Interim report
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Stock Code:6488 GlobalWafers Co., Ltd. and Subsidiaries Consolidated Financial Statements With Independent Auditors’ Review Report For the Nine Months Ended September 30, 2025 and 2024 Address: No.8, Industrial East Road 2, Science-Based Industrial Park, Hsinchu, Taiwan, R.O.C. Telephone: (03)5772255 The independent auditors’ review report and the accompanying consolidated financial statements a re the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail. ~ 1 ~
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Table of contents Contents Page 1. Cover Page 1 2. Table of Contents 2 3. Independent Auditors’ Review Report 3 4. Consolidated Balance Sheets 4 5. Consolidated Statements of Comprehensive Income 5 6. Consolidated Statements of Changes in Equity 6 7. Consolidated Statements of Cash Flows 7 8. Notes to the Consolidated Financial Statements (1) Company history 8 (2) Approval date and procedures of the consolidated financial statements 8 (3) New standards, amendments and interpretations adopted 8～10 (4) Summary of material accounting policies 10～14 (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty 14 (6) Explanation of significant accounts 15～48 (7) Related-party transactions 48～53 (8) Pledged assets 53 (9) Commitments and contingencies 54 (10) Losses due to major disasters 54 (11) Subsequent events 54 (12) Other 55 (13) Other disclosures (a) Information on significant transactions 55～56、59～69 (b) Information on investees 56、70～72 (c) Information on investment in mainland China 56、73～74 (14) Segment information 56～58 ~ 2 ~
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Independent Auditors’ Review Report To the Board of Directors GlobalWafers Co., Ltd.: Introduction We have reviewed the accompanying consolidated balance sheets of GlobalWafers Co., Ltd. and its subsidiaries as of September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2025 and 2024, as well as the changes in equity and cash flows for the nine months e nded September 30, 2025 a nd 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting”, endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review We conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China 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 reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of GlobalWafers Co., Ltd. a nd its subsidiaries a s of September 30, 2025 a nd 2024, and of its consolidated financial performance for the three months and nine months ended September 30, 2025 and 2024, as well as its consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 3 4, “I nterim Financial Reporting” , endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. ~ 3 ~
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The engagement partners on the review resulting in this independent auditors’ report are Chun-Yuan Wu and Yung-Hua Huang. KPMG Taipei, Taiwan (Republic of China) November 4, 2025 Notes to Readers The accompanying consolidated financial statements a re intended only to present the consolidated f inancial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China. The independent auditors’ r eport and the accompanying consolidated financial statements a re the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail. ~ 3-1 ~
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(English Translation of the Consolidated Financial Statements Originally Issued in Chinese) GlobalWafers Co., Ltd. and subsidiaries Consolidated Balance Sheets September 30, 2025, December 31, 2024, and September 30, 2024 (Expressed in Thousands of New Taiwan Dollars) September 30, 2025 December 31, 2024 September 30, 2024 Assets Amount % Amount % Amount % Current assets: 1100 Cash and cash equivalents (note 6(1)) $ 15,947,373 7 38,929,337 17 41,728,181 18 1110 Financial assets at fair value through profit or loss－ current (note 6(2)) 381 - 28,751 - 58,209 - 1170 Notes and accounts receivable, net (note 6(5)) 10,400,004 5 10,195,647 5 9,808,310 4 1180 Accounts receivable due from related parties, net (note 7) 101,889 - 69,506 - 72,387 - 130X Inventories (note 6(6)) 10,100,116 5 11,238,246 5 12,134,160 5 1476 Other financial assets－current (notes 6(1) and 8) 31,411,190 15 17,597,303 8 26,669,139 12 1479 Other current assets (notes 6(10) and 7) 2,584,990 2 2,432,932 1 2,402,722 1 Total current assets 70,545,943 34 80,491,722 36 92,873,108 40 Non-current assets: 1513 Financial assets at fair value through profit or loss－ non-current (note 6(2)) 7,172,363 3 6,766,986 3 10,179,823 4 1517 Financial assets at fair value through other comprehensive income－non-current (note 6(3)) 137,235 - 68,298 - 69,570 - 1535 Non-current financial assets at amortized cost, net (note 6(4)) 6,058,555 3 6,524,215 3 6,298,350 3 1550 Investments accounted for using equity method (note 6(7)) 766,714 - 920,925 - 1,251,359 1 1600 Property, plant and equipment (notes 6(8), 7 and 8) 119,943,937 56 119,074,144 53 107,335,058 47 1755 Right-of-use assets (note 6(9)) 799,787 - 869,508 - 883,460 - 1780 Intangible assets 2,250,784 1 2,448,363 1 2,456,662 1 1840 Deferred tax assets 4,151,743 2 3,838,064 2 3,399,041 2 1980 Other financial assets－non-current (notes 7 and 8) 135,608 - 174,745 - 809,776 - 1900 Other non-current assets (note 6(10)) 3,083,916 1 3,403,601 2 4,577,332 2 Total non-current assets 144,500,642 66 144,088,849 64 137,260,431 60 Total assets $ 215,046,585 100 224,580,571 100 230,133,539 100 September 30, 2025 December 31, 2024 September 30, 2024 Liabilities and Equity Amount % Amount % Amount % Current liabilities: 2100 Short-term borrowings (note 6(12)) $ 20,006,751 9 25,376,780 11 41,903,236 18 2110 Short-term notes and bills payable (note 6(11)) - - 1,399,930 1 1,999,720 1 2120 Financial liabilities at fair value through profit or loss－current (notes 6(2)) 67,766 - 50,182 - 1,294 - 2130 Contract liabilities－current (note 6(21)) 9,104,347 4 10,634,354 5 10,454,563 4 2170 Notes and accounts payable 3,616,693 2 4,357,150 2 4,098,020 2 2180 Accounts payable to related parties (note 7) 177,037 - 1,013,844 - 427,649 - 2201 Payroll and bonus payable 3,008,097 1 2,599,756 1 3,195,164 1 2216 Dividends payable - - 2,390,569 1 - - 2230 Current tax liabilities 1,332,265 1 2,160,179 1 1,768,833 1 2322 Long-term borrowings, current portion (notes 6(13) and 8) 1,004,829 - 2,020,751 1 2,131,857 1 2321 Ordinary bonds payable, current portion (note 6(14)) 11,897,965 6 - - - - 2399 Other current liabilities (note 6(15)) 5,795,599 3 13,061,071 6 8,545,772 4 Total current liabilities 56,011,349 26 65,064,566 29 74,526,108 32 Non-Current liabilities: 2527 Contract liabilities－non-current (note 6(21)) 16,039,322 7 19,880,163 9 21,212,917 9 2540 Long-term borrowings (notes 6(13) and 8) 7,519,944 4 10,530,658 4 1,102,473 1 2500 Financial liabilities at fair value through profit or loss－non-current (notes 6(2) and (14)) 565,933 - 404,230 - 462,879 - 2531 Ordinary bonds payable (note 6(14)) 24,474,806 11 16,890,669 8 16,889,709 7 2532 Exchangeable bonds with warrants (note 6(14)) 10,711,939 5 10,256,704 4 10,538,751 5 2570 Deferred tax liabilities 6,171,866 3 6,770,513 3 7,055,672 3 2670 Other non-current liabilities (note 6(15)) 2,256,281 1 2,243,130 1 2,269,395 1 2640 Net defined benefit liabilities－non-current 1,524,786 1 1,512,147 1 1,668,566 1 Total non-current liabilities 69,264,877 32 68,488,214 30 61,200,362 27 Total liabilities 125,276,226 58 133,552,780 59 135,726,470 59 Equity (note 6(18)): 3110 Ordinary share 4,781,137 2 4,781,137 2 4,781,137 2 3200 Capital surplus 45,720,158 21 45,720,158 20 45,719,981 20 3300 Retained earnings 49,879,556 23 47,641,022 22 49,563,826 21 3400 Other equity interest (10,607,128) (4) (7,111,401) (3) (5,658,632) (2) Total equity attributable to owners of parent 89,773,723 42 91,030,916 41 94,406,312 41 3600 Non-controlling interests (3,364) - (3,125) - 757 - Total equity 89,770,359 42 91,027,791 41 94,407,069 41 Total liabilities and equity $ 215,046,585 100 224,580,571 100 230,133,539 100 See accompanying notes to consolidated financial statements. ~ 4 ~
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(English Translation of the Consolidated Financial Statements Originally Issued in Chinese) GlobalWafers Co., Ltd. and subsidiaries Consolidated Statements of Comprehensive Income For the three months and the nine months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share) For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Amount % Amount % Amount % Amount % 4000 Operating revenue (notes 6(21) and 7) $ 14,493,434 100 15,869,978 100 46,095,865 100 46,282,670 100 5000 Operating costs (notes 6(6), (16), (22) and 7) 11,831,101 82 11,102,915 70 35,198,670 76 31,396,645 68 Gross profit from operations 2,662,333 18 4,767,063 30 10,897,195 24 14,886,025 32 Operating expenses (notes 6(16), (22) and 7): 6100 Selling expenses 360,044 2 356,718 2 1,239,131 3 978,485 2 6200 Administrative expenses 556,366 3 626,936 4 1,695,395 3 1,613,193 3 6300 Research and development expenses 513,767 4 579,749 4 1,701,215 4 1,757,617 4 6450 Expected credit losses (note 6(5)) 2,356 - 3,525 - 4,300 - 2,314 - Total operating expenses 1,432,533 9 1,566,928 10 4,640,041 10 4,351,609 9 Net operating income 1,229,800 9 3,200,135 20 6,257,154 14 10,534,416 23 Non-operating income and expenses: 7100 Interest income (note 6(23)) 452,874 3 845,979 5 1,516,332 3 2,703,195 5 7020 Other gains and losses (notes 6(14), (23) and 7) 782,749 5 (278,250) (2) (440,367) (1) (973,630) (2) 7050 Finance costs (notes 6(14), (15), (23) and 7) (278,165) (2) (224,694) (1) (723,899) (2) (631,399) (1) 957,458 6 343,035 2 352,066 - 1,098,166 2 Income before income tax 2,187,258 15 3,543,170 22 6,609,220 14 11,632,582 25 7950 Less: income tax expense (note 6(17)) 217,987 1 590,924 4 1,502,391 3 2,268,676 5 Net income 1,969,271 14 2,952,246 18 5,106,829 11 9,363,906 20 8300 Other comprehensive income: 8310 Items that will not be reclassified subsequently to profit or loss: 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 7,189 - (10,819) - 18,651 - 46,966 - 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method (note 6(7)) 191,659 1 (314,259) (2) (143,551) - (147,430) - 8349 Less: income tax related to components of other comprehensive income that will not be reclassified to profit or loss (note 6(17)) - - - - - - - - Total items that will not be reclassified subsequently to profit or loss 198,848 1 (325,078) (2) (124,900) - (100,464) - 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign operations 3,404,740 23 1,238,854 8 (4,209,560) (9) 2,571,516 5 8399 Less: income tax related to components of other comprehensive income that may be reclassified to profit or loss (note 6(17)) 683,322 5 247,620 2 (838,881) (2) 513,697 1 Total items that may be reclassified subsequently to profit or loss 2,721,418 18 991,234 6 (3,370,679) (7) 2,057,819 4 8300 Other comprehensive income (after tax) 2,920,266 19 666,156 4 (3,495,579) (7) 1,957,355 4 Total comprehensive income $ 4,889,537 33 3,618,402 22 1,611,250 4 11,321,261 24 Net income attributable to: Shareholders of GlobalWafers Co., Ltd $ 1,969,191 14 2,953,918 18 5,107,216 11 9,367,333 20 Non-controlling interests 80 - (1,672) - (387) - (3,427) - $ 1,969,271 14 2,952,246 18 5,106,829 11 9,363,906 20 Total comprehensive income attributable to: Shareholders of GlobalWafers Co., Ltd $ 4,889,610 33 3,620,048 22 1,611,489 4 11,324,564 24 Non-controlling interests (73) - (1,646) - (239) - (3,303) - $ 4,889,537 33 3,618,402 22 1,611,250 4 11,321,261 24 Earnings per share (NT Dollars) (note 6(20)) 9750 Basic earnings per share $ 4.12 6.18 10.68 20.19 9850 Diluted earnings per share $ 4.12 6.17 10.66 19.81 See accompanying notes to consolidated financial statements. ~ 5 ~
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(English Translation of the Consolidated Financial Statements Originally Issued in Chinese) GlobalWafers Co., Ltd. and subsidiaries Consolidated Statements of Changes in Equity For the nine months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) Equity attributable to shareholders of GlobalWafers Co., Ltd. Other equity interest Retained earnings Exchange differences on translation of Gains (losses) from equity instrument measured at fair value Ordinary shares Capital surplus Legal reserve Special reserve Unappropriated retained earnings Total retained earnings foreign financial statements through other comprehensive income Other Total other equity interest Total Non-controlling interests Total equity Balance at January 1, 2024 $ 4,361,137 24,248,547 8,062,380 6,546,698 30,691,152 45,300,230 (8,601,325) 1,140,548 428 (7,460,349) 66,449,565 4,060 66,453,625 Net income (loss) for the period - - - - 9,367,333 9,367,333 - - - - 9,367,333 (3,427) 9,363,906 Other comprehensive income for the period - - - - - - 2,057,695 (100,464) - 1,957,231 1,957,231 124 1,957,355 Comprehensive income for the period - - - - 9,367,333 9,367,333 2,057,695 (100,464) - 1,957,231 11,324,564 (3,303) 11,321,261 Appropriation and distribution of retained earnings: Legal reserve appropriated - - 2,022,494 - (2,022,494) - - - - - - - - Special reserve appropriated - - - 914,080 (914,080) - - - - - - - - Cash dividends on ordinary shares - - - - (5,259,251) (5,259,251) - - - - (5,259,251) - (5,259,251) Capital increase by cash 420,000 21,471,434 - - - - - - - - 21,891,434 - 21,891,434 Disposal of equity instruments at fair value through other comprehensive income - - - - 155,514 155,514 - (155,514) - (155,514) - - - Balance at September 30, 2024 $ 4,781,137 45,719,981 10,084,874 7,460,778 32,018,174 49,563,826 (6,543,630) 884,570 428 (5,658,632) 94,406,312 757 94,407,069 Balance at January 1,2025 $ 4,781,137 45,720,158 10,741,767 6,325,189 30,574,066 47,641,022 (7,669,397) 557,568 428 (7,111,401) 91,030,916 (3,125) 91,027,791 Net income (loss) for the period - - - - 5,107,216 5,107,216 - - - - 5,107,216 (387) 5,106,829 Other comprehensive income for the period - - - - - - (3,370,827) (124,900) - (3,495,727) (3,495,727) 148 (3,495,579) Comprehensive income for the period - - - - 5,107,216 5,107,216 (3,370,827) (124,900) - (3,495,727) 1,611,489 (239) 1,611,250 Appropriation and distribution of retained earnings: Legal reserve appropriated - - 342,168 - (342,168) - - - - - - - - Special reserve appropriated - - - 787,509 (787,509) - - - - - - - - Cash dividends on ordinary shares - - - - (2,868,682) (2,868,682) - - - - (2,868,682) - (2,868,682) Balance at September 30, 2025 $ 4,781,137 45,720,158 11,083,935 7,112,698 31,682,923 49,879,556 (11,040,224) 432,668 428 (10,607,128) 89,773,723 (3,364) 89,770,359 See accompanying notes to consolidated financial statements. ~ 6 ~
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(English Translation of the Consolidated Financial Statements Originally Issued in Chinese) GlobalWafers Co., Ltd. and subsidiaries Consolidated Statements of Cash Flows For the nine months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) For the nine months ended September 30, 2025 2024 Cash flows from operating activities: Income before income tax $ 6,609,220 11,632,582 Adjustments: Adjustments to reconcile profit (loss): Depreciation expenses 7,046,835 5,928,619 Amortization expenses 16,780 16,334 Expected credit losses 4,300 2,314 Net loss on financial assets or liabilities at fair value through profit 76,030 1,458,834 Finance costs 723,899 631,399 Interest income (1,516,332) (2,703,195) Dividend income (47,914) (180,678) Shares of profit of associates accounted for using equity method (48,675) (66,585) Loss (gain) on disposal of property, plant and equipment 12,035 (32,850) Provisions for inventory valuation 398,245 94,949 Gain on lease modification (11,277) (1,127) Loss on provision 1,079 - Total adjustments 6,655,005 5,148,014 Changes in operating assets and liabilities: Notes and accounts receivable (including related parties) (240,816) 232,471 Inventories 754,957 (2,888,910) Prepayments for purchase of materials 185,158 1,490 Other financial assets 72,937 7,126 Other operating assets (46,210) (56,688) Total changes in operating assets 726,026 (2,704,511) Contract liabilities (4,196,219) (3,168,056) Notes and accounts payable (including related parties) (1,206,189) 129,409 Net defined benefit liabilities 12,639 66,476 Other operating liabilities 1,284,543 (227,777) Total changes in operating liabilities (4,105,226) (3,199,948) Total changes in operating assets and liabilities (3,379,200) (5,904,459) Total adjustments 3,275,805 (756,445) Cash inflow generated from operations 9,885,025 10,876,137 Interest received 2,149,880 2,860,391 Dividends received 47,914 180,678 Interest paid (1,731,117) (1,438,233) Income taxes paid (2,523,453) (3,989,663) Net cash flows from operating activities 7,828,249 8,489,310 (Continued) See accompanying notes to consolidated financial statements. ~ 7 ~
