s net worth. Note 4: The aforementioned net worth refers to the equity attributable to owners of the Company as presented i n the consolidated balance sheets.
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- 54 - Table 2 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES Endorsements/Guarantees Provided JANUARY 1 TO JUNE 30, 2026 (In Thousands of New Taiwan Dollars) No. Endorser/Guarantor Endorsee/Guarantee Limit on Endorsement/ Guarantee Provided to Each Party (Note 1) Maximum Amount Endorsed/Guaranteed During the Period Ending Balance of Endorsement/ Guarantee Actual Borrowing Amount Amount Endorsed/Guaranteed by Collateral Ratio of Accumulated Endorsement/Guaran tee to Net Worth in Latest Financial Statements (%) Aggregate Endorsement/ Guarantee Limit (Note 1) Endorsemen t/Guarantee Given by Parent on Behalf of Subsidiaries Endorsemen t/Guarantee Given by Subsidiaries on Behalf of Parent Endorsemen t/Guarantee Given on Behalf of Companies in Mainland China Company Name Relationship 1 Nanomag International Co., Ltd. Catcher Technology Co., Ltd. Note 3 $ 138,382,810 $ 22,260,000 $ 22,260,000 $ 16,812,000 $ 18,993,378 14.2 $ 276,765,620 N Y N Note 1: The Company’s total external endorsements/guarantees are limited to 200% of the net value of its ultimate parent company, and the endorsement/guarantee amount for one single enterprise shall not exceed 100% of the net value of the ultimate parent c ompany of th e Company. Note 2: The aforementioned net worth refers to the equity attributable to owners of the Company as presented in the consolidated balance sheets. Note 3: A company with more than 50% of its voting shares directly or indirectly held by the Company.
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- 55 - Table 3 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES SIGNIFICANT MARKETABLE SECURITIES HELD AT THE END OF THE PERIOD JUNE 30, 2026 (NTD Thousands or Other Foreign Currencies in Thousands) Holding Company Type and Name of Marketable Securities Relationship with the Issuing Company Account End of Period Note Unit/Share/Value Carrying Amount Percentage (%) Fair Value The Company Private equity funds Silver Lake Partners VII, L.P. None Financial assets at FVTPL - non-current - $ 491,214 0.10 $ 491,214 Note 3 Ke Yue Co., Ltd. Listed stocks Global PMX Co., Ltd. None Financial assets at FVTOCI - current 2,152,000 484,200 1.87 484,200 Highlight Tech Corp. None As above 3,864,000 374,808 4.09 374,808 Feedback Technology Corp. None As above 1,945,199 528,122 3.63 528,122 Shih Her Technologies Inc. None As above 2,110,206 430,482 3.39 430,482 Drewloong Precision, Inc. None As above 2,787,641 404,208 6.97 404,208 Unlisted stocks Everbright Biofund Co., Ltd. None Financial assets at FVTOCI - non-current 30,000,000 294,325 10.00 294,325 Beneficiaries certificates Yuanta Japan Leading Enterprise Fund None Financial assets at FVTPL - current 10,060,362 203,723 - 203,723 Yi De Co., Ltd. Listed stocks Global PMX Co., Ltd. None Financial assets at FVTOCI - current 2,129,000 479,025 1.85 479,025 Highlight Tech Corp. None As above 1,295,200 125,634 1.37 125,634 Feedback Technology Corp. None As above 1,197,793 325,201 2.23 325,201 Shih Her Technologies Inc. None As above 2,492,319 508,433 4.00 508,433 Drewloong Precision, Inc. None As above 1,773,333 257,133 4.43 257,133 UMS Integration Limited None As above 7,875,000 513,580 0.89 513,580 Beneficiaries certificates Yuanta Japan Leading Enterprise Fund None Financial assets at FVTPL - current 53,614,369 385,915 - 385,915 Yi Sheng Co., Ltd. Listed stocks Global PMX Co., Ltd. None Financial assets at FVTOCI - current 2,110,000 474,750 1.83 474,750 Highlight Tech Corp. None As above 1,330,400 129,049 1.41 129,049 Feedback Technology Corp. None As above 1,983,002 538,385 3.70 538,385 Shih Her Technologies Inc. None As above 1,650,812 336,764 2.65 336,764 Drewloong Precision, Inc. None As above 1,652,307 239,585 4.13 239,585 UMS Integration Limited None As above 13,250,000 864,119 1.49 864,119 Beneficiaries certificates Yuanta Japan Leading Enterprise Fund None Financial assets at FVTPL - current 53,614,369 385,915 - 385,915 Yi Fa Co., Ltd. Listed stocks Global PMX Co., Ltd. None Financial assets at FVTOCI - current 862,000 193,950 0.75 193,950 Highlight Tech Corp. None As above 388,000 37,636 0.41 37,636 Feedback Technology Corp. None As above 765,000 207,698 1.43 207,698 Drewloong Precision, Inc. None As above 1,248,589 181,045 3.12 181,045 Shih Her Technologies Inc. None As above 583,902 119,116 0.94 119,116 Yi Chuan Co., Ltd. Listed stocks Global PMX Co., Ltd. None Financial assets at FVTOCI - current 533,000 119,925 0.46 119,925 Highlight Tech Corp. None As above 1,466,000 142,202 1.55 142,202 Drewloong Precision, Inc. None As above 1,908,717 276,764 4.77 276,764 Shih Her Technologies Inc. None As above 627,910 128,094 1.01 128,094 Catcher Medtech Co., Ltd. Listed stocks Global PMX Co., Ltd. None Financial assets at FVTOCI - current 1,654,000 372,150 1.44 372,150 Nanomag International Co., Ltd. Limited partnerships China Renewable Energy Fund, L.P. None Financial assets at FVTOCI - non-current - USD 50,312 23.51 USD 50,312 Note 3 Listed stocks UMS Integration Limited None Financial assets at FVTOCI - current 11,875,000 USD 24,315 1.34 USD 24,315 FUJIMI INCORPORA TED None As above 918,400 USD 25,896 1.24 USD 25,896 MANI, INC. None As above 1,341,300 USD 14,252 1.36 USD 14,252 Government bonds US TREASURY None Financial assets at FVTOCI - non-current 2,687,000,000 USD 2,489,498 USD 2,489,498 Cor Ventures Pte, Ltd. Private equity funds Ally Bridge Group LP None Financial assets at FVTPL - non-current - USD 14,145 2.54 USD 14,145 Note 3 BPEA VIII None As above - USD 30,812 0.27 USD 30,812 Note 3 Foreign listed stocks UMS Integration Limited None Financial assets at FVTOCI - non-current 12,437,500 USD 25,468 1.40 USD 25,468 Note 1: Marketable securities in this table are shares, bonds, beneficiary certificates and those derived from the above-mentioned items which are within the scope of IFRS 9 “Financial Instruments”. Note 2: Please refer to Tables 6 and 7 for information on subsidiaries and associates. Note 3: Percentage of ownership is the ratio of capital contribution. Note 4: This table is prepared by the Company based on the principle of materiality to disclose marketable securities that are deemed necessary for listing.
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- 56 - Table 4 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO NT$100 MILLION OR MORE, OR 20% OR MORE OF THE PAID-IN CAPITAL JANUARY 1 TO JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Buyer (Seller) Transaction Counterparty Relationship Transaction Details Reasons for Unusual Transactions Notes and Accounts Receivable (Payable) Note Purchases (Sales) Amount % of Total Purchases (Sales) Payment Terms Unit Price Payment Terms Ending Balance % of Total Receivables (Payables) Catcher Technology Co., Ltd. Next Level Ltd. Subsidiary Purchases $ 2,373,587 76 Settled monthly; credit on 30-90 days Equivalent Equivalent ( $ 1,203,143 ) 77 Catcher Technology (Suqian) Co., Ltd. Catcher Technology Co., Ltd. Ultimate parent company Sales ( 227,816 ) 14 Settled monthly; credit on 30-90 days Equivalent Equivalent 140,733 6 Arcadia Technology (Suqian) Co., Ltd. Same ultimate parent company Sales ( 1,221,452 ) 74 Settled monthly; credit on 30-90 days Equivalent Equivalent 2,106,612 85 Vito Technology (Suqian) Co., Ltd. Catcher Technology (Suqian) Co., Ltd. Same ultimate parent company Sales ( 102,914 ) 7 Settled monthly; credit on 30-90 days Equivalent Equivalent 19,741 2 Arcadia Technology (Suqian) Co., Ltd. Same ultimate parent company Sales ( 186,500 ) 12 Settled monthly; credit on 30-90 days Equivalent Equivalent 128,416 11 Next Level Ltd. Same ultimate parent company Sales ( 1,198,039 ) 78 Settled monthly; credit on 30-90 days Equivalent Equivalent 875,604 78 Arcadia Technology (Suqian) Co., Ltd. Next Level Ltd. Same ultimate parent company Sales ( 1,096,375 ) 67 Settled monthly; credit on 30-90 days Equivalent Equivalent 260,101 55
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- 57 - Table 5 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES RECEIV ABLES FROM RELATED PARTIES AMOUNTING TO NT$100 MILLION OR MORE, OR 20% OR MORE OF THE PAID-IN CAPITAL JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Company with Accounts Receivable Transaction Counterparty Relationship Receivables from Related Parties Ending Balance Turnover Rate (%) Overdue Amount Subsequently Recovered Allowance for Doubtful Accounts Amount Action Taken Catcher Technology Co., Ltd. TOPO TECHNOLOGY (THAILAND) CO., LTD. Subsidiary $ 429,300 - (Note 2) $ - Not applicable $ - $ - Catcher Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd. Same ultimate parent company 327,341 - (Note 2) - Not applicable - - Vito Technology (Suqian) Co., Ltd. As above 332,552 - (Note 1) - Not applicable 32,767 - Vito Technology (Suqian) Co., Ltd. As above 104,079 1.33 - Not applicable 13,858 - Arcadia Technology (Suqian) Co., Ltd. As above 2,106,612 0.85 - Not applicable 685,658 - Catcher Technology Co., Ltd. Ultimate parent company 140,733 5.59 - Not applicable 63,354 - Vito Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Same ultimate parent company 128,416 0.81 - Not applicable 46,763 - Next Level Ltd. As above 875,604 3.00 - Not applicable 317,540 - Arcadia Technology (Suqian) Co., Ltd. Next Level Ltd. Same ultimate parent company 260,101 2.05 - Not applicable 141,883 - Next Level Ltd. Catcher Technology Co., Ltd. Ultimate parent company 1,203,143 2.57 - Not applicable - - Note 1: These represent receivables arising from processing services; the turnover ratio is not applicable. Note 2: Ending balance of loans, not applicable to turnover ratio calculation