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(English Translation of the Consolidated Financial Statements Originally Issued in Chinese) GlobalWafers Co., Ltd. and subsidiaries Consolidated Statements of Cash Flows(Continued) For the nine months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) For the nine months ended September 30, 2025 2024 Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income $ (50,000) (22,600) Proceeds from disposal of financial assets at fair value through other comprehensive income - 223,429 Proceeds from capital reduction of financial assets at fair value through profit or loss 8,537 13,833 Acquisition of financial assets at amortized cost - (6,377,393) Acquisition of financial assets at fair value through profit or loss (61,928) (35,252) Dividends received from associates accounted for using the equity method 59,336 60,647 Acquisition of property, plant and equipment, and prepayments of equipment (26,112,045) (37,835,586) Proceeds from disposal of property, plant and equipment 55,475 198,631 Acquisition of intangible assets (5,794) (396) (Increase) decrease in other financial assets (14,481,234) 15,620,109 Other investing activities 6,897,113 - Net cash flows used in investing activities (33,690,540) (28,154,578) Cash flows from financing activities: Increase (decrease) in short-term borrowings (5,370,029) 17,255,374 (Decrease) increase in short-term notes and bills payable (1,399,930) 1,999,720 Issuing bonds 19,500,000 17,128,358 Repayment of bonds (296,561) (14,014,507) Proceeds from long-term borrowings 7,488,646 36,100 Repayments of long-term borrowings (11,042,492) (1,104,289) Increase (decrease) in guarantee deposits received (65,913) 62,410 Decrease in other payables to related parties (340,000) (575,000) Payment of lease liabilities (137,384) (143,903) Cash dividends (5,259,251) (8,748,161) Capital increase by cash - 21,891,434 Net cash flows from financing activities 3,077,086 33,787,536 Effect of exchange rate changes on cash and cash equivalents (196,759) 1,441,322 (Decrease) increase in cash and cash equivalents (22,981,964) 15,563,590 Cash and cash equivalents at beginning of period 38,929,337 26,164,591 Cash and cash equivalents at end of period $ 15,947,373 41,728,181 See accompanying notes to consolidated financial statements. ~ 7-1 ~
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(English Translation of the Consolidated Financial Statements Originally Issued in Chinese) GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified) 1. Company history GlobalWafers Co., Ltd. ( the “ Company”) h ad been a semiconductor operating unit of Sino-American Silicon Products Inc. (“SAS”) and the Company, along with its assets and liabilities, was spun off from SAS on October 1, 2011. The Company was incorporated in October 18, 2011, and authorized by the Hsinchu Science Park Bureau (HSPB). Its registered office is located at No. 8, Industrial East Road 2, Science-Based Park, Hsinchu, Taiwan (R.O.C.). As of September 30, 2025, the consolidated financial statements comprise the Company and its subsidiaries (together referred to as the “Group”). The Group engages mainly in the research, development, production, design, and sales of semiconductor ingots and wafers, and is also engaged in the technology and management consulting service for related products. On December 2, 2016, the Group a cquired the entire outstanding shares of SunEdison Semiconductor Limited (“SunEdison”). The Group’s research and development, manufacturing and sales locations spread over the United States, Europe, and Asia through this acquisition, thereby expanding its global market share, customers, and other wafer technologies and production capacities. The Company’s common shares have been listed on Taipei Exchange (“TPEx”) since September 25, 2015, and were delisted from the Emerging Market at the same date. 2. Approval date and procedures of the consolidated financial statements: These consolidated financial statements were authorized for issue by the Board of Directors on November 4, 2025. 3. New standards, amendments and interpretations adopted: (1) The impact of the International Financial Reporting Standards (“ IFRS Accounting Standards” ) endorsed by the Financial Supervisory Commission, R.O.C. (the “FSC”) which have already been adopted. The Group h as initially adopted the f ollowing n ew amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025: ● Amendments to IAS 21 “Lack of Exchangeability” (2) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements: ● IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts” ● Amendments to IFRS 9 and IFRS 7 “A mendments to the Classification and Measurement of Financial Instruments” ~ 8 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements ● Annual Improvements to IFRS Accounting Standards—Volume 11 ● Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” (3) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC: Standards or Interpretations Content of amendment Effective date per IASB IFRS 18 “Presentation and Disclosure in Financial Statements” The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities. ● A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘o perating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities. ● Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards. January 1, 2027 note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. ~ 9 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements Standards or Interpretations Content of amendment Effective date per IASB ● Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation. The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements: ● Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture” ● IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures” 4. Summary of material accounting policies: (1) Statement of compliance These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS Accounting Standards endorsed by the FSC) for a complete set of the annual consolidated financial statements. Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024. (2) Basis of consolidation A. Principles of preparation of the consolidated financial statements Principles of preparation of the consolidated financial statements were the same as those of the consolidated financial statements for the year ended December 31, 2024. For the related information, please refer to note 4(3) of the consolidated financial statements for the year ended December 31, 2024. ~ 10 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements B. List of subsidiaries in the consolidated financial statements Percentage of Ownership Name of Investor Name of Subsidiary Business September 30, 2025 December 31, 2024 September 30, 2024 Note The Company GlobalSemicond uctor Inc. (GSI) Investment activities %100 %100 %100 The Company GlobalWafers Japan Co., Ltd. (GWJ) Manufacturing and trading of silicon wafers %100 %100 %100 The Company GlobalWafers Singapore Pte. Ltd. (GWS) Investment activities %100 %100 %100 The Company Sunrise PV Four Co., Ltd. (SPV4) Electricity activities %100 %100 %100 The Company Sunrise PV Electric Power Five Co., Ltd. (SPVE5) Electricity activities %100 %100 %100 The Company GWC Capital Co., Ltd. (GWH) Investment activities %100 %100 %100 The Company GlobalWafers GmbH (GW GmbH) Investment activities %100 %100 %100 The Company GlobalWafers B.V. (GWBV) Investment activities %100 %100 %100 The Company Crystalwise Technology Inc. (CWT) Manufacturing and trading of optoelectronic wafers and substrate material %100 %100 %100 The Company GlobalWafers Capital Co., Ltd. (GWCC) Investment activities %79.41 %100 %100 note (2) GSI Kunshan Sino Silicon Technology Co., Ltd. (SST) Processing and trading of ingots and wafers %100 %100 %100 GWJ MEMC Japan Ltd. (MEMC Japan) Manufacturing and trading of silicon wafers %100 %100 %100 ~ 11 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements Percentage of Ownership Name of Investor Name of Subsidiary Business September 30, 2025 December 31, 2024 September 30, 2024 Note SST MEMC Electronic Materials Sdn Bhd (MEMC Sdn Bhd) Research and development, manufacturing and trading of silicon wafers %100 %100 %100 SST Kunshan SST Trading Co., Ltd. (KST) Sales, marketing and trading activities %100 %100 %100 SST Shanghai Sawyer Shenkai Technology Material Co., Ltd. (SSKT) Manufacturing and sales of lithium tantalate and lithium niobate wafers %100 %100 %100 CWT Crystalwise Technology (HK) Limited (Crystalwise (HK)) Investment activities %100 %100 %100 CWT Yuan Hong (SHANDONG) Technical Materials Ltd. (YHTM) Manufacturing and trading of optoelectronic wafers and substrate material %19.69 %19.69 %19.69 GWBV MEMC Electronic Materials, SpA (MEMC SpA) Manufacturing and trading of silicon wafers %100 %100 %100 MEMC SpA MEMC Electronic Materials France SarL (MEMC SarL) Trading %100 %100 %100 GWBV MEMC Korea Company (MEMC Korea) Manufacturing and trading of silicon wafers %100 %100 %100 GWBV MEMC Ipoh Sdn Bhd (MEMC Ipoh) Manufacturing and trading of silicon wafers %100 %100 %100 ~ 12 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements Percentage of Ownership Name of Investor Name of Subsidiary Business September 30, 2025 December 31, 2024 September 30, 2024 Note GWBV GlobiTech Incorporated (GTI) Manufacturing and trading of epitaxial wafers and silicon wafers %100 %100 %100 GWBV Topsil Globalwafers A/S (Topsil A/S) Manufacturing and trading of silicon wafers %100 %100 %100 Crystalwise (HK) YHTM Manufacturing and trading of optoelectronic wafers and substrate material %80.31 %80.31 %80.31 GTI MEMC LLC Research and development, manufacturing and trading of silicon wafers %100 %100 %100 GTI GlobalWafers America, LLC (GWA) Manufacturing and trading of silicon wafers %100 %100 %100 SSKT Yuan Hong Technical Materials Ltd. (MHTM) Manufacturing and sales of lithium tantalate and lithium niobate wafers %90 %90 %90 MEMC Korea MKC Capital Co., Ltd (MKCC) Investment activities %100 %- %- note (1) MKCC GWCC Investment activities %20.59 %- %- note (2) Note: Groups organizational restructuring and changes were as follows: (1) MKCC was established in September 2025. (2) Based on a resolution approved by MKCC's Board on September 11, 2025, MKCC increased its investment in GWCC on September 24, 2025, acquiring 20.59% equity interest in GWCC, resulting in MKCC and the Company to collectively hold the entire shares of GWCC. C. Subsidiaries excluded from the consolidated financial statements: None. ~ 13 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (3) Provisions Carbon fees Carbon fees levied in accordance with Taiwan's Climate Change Response Act and Regulations Governing the Collection of Carbon Fees are recognized when the annual greenhouse gas emissions are probably to exceed the threshold, and the amount is estimated based on the proportion of greenhouse gas emissions that have occurred as of the reporting date divided by the total annual greenhouse gas emissions. (4) Employee benefits The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year. (5) Income tax The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting. Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the m anagement. This should be recognized fully as tax expense for the current period. Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense. 5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty: In the preparation of the consolidated financial statements in conformity with the Regulations and IFRS Accounting Standards (in accordance with IAS 34 “I nterim Financial Reporting” a nd endorsed by the FSC) requires management to make judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2024. ~ 14 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements 6. Explanation of significant accounts: Except for the following disclosures, there were no material differences in the disclosures of significant accounts between the interim consolidated financial statements for the current period and the consolidated financial statements for the year ended December 31, 2024. Please refer to note 6 of consolidated financial statements for the year ended December 31, 2024. (1) Cash and cash equivalents September 30, 2025 December 31, 2024 September 30, 2024 Cash on hand $ 5,019 3,801 4,290 Demand deposits 5,767,506 14,109,820 17,977,217 Time deposits 10,010,702 20,247,848 18,251,089 Bond investments with repurchase agreements 141,446 4,567,868 5,495,585 Note investments with repurchase agreement 22,700 - - $ 15,947,373 38,929,337 41,728,181 As of December 31, 2024, September 30, 2025 and 2024, the Group reclassified time deposits to other financial assets– c urrent due to liquidity considerations amounting to $4,812,163 t housand, $2,936,606 thousand and $12,134,710 thousand, respectively. On November 28, 2019 and February 21, 2020, the Group applied to the National Taxation Bureau for the application of the Overseas Fund Repatriation Management, Utilization and Taxation Regulations. After approval, the funds were repatriated. 5% of the repatriated funds can be used freely, and the remaining 95% can only be used for special investment plans approved by the Ministry of Economic Affairs. Funds are deposited in a special account and cannot be used randomly for expenditure within five years. The Group has applied to the Ministry of Economic Affairs for substantial investment, and the funds are expected to be used for capital expenditures on factory expansion and the purchase of machinery, equipment and related assets. As of December 31, 2024, September 30, 2025 a nd 2024, the balances of the special accounts were $3,005,012 t housand, $1,860,354 t housand and $2,924,646 t housand recorded in cash and cash equivalents (or other financial assets), respectively. Please refer to note 6(24) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Group. (2) Financial assets and liabilities at fair value through profit or loss September 30, 2025 December 31, 2024 September 30, 2024 Financial assets measured at fair value through profit or loss－current: Forward exchange contracts $ 381 28,751 58,209 ~ 15 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements September 30, 2025 December 31, 2024 September 30, 2024 Financial assets measured at fair value through profit or loss－non-current: Privately offered funds $ 337,481 254,686 263,818 Overseas securities held 6,834,882 6,512,300 9,916,005 $ 7,172,363 6,766,986 10,179,823 Financial liabilities designated as at fair value through profit or loss－current: Forward exchange contracts $ 67,766 50,182 1,294 Financial liabilities designated as at fair value through profit or loss－non- current: Embedded derivatives of exchangeable bonds with warrants $ 565,933 404,230 462,879 Please refer to note 6(23) for the amount remeasured at fair value through profit or loss. For the nine months ended September 30, 2025 and 2024, the dividends of $44,190 thousand and $179,561 thousand, respectively, were recognized from investments in financial assets mandatorily measured at fair value through profit or loss. The Group issued overseas bonds with warrant the shares of Sliteonic AG in January 2024. When warrants are exercised, shares of Siltronic AG will be delivered to the holders. Please refer to Note 6(14) for details. The Group u ses derivative instruments to hedge certain currency risk arising from the Group’s operating activities. The Group held the following derivative instruments, which were