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- 58 - Table 6 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES INFORMATION OF INVESTEES JANUARY 1 TO JUNE 30, 2026 (In Thousands of New Taiwan Dollars, or Dollars for Other Foreign Currencies) Investor Company Investee Company Locations Main Businesses Original Investment Amount Investment Amount at the End of Period Net Income (Loss) of the Investee Investment Income (Loss) (Note 1) Note End of the Current Period End of Last Year Number of Shares Percentage % Carrying Amount The Company Gigamag Co., Ltd. Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apia, Samoa Investing activities $ 484,941 $ 484,941 14,377,642 100 $ 2,149,909 $ 43,224 $ 43,224 Nanomag International Co., Ltd. P.O. Box31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands As above 1 1 30 100 156,909,009 2,126,431 2,125,169 Smart Ecare Inc. 13F, No. 99, Sec. 2, Dunhua S. Rd., Da'an District, Taipei City Health and medical treatment consultant 72,000 72,000 1,440,000 45 3,669 28 12 Ke Yue Co., Ltd. 1F, No. 10, Lane 138, Ren'ai St, Yongkang District, Tainan City Investing activities 4,322,980 4,322,980 211,619,800 100 5,889,192 125,039 125,039 Yi Sheng Co., Ltd. 1F, No. 10, Lane 138, Ren'ai St, Yongkang District, Tainan City As above 2,649,919 2,649,919 89,770,000 100 4,463,007 165,098 165,098 Yi De Co., Ltd. 1F, No. 10, Lane 138, Ren'ai St, Yongkang District, Tainan City As above 2,599,930 2,599,930 89,270,000 100 4,213,224 165,421 165,421 Catcher Medtech Co., Ltd. No. 10, Yongke 5th Rd., Yongkang District, Tainan City Manufacturing and selling medical devices 1,399,568 1,299,568 14,550,000 100 1,537,612 ( 25,454 ) ( 25,471 ) Catcher Holdings International Inc. 3524 Silverside Road Suite 35B, Wilmington, New Castle, United State Investing activities 723,130 （USD 23,000,000） 45,129 （USD 1,500,000） 23,000,000 100 719,212 ( 12,920 ) ( 12,920 ) Yi Fa Co., Ltd. 1F, No. 10, Lane 138, Ren'ai St, Yongkang District, Tainan City As above 2,500,000 2,500,000 25,180,000 100 2,924,881 47,878 47,878 Yi Chuan Co., Ltd. 1F, No. 10, Lane 138, Ren'ai St, Yongkang District, Tainan City As above 2,500,000 2,500,000 25,180,000 100 2,699,952 25,406 25,406 Yi Zhu Co., Ltd. 1F, No. 10, Lane 138, Ren'ai St, Yongkang District, Tainan City As above 2,000 252,000 180,000 100 9,242 1,696 1,696 Xincher Precision Manufacturing Co., Ltd. House No.1 - Block A1 - Unit 6 - Lot CN5, Minh Duc Industrial Park, Ngoc Lam Ward, My Hao Town, Hung Yen Province Manufacturing and selling varied alloy products 15,047 15,047 - 100 ( 8,176 ) ( 3,968 ) ( 6,518 ) Topo Technology (Thailand) Co., Ltd. 700/2 Moo 1 Klongtamru sub-district, Muang district, Chonburi 20000, Thailand Manufacturing and selling varied alloy products 478,250 478,250 4,999,998 100 467,642 ( 27,290 ) ( 27,290 ) Ke Yue Co., Ltd. Pacific Hospital Supply Co., Ltd. No. 8, Tongke 2nd Rd., Jiuhu Village, Tongluo Township, Hsinchu Science Park, Miaoli County Manufacturing and selling medical devices 567,523 567,523 7,563,000 10.42 704,150 215,710 Bioteque Corporation 5F-6, No. 23, Sec. 1, Chang'an East Rd., Zhongshan District, Taipei City 104 Biotechnology and medical industry 781,936 781,936 6,996,000 10.10 841,548 297,257 United Orthopedic Corporation No. 57, Park Avenue 2, Hsinchu Science Park, Hsinchu City Biotechnology and medical industry 437,260 393,635 5,256,000 5.45 493,704 226,550 Intai Technology Corp. No. 9, Jingke Rd., Wenshan Vil., Nantun Dist., Taichung City Manufacturing and selling medical devices 404,592 404,592 3,351,000 6.61 407,147 144,421 Yi Sheng Co., Ltd. Pacific Hospital Supply Co., Ltd. No. 8, Tongke 2nd Rd., Jiuhu Village, Tongluo Township, Hsinchu Science Park, Miaoli County Manufacturing and selling medical devices 240,757 240,757 3,254,000 4.48 306,345 215,710 Bioteque Corporation 5F-6, No. 23, Sec. 1, Chang'an East Rd., Zhongshan District, Taipei City 104 Biotechnology and medical industry 279,319 279,319 2,591,000 3.74 312,406 297,257 United Orthopedic Corporation No. 57, Park Avenue 2, Hsinchu Science Park, Hsinchu City Biotechnology and medical industry 283,298 283,298 3,113,000 3.23 291,850 226,550 Intai Technology Corp. No. 9, Jingke Rd., Wenshan Vil., Nantun Dist., Taichung City Manufacturing and selling medical devices 301,905 301,905 2,330,000 4.60 283,095 144,421 Yi De Co., Ltd. Pacific Hospital Supply Co., Ltd. No. 8, Tongke 2nd Rd., Jiuhu Village, Tongluo Township, Hsinchu Science Park, Miaoli County