not qualified for hedge accounting, and accounted them as mandatorily measured at fair value through profit or loss financial assets and held-for-trading financial liabilities as of December 31, 2024, September 30, 2025 and 2024: September 30, 2025 Contract amount (in thousands) Currency Maturity date Forward exchange contracts purchased USD 30,000 USD to EUR October 29, 2025 Forward exchange contracts sold USD 11,750 USD to EUR October 24, 2025 ~ November 26, 2025 ~ 16 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements December 31, 2024 Contract amount (in thousands) Currency Maturity date Forward exchange contracts purchased USD 30,000 USD to EUR October 29, 2025 Forward exchange contracts sold USD 165,000 USD to NTD January 9, 2025 ~ March 24, 2025 Forward exchange contracts sold USD 20,300 USD to EUR February 26, 2025 ~ March 26, 2025 September 30, 2024 Contract amount (in thousands) Currency Maturity date Forward exchange contracts sold USD 133,000 USD to TWD October 17, 2024 ~ October 24, 2024 Forward exchange contracts sold USD 25,500 USD to EUR October 7, 2024 ~ December 20, 2024 (3) Financial assets at fair value through other comprehensive income September 30, 2025 December 31, 2024 September 30, 2024 Equity investment in domestic entities $ 137,235 68,298 65,504 Equity investment in foreign entities - - 4,066 $ 137,235 68,298 69,570 The Group d esignated the equity investments shown above as at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategic purposes. For the nine months ended September 30, 2025 and 2024, the dividend income of $3,724 thousand and $1,117 thousand, respectively, related to equity investments at fair value through other comprehensive income, was recognized, respectively. Due to the changes in investment strategy for the nine months ended September 30, 2024, the Group disposed domestic equity investments designated to be measured at fair value through other comprehensive gains and losses, at the fair value of $223,429 thousand, resulting in the accumulated disposal gains of $155,514 thousand, which were reclassified from other equity to retained earnings. The Group did not dispose its strategic investments for the nine months ended September 30, 2025; therefore, there were no transfers of any cumulative gain or loss within equity relating to these investments. For market risk, please refer to note 6(24). The financial assets mentioned above were not pledged as collateral. ~ 17 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (4) Financial assets measured at amortized cost September 30, 2025 December 31, 2024 September 30, 2024 Foreign Bonds $ 6,058,555 6,524,215 6,298,350 A. The Group invested in foreign bonds, with the face value of US$199,000 thousand and a coupon rate ranging from 4.71% to 5.15%, as well as the maturity dates from October 8, 2026 to June 13, 2029. The Group has assessed that these financial assets are held to maturity to collect contractual cash flows, which consist solely of payments of principal and interest on principal amount outstanding. Therefore, these investments were classified as financial assets m easured at amortized cost. B. The financial assets mentioned above were not pledged as collateral. (5) Notes and accounts receivable, net September 30, 2025 December 31, 2024 September 30, 2024 Notes receivable $ 442,889 301,563 312,629 Accounts receivable 9,971,912 9,904,922 9,509,927 Less: allowance for expected credit loss (14,797) (10,838) (14,246) $ 10,400,004 10,195,647 9,808,310 The Group applied the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information. The credit loss provision of notes and accounts receivable (including related parties) was determined as follows: September 30, 2025 Gross amount of notes and accounts receivable Weighted-average loss rate Credit loss allowance Current $ 10,021,059 0% - 1 to 30 days past due 253,219 0% - 31 to 60 days past due 144,783 3% 3,791 61 to 90 days past due 2,279 39% 890 91 to 120 days past due 70,116 2% 1,416 121 to 150 days past due 1,681 0% - 151 to 180 days past due - 0% - More than 181 days past due 8,700 100% 8,700 $ 10,501,837 14,797 ~ 18 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements December 31, 2024 Gross amount of notes and accounts receivable Weighted-average loss rate Credit loss allowance Current $ 9,944,872 0% - 1 to 30 days past due 304,056 0% - 31 to 60 days past due 14,341 10% 1,432 61 to 90 days past due 1,577 30% 473 91 to 120 days past due 1,189 50% 594 121 to 150 days past due 1,297 70% 908 151 to 180 days past due 736 90% 663 More than 181 days past due 6,768 100% 6,768 $ 10,274,836 10,838 September 30, 2024 Gross amount of notes and accounts receivable Weighted-average loss rate Credit loss allowance Current $ 9,441,551 0% - 1 to 30 days past due 417,243 0% - 31 to 60 days past due 11,066 11% 1,199 61 to 90 days past due 9,209 13% 1,156 91 to 120 days past due 5,193 50% 2,597 121 to 150 days past due - 0% - 151 to 180 days past due - 0% - More than 181 days past due 9,294 100% 9,294 $ 9,893,556 14,246 The movements in the allowance for doubtful accounts related to notes and accounts receivable were as follows: For the nine months ended September 30, 2025 2024 Balance on January 1 $ 10,838 14,747 Credit losses recognized 4,300 2,314 Amount written off which was considered uncollectible in the current period (121) (3,196) Foreign exchange changes (220) 381 Balance on September 30 $ 14,797 14,246 The notes and accounts receivable mentioned above were not pledged as collateral. ~ 19 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (6) Inventories September 30, 2025 December 31, 2024 September 30, 2024 Finished goods $ 2,352,746 2,609,113 3,138,676 Work in progress 3,496,762 3,718,253 4,007,012 Raw materials 4,250,608 4,910,880 4,988,472 $ 10,100,116 11,238,246 12,134,160 Components of operating costs were as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Cost of sales $ 11,585,579 11,091,745 34,624,500 31,174,845 Provisions for inventory valuation loss (reversal of gains) 185,837 (36,293) 398,245 94,949 Unallocated fixed manufacturing expense 59,685 47,463 175,925 126,851 $ 11,831,101 11,102,915 35,198,670 31,396,645 The inventories mentioned above were not pledged as collateral. (7) Investments accounted for using equity method A summary of financial information for investments accounted for using the equity method at the reporting date is as follows: September 30, 2025 December 31, 2024 September 30, 2024 Associates $ 766,714 920,925 1,251,359 A. Associates The associates of the Group a ccounted for using the equity method were individually insignificant, and their summarized financial information included in the consolidated financial statements of the Group was as follows: September 30, 2025 December 31, 2024 September 30, 2024 The carrying amount of investments in the individually insignificant associates $ 766,714 920,925 1,251,359 ~ 20 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Amount of individually insignificant associates’ interests attributable to the Group: Net income $ 26,557 40,547 48,675 66,585 Other comprehensive income (loss) 191,659 (314,259) (143,551) (147,430) Total $ 218,216 (273,712) (94,876) (80,845) For the nine Months ended September 30, 2025 and 2024, the cash dividends of the invested associates were $59,336 thousand and $60,647 thousand, respectively, which were recognized as deductions of investments accounted for using the equity method. The Group holds 30.98% o f the shares of the HONG-WANG Investment Co., Ltd., with the largest shareholder owning 39.02% shares of that company, resulting in the Group to have no control over that company. B. Collateral The investments accounted for using equity method mentioned above were not pledged as collateral. (8) Property, plant and equipment A. The movements of cost and depreciation of the property, plant and equipment of the Group were as follows: Land Buildings Machinery and equipment Other equipment Construction in progress and equipment awaiting inspection Total Cost: Balance at January 1, 2025 $ 2,661,362 30,206,380 58,365,429 7,544,383 67,407,472 166,185,026 Additions - 30,218 72,418 234,556 12,958,659 13,295,851 Disposals - (17,832) (570,689) (114,065) (1,000) (703,586) Reclassification - 2,677,712 13,171,359 118,191 (15,912,010) 55,252 Transfer and others - (213,073) (263,213) (130,617) (108,912) (715,815) Effect of changes in exchange rates (48,072) (1,081,970) (1,437,138) (151,599) (3,479,968) (6,198,747) Balance at September 30, 2025 $ 2,613,290 31,601,435 69,338,166 7,500,849 60,864,241 171,917,981 Balance at January 1, 2024 $ 2,653,843 21,481,582 50,011,861 7,573,234 32,793,886 114,514,406 Additions 28,595 34,812 136,898 93,056 39,019,794 39,313,155 Disposals - (7,879) (836,639) (70,425) (27,324) (942,267) Reclassification - 6,982,247 8,477,714 89,733 (14,949,594) 600,100 Transfer and others - - 2,405 - - 2,405 Effect of changes in exchange rates 60,965 454,203 1,661,730 152,399 705,053 3,034,350 Balance at September 30, 2024 $ 2,743,403 28,944,965 59,453,969 7,837,997 57,541,815 156,522,149 ~ 21 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements Land Buildings Machinery and equipment Other equipment Construction in progress and equipment awaiting inspection Total Depreciation and impairment losses: Balance at January 1, 2025 $ - 9,994,533 33,242,812 3,832,045 41,492 47,110,882 Depreciation for the period - 825,478 5,692,892 399,330 - 6,917,700 Disposals - (17,678) (539,290) (56,670) - (613,638) Transfer and others - - 6,991 399 - 7,390 Effect of changes in exchange rates - (317,221) (1,035,067) (93,041) (2,961) (1,448,290) Balance at September 30, 2025 $ - 10,485,112 37,368,338 4,082,063 38,531 51,974,044 Balance at January 1, 2024 $ - 9,279,773 29,542,534 3,402,425 38,860 42,263,592 Depreciation for the period - 668,918 4,637,677 484,455 - 5,791,050 Reclassification - (7,668) (768,870) (69,215) - (845,753) Transfer and others - 5,438 482,667 (1,630) - 486,475 Impairment of loss - - 8,441 - - 8,441 Effect of changes in exchange rates - 245,727 1,141,278 95,085 1,196 1,483,286 Balance at September 30, 2024 $ - 10,192,188 35,043,727 3,911,120 40,056 49,187,091 Carrying amounts: Balance at January 1, 2025 $ 2,661,362 20,211,847 25,122,617 3,712,338 67,365,980 119,074,144 Balance at September 30, 2025 $ 2,613,290 21,116,323 31,969,828 3,418,786 60,825,710 119,943,937 Balance at January 1, 2024 $ 2,653,843 12,201,809 20,469,327 4,170,809 32,755,026 72,250,814 Balance at September 30, 2024 $ 2,743,403 18,752,777 24,410,242 3,926,877 57,501,759 107,335,058 B. Collateral A portion of the property, plant and equipment was pledged as collateral for credit lines. Please refer to note 8. C. For the Group’ s capital expenditure plan, the total amount of expenditures incurred but the construction has not yet been completed for the nine months ended September 30, 2025 and 2024, were $60,825,710 t housand and $57,501,759 t housand, including the capitalized borrowing costs related to the acquisition of the construction of property, plant and equipment of $1,281,285 thousand and $1,149,977 thousand, calculated using a capitalization interest rates of 4.47%~5.61% and 4.38%~5.60%, respectively. (9) Right-of-use assets The Group l eases many assets including land, buildings, machinery and other equipment. The carrying amounts of right-of-use assets were presented below: Land Buildings Machinery Other equipment Total Carrying amounts: Balance at January 1, 2025 $ 395,382 56,984 597 416,545 869,508 Balance at September 30, 2025 $ 337,613 31,472 346 430,356 799,787 Balance at January 1, 2024 $ 431,073 53,207 - 445,439 929,719 Balance at September 30, 2024 $ 405,449 72,373 649 404,989 883,460 ~ 22 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements The Group did not have any significant additions, deletions, additions or reversals of assets recognized as right-of-use of leased land, buildings and structures, machine and equipment, and other equipment during the nine months ended September 30, 2025 and 2024, please refer to Note 6(10) of the 2024 Consolidated Financial Statements for other related information. (10) Other assets－current and non-current September 30, 2025 December 31, 2024 September 30, 2024 Prepayment for materials $ 671,724 856,881 1,088,430 Refundable tax and overpaid tax 1,697,208 1,546,771 1,331,134 Prepayments for equipment－non-current 2,714,725 2,819,278 3,872,027 Others 585,249 613,603 688,463 $ 5,668,906 5,836,533 6,980,054 Current $ 2,584,990 2,432,932 2,402,722 Non-current $ 3,083,916 3,403,601 4,577,332 (11) Short-term notes and bills payable September 30, 2025 December 31, 2024 September 30, 2024 Commercial paper payable $ - 1,399,930 1,999,720 The Group repaid short-term notes and bills payable were $1,399,930 thousand for the nine months ended September 30, 2025. There were no issues, repurchases and repayments of short-term notes and bills payable for the nine months ended September 30, 2024. Information on interest expense for the period is discussed in note 6(23). (12) Short-term borrowings September 30, 2025 December 31, 2024 September 30, 2024 Unsecured borrowings $ 2,088,430 25,376,780 30,892,201 Secured borrowings 17,918,321 - 11,011,035 $ 20,006,751 25,376,780 41,903,236 Range of interest rates at the end of the period 1.6%~4.58% 0.5%~5.3% 0.5%~5.63% ~ 23 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (13) Long-term borrowings September 30, 2025 Currency Rate Maturity Amount Unsecured bank loans JPY 0.10%~0.28% 115.1~115.3 $ 987,223 Unsecured bank loans NTD 0.5%~2.22% 115.12~118.6 66,121 Unsecured bank loans DKK 2.43% 116.3 1,477,003 Commercial paper payable NTD 1.52~1.56% 6,000,000 Less: discount on long- term borrowings (5,574) Less: current portion (1,004,829) $ 7,519,944 December 31, 2024 Currency Rate Maturity Amount Unsecured bank loans JPY 0.10%~0.28% 115.1~115.3 $ 2,559,520 Unsecured bank loans NTD 0.50% 118.4~118.6 46,100 Secured bank loans USD 5.1541% 115.12 9,945,789 Less: current portion (2,020,751) Total $ 10,530,658 September 30, 2024 Currency Rate Maturity Amount Unsecured bank loans JPY 0.10%~0.28% 115.1~115.3 $ 3,198,230 Unsecured bank loans NTD 0.5% 118.4~118.6 36,100 Less: current portion (2,131,857) Total $ 1,102,473 On September 26, 2025, the consolidated entity entered into an agreement with a finance company for the issuance of 3-year unsecured commercial paper. Each issuance tranche has a maturity of no more than 90 days and is reissued on a revolving basis upon maturity, bearing an annual interest rate of 1.52%~1.56%. On August 15, 2025, the Accounting Research and Development Foundation issued a Q&A which clarified that, as the revolving commercial paper issued by the entity does not have the right, at the end of the reporting period, to defer settlement of the liability for at least twelve months after the reporting period, such liabilities shall be classified as current liabilities. In response, the FSC issued transitional provisions stating that, entities with revolving commercial paper issued on or after January 1, 2026 shall apply the classification guidance in the Q&A, while those issued on or before December 31, 2025 need not comply. ~ 24 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements Accordingly, the commercial paper issued by the Company on September 26, 2025 is classified as a non-current liability. For revolving issuances made on or after January 1, 2026, classification will be adjusted and reported as current liabilities in accordance with the above-mentioned guidance. (14) Bonds payable The details of bonds payable were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Unsecured ordinary bonds $ 36,372,771 16,890,669 16,889,709 Exchangeable bonds with warrants 10,711,939 10,256,704 10,538,751 Less: current portion (11,897,965) - - Total $ 35,186,745 27,147,373 27,428,460 A. The details of issued unsecured bonds as follows: First issued of Second issued of 2021 First issued of 2024 2021 Bonds B Bonds A Bonds B Date May 11, 2021 August 19, 2021 March 19, 2024 March 19, 2024 Total amount $6,500,000 5,400,000 2,500,000 2,500,000 Rate 0.62% 0.60% 1.70% 1.75% Period Five years Five years Five years Seven years Due date May 11, 2026 August 19, 2026 March 19, 2029 March 19, 2031 First issued of 2024 First issued of 2025 Bonds A Bonds B Bonds C Bonds A Bonds B Bonds C Bonds D Date May 28, 2025 May 28, 2025 May 28, 2025 September 24, 2025 September 24, 2025 September 24, 2025 September 24, 2025 Total amount 3,300,000 2,800,000 1,400,000 4,700,000 4,400,000 700,000 2,200,000 Rate 2.01% 2.08% 2.18% 1.86% 1.92% 1.98% 2.02% Period Three years Five years Ten years Three years Five years Seven years Ten years Due date May 28, 2028 May 28, 2030 May 28, 2035 September 24, 2028 September 24, 2030 September 24, 2032 September 24, 2035 On August 19, 2024, the Group redeemed all of the unsecured ordinary bonds of Bonds A, which were second issued in 2021. B. On April 21, 2021, the Group’s Board of Directors resolved to issue the first unsecured overseas convertible bonds on the Singapore Exchange Limited, which had been approved by the Financial Supervisory Commission with approval No.1100342091 on May 19, 2021. The Group issued the five-year unsecured convertible bond, amounting to US$1,000,000 thousand at zero coupon rate, with the maturity date on June 1, 2026. ~ 25 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements The details of unsecured convertible bonds were as follows: For the three months ended September 30, For the nine months ended September 30, 2024 2024 Embedded derivatives – gain and losses of re- measurement of calls and put options based on fair value (recorded under other gains and losses) $ - (55,593) Interest expense $ - 24,548 The convertible bonds may be redeemed in advance by the Group from the day following the third anniversary of the issuance until the maturity date. If the closing price of GlobalWafers’ common stock reaches 130% of the amount obtained by multiplying the amount of early redemption by the conversion price and dividing it by the face value for twenty trading days out of thirty consecutive business days, or if the outstanding balance of the convertible bonds is less than 10% of the original total issuance, the Group may redeem the amount in advance and redeem all or part of the convertible bonds. Except for the early redemption, repurchases and cancellation or conversion of the convertible bonds, the holders may request the Group to redeem entire or part of the convertible bonds according to the early redemption amount on the day of June 1, 2024. So, on June 1, 2023, the unsecured convertible bonds were reclassified to current liabilities. It d oes not mean that the holders will definitely demand repayment of the debt from the Group within the next year. Except for early redemptions, repurchases and cancellations, exercise of conversion rights by the bondholders, statutory requirements and the cessation of transfer period as otherwise provided in the Trust Deed, from the day following the three months after the issuance of the bonds to (1) ten days before the maturity date or (2) the fifth business day prior to the date of early redemption of the bonds (hereinafter referred to as the "conversion period"), the bondholders may request the issuing company to convert the bonds into shares of common stock newly issued by the issuing company in accordance with the provisions of the relevant laws and the Trust Deed. The Group redeemed the first unsecure oversea convertible bonds of US$248,200 t housand, respectively, during the nine months period ended September 30, 2024, resulting in the invalid conversion right of $422,801 thousand to be reclassified from capital surplus – share options to capital surplus – others. As of September 30 2024, the above-mentioned unsecured convertible bonds had been fully redeemed. C. The Group (subsidiary GW GmbH) issued a bond with 1.5% coupon rate, with interest payable annually on January 23, 2024. At the time of issuance of the bond, the Group separated the warrant call and put options (collectively referred to as the "options") from the host contract in accordance with IFRS 9 and accounted for "financial liabilities at fair value through profit or loss". Financial liabilities at fair value through profit or loss (FVTPL) as of September 30, 2025 are summarized below: ~ 26 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements The details of the Group exchangeable bonds with warrants are as follows: September 30, 2025 December 31, 2024 September 30, 2024 Total exchangeable bonds with warrants $ 11,990,104 11,785,128 12,213,176 Unamortized discount (1,278,165) (1,528,424) (1,674,425) Total exchangeable bonds with warrants period-end $ 10,711,939 10,256,704 10,538,751 Embedded derivatives options, included in financial liabilities at fair value through profit or loss $ 565,933 404,230 462,879 For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Embedded derivatives - gain and losses of re-measurement of options based on fair value (recorded under other gains and losses) $ (174,170) 225,133 (190,990) 1,344,847 Interest expense $ 137,092 135,739 407,521 366,092 The principal terms of the above exchangeable bonds with warrants are set out below: (a) Total amount issued: EUR 345,200 thousand (EUR 100 thousand per sheet). (b) Issue period: five years (c) Maturity date: January 23, 2029 (d) Important terms and conditions: i After three years from the issuance date, holders of exchangeable bonds with warrants may exercise the put right to sell back the bonds at par value. ii Warrants are to be exercised for 3,100,413 ordinary shares of Siltronic AG held by GW GmbH at a price of EUR 111.34 per share, which will be adjusted in subsequent years in accordance with the terms of the contract and the dividend payment of Siltronic AG. The exercise price was EUR 111.34 per share as of September 30, 2025. The warrants are exercisable immediately from the date of issuance of the exchangeable bonds with warrants. iii The Company is the guarantor of the exchangeable bonds with warrants. iv In the event of changes of control over the guarantor or stock-delisting in the market of Siltronic AG, the holders may request to redeem entire of the bonds by book value. ~ 27 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements The Group redeemed the exchangeable bonds with warrants of EUR 10,000 thousand in September 2025. (15) Lease liabilities The carrying amounts of lease liabilities of the Group were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Current $ 145,663 135,109 139,972 Non-current $ 662,910 749,455 758,181 For the maturity analysis, please refer to note 6(24) “Financial instruments”. The amounts recognized in profit or loss were as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Interest on lease liabilities $ 4,385 4,020 13,584 12,130 Variable lease payments not included in the measurement of lease liabilities $ 4,830 4,446 11,774 10,636 Expenses relating to short-term leases $ 16,856 12,219 41,699 29,518 Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets $ 8,112 3,548 20,737 9,216 The amounts recognized in the statement of cash flows were as follows: For the nine months ended September 30, 2025 2024 Total cash outflow for leases $ 211,594 193,273 Land leases' additional rent payments that are based on changes in local price indices and the public facilities construction costs re-invested annually in each park will be adjusted after being assessed. (16) Employee benefits A. Defined benefit plans Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material onetime events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2024 and 2023. The expenses recognized in profit or loss for the Group were $77,207 t housand, $76,295 thousand, $228,495 t housand and $227,011 t housand for the three months and nine months ended September 30, 2025 and 2024, respectively. ~ 28 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements B. Defined contribution plans Domestic subsidiaries’ p ension costs incurred from contributions to the defined contribution plan were $18,183 thousand, $19,454 thousand, $56,028 thousand and $57,144 thousand for the three months and nine months ended September 30, 2025 a nd 2024, respectively. Such contributions were made to the Bureau of the Labor Insurance. The total periodic pension costs of other subsidiaries were recognized as current expenses in accordance with the local regulations of their respective jurisdictions where they are domiciled. The overseas subsidiaries of the Group r ecognized the pension costs of $83,352 t housand, $82,318 t housand, $247,237 t housand and $241,952 t housand for the three months and nine months ended September 30, 2025 and 2024, respectively. (17) Income tax The income tax expense of the Group is calculated by the profit before tax of interim reporting period multiply by the best estimated measurement of the expected effective tax rate by the management in all the year. A. Income tax expense The components of income tax expenses were as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Income tax expense $ 217,987 590,924 1,502,391 2,268,676 The amounts of income tax (benefit) recognized in other comprehensive income were as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign financial statements $ 683,322 247,620 (838,881) 513,697 B. Assessment of tax filings As of September 30, 2025, income tax returns of the Company and its domestic subsidiaries for the years through 2022 were assessed by the tax authority. ~ 29 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements The operations of the Group encompass tax matters in multiple countries. The tax treatment of each country shall be determined by the country in which the operation is situated. The tax laws of each country shall prevail, and all declarations shall be made on time in accordance with the regulations of the countries where subsidiaries are located. There may be adjustments arising from tax inspections conducted by various regions, and the Group has taken appropriate measures to address these matters. C. Global minimum top-up tax The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. The Group is subject to the Pillar Two Global tax legislations, as certain jurisdictions in which it operates have already implemented the rules such as the Qualified Domestic Minimum Top up Tax, the Income Inclusion Rule, and the Undertaxed Payments Rule. Upon reviewing the effective tax rates in the relevant tax jurisdictions where these rules apply, the Group has appropriately assessed the anticipated top up taxes payable of $107,577 thousand under the minimum tax regime during the nine months ended September 30, 2025. (18) Capital and other equity Except for the following disclosure, there was no significant change in capital and other equity for the periods from January 1 to September 30, 2025 and 2024. For the related information, please refer to note 6(20) to the consolidated financial statements for the year ended December 31, 2024. A. Ordinary shares As of December 31, 2024, September 30, 2025 and 2024, the authorized ordinary shares of the Company amounted to $10,000,000 t housand, w hich was divided into 1,000,000 t housand shares, with a par value of $10 per share, of which $200,000 t housand was reserved for employee stock options, preferred shares with stock options or bonds with stock options. The Company conducted a cash capital increase by issuing 42,000 units of overseas depository receipts (42,000 thousand shares of the Company's common stock) on April 2, 2024, based on a resolution decided during its board meeting held on February 27, 2024. All relevant statutory registration procedures had since been completed. The Company's issued the outstanding ordinary shares of $4,781,137 thousand as of December 31, 2024, September 30, 2025 and 2024. ~ 30 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements B. Capital surplus The balances of capital surplus were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Additional paid-in capital $ 43,677,693 43,677,693 43,677,693 Capital surplus resulting from share swap 429,157 429,157 429,157 Employee stock options 60,727 60,727 60,727 Difference between the consideration and the carrying amount of subsidiaries’ share acquired or disposed 3,940 3,940 3,940 Additional paid-in capital resulting from assets donated 185 185 8 Other (note 6(14)) 1,548,456 1,548,456 1,548,456 $ 45,720,158 45,720,158 45,719,981 C. Retained earnings According to the Company’s Articles of Incorporation, the proposal of earnings distribution or loss off-setting for the first half fiscal year, together with the business report and financial statements, shall be forwarded to the audit committee for auditing before the end of the second half of the fiscal year; thereafter, it is to be submitted to the Board of Directors for approval. Distribution of earnings, by way of cash, shall be approved in the Board of Directors meeting. The distribution of earnings through issuance of new shares shall be resolved in the stockholders’ meeting. According to the Company’s Articles of Incorporation, earnings distribution on a semiannual basis shall be distributed in the following order: (a) Offset the cumulative deficits; (b) 10% of the current-period earning should be set aside for legal reserve, until the accumulated legal reserve equals the Company’s issued capital; (c) Set aside special reserve in accordance with relevant laws or regulations or as requested by the authorities; ~ 31 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (d) After deducting items (a), (b), and (c) above from the earnings, the remaining undistributed earnings of current and previous years, if any, will be proposed for distribution by the Board of Directors. According to the R.O.C. Company Act Section 240(5), it was authorized that the distribution of earnings, in whole or in part by way of cash dividends, shall be made after a resolution has been approved by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors and the resolution is reported to shareholders in their meeting. If the distribution of earnings is made by issuance of new shares, wherein the resolution will be approved during the shareholders meeting. After considering both the long-term development of the business and the goal of stable growth of earnings per share, the distribution of dividends to shareholders should not be less than 50% of the distributable earnings, which is calculated using the net income of the current year, minus, legal reserve and special reserve. Distribution of cash dividends should not be less than 50% of the total dividends. (a) Earnings distribution The distribution of cash dividends for the year of 2024 and the first half of 2024, were approved by the Board of Directors on May 7, 2025, and December 12, 2024, as follows: 2024 Cash dividends per share (NT$) Amount Dividends distributed to ordinary shareholders: Earnings distribution for the first half of the year $ 5.0 2,390,569 Earnings distribution for the second half of the year 6.0 2,868,682 Total $ 11.00 5,259,251 The distributions of cash dividends for the year of 2023 and the first half of 2023, were approved by the Board of Directors on May 7, 2024, and December 12, 2023, as follows: 2023 Cash dividends per share (NT$) Amount Dividends distributed to ordinary shareholders: Earnings distribution for the first half of the year $ 8.0 3,488,910 Earnings distribution for the second half of the year 11.0 5,259,251 Total $ 19.00 8,748,161 The above-mentioned relevant information can be obtained through channel such as Market Observation Post System. ~ 32 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (19) Share-based payment Except for the following disclosure, there were no significant changes in share-based payment during the periods from January 1 to September 30, 2025 a nd 2024. For the related information, please refer to note 6(21) to the consolidated financial statements for the year ended December 31, 2024. (20) Earnings per share (“EPS”) A. Basic earnings per share For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Net income attributable to the shareholders of the Company $ 1,969,191 2,953,918 5,107,216 9,367,333 Weighted-average number of ordinary shares