Manufacturing and selling medical devices 295,411 295,411 4,047,000 5.57 381,001 215,710 Bioteque Corporation 5F-6, No. 23, Sec. 1, Chang'an East Rd., Zhongshan District, Taipei City 104 Biotechnology and medical industry 245,534 245,534 2,252,000 3.25 271,503 297,257 United Orthopedic Corporation No. 57, Park Avenue 2, Hsinchu Science Park, Hsinchu City Biotechnology and medical industry 313,078 313,078 3,917,000 4.06 367,742 226,550 Intai Technology Corp. No. 9, Jingke Rd., Wenshan Vil., Nantun Dist., Taichung City Manufacturing and selling medical devices 297,029 297,029 2,475,000 4.88 300,713 144,421 Catcher Medtech Co., Ltd. Pacific Hospital Supply Co., Ltd. No. 8, Tongke 2nd Rd., Jiuhu Village, Tongluo Township, Hsinchu Science Park, Miaoli County Manufacturing and selling medical devices 251,915 251,915 3,003,000 4.14 282,715 215,710 Bioteque Corporation 5F-6, No. 23, Sec. 1, Chang'an East Rd., Zhongshan District, Taipei City 104 Biotechnology and medical industry 290,840 290,840 2,729,000 3.94 308,638 297,257 Intai Technology Corp. No. 9, Jingke Rd., Wenshan Vil., Nantun Dist., Taichung City Manufacturing and selling medical devices 266,556 266,556 2,185,000 4.31 265,477 144,421 Ren He Medtech Co., Ltd. No. 10, Yongke 5th Rd., Yongkang District, Tainan City Selling medical devices 2,000 2,000 200,000 100 1,928 ( 21 ) Ren Yi Medtech Co., Ltd. No. 10, Yongke 5th Rd., Yongkang District, Tainan City Selling medical devices 2,000 2,000 200,000 100 1,928 ( 21 ) COFORCE Medical Inc. 24F, No. 97, Sec. 2, Dunhua S. Rd., Da'an District, Taipei City CDMO business for medical devices 220,000 220,000 22,000,000 100 117,899 ( 43,623 ) Yi Fa Co., Ltd. Pacific Hospital Supply Co., Ltd. No. 8, Tongke 2nd Rd., Jiuhu Village, Tongluo Township, Hsinchu Science Park, Miaoli County Manufacturing and selling medical devices 553,240 553,240 6,134,000 8.45 522,853 215,710 Bioteque Corporation 5F-6, No. 23, Sec. 1, Chang'an East Rd., Zhongshan District, Taipei City 104 Biotechnology and medical industry 420,720 420,720 3,599,000 5.19 435,530 297,257 United Orthopedic Corporation No. 57, Park Avenue 2, Hsinchu Science Park, Hsinchu City Biotechnology and medical industry 882,682 882,682 9,231,000 9.57 863,910 226,550 Intai Technology Corp. No. 9, Jingke Rd., Wenshan Vil., Nantun Dist., Taichung City Manufacturing and selling medical devices 288,537 288,537 2,396,000 4.73 291,114 144,421 Yi Chuan Co., Ltd. Pacific Hospital Supply Co., Ltd. No. 8, Tongke 2nd Rd., Jiuhu Village, Tongluo Township, Hsinchu Science Park, Miaoli County Manufacturing and selling medical devices 123,560 98,065 1,409,000 1.94 53,990 215,710 Bioteque Corporation 5F-6, No. 23, Sec. 1, Chang'an East Rd., Zhongshan District, Taipei City 104 Biotechnology and medical industry 302,665 146,288 2,567,000 3.70 310,199 297,257 United Orthopedic Corporation No. 57, Park Avenue 2, Hsinchu Science Park, Hsinchu City Biotechnology and medical industry 808,399 405,996 8,243,000 8.55 819,377 226,550 Nanomag International Co., Ltd. Stella International Co., Ltd. P.O. Box31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands Investing activities 893,725 (USD 32,079,144) 893,725 (USD 32,079,144) 32,079,144 100 1,498,247 32,832 Uranus International Co., Ltd. Room 1907, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong As above 560,209 (USD 20,108,016) 560,209 (USD 20,108,016) 20,108,016 100 10,539,306 ( 323,964 ) Norma International Co., Ltd. Room 1907, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong As above 530,247 (USD 19,032,525) 530,247 (USD 19,032,525) 19,032,525 100 4,418,776 ( 128,978 ) Next Level Ltd. Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apia, Samoa As above 279 (USD 10,000) 279 (USD 10,000) 10,000 100 619,759 16,840 Cor Ventures Pte. Ltd. 160 Robinson Road, #14-04 Singapore Business Federation Centre, Singapore 068914 As above 4,816,444 (USD 130,165,797) 4,816,444 (USD 130,165,797) 130,165,797 100 4,919,790 ( 101,941 ) Stella International Co., Ltd. Lyra International Co., Ltd. Room 1907, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong Investing activities - (USD 0) - (USD 0) - 100 - - Catcher Holdings International Inc. Catcher Ventures Inc. 14451 Chambers Road Suite 100 Tustin, CA 92780, United State Investing activities 70,856 (USD 2,300,000) 45,732 (USD 1,500,000) 2,300,000 100 70,779 ( 2,135 ) Niche Biomedical Inc. 10940 Wilshire Blvd., Suite 2030 Los Angeles, CA 90024 USA Biotechnology and medical industry 426,380 (USD 13,500,000) - (USD 0) 10,018,553 16.49 419,069 ( 98,050 ) Note 1: Disclose only investment income (loss) from directly owned subsidiaries and the investees accounted fo r using the equity method. Note 2: Please refer to Table 7 for the information on investment in Mainland China.
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- 59 - Table 7 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES INFORMATION ON INVESTMENTS IN MAINLAND CHINA JANUARY 1 TO JUNE 30, 2026 (In Thousands of New Taiwan Dollars, or Dollars for Other Foreign Currencies) Name of Investee in Mainland China Main Businesses Paid-in Capital (Note 13) Method of Investment (Note 1) Accumulated Investment Amount Remitted from Taiwan at the Beginning of the Current Period (Note 13) Remittance of Funds Accumulated Investment Amount Remitted from Taiwan at the End of the Current Period (Note 13) Net Income (Loss) of the Investee % Ownership of Direct or Indirect Investment Recognized Investment Gains (Losses) for the Period (Note 2) Book Value at the End of the Period Repatriation of Investment Income as of the Current Period Outward Inward Catcher Technology (Suzhou) Co., Ltd. Manufacturing, selling and developing varied alloy products $ - (2) Cygnus International Co., Ltd. (Note 8) $ 1,061,879 (USD 33,340,000) $ - $ - $ 1,061,879 (USD 33,340,000) $ - - $ - $ - $ - Topo Technology (Suzhou) Co., Ltd. As above - (2) Lyra International Co., Ltd. (Notes 4 and 5) 1,284,829 (USD 40,340,000) - - 1,284,829 (USD 40,340,000) - - - - 930,304 Topo Technology (Taizhou) Co., Ltd. As above - (2) Lyra International Co., Ltd. (Note 9) - - - - - - - - 18,644,177 Meeca Technology (Taizhou) Co., Ltd. As above - (2) Lyra International Co., Ltd. (Note 12) - - - - - - - - 4,777,580 Meeca Technology (Suzhou Industrial Park) Co., Ltd. As above - (2) Cygnus International Co., Ltd. (Note 6) - - - - - - - - 2,109,621 Catcher Technology (Suqian) Co., Ltd. As above 318,500 (USD 10,000,000) (2) Uranus International Co., Ltd. (Note 7) 3,025,718 (USD 94,999,000) - - 3,025,718 (USD 94,999,000) ( 127,224 ) 100 ( 127,053 ) (2)A. 6,651,650 10,801,111 Vito Technology (Suqian) Co., Ltd. As above 318,500 (USD 10,000,000) (2) Uranus International Co., Ltd. (Note 10) - - - - ( 197,015 ) 100 ( 196,915 ) (2)A. 3,871,141 603,460 Arcadia Technology (Suqian) Co., Ltd. As above 318,500 (USD 10,000,000) (2) Norma International Co., Ltd. (Note 11) - - - - ( 79,855 ) 100 ( 86,471 ) (2)A. 3,930,022 6,250,159 Envio Technology (Suqian) Co., Ltd. As above 318,500 (USD 10,000,000) (2) Norma International Co., Ltd. (Note 16) - - - - ( 41,576 ) 100 ( 42,510 ) (2)A. 466,661 184,042 Aquila Technology (Suqian) Co., Ltd. (Note 17) Manufacturing and selling varied molds and electronic components - (2) Cepheus International Co., Ltd. 35,672 (USD 1,120,000) - - 35,672 (USD 1,120,000) - - - - 169,684 WIT Technology (Taizhou) Co., Ltd. (Note 14) Researching, developing and manufacturing electronic components - (2) Cetus International Co., Ltd. - - - - - - - - - Chaohu Y unhai Magnesium Co., Ltd. (Note 15) Manufacturing and selling dolomite, aluminum, magnesium alloy and other alkaline-earth metals - (2) Sagitta International Co., Ltd. 703,309 (USD 22,081,923) - - 703,309 (USD 22,081,923) - - - - - Accumulated Investment Amount Remitted from Taiwan to Mainland China at the End of the Current Period (Note 13) Investment Amounts Authorized by the Investment Commission, MOEA (Notes 13 and 14) Upper Limit on the Amount of Investment in Mainland China Stipulated by the Investment Commission, MOEA (Note 3) $ 6,111,407 (USD 191,880,923) $ 47,123,865 (USD 1,091,748,726.39) (RMB 2,641,316,560.48) $ 84,968,297 Note 1: The methods of investment include: (1) Direct investment in Mainland China. (2) Indirect investment in Mainland China through a company in a third region (please indicate the investing company in the third region) (3) Other methods. Note 2: Investment income (loss) shall be: (1) Specified if the investee is in the preparation stage with no investment income (loss) incurred. (2) Specified based on the following three principles of recognition: A. Financial statements reviewed by global accounting firms affiliated with the accounting firms in Taiwan. B. Financial statements reviewed by the CPAs of the parent company in Taiwan. C. Others. Note 3: The upper limit on investment in Mainland China is calculated as: $141,613,829 × 60% = $84,968,297 Note 4: The paid-in capital of US$6,670,000, which was self -owned funds of Nanomag International Co., Ltd., was then i nvested in Topo Technology (Suzhou) Co., Ltd. via Stella International Co., Ltd. The investee thereafter raised its capital b y US$33,300,000 out of earnings in the third quarter of 2011 and returned US$33,300,000 via capital reduction in the fourth quarter of 2014. Note 5: The paid-in capital of US$30,000,000, which was the earnings distributed by Topo Technology (Suzhou) Co., Ltd. to Stella International Co., Ltd., was then invested in Topo Technology (Suzhou) Co., Ltd., with the amount of US$67,000,000 returned via capital reduction in the first quarter of 2016. Lyra International Co., Ltd. sold all of its equity in November 2021; the proceeds have not yet been remitted back to Taiwan and therefore have not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 6: The paid-in capital of US$106,000,000, which was the earnings distributed by Catcher Technology (Suzhou) Co., Ltd. to Castmate Interna tional Co., Ltd., was then invested in Meeca Technology (Suzhou Industria l Park) Co., Ltd., with capital increase of US$16,670,000 out of earnings in the third quarter of 2011. The amount of
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- 60 - US$16,670,000 was returned via capital reduction in the fourth quarter of 2014 and the amount of US$32,000,000 in the third quarter of 2016. Thereafter, the amount of US$32,000,000 was returned via capital reduction in the second quarter of 2017, and the amount of US$32,000,000 was returned via capital reduction in the third quarter of 2017. Cygnus International Co., Ltd. sold all of its equity in November 2021; the proceeds have not yet been remitted back to Taiwan and therefore have not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 7: The paid-in capital of US$5,001,000, which was the earnings distributed by Catcher Technology (Suzhou) Co., Ltd. to Castmate International Co., Ltd., was then invested in Catcher Technology (Suqian) Co., Ltd. The amount of US$100,000,000, which was the earnings distributed by Topo Technology (Suzhou) Co., Ltd. to Stella International Co., Ltd., was reinvested in Catcher Technology (Suqian) Co., Ltd. via Uranus International Co., Ltd. This amount was returned as a capital reduction of US$100,000,000 in May 2024, but the investment funds have not yet been remitted back to Taiwan. Therefore, this amount has not yet been deducted from the approved investment amount by the Ministry of Economic Affairs. US$ 50,000,000 was returned in September 2024 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. US$ 35,000,000 was returned in May 2025 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. US$ 5,000,000 was returned in November 2025 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 8: The paid-in capital of US$16,670,000 was from earnings distributed in the third quarter of 2011 and US$40,000,000 was returned through capital reduction in the second quarter of 2014. An additional US$10,010,000 was returned in August 2016 upon liquidation. However, the investment funds have not yet been remitted back to Taiwan and, therefore, have not yet been deducted from the investment amount approved by the Investment Commission, MOEA. Note 9: The paid-in capital of RMB227,510,746, which was the earnings distributed by Topo Technology (Suzhou) Co., Ltd. to Stella International Co., Ltd., was then invested in Topo Technology (Taizhou) Co., Ltd. The paid-in capital of US$65,979,240 and RMB602,268,326, which were the earnings distributed by subsidiaries in Mainland China to Nanomag International Co., Ltd., were then invested in Topo Technology (Taizhou) Co., Ltd. via Lyra International Co., Ltd. L yra International Co., Ltd. sold all of its equity in December 2020; the proceeds have not yet been remitted back to Taiwan and therefore have not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 10: The paid-in capital of US$99,000,000, which was the earnings distributed by Catcher Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., was then invested in Vito Technology (Suqian) Co., Ltd. via Uranus International Co., Ltd. The paid -in capital of US$33,300,000 and RMB409,431,280, which were the earnings respectively distributed by Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., were then invested in Vito Technology (Suqia n) Co., Ltd. via Uranus International Co., Ltd. US$ 48,901,367 was returned in February 2025 due to capital reduction, but ha s not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. US$ 35,000,000 was returned in May 2025 du e to capital reduction, but has not been remitted back to Taiwan and theref ore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. US$ 5,000,000 was returned in November 2025 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 11: The paid-in capital of US$27,332,360 and RMB398,499,193, which were the earnings respectively distributed by Catcher Technology (Suzhou) Co., Ltd. and Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., were then invested in Arcadia Technology (Suqian) Co., Ltd. via Norma International Co., Ltd. The paid-in capital of US$89,970,000, which was the proceeds from the capital reduction of Catcher Technology (Suzhou) Co ., Ltd., Topo Technology (Suzhou) Co., Ltd., and Meeca Technology (Suzhou Industrial Park) Co., Ltd., was then invested in Ar cadia Technology (Suqian) Co., Ltd. via Norma International Co., Ltd. The paid -in capital of US$21,501,167, which was the earning distributed by Catcher Technology (Suzhou) Co., Ltd. and Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., was then invested in Arcadia Technology (Suqian) Co., Ltd. via Norma International Co., Ltd. US$ 160,501,166 was returned in February 2025 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. US$ 30,000,000 was returned in November 2025 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 12: The paid-in capital of US$17,610,861 and RMB529,989,796, which were the earnings distributed by Catcher Technology (Suzhou) Co., Ltd. and Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., were then invested in Meeca Technology (Taizhou) Co., Ltd. via Lyra International Co., Ltd. The paid -in capital of US$20,000,000 and RMB284,660,400, which were the earnings and liquidation income distributed by Catcher Technology (Suzhou) Co., Ltd. and earnings dis tributed by Topo Technology (Suzhou) Co., Ltd. and Meeca Technology (Suzhou Industrial Park) Co., Ltd. to Nanomag Internation al Co., Ltd., were then invested in Meeca Technology (Taizhou) Co., Ltd. via Lyra International Co., Ltd. The paid-in capital of US$18,000,000, which was the earning distributed by Lyra International Co., Ltd. to Topo Technology (Taizhou) C o., Ltd., was invested in Meeca Technology (Taizhou) Co., Ltd. Lyra International Co., Ltd. sold all of its equity in December 2020; the proceeds have not yet been remitted back to Taiwan and therefore have not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 13: Calculated based on the USD to NTD exchange rate of 31.85 as at the end of period. Calculated based on the RMB to NTD exchange rate of 4.67633 as at the end of period. Note 14: WIT Technology (Taizhou) Co., Ltd. was dissolved in June 2012; the remaining share capital has not yet been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 15: Sagitta International Co., Ltd. sold all of its shares of Chaohu Y unhai Magnesium Co., Ltd. in June 2016, but has not remitted the proceeds back to Taiwan. The investment thus has not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 16: The paid-in capital of US$71,010,000 and RMB188,956,820, which were the returned capital resulting from liquidating Catcher Technology (Suzhou) Co., Ltd. and the returned capital resulting from the capital reduction of Topo Technology (Suzhou) Co., Ltd. and Meeca Technology (Suzhou Industrial Park) Co., Ltd., were reinvested in Envio Technology (Suqian) Co., Ltd. through Norma International Co., Ltd. US$ 50,000,000 was returned in September 2024 due to capital reduction. However, the investment funds have not yet been remitted back to Taiwan and, therefore, have not yet been deducted from the investment amount approved by the Investment Commission, MOEA. US$ 30,000,000 was returned in February 2025 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. US$ 10,000,000 was returned in November 2025 due to capital reduction, but has not been remitted back to Taiwan and therefore has not been deducted from the investment amount authorized by the Investment Commission, MOEA. Note 17: Aquila Technology (Suqian) Co., Ltd. was dissolved in February 2022; the proceeds have not been remitted back to Taiwan and therefore have not been deducted from the investment amount authorized by the Investment Commission, MOEA.
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- 61 - Table 8 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS JANUARY 1 TO JUNE 30, 2026 (In Thousands of New Taiwan Dollars) No. Company Name Counterparty of Intercompany Transactions Relationship with Transaction Party (Note 1) Transaction Details Account Amount (Note 2) Trading Terms Percentage of Consolidated Total Revenue or Total Assets % 0 Catcher Technology Co., Ltd. TOPO TECHNOLOGY （THAILAND） CO., LTD. 1 Other receivables from related parties (loaning of funds) $ 429,300 0.19 Next Level Ltd. 1 Payables to related parties 1,203,143 0.53 Purchases 2,373,587 Calculated based on general transaction price s; settled monthly; payment on 30-90 days 36.77 1 Catcher Technology (Suqian) Co., Ltd. Catcher Technology Co., Ltd. 2 Receivables from related parties 140,733 0.06 Sales revenue 227,816 Calculated based on general transaction prices; settled monthly; credit on 30-90 days 3.53 Vito Technology (Suqian) Co., Ltd. 3 Receivables from related parties 104,079 0.05 Other receivables from related parties 332,552 0.15 Sales revenue 78,281 Calculated based on general transaction p rices; settled monthly; credit on 30-90 days 1.21 Processing income 270,338 Calculated based on general transaction prices; settled monthly; credit on 30-90 days 4.19 Arcadia Technology (Suqian) Co., Ltd. 3 Receivables from related parties 2,106,612 0.92 Sales revenue 1,221,452 Calculated based on general transaction prices; settled monthly; credit on 30-90 days 18.92 Envio Technology (Suqian) Co., Ltd. 3 Receivables from related parties 82,806 0.04 Other receivables from related parties (loaning of funds) 327,341 0.14 2 Vito Technology (Suqian) Co., Ltd. Catcher Technology (Suqian) Co., Ltd. 3 Sales revenue 102,914 Calculated based on general transaction prices; settled monthly; credit on 30-90 days 1.59 Arcadia Technology (Suqian) Co., Ltd. 3 Receivables from related parties 128,416 0.06 Sales revenue 186,500 Calculated based on general transaction prices; settled monthly; credit on 30-90 days 2.89 Xincher Precision Manufacturing Co., Ltd. 3 Receivables from related parties 71,792 0.03 Sales revenue 55,859 Calculated based on general transaction prices; settled monthly; credit on 30-90 days 0.87 Next Level Ltd. 3 Receivables from related parties 875,604 0.38 Sales revenue 1,198,039 Calculated based on general transaction prices; settled monthly; credit on 30-90 days 18.56 3 Arcadia Technology (Suqian) Co., Ltd. Next Level Ltd. 3 Receivables from related parties 260,101 0.11 Sales revenue 1,096,375 Calculated b ased on general transaction prices; settled monthly; credit on 30-90 days 16.98 Vito Technology (Suqian) Co., Ltd. 3 Receivables from related parties 65,337 0.03 Sales revenue 86,399 Calculated based on general transaction prices; settled mo nthly; credit on 30-90 days 1.34 4 Catcher Medtech Co., Ltd. COFORCE Medical Inc. 3 Other receivables from related parties (loaning of funds) 70,000 0.03 5 Next Level Ltd. Xincher Precision Manufacturing Co., Ltd. 3 Purchases 53,323 Calculated bas ed on general transaction prices; settled monthly; payment on 30-90 days 0.83 Note 1: The relationships with the transaction counterparty include: 1. Transactions from the parent company to subsidiaries. 2. Transactions from subsidiaries to the parent company. 3. Transactions between subsidiaries. Note 2: Written off at the time of preparing the consolidated financial report.
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- 62 - Table 9 CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT JANUARY 1 TO JUNE 30, 2026 AND 2025 (In Thousands of New Taiwan Dollars) Land Buildings Machinery and Equipment Miscellaneous Equipment Unfinished Construction and Equipment Pending Acceptance Total Costs Balance at January 1, 2025 $ 1,998,517 $ 16,743,149 $ 45,804,011 $ 6,732,462 $ - $ 71,278,139 Addition - 14,310 80,648 99,709 5,296 199,963 Disposal - ( 701 ) ( 2,139,446 ) ( 46,576 ) - ( 2,186,723 ) Reclassification - 7,506 136,456 4,625 ( 5,260 ) 143,327 Acquisition through business combination (Note 29) 462,244 2,259,686 259,155 63,874 - 3,044,959 Effect of foreign currency exchange difference - ( 1,390,253 ) ( 1,375,789 ) ( 465,101 ) - ( 3,231,143 ) Balance at June 30, 2025 $ 2,460,761 $ 17,633,697 $ 42,765,035 $ 6,388,993 $ 36 $ 69,248,522 Accumulated depreciation and impairment Balance at January 1, 2025 $ - $ 8,773,723 $ 44,123,733 $ 6,520,240 $ - $ 59,417,696 Depreciation expense - 359,878 276,121 97,957 - 733,956 Disposal - ( 336 ) ( 2,139,256 ) ( 44,782 ) - ( 2,184,374 ) Effect of foreign currency exchange difference - ( 827,947 ) ( 1,274,041 ) ( 445,720 ) - ( 2,547,708 ) Balance at June 30, 2025 $ - $ 8,305,318 $ 40,986,557 $ 6,127,695 $ - $ 55,419,570 Net amount as of June 30, 2025 $ 2,460,761 $ 9,328,379 $ 1,778,478 $ 261,298 $ 36 $ 13,828,952 Costs Balance at January 1, 2026 $ 2,580,306 $ 18,845,709 $ 43,447,839 $ 6,866,743 $ 1,286 $ 71,741,883 Addition - 11,737 557,559 98,194 52 667,542 Disposal - - ( 349,199 ) ( 9,544 ) - ( 358,743 ) Reclassification - 2,581 56,857 5,792 - 65,230 Effect of foreign currency exchange difference - 608,574 1,312,098 212,004 - 2,132,676 Balance at June 30, 2026 $ 2,580,306 $ 19,468,601 $ 45,025,154 $ 7,173,189 $ 1,338 $ 74,248,588 Accumulated depreciation and impairment Balance at January 1, 2026 $ - $ 9,346,753 $ 41,629,262 $ 6,578,718 $ - $ 57,554,733 Depreciation expense - 366,923 277,485 93,715 - 738,123 Disposal - - ( 349,166 ) ( 9,048 ) - ( 358,214 ) Effect of foreign currency exchange difference - 383,400 1,266,337 206,388 - 1,856,125 Balance at June 30, 2026 $ - $ 10,097,076 $ 42,823,918 $ 6,869,773 $ - $ 59,790,767 Net amount as of December 31, 2025 and January 1, 2026 $ 2,580,306 $ 9,498,956 $ 1,818,577 $ 288,025 $ 1,286 $ 14,187,150 Net amount as of June 30, 2026 $ 2,580,306 $ 9,371,525 $ 2,201,236 $ 303,416 $ 1,338 $ 14,457,821