outstanding during the period (in thousands of shares) 478,114 478,113 478,114 464,012 Basic earnings per share (dollars) $ 4.12 6.18 10.68 20.19 B. Diluted earnings per share For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Net income attributable to the shareholders of the Company $ 1,969,191 2,953,918 5,107,216 9,367,333 Interest expense and gain or loss on embedded derivative of convertible bonds, net of tax - - - 63,953 Net income attributable to the shareholders of the Company (diluted) $ 1,969,191 2,953,918 5,107,216 9,431,286 Weighted-average number of ordinary shares outstanding during the period (in thousands of shares) 478,114 478,113 478,114 464,012 Effect of the conversion of convertible bonds (in thousands of shares) - - - 11,075 Effect of the employee remuneration issued by stock (in thousands of shares) 228 758 816 1,034 $ 478,342 478,871 478,930 476,121 Diluted earnings per share (dollars) $ 4.12 6.17 10.66 19.81 ~ 33 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (21) Revenue from contracts with customers A. Disaggregation of revenues For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Primary geographical markets: Taiwan $ 2,994,271 3,220,929 9,495,128 9,733,133 Northeast Asia (Japan and Korea) 3,115,443 3,834,882 9,828,930 11,116,187 Asia - others 3,098,759 3,247,493 10,364,132 8,768,882 America 2,476,356 2,041,108 6,809,766 6,304,591 Europe 2,779,658 3,459,255 9,492,148 10,186,623 Other areas 28,947 66,311 105,761 173,254 Total $ 14,493,434 15,869,978 46,095,865 46,282,670 Major product categories: Semiconductor wafers $ 14,264,707 15,463,167 45,119,595 44,889,160 Semiconductor ingot 129,161 310,567 746,779 1,031,051 Electricity revenue 59,912 56,515 138,572 125,232 Others 39,654 39,729 90,919 237,227 $ 14,493,434 15,869,978 46,095,865 46,282,670 B. Contract balances September 30, 2025 December 31, 2024 September 30, 2024 Contract liabilities $ 25,143,669 30,514,517 31,667,480 For details on accounts receivables and allowance for impairment, please refer to note 6(5). The major change in the balance of contract liabilities is the advance consideration received from customers for the contracts, in which revenue is recognized when products are delivered to customers. The Group issues a performance guarantee letter for this purpose, please refer to note 9. The amount of revenue recognized for the nine months ended September 30, 2025 and 2024, which was included in the contract liability balance at the beginning of the period, was $4,732,691 thousand and $4,315,343 thousand, respectively. ~ 34 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (22) Remuneration to employees and directors On May 26, 2025, the Company resolved at the shareholders’ m eeting to amend its Articles of Incorporation. According to the amended Articles, if the Company has surplus at the end of each fiscal year, 3~15% of the profit shall be appropriated for the employees’ remuneration and no more than 3% shall be appropriated for directors’ rem uneration. However, if there are accumulated losses, certain profits shall be reserved to cover first. At least 60% of the aforementioned appropriated employees’ remuneration shall be allocated to grassroots employees. The entitled employees of the aforementioned employee remuneration include the employees of parents or subsidiaries of the company who meet the conditions set by the Board. The Company will distribute cash for directors’ remuneration, and share or cash for employee remuneration. The distribution shall be resolved with a consent of a majority of the directors present at a meeting attended by more than two thirds of the total directors and reported to the shareholder's meeting by the Board. Prior to the amendment, the Articles of Incorporation stipulated that if the Company had earnings in a given fiscal year, it shall allocate 3% to 15% of such earnings as employee compensation and up to 3% as director compensation. However, if the Company had accumulated losses, the amount required to cover such losses shall be retained in advance. The recipients of employee compensation may include employees of controlled or affiliated companies who meet certain criteria, as determined by the Board of Directors. Director compensation shall be distributed in cash, while employee compensation may be distributed in the form of shares or cash. Such distribution shall be approved by a resolution of the Board of Directors with the attendance of at least two-thirds of the directors and the consent of a majority of the attending directors, and shall be reported to the shareholders’ meeting. For the three and nine months ended September 30, 2025 a nd 2024, the Company accrued and recognized its employee remuneration (including base-level employees) amounting to $106,417 thousand, $113,273 t housand, $291,022 t housand and $344,873 t housand and directors' remuneration amounting to $7,103 t housand, $11,320 t housand, $19,410 t housand and $34,490 thousand. These amounts were calculated by using the Company’s pre-tax net profit for the period before deducting the amounts of the remuneration to employees and directors, multiplied by the distribution ratio of the remuneration to employees and directors based on the Company’s Articles of Incorporation, and expensed under operating costs or expenses. If there would be any changes in accounting estimates the changes shall be accounted for as profit or loss in the following year. If, however, the shareholders determine that the employee remuneration is to be distributed through issuance of shares, the calculation of distributable shares shall be calculated using the stock price on the day before a resolution was made by the Board of Directors. The amounts recognized for employee remuneration were $366,825 thousand and $752,539 thousand, respectively, and for directors’ r emuneration were $36,690 thousand and $75,250 thousand, respectively, in the 2024 and 2023 consolidated financial statements and were not significantly different from those approved in the Board of Directors meetings. ~ 35 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (23) Non-Operating income and expenses A. Interest income For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Interest from bank deposits $ 376,994 845,979 1,288,387 2,703,195 Interest from amortized cost 75,880 - 227,945 - $ 452,874 845,979 1,516,332 2,703,195 B. Other gains and losses For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Foreign exchange gains (losses), net $ 9,170 (92,834) (615,427) 147,856 Gains on disposal of property, plant and equipment 914 3,096 12,035 32,850 Valuation gains (losses) on financial assets (liabilities) measured at fair value through profit or loss 739,529 (318,023) (39,031) (1,496,573) Dividend income 3,709 7,884 47,914 180,678 Others 29,427 121,627 154,142 161,559 $ 782,749 (278,250) (440,367) (973,630) C. Finance costs For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Interest expense－borrowings $ (51,595) (38,812) (122,326) (101,312) Interest expense－bonds (222,185) (181,862) (587,989) (517,957) Interest expense－lease liabilities (4,385) (4,020) (13,584) (12,130) $ (278,165) (224,694) (723,899) (631,399) (24) Financial instruments Except for the following, there is no significant change in the fair value of the Group’s financial instruments and exposure to credit risk, liquidity risk, and market risk due to financial instruments. For relevant information, please refer to note 6(26) of consolidated financial statement of 2024. A. Credit risk (a) Credit risk exposure The carrying amount of financial assets represents the maximum amount exposed to credit risk. ~ 36 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (b) Concentration of credit risk The main customers of the Group a re from the silicon wafer and related industries. The Group g enerally sets credit limits to its customers according to their credit evaluations. Therefore, the credit risk of the Group is mainly influenced by the silicon wafer industry. As of December 31, 2024, September 30, 2025 and 2024, 51%, 48% and 50%, respectively, of the Group’s a ccounts receivable (including related parties) were from the top 10 customers. Although there is a potential for concentration of credit risk, the Group routinely assesses the collectability of the accounts receivable and makes a corresponding allowance for doubtful accounts. (c) Credit risk of receivables For credit risk exposure on notes and accounts receivables, please refer to note 6(5). B. Liquidity risk The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements. Carrying amount Contractual cash flows Within 6 months 6 to 12 months 1-2 years 2-5 years Over 5 years September 30, 2025 Non-derivative financial liabilities Short-term borrowings $ 20,006,751 (20,102,459) (19,802,459) (300,000) - - - Notes and accounts payable (including related parties) 3,793,730 (3,793,730) (3,724,396) (69,334) - - - Payroll and bonus payable 3,008,097 (3,008,097) (1,918,479) (1,089,618) - - - Accrued remuneration of directors (other current liabilities) 27,583 (27,583) - (27,583) - - - Long-term borrowing (including current portion) 8,524,773 (8,537,881) (993,545) (1,482,292) (11,832) (6,023,880) (26,332) Lease liabilities 808,573 (861,874) (79,742) (75,918) (108,138) (247,212) (350,864) Ordinary bonds (including current portion) 36,372,771 (38,926,670) (86,250) (12,357,990) (471,540) (18,764,620) (7,246,270) Exchangeable bonds with warrants 10,711,939 (13,312,308) (190,147) (193,427) (396,918) (12,531,816) - Derivative financial instruments Forward exchange contracts: Outflows 67,766 (1,337,817) (357,799) (980,018) - - - Inflows (381) 1,270,432 357,082 913,350 - - - $ 83,321,602 (88,637,987) (26,795,735) (15,662,830) (988,428) (37,567,528) (7,623,466) ~ 37 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements Carrying amount Contractual cash flows Within 6 months 6 to 12 months 1-2 years 2-5 years Over 5 years December 31, 2024 Non-derivative financial liabilities Short-term borrowings $ 25,376,780 (25,518,282) (23,547,617) (1,970,665) - - - Short-term notes and bills payable 1,399,930 (1,400,000) (1,400,000) - - - - Notes and accounts payable (including related parties) 5,370,994 (5,370,994) (5,004,821) (366,173) - - - Payroll and bonus payable 2,599,756 (2,599,756) (1,497,844) (1,101,912) - - - Accrued remuneration of directors (other current liabilities) 53,753 (53,753) (17,063) (36,690) - - - Long-term borrowing (including current portion) 12,551,409 (13,591,902) (1,012,243) (1,014,338) (11,545,500) (19,821) - Lease liabilities 884,564 (929,274) (74,872) (67,493) (126,238) (249,331) (411,340) Ordinary bonds (including current portion) 16,890,669 (17,564,150) (126,550) (32,400) (12,058,950) (2,758,750) (2,587,500) Dividends payable 2,390,569 (2,390,569) (2,390,569) - - - - Exchangeable bonds with warrants 10,256,704 (13,313,552) (176,887) (179,938) (369,238) (12,587,489) - Derivative financial instruments Forward exchange contracts: Outflows 50,182 (1,600,007) (709,938) (890,069) - - - Inflows (28,751) 1,578,576 659,756 918,820 - - - $ 77,796,559 (82,753,663) (35,298,648) (4,740,858) (24,099,926) (15,615,391) (2,998,840) September 30, 2024 Non-derivative financial liabilities Short-term borrowing $ 41,903,236 (41,921,415) (40,270,197) (1,651,218) - - - 1,999,720 (2,000,000) (2,000,000) - - - - Notes and accounts payable (including related parties) 4,525,669 (4,525,669) (4,497,471) (28,198) - - - Payroll and bonus payable 3,195,164 (3,195,164) (2,154,507) (1,040,657) - - - Accrued remuneration of directors (other current liabilities) 51,553 (51,553) (18,263) (33,290) - - - Long-term borrowing (including current portion) 3,234,330 (3,243,079) (1,070,208) (1,070,722) (1,076,472) (25,677) - Lease liabilities 898,153 (945,589) (80,393) (66,892) (121,929) (247,257) (429,118) Ordinary bonds (including current portion) 16,889,709 (17,564,150) - (158,950) (12,058,950) (2,758,750) (2,587,500) Exchangeable bonds with warrants 10,538,751 (13,887,601) (181,751) (372,960) (785,296) (12,547,594) - Derivative financial instruments Forward exchange contracts: Outflows 1,294 (815,586) (815,586) - - - - Inflows (58,209) 872,501 872,501 - - - - $ 83,179,370 (87,277,305) (50,215,875) (4,422,887) (14,042,647) (15,579,278) (3,016,618) ~ 38 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts. C. Currency risk (a) Exposure to foreign currency risk The Group’s significant exposure to foreign currency risk was as follows: September 30, 2025 Foreign currency Exchange rate NTD Financial assets Monetary Items USD $ 403,901 30.4 12,296,752 JPY 10,625,132 0.2058 2,186,652 EUR 251,697 35.77 9,003,190 CNY 114,495 4.271 489,006 Non-Monetary Items USD 2,900 30.445 Note Financial liabilities Monetary Items USD 348,797 30.4 10,619,133 JPY 13,735,699 0.2058 2,826,807 EUR 42,500 35.77 1,520,213 CNY 36,894 4.271 157,575 Non-Monetary Items USD 38,850 30.445 Note December 31, 2024 Foreign currency Exchange rate NTD Financial assets Monetary Items USD $ 522,275 32.785 17,122,784 JPY 11,530,869 0.2099 2,420,329 EUR 194,834 34.14 6,651,644 CNY 72,211 4.478 323,362 Non-Monetary Items USD 30,000 32.785 Note ~ 39 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements December 31, 2024 Foreign currency Exchange rate NTD Financial liabilities Monetary Items USD 364,520 32.785 11,950,773 JPY 14,090,456 0.2099 2,957,587 EUR 115,943 34.14 3,958,296 CNY 32,613 4.478 146,040 Non-Monetary Items USD 185,300 32.785 Note September 30, 2024 Foreign currency Exchange rate NTD Financial assets Monetary Items USD $ 476,992 31.65 15,096,798 JPY 15,621,844 0.2223 3,472,736 EUR 192,451 35.38 6,808,910 CNY 58,988 4.523 266,805 Non-Monetary Items USD 150,650 31.65 Note Financial liabilities Monetary Items USD 306,600 31.65 9,703,889 JPY 15,971,632 0.2223 3,550,484 EUR 101,200 35.38 3,580,443 CNY 42,315 4.523 191,389 Non-Monetary Items USD 7,850 31.65 Note Note: The fair value of forward exchange contracts was measured at the reporting date. For related information, please refer to note 6(2). ~ 40 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (b) Sensitivity analysis The Group’s e xposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, borrowings, and accounts payable, that are denominated in foreign currencies. A weakening (strengthening) of 1% of the NTD against the USD, JPY, EUR and CNY as of September 30, 2025 and 2024, would have increased or decreased the net income before income tax by $88,519 t housand and $86,190 t housand, respectively. The analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases. The analysis was performed on the same basis for comparative years. (c) Foreign exchange gains and losses on monetary items Since the Group h as many kinds of functional currencies, the information on foreign exchange gains (losses) on monetary items is disclosed by an aggregate amount. For the three months and nine months ended September 30, 2025 and 2024, the foreign exchange gains (losses) (including realized and unrealized portions) amounted to $9,170 t housand, $(92,834) thousand, $(615,427) thousand and $147,856 thousand, respectively. D. Interest rate analysis Please refer to the notes on liquidity risk management for interest rate exposure of the Group's financial liabilities. The following sensitivity analysis is based on the exposure to interest rates. Regarding liabilities with variable interest rates, the analysis is based on the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the period. If the interest rate had increased or decreased by 0.25%, the Group’s net income before income tax would have decreased or increased by $12,700 t housand and decreased or increased by $50,926 t housand, for the nine months ended September 30, 2025 a nd 2024, respectively, assuming all other variable factors remain constant. This is mainly due to the Group’s b ank deposits and borrowings with variable rates. ~ 41 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements E. Other price risk For the nine months ended September 30, 2025 and 2024, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below: For the nine months ended September 30, 2025 2024 Prices of securities at the reporting date Other comprehensive income before tax Net income before income tax Other comprehensive income before tax Net income before income tax Increasing 5% $ 6,862 341,744 3,479 495,800 Decreasing 5% (6,862) (341,744) (3,479) (495,800) F. Fair value of financial instruments (a) Fair value hierarchy The fair value of financial assets and liabilities at fair value through profit or loss and financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Group’s f inancial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required: September 30, 2025 Carrying Fair value amount Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Forward exchange contract $ 381 - 381 - 381 Privately offered fund 337,481 - - 337,481 337,481 Overseas securities held 6,834,882 6,834,882 - - 6,834,882 $ 7,172,744 6,834,882 381 337,481 7,172,744 Financial assets at fair value through other comprehensive income Stock listed on domestic market $ 87,235 87,235 - - 87,235 Stock listed on foreign market 50,000 - - 50,000 50,000 $ 137,235 87,235 - 50,000 137,235 ~ 42 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements September 30, 2025 Carrying Fair value amount Level 1 Level 2 Level 3 Total Financial assets measured at amortized cost Cash and cash equivalents $ 15,947,373 Notes and accounts receivable (including related parties) 10,501,893 Other financial assets－current and non-current 31,546,798 Foreign bonds 6,058,555 $ 64,054,619 Financial liabilities at fair value through profit or loss Forward exchange contract $ 67,766 - 67,766 - 67,766 Embedded derivatives of exchangeable bonds with warrants 565,933 - 565,933 - 565,933 $ 633,699 - 633,699 - 633,699 Financial liabilities measured at amortized cost Short-term borrowings $ 20,006,751 Notes and accounts payable (including related parties) 3,793,730 Long-term borrowings (including current portion) 8,524,773 Accrued remuneration of directors (other current liabilities) 27,583 Ordinary bonds (including current portion) 36,372,771 Exchangeable bonds with warrants 10,711,939 Lease liabilities－current and non - current 808,573 $ 80,246,120 ~ 43 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements December 31, 2024 Carrying Fair value amount Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Forward exchange contract $ 28,751 - 28,751 - 28,751 Stock listed on domestic market 254,686 - - 254,686 254,686 Privately offered fund 6,512,300 6,512,300 - - 6,512,300 $ 6,795,737 6,512,300 28,751 254,686 6,795,737 Financial assets at fair value through other comprehensive income Stock listed on domestic market $ 68,298 68,298 - - 68,298 Financial assets measured at amortized cost Cash and cash equivalents $ 38,929,337 Notes and accounts receivable (including related parties) 10,265,153 Other financial assets－current and non-current 17,772,048 Foreign bonds 6,524,215 $ 73,490,753 Financial liabilities at fair value through profit or loss Forward exchange contract $ 50,182 - 50,182 - 50,182 Embedded derivatives of exchangeable bonds with warrants 404,230 - 404,230 - 404,230 $ 454,412 - 454,412 - 454,412 Financial liabilities measured at amortized cost Short-term borrowings $ 25,376,780 Short-term notes and bills payable 1,399,930 Notes and accounts payable (including related parties) 5,370,994 Long-term borrowings (including current portion) 12,551,409 Accrued remuneration of directors (other current liabilities) 53,753 Ordinary bonds (including current portion) 16,890,669 Exchangeable bonds with warrants 10,256,704 Lease liabilities－current and non-current 884,564 Dividends payable 2,390,569 $ 75,175,372 ~ 44 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements September 30, 2024 Carrying Fair value amount Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Forward exchange contract $ 58,209 - 58,209 - 58,209 Privately offered fund 263,818 - - 263,818 263,818 Overseas securities held 9,916,005 9,916,005 - - 9,916,005 $ 10,238,032 9,916,005 58,209 263,818 10,238,032 Financial assets at fair value through other comprehensive income Stock listed on domestic market $ 65,504 65,504 - - 65,504 Stock listed on foreign market 4,066 4,066 - - 4,066 $ 69,570 69,570 - - 69,570 Financial assets measured at amortized cost Cash and cash equivalents $ 41,728,181 Notes and accounts receivable (including related parties) 9,880,697 Other financial assets－current and non-current 27,478,915 6,298,350 $ 85,386,143 Financial liabilities at fair value through profit or loss Forward exchange contract $ 1,294 - 1,294 - 1,294 Embedded derivatives of exchangeable bonds with warrants 462,879 - 462,879 - 462,879 $ 464,173 - 464,173 - 464,173 Financial liabilities measured at amortized cost Short-term borrowings $ 41,903,236 Short-term notes and bills payable 1,999,720 Notes and accounts payable (including related parties) 4,525,669 Long-term borrowings (including related parties) 3,234,330 Accrued remuneration of director (other current liabilities) 51,553 Ordinary bonds (including current portion) 16,889,709 Exchangeable bonds with warrants 10,538,751 Lease liabilities－current and non - current 898,153 $ 80,041,121 ~ 45 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (b) Financial Instruments Not Measured at Fair Value The management of the consolidated company believes that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values in the consolidated financial statements. (c) Valuation techniques for financial instruments measured at fair value i. Non-derivative financial instruments A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s -length basis. Whether transactions are taking place ‘r egularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument. Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment. Measurements of fair value of financial instruments in an active market are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique, including a model using observable market data at the reporting date. ii. Derivative financial instruments Measurements of the fair value of derivative instruments are based on the valuation techniques generally accepted by market participants, such as the discounted cash flow or option pricing models. The fair value of forward currency is usually determined based by the forward currency exchange rate. (d) Transfer between Level 1 and Level 2: None. ~ 46 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (e) Reconciliation of Level 3 fair value Financial assets measured at fair value through profit or loss Financial assets measured at fair value through other comprehensive income January 1, 2025 $ 254,686 - Addition in investment 61,928 50,000 Recognized in profit or loss 29,404 - Capital reduction of investment (8,537) - September 30, 2025 $ 337,481 50,000 January 1, 2024 $ 242,864 - Addition in investment 35,252 - Recognized in profit or loss (465) - Capital reduction of investment (13,833) - September 30, 2024 $ 263,818 - (f) The fair value of the Group’s financial instruments that use Level 3 inputs to measure fair value was based on the price of the third party. The Group d id not disclose quantified information and sensitivity analysis on significant unobservable inputs because the unobservable inputs used in fair value measurement were not established by the Group. (g) The valuation technique of privately offered funds is based on net asset value method. For the nine months ended September 30, 2025 and 2024, there was no transfer at fair value level. (25) Financial risk management There are no significant changes in the financial risk management objectives and policies of the Group from those disclosed in Note 6 (27) of the 2024 annual consolidated financial statements. (26) Capital management Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2024. Also, management believes that there were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2024. Please refer to Note 6(28) of the consolidated financial statements for the year ended December 31, 2024 for related information. (27) Investing and financing activities not affecting current cash flow A. For acquisition of right-of-use assets by lease, please refer to note 6(10). ~ 47 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements B. Reconciliations of liabilities arising from financing activities were as follows: January 1, 2025 Cash flows Foreign exchange movement and others September 30, 2025 Short-term borrowings $ 25,376,780 (5,370,029) - 20,006,751 Short-term notes and bills payable 1,399,930 (1,399,930) - - Long-term borrowings (including current portion) 12,551,409 (3,553,846) (472,790) 8,524,773 Lease liabilities 884,564 (137,384) 61,393 808,573 Bonds payable 27,147,373 19,203,439 733,898 47,084,710 Borrowing from related party 340,000 (340,000) - - Guarantee deposit received 1,425,889 (65,913) (1) 1,359,975 Total liabilities from financing activities $ 69,125,945 8,336,337 322,500 77,784,782 January 1, 2024 Cash flows Foreign exchange movement and others September 30, 2024 Short-term borrowings $ 24,647,862 17,255,374 - 41,903,236 Short-term notes and bills payable - 1,999,720 - 1,999,720 Long-term borrowings (including current portion) 575,000 (575,000) - - Lease liabilities 4,255,165 (1,068,189) 47,354 3,234,330 Bonds payable (including current portion) 939,970 (143,903) 102,086 898,153 Borrowing from related party 25,638,501 3,113,851 (1,323,892) 27,428,460 Guarantee deposit received 1,377,807 62,410 (42) 1,440,175 Total liabilities from financing activities $ 57,434,305 20,644,263 (1,174,494) 76,904,074 7. Related-party transactions: (1) Parent company and ultimate controlling company Sino-American Silicon Product Inc. (“SAS”) is both the parent company and the ultimate controlling party of the Group. As of September 30, 2025, it owns 46.64% o f all shares outstanding of the Company and has issued the consolidated financial statements available for public use. ~ 48 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (2) Names and relationship with related parties The followings are entities that have had transactions with the Group during the periods covered in the consolidated financial statements. Name of related party Relationship with the Group Sino-American Silicon Product Inc. (“SAS”) The parent company Taiwan Specialty Chemical Co., Ltd. Subsidiary of SAS Sustainable Energy Solution Corp. Subsidiary of SAS Actron Technology Corp. (“Actron”) Subsidiary of SAS Taiwan's Mosel Electronics Co., Ltd. (“Mosel”) Subsidiary of Actron HONG-WANG Investment Co., Ltd. (“HONGWANG”) Affiliated Company Advanced Wireless Semiconductor Company (“AWSC”) Subsidiary of SAS Susen Green Energy Co., Ltd. Suxin Branch Subsidiary of SAS Sunrise Intelligent Energy CO., LTD Affiliated Company of SAS (3) Key management personnel compensation Key management personnel compensation comprised: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Short-term employee benefits $ 70,321 79,251 179,164 224,156 Post-employment benefits 127 127 413 415 $ 70,448 79,378 179,577 224,571 The Group provided two cars costing $1,650 thousand and a cars costing $1,500 thousand, for key management use for the nine months ended September 30, 2025 and 2024, respectively. (4) Significant transactions with related parties A. Sales The amounts of significant sales by the Group to related parties were as follows: For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Parent company $ 24,618 4,703 46,664 100,713 Other related parties 66,224 74,011 201,139 255,598 $ 90,842 78,714 247,803 356,311 ~ 49 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements The sales price for sales to the related parties was determined by market price and adjusted according to the sales area and sales volume. The credit terms for third parties were 0 to 120 days after month-end both for the nine months ended September 30, 2025 a nd 2024, while those for related parties were 30 t o 90 days after month-end both for the nine months ended September 30, 2025 and 2024. B. Purchases and process outsourcing The amounts of purchases and process outsourcing by the Group from related parties were as follows: For the three months ended September 30, For the nine months ended September 30, Related parties 2025 2024 2025 2024 Parent company $ 155,337 454,303 243,706 1,192,959 The prices of purchases and process outsourcing were determined by market rates. The payment terms to third parties were 0 to 150 days after month-end both in the period ended September 30, 2025 a nd 2024, while those of related parties were 30 to 90 d ays after the following month-end both in the period ended September 30, 2025 and 2024. C. Receivables from related parties The receivables from related parties were as follows: Related parties September 30, 2025 December 31, 2024 September 30, 2024 Parent company $ 25,733 4,574 4,280 Other related parties 61,303 63,778 66,720 $ 87,036 68,352 71,000 D. Payables to related parties The payables to related parties were as follows: Related parties September 30, 2025 December 31, 2024 September 30, 2024 Parent company $ 81,752 574,902 329,852 Other related parties 19,463 135 234 $ 101,215 575,037 330,086 E. Prepayments The prepayments to the parent company, SAS, were for material purchases which were paid in full. As of December 31, 2024, September 30, 2025 a nd 2024, the balance of prepayments, which were recognized as other current assets, amounted to $11,440 thousand, $0 thousand and $11,440 thousand, respectively. ~ 50 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements F. Payment on behalf of others The receivables from related parties and payables to related parties generated from material purchases, insurance and utilities payments and manpower support of related parties as of September 30, 2025 and 2024 were as follows: Related parties September 30, 2025 December 31, 2024 September 30, 2024 Receivable from related parties $ 340 70 296 Payable to related parties $ (980) (923) (1,033) G. Transactions of property, plant and equipment (a) Purchase amounts of property, plant and equipment from related parties were summarized as follows: For the three months ended September 30, For the nine months ended September 30, Related parties 2025 2024 2025 2024 Parent company $ - 13,609 88,518 126,740 As of December 31, 2024, September 30, 2025 a nd 2024, the payables were $70,681 thousand, $39,875 thousand and $64,193 thousand, respectively. (b) Disposal amounts of property, plant and equipment to related parties were summarized as follows: For the three months ended September 30, 2025 For the nine months ended September 30, 2024 Related parties Disposal price Receivables Disposal price Receivables Parent company $ 13,600 14,280 40 - The loss on disposal of property, plant and equipment to related parties were $35,351 thousand and $0 thousand for the nine months ended September 30, 2025 and 2024, respectively. H. Leases The Group to parent company SAS rented a plant from the parent company. The total value of the contract was $11,290 thousand. For the nine months ended September 30, 2025 and 2024, the Group recognized the amount of $33 t housand and $88 t housand as the interest expense, respectively. As of December 31, 2024, September 30, 2025 a nd 2024, the balance of lease liabilities amounted to $5,673 thousand, $0 thousand and $8,488 thousand, respectively. ~ 51 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements I. Refundable deposits The Group signed an offshore wind power purchase contract via other related parties in response to its sustainablegreen energy implementation and solar photovoltaic plan. As of December 31, 2024, September 30, 2025 and 2024, the deposits of $23,500 thousand, $24,848 thousand and $23,500 thousand, respectively, had been classified under the other financial assets-noncurrent. J. Borrowings from Related Parties The borrowings from related parties were as follows: December 31, 2024 Related parties Ending balance Rate Interest Parent company $ 340,000 1.8% 269 The maturity date for these borrowings is on February 17, 2025 and December 27, 2024. As of September 30, 2025 and 2024, the unpaid interest of the above-mentioned debt and interest was $788 thousand and $4,910 thousand. K. Dividends income The cash dividends of $59,336 thousand and $60,647 thousand from related parties to be distributed to the Group had been received as of September 30, 2025 and 2024. L. Others (a) The Group provides other services for related parties, including service support, machine usage, human resources and plant lease, etc. Details of related other income and receivables from related parties were as follows: For the three months ended September 30, For the nine months ended September 30, Related parties 2025 2024 2025 2024 Parent Company and other related parties $ 843 1,562 3,325 4,136 Items Categories September 30, 2025 December 31, 2024 September 30, 2024 Receivable from related parties Parent company $ 225 1,084 1,089 Receivable from related parties Other related parties 8 - 2 $ 233 1,084 1,091 ~ 52 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements (b) The related parties charged the Group for their services, including administrative assistance, technical service, legal work engagement, and plant lease. Details of related other expenses and payables to related parties were as follows: For the three months ended September 30, For the nine months ended September 30, Related parties 2025 2024 2025 2024 Parent company and other related parties $ 55,563 39,319 140,169 116,561 Items Categories September 30, 2025 December 31, 2024 September 30, 2024 Payable to related parties Parent company $ 33,930 26,934 32,337 Payable to related parties Other related parties 1,037 - - $ 34,967 26,934 32,337 8. Pledged assets: The carrying values of pledged assets were as follows: Pledged assets Purpose of pledge September 30, 2025 December 31, 2024 September 30, 2024 Property, plant and equipment Credit lines of borrowings $ 1,540,272 1,880,042 2,011,308 Time deposits (recognized in other financial assets－non- current) Guarantee for gas consumption from CPC Corporation 2,550 2,000 2,000 Time deposits (recognized in other financial assets －non- current) Guarantee payment for import VAT 18,000 14,000 14,000 Time deposits (recognized in other financial assets－non- current) Guarantee for the lease contract with the Hsinchu Science Park Bureau 40,768 40,747 40,747 Time deposits (recognized in other financial assets－ current) Guarantee for bank financing projects 26,395,353 9,999,425 13,451,250 Financial assets at fair value through profit or loss－non-current Provision of Siltronic AG shares to the trustee for security pledge 5,168,428 4,922,322 7,498,078 $ 33,165,371 16,858,536 23,017,383 ~ 53 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements 9. Commitments and contingencies: (1) Significant unrecognized contractual commitments A. As of December 31, 2024, September 30, 2025 a nd 2024, the purchase amounts for future procurement from suppliers under the existing agreements were $14,378,193 t housand, $10,992,869 thousand and $11,987,028 thousand, respectively. B. As of December 31, 2024, September 30, 2025 and 2024, the Group’s unused letters of credit amounted to $304,157 thousand, $262,435 thousand and $321,974 thousand, respectively. C. As of December 31, 2024, September 30, 2025 a nd 2024, the significant outstanding commitments for construction and purchase of property, plant and equipment amounted to $27,449,247 thousand, $10,478,345 thousand and $36,471,599 thousand, respectively. D. As of December 31, 2024, September 30, 2025 a nd 2024, a guarantee letter for the Customs Administration and research and development projects issued by the bank amounted to $33,284 thousand, $15,427 thousand and $33,284 thousand, respectively. E. The Group s igned a long-term sales contract with certain customers and received advance payments. The customer is required to order minimum quantity according to the contract. As of December 31, 2024, September 30, 2025 and 2024, a guarantee letter for the customer issued by the bank amounted to $4,300,840 t housand, $3,112,987 t housand and $4,525,730 t housand, respectively. F. As of December 31, 2024, September 30, 2025 and 2024, the total amount of promissory notes deposited in banks by the Group due to bank financing is $103,794,326 thousand, $104,412,288 thousand and $100,961,745 thousand, respectively. G. The subsidiary of the Group, GWA, entered into a plant construction subsidy agreement with the local government of Sherman, Texas. Under certain specified conditions outlined in the agreement, GWA is entitled to receive land and cash subsidies. From January 1 to September 30, 2025, GWA received a plant construction subsidy of USD 5,500 t housand from the local government. H. The subsidiary of the Group, GWA, entered into a agreement with the U.S. Department of Commerce under the CHIPS and Science Act. From January 1 to June 30, 2025, GWA completed the first milestone as stipulated in the agreement and received a subsidy of USD 200,000 thousand. 10. Losses due to major disasters: None. 11. Subsequent events: None ~ 54 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements 12. Other: A summary of the employee benefits, depreciation, and amortization expenses, by function is as follows: By function For the three months ended September 30, 2025 2024 By item Cost of goods sold Operating expenses Total Cost of goods sold Operating expenses Total Employee benefits Salary 2,054,165 625,422 2,679,587 2,070,774 694,365 2,765,139 Labor and health insurance 316,480 55,060 371,540 276,887 74,491 351,378 Pension 151,818 26,924 178,742 148,602 29,465 178,067 Others 50,909 13,859 64,768 48,002 13,160 61,162 Depreciation 2,300,049 57,293 2,357,342 2,039,971 56,553 2,096,524 Amortization 5,216 779 5,995 4,692 830 5,522 By function For the nine months ended September 30, 2025 2024 By item Cost of goods sold Operating expenses Total Cost of goods sold Operating expenses Total Employee benefits Salary 6,021,720 1,832,976 7,854,696 5,923,617 1,755,984 7,679,601 Labor and health insurance 906,137 210,341 1,116,478 832,628 224,951 1,057,579 Pension 446,330 85,430 531,760 438,526 87,581 526,107 Others 171,497 72,763 244,260 169,485 62,314 231,799 Depreciation 6,858,557 188,278 7,046,835 5,751,443 177,176 5,928,619 Amortization 14,420 2,360 16,780 13,831 2,503 16,334 13. Other disclosures: (1) Information on significant transactions: The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group: A. Loans to other parties: Please refer to Table 1. B. Guarantees and endorsements for other parties: Please refer to Table 2. C. Securities held as of September 30, 2025 (excluding investment in subsidiaries, associates and joint ventures): Please refer to Table 3. D. Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock: Please refer to Table 4. ~ 55 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements E. Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock: Please refer to Table 5. F. Business relationships and significant intercompany transactions: Please refer to Table 6. (2) Information on investees: Please refer to Table 7. (3) Information on investment in mainland China: A. The names of investees in Mainland China, the main businesses and products and other information: Please refer to Table 8(1). B. Limitation on investment in Mainland China: Please refer to Table 8(2). C. Significant transactions: The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in the “Information on significant transactions”. 14. Segment information: The Group operating segment information and reconciliations were as follows: For the three months ended September 30, 2025 Semiconductor segment Power plant segment Reconciliation and elimination Total Revenue: External customers $ 14,433,522 59,912 - 14,493,434 Intersegment - - - - Total revenue $ 14,433,522 59,912 - 14,493,434 Reportable segment profit or loss $ 1,960,674 (17,960) - 1,942,714 Share of profit (loss) of associates accounted for using equity method 26,557 $ 1,969,271 ~ 56 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements For the three months ended September 30, 2024 Semiconductor segment Power plant segment Reconciliation and elimination Total Revenue: External customers $ 15,813,463 56,515 - 15,869,978 Intersegment - - - - Total revenue $ 15,813,463 56,515 - 15,869,978 Reportable segment profit or loss $ 2,898,778 12,921 - 2,911,699 Share of profit (loss) of associates accounted for using equity method 40,547 $ 2,952,246 For the nine months ended September 30, 2025 Semiconductor segment Power plant segment Reconciliation and elimination Total Revenue: External customers $ 45,957,293 138,572 - 46,095,865 Intersegment - - - - Total revenue $ 45,957,293 138,572 - 46,095,865 Reportable segment profit or loss $ 5,075,502 (17,348) - 5,058,154 Share of profit (loss) of associates accounted for using equity method 48,675 $ 5,106,829 For the nine months ended September 30, 2024 Semiconductor segment Power plant segment Reconciliation and elimination Total Revenue: External customers $ 46,157,438 125,232 - 46,282,670 Intersegment - - - - Total revenue $ 46,157,438 125,232 - 46,282,670 Reportable segment profit or loss $ 9,283,369 13,952 - 9,297,321 Share of profit (loss) of associates accounted for using equity method 66,585 $ 9,363,906 ~ 57 ~
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GlobalWafers Co., Ltd. and subsidiaries Notes to the Consolidated Financial Statements Semiconductor segment Power plant segment Reconciliation and elimination Total Reportable segment assets: September 30, 2025 $ 212,574,499 1,708,489 (3,117) 214,279,871 Investments accounted for using equity metho 766,714 $ 215,046,585 December 31, 2024 $ 221,878,507 1,781,139 - 223,659,646 Investments accounted for using equity method 920,925 $ 224,580,571 September 30, 2024 $ 227,451,123 1,782,766 (351,709) 228,882,180 Investments accounted for using equity method 1,251,359 $ 230,133,539 Reportable segment liabilities September 30, 2025 $ 124,738,973 540,370 (3,117) 125,276,226 December 31, 2024 $ 132,966,801 585,979 - 133,552,780 September 30, 2024 $ 135,494,344 583,835 (351,709) 135,726,470 ~ 58 ~
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GlobalWafers Co., Ltd. and Subsidiaries Loans to other parties For the period ended September 30, 2025 Table 1 (In Thousands of New Taiwan Dollars) Purposes of Collateral Number Name of lender Name of borrower Account name Related party Highest balance of financing to other parties during the period Ending balance Actual usage amount during the period Range of interest rates during the period fund financing for the borrower (Note 1) Transaction amount for business between two parties Reasons for short-term financing Loss allowance Item Value Individual funding loan limits (Note 2) Maximum limit of fund financing (Note 3) 0 The Company SPVE5 Receivable from related parties Yes 100,000 100,000 - - 2 - Operating capital - - - 35,909,489 35,909,489 0 The Company SPV4 Receivable from related parties Yes 500,000 500,000 - - 2 - Operating capital - - - 35,909,489 35,909,489 0 The Company CWT Receivable from related parties Yes 200,000 200,000 - - 2 - Operating capital - - - 35,909,489 35,909,489 1 GWJ MEMC Japan Receivable from related parties Yes 14,886,880 13,665,120 10,145,940 %1.10182 2 - Operating capital - - - 19,195,763 19,195,763 2 GWS GWBV Receivable from related parties Yes 3,486,525 3,196,725 2,985,529 4.48%~6.04% 2 - Operating capital - - - 38,828,728 38,828,728 2 GWS GW GmbH Receivable from related parties Yes 4,550,000 4,471,250 4,471,250 %2.70 2 - Operating capital - - - 38,828,728 38,828,728 2 GWS The Company Receivable from related parties Yes 9,961,500 7,032,795 5,833,262 4.621%~5.00% 2 - Operating capital - - - 38,828,728 38,828,728 2 GWS MEMC SpA Receivable from related parties Yes 996,150 913,350 913,350 %4.922 2 - Operating capital - - - 38,828,728 38,828,728 2 GWS GWA Receivable from related parties Yes 13,700,250 13,700,250 11,380,341 %4.434 2 - Operating capital - - - 38,828,728 38,828,728 3 GTI MEMC LLC Receivable from related parties Yes 3,044,500 3,044,500 1,522,405 %4.72262 2 - Operating capital - - - 22,997,313 22,997,313 3 GTI GWA Receivable from related parties Yes 3,320,500 3,044,500 - - 2 - Operating capital - - - 22,997,313 22,997,313 4 GWBV GW GmbH Receivable from related parties Yes 2,184,000 2,146,200 286,160 %2.70 2 - Operating capital - - - 59,192,672 59,192,672 4 GWBV Topsil A/S Receivable from related parties Yes 647,460 - - - 2 - Operating capital - - - 59,192,672 59,192,672 4 GWBV MEMC SpA Receivable from related parties Yes 3,640,000 3,577,000 3,577,000 2.447%~3.502% 2 - Operating capital - - - 59,192,672 59,192,672 5 SST SSKT Receivable from related parties Yes 66,309 - - - 2 - Operating capital - - - 3,174,473 3,174,473 ~59~
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Purposes of Collateral Number Name of lender Name of borrower Account name Related party Highest balance of financing to other parties during the period Ending balance Actual usage amount during the period Range of interest rates during the period fund financing for the borrower (Note 1) Transaction amount for business between two parties Reasons for short-term financing Loss allowance Item Value Individual funding loan limits (Note 2) Maximum limit of fund financing (Note 3) 6 SSKT MHTM Receivable from related parties Yes 94,626 40,575 37,158 %3.00 2 - Operating capital - - - 107,612 107,612 7 GWCC The Company Receivable from related parties Yes 3,235,815 - - - 2 - Operating capital - - - 11,657,008 11,657,008 7 GWCC GWA Receivable from related parties Yes 3,154,475 2,283,375 2,283,375 %4.434 2 - Operating capital - - - 11,657,008 11,657,008 7 GWCC CWT Receivable from related parties Yes 611,800 608,900 456,675 %4.650 2 - Operating capital - - - 11,657,008 11,657,008 Note 1: The nature of financing purposes: (1)Code 1 represents entities with business transaction with the Group. (2)Code 2 represents where an inter-company or inter-firm short-term financing facility is necessary. Note 2: For entities who have business transactions with the Company, the amount of financing shall not exceed the amount of business transaction for the current year. For the purpose of lending operating capital, the amount of financing offered to a single company and to an investee whose voting shares, directly or indirectly, owned by the Company shall not exceed 40 percent of the lender’s net worth. Note 3: The total amount available for financing purposes shall not exceed 40 percent of the lender’s net worth. The total amount available for financing to investees whose voting shares, directly or indirectly, owned by the Company shall not exceed 40 percent of the Company’s net worth. Note 4: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. ~60~
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GlobalWafers Co., Ltd. and Subsidiaries Guarantees and endorsements for other parties For the period ended September 30, 2025 Table 2 (In Thousands of New Taiwan Dollars) Counter-party of guarantee and endorsement Limitation on amount of Highest Ratio of accumulated amounts of Parent company Subsidiary Endorsements/ No. Name of guarantor Name Relationship with the Company (Note 2) guarantees and endorsements for a specific enterprise (Note 3, 4) balance for guarantees and endorsements during the period Balance of guarantees and endorsements as of reporting date Actual usage amount during the period Property pledged for guarantees and endorsements (Amount) guarantees and endorsements to net worth of the latest financial statements Maximum amount for guarantees and endorsements endorsements/ guarantees to third parties on behalf of subsidiary endorsements/ guarantees to third parties on behalf of parent company guarantees to third parties on behalf of companies in Mainland China 0 The Company GW GmbH 2 269,321,169 16,380,000 16,096,500 11,990,104 - %17.93 269,321,169 Y N N 0 The Company GWH 2 269,321,169 800,000 800,000 - - %0.89 269,321,169 Y N N 0 The Company SPV4 2 269,321,169 535,067 535,067 338,055 - %0.60 269,321,169 Y N N 0 The Company SPVE5 2 269,321,169 114,800 35,000 32,143 - %0.04 269,321,169 Y N N 0 The Company GWS 2 269,321,169 5,659,156 5,300,360 4,849,657 - %5.90 269,321,169 Y N N 0 The Company MEMC SpA 2 269,321,169 3,203,200 3,147,760 2,575,440 - %3.51 269,321,169 Y N N 0 The Company GWA 2 269,321,169 16,137,630 14,796,270 11,751,770 - %16.48 269,321,169 Y N N 0 The Company CWT 2 269,321,169 1,084,028 300,000 - - %0.33 269,321,169 Y N N 0 The Company MEMC LLC 2 269,321,169 664,100 608,900 608,900 - %0.68 269,321,169 Y N N 1 GTI MEMC LLC 4 114,986,565 3,268,500 - - - %- 114,986,565 N N N 1 GTI GWA 4 114,986,565 6,398,000 6,089,000 - - %26.48 114,986,565 N N N 2 SST KST 4 15,872,365 1,456,138 524,308 524,308 - %16.52 15,872,365 N N Y 3 GWS GWA 4 194,143,640 29,884,500 27,400,500 - - %70.57 194,143,640 N N N 4 GWCC GWA 4 145,712,605 30,590,000 30,445,000 17,918,321 - %104.47 145,712,605 N N N Note 1: The characters of guarantees and endorsements are coded as follows: (1) The issuer is coded "0". (2) The investee is coded consecutively beginning from "1" in the order presented in the table above. Note 2: The relation between guarantor and guarantee and their endorsement should be disclosed as one of the following: (1) Ordinary business relationship. ~61~
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(2) Subsidiary which owned more than 50 percent by the guarantor. (3) An investee owned more than 50 percent in total by both the guarantor and its subsidiary. (4) An investee owned more than 90 percent by the guarantor or its subsidiary. (5) Fulfillment of contractual obligations by providing mutual endorsements and guarantor for peer or joint builders in order to undertake a construction project. (6) An entity that is guaranteed and endorsed by all capital contributing shareholders in proportion to their shareholding percentages. (7) The companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for per-construction homes pursuant to the Consumer Protection Act for each other. Note 3: The total amount of external endorsements and/or guarantees shall worth no more than triple of the Company’s net worth. Note 4: The total amount of external endorsements and/or guarantees for any single company shall not exceed 10 percent of the Company’s net worth. However, for subsidiaries shall not exceed 3 times of the Company’s net worth. ~62~
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GlobalWafers Co., Ltd. and Subsidiaries Securities held as of September 30, 2025 (excluding investment in subsidiaries, associates and joint ventures) September 30, 2025 Table 3 (In Thousands of New Taiwan Dollars) Ending balance Name of holder Category and name of security Relationship with the Company Account title Shares/Units (thousands) Carrying value Percentage of ownership (%) Fair value Note The Company CDIB Capital Growth Partners L.P. None Financial assets at fair value through profit or loss－non-current - 126,302 %3.85 126,302 The Company Siltronic AG None Financial assets at fair value through profit or loss－non-current 650 1,083,473 %2.17 1,083,473 GW GmbH Siltronic AG None Financial assets at fair value through profit or loss－non-current 3,101 5,168,428 %10.34 5,168,428 GWBV Siltronic AG None Financial assets at fair value through profit or loss－non-current 350 582,981 %1.17 582,981 The Company WT Microelectronics Co., Ltd. None Financial assets at fair value through othercomprehensive income－non-current 621 87,235 %0.05 87,235 GWH Foreign Privately Securities None Financial assets at fair value through profit of loss－non-current - 211,179 %1.93 211,179 GWH Youngquan wafer Co., Ltd. None Financial assets at fair value through other comprehensive income－non-current 755 50,000 %4.55 50,000 GWS Citigroup Global Markets Holdings Inc. USD Fixed rate Bond None Financial assets measured at amortized cost–non-current - 6,058,555 %- - ~63~
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GlobalWafers Co., Ltd. and Subsidiaries Related-party transactions for purchases and sales with amounts exceeding the lower than NT$100 million or 20% of the capital stock For the period ended September 30, 2025 Table 4 (In Thousands of New Taiwan Dollars) Transaction details Transactions with terms different from others Notes/Accounts receivable (payable) Name of company Related party Nature of relationship Purchase /Sale Amount Percentage of total purchases/ sales Payment terms Unit price Payment terms Ending balance Percentage of total notes/accounts receivable (payable) Note The Company GTI Indirectly held subsidiaries Purchase 803,637 %2 Net 60 days from the end of the month upon issuance of invoice - - (60,640) -% The Company SST Indirectly held subsidiaries Purchase 999,732 %2 Net 60 days from the end of the month upon issuance of invoice - - (217,090) (2)% The Company GWJ Directly held subsidiaries Purchase 5,843,697 %13 Net 60 to 90 days from the end of the month upon issuance of invoice - - (1,584,054) (12)% The Company Topsil A/S Indirectly held subsidiaries Purchase 1,594,897 %3 Net 30 to 60 days from the end of the month upon issuance of invoice - - (326,091) (2)% The Company GWS Directly held subsidiaries Purchase 575,673 %1 Net 60 days from the end of the month upon issuance of invoice - - (126,739) (1)% GWS The Company Directly held subsidiaries Purchase 5,381,625 %12 Net 60 days from the end of the month upon issuance of invoice - - (1,053,439) (8)% GTI The Company Indirectly held subsidiaries Purchase 2,346,490 %5 Net 90 days from the end of the next month upon issuance of invoice - - (615,418) (5)% SST The Company Indirectly held subsidiaries Purchase 550,204 %1 Net 30 days from the end of the month upon issuance of invoice - - (54,891) -% KST The Company Indirectly held subsidiaries Purchase 879,688 %2 Net 60 days from the end of the month upon issuance of invoice - - (436,651) (3)% GWJ The Company Directly held subsidiaries Purchase 1,620,146 %4 Net 60 to 90 days from the end of the month upon issuance of invoice - - (433,927) (3)% Topsil A/S The Company Indirectly held subsidiaries Purchase 247,450 %1 Net 30 to 60 days from the end of the month upon issuance of invoice - - (63,667) -% MEMC Sdn Bhd CWT Indirectly held subsidiaries Purchase 113,819 %- Payment due 45 days after end of month - - (12,494) -% ~64~
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Transaction details Transactions with terms different from others Notes/Accounts receivable (payable) Name of company Related party Nature of relationship Purchase /Sale Amount Percentage of total purchases/ sales Payment terms Unit price Payment terms Ending balance Percentage of total notes/accounts receivable (payable) Note Mosel The Company Affiliated company Purchase 125,147 %- Net 60 days from the end of the month upon issuance of invoice - - (29,996) -% CWT SAS Indirectly held subsidiaries Purchase 199,508 %3 Net 60 days from the end of the month upon issuance of invoice - - (80,238) (2)% GWS MEMC LLC Indirectly held subsidiaries Purchase 1,679,905 %4 Net 60 days from the end of the month upon issuance of invoice - - (354,303) (3)% GWS MEMC LLC Indirectly held subsidiaries Sale (709,099) %(2) Net 60 days from the end of the month upon issuance of invoice - - 217,816 2% GWS MEMC Sdn Bhd Indirectly held subsidiaries Purchase 929,569 %2 Net 60 days from the end of the month upon issuance of invoice - - (153,725) (1)% GWS MEMC Sdn Bhd Indirectly held subsidiaries Sale (284,525) %(1) Net 60 days from the end of the month upon issuance of invoice - - 45,280 -% GWS MEMC SpA Indirectly held subsidiaries Purchase 2,628,436 %6 Net 60 days from the end of the month upon issuance of invoice - - (492,955) (4)% GWS MEMC SpA Indirectly held subsidiaries Sale (5,919,925) %(13) Net 60 days from the end of the month upon issuance of invoice - - 1,182,078 9% GWS MEMC Korea Indirectly held subsidiaries Purchase 1,796,550 %4 Net 60 days from the end of the month upon issuance of invoice - - (327,290) (2)% GWS MEMC Japan Indirectly held subsidiaries Purchase 5,562,546 %12 Net 60 days from the end of the month upon issuance of invoice - - (728,146) (5)% GWS MEMC Japan Indirectly held subsidiaries Sale (1,883,597) %(4) Net 60 days from the end of the month upon issuance of invoice - - 183,507 1% Note: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. ~65~
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GlobalWafers Co., Ltd. and Subsidiaries Receivables from related parties with amounts exceeding the lower than NT$100 million or 20% of the capital stock September 30, 2025 Table 5 (In Thousands of New Taiwan Dollars) Name of Nature of Ending Turnover Overdue Amounts received in Allowance company Counter-party relationship balance rate Amount Action taken subsequent period for bad debts The Company GTI Indirectly held subsidiaries 615,418 5.47 - - 280,172 - The Company GWJ Indirectly held subsidiaries 433,927 2.60 - - 5,409 - The Company GWS Indirectly held subsidiaries 1,053,439 6.24 - - 138,363 - The Company KST Indirectly held subsidiaries 436,651 2.86 - - - - GWS The Company Indirectly held subsidiaries 126,739 9.08 - - - - SST The Company Indirectly held subsidiaries 217,090 5.24 - - 25,050 - GWJ The Company Indirectly held subsidiaries 1,584,054 3.36 - - 39,486 - Topsil A/S The Company Indirectly held subsidiaries 326,091 6.06 - - - - GWS MEMC Japan Indirectly held subsidiaries 183,507 6.86 - - - - GWS MEMC SpA Indirectly held subsidiaries 1,182,078 4.21 - - 479,226 - GWS MEMC LLC Indirectly held subsidiaries 217,816 4.27 - - 150,646 - MEMC Sdn Bhd GWS Indirectly held subsidiaries 153,725 6.45 - - 54,240 - MEMC SpA GWS Indirectly held subsidiaries 492,955 5.52 - - - - MEMC Korea GWS Indirectly held subsidiaries 327,290 4.41 - - 178,398 - MEMC Japan GWS Indirectly held subsidiaries 728,146 7.34 - - - - MEMC LLC GWS Indirectly held subsidiaries 354,303 6.73 - - 168,524 - GWS The Company Indirectly held subsidiaries 5,967,455 - (Note 3) - - 111,980 - GWJ MEMC Japan Indirectly held subsidiaries 10,145,940 - (Note 3) - - - - GWS GWBV Indirectly held subsidiaries 3,089,732 - (Note 3) - - - - ~66~
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Name of Nature of Ending Turnover Overdue Amounts received in Allowance company Counter-party relationship balance rate Amount Action taken subsequent period for bad debts GWS GW GmbH Indirectly held subsidiaries 4,541,528 - (Note 3) - - - - GWS GWA Indirectly held subsidiaries 11,381,743 - (Note 3) - - 11,381,743 - GTI MEMC LLC Indirectly held subsidiaries 1,532,644 - (Note 3) - - 96,477 - GWS MEMC SpA Indirectly held subsidiaries 954,310 - (Note 3) - - - - GWBV MEMC SpA Indirectly held subsidiaries 3,604,389 - (Note 3) - - 947 - GWBV GW GmbH Indirectly held subsidiaries 291,291 - (Note 3) - - - - GWCC GWA Indirectly held subsidiaries 2,283,656 - (Note 3) - - 2,283,656 - Note 1: The amount received in subsequent period as of October 22, 2025. Note 2: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. Note 3: Receivables from related-party for financing purpose. ~67~
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GlobalWafers Co., Ltd. and Subsidiaries Business relationships and significant intercompany transactions For the period ended September 30, 2025 Table 6 (In Thousands of New Taiwan Dollars) Nature of Intercompany transactions No. (Note 1) Name of company Name of counter-party relationship (Note 2) Account name Amount Trading terms Percentage of the consolidated net revenue or total assets (Note 3,4) 0 The Company GTI 1 Purchase 803,637 Net 60 days from the end of the month upon issuance of invoice 1.74% 0 The Company SST 1 Purchase 999,732 Net 60 days from the end of the month upon issuance of invoice 2.17% 0 The Company GWJ 1 Purchase 5,843,697 Net 60 to 90 days from the end of the month upon issuance of invoice 12.68% 0 The Company Topsil A/S 1 Purchase 1,594,896 Net 30 to 60 days from the end of the month upon issuance of invoice 3.46% 0 The Company GWS 1 Purchase 575,673 Net 60 days from the end of the month upon issuance of invoice 1.25% 0 The Company GTI 1 Sale 2,346,490 Net 90 days from the end of the next month upon issuance of invoice 5.09% 0 The Company SST 1 Sale 550,204 Net 30 days from the end of the month upon issuance of invoice 1.19% 0 The Company GWJ 1 Sale 1,620,146 Net 60 to 90 days from the end of the month upon issuance of invoice 3.51% 0 The Company GWS 1 Sale 5,381,625 Net 60 days from the end of the month upon issuance of invoice 11.67% 0 The Company KST 1 Sale 879,688 Net 60 days from the end of the month upon issuance of invoice 1.91% 2 GWS MEMC LLC 3 Purchase 1,679,905 Net 60 days from the end of the month upon issuance of invoice 3.64% 2 GWS MEMC LLC 3 Sale 709,099 Net 60 days from the end of the month upon issuance of invoice 1.54% 2 GWS MEMC SpA 3 Purchase 2,628,436 Net 60 days from the end of the month upon issuance of invoice 5.70% 2 GWS MEMC SpA 3 Sale 5,919,925 Net 60 days from the end of the month upon issuance of invoice 12.84% 2 GWS MEMC Korea 3 Purchase 1,796,550 Net 60 days from the end of the month upon issuance of invoice 3.90% 2 GWS MEMC Japan 3 Sale 1,883,597 Net 60 days from the end of the month upon issuance of invoice 4.09% 2 GWS MEMC Japan 3 Purchase 5,562,546 Net 60 days from the end of the month upon issuance of invoice 12.07% 2 GWS MEMC Sdn Bhd 3 Purchase 929,569 Net 60 days from the end of the month upon issuance of invoice 2.02% ~68~
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Nature of Intercompany transactions No. (Note 1) Name of company Name of counter-party relationship (Note 2) Account name Amount Trading terms Percentage of the consolidated net revenue or total assets (Note 3,4) 2 GWS The Company 2 Intercompany Loan 5,967,455 - 2.77% 2 GWS GWBV 3 Intercompany Loan 3,089,732 - 1.44% 2 GWS GWA 3 Intercompany Loan 11,381,743 - 5.29% 2 GWS GmbH 3 Intercompany Loan 4,541,528 - 2.11% 3 GWJ MEMC Japan 3 Intercompany Loan 10,145,940 - 4.72% 4 GWBV MEMC SpA 3 Intercompany Loan 3,641,389 - 1.69% 2 GWS GWA 3 Prepayment forpurchases 7,306,800 - 3.40% 5 GWCC GWA 3 Intercompany Loan 2,283,656 - 1.06% Note 1: The characters of business transactions between parent company and its subsidiaries are coded as follows: (1) The parent company is coded "0". (2) The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above. Note 2: The relationships with transactions are as follows: (1) Parent company to its subsidiaries. (2) Subsidiaries to the parent company. (3) Transactions between subsidiaries. Note 3: The ratio of the transaction amount of the consolidated total sales revenue and consolidated total assets are calculated as follows: (1) For transaction amount accounted for as asset or liability, the ratio is calculated based on the closing balance amount of the consolidated total assets. (2) For transaction amount accounted for as profit or loss, the ratio is calculated based on the accum ulated amount at the end of the financial period of the consolidated total sales revenue. Note 4: The table represented the amount of significant transaction exceeding 1 percent of the consolidated operating revenue or total assets. ~69~
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GlobalWafers Co., Ltd. and Subsidiaries Information on investees For the period ended September 30, 2025 Table 7 (In Thousands of New Taiwan Dollars/other currencies) Main Original investment amount Balance as of September 30, 2025 Net income Share of Name of investor Name of investee Location businesses and products September 30, 2025 September 30, 2025 Shares (thousands) Percentage of Ownership Carrying value (losses) of investee profits/ losses of investee Note The Company GSI Cayman Investment in various business and triangular trade centers with subsidiaries in Mainland China 698,419 (USD24,555) 698,419 (USD24,555) 23,000 %100.00 3,205,401 178,955 176,339 Subsidiary The Company GWJ Japan Manufacturing and trading of silicon wafers 5,448,015 5,448,015 128 %100.00 19,161,750 843,696 800,900 Subsidiary The Company GWS Singapore Investment activities 2,207,377 2,207,377 41,674 %100.00 37,262,453 1,957,690 1,973,884 Subsidiary The Company GW GmbH Germany Trading 1,952,235 (EUR62,525) 1,952,235 (EUR62,525) 48,025 %100.00 (9,332,824) (531,387) (531,387) Subsidiary The Company GWBV Netherlands Investment activities 52,221,999 (USD1,721,076) 40,367,464 (USD1,321,076) 0.1 %100.00 59,192,672 (2,612,158) (2,612,158) Subsidiary The Company HONG-WANG Investment Co., Ltd. Taiwan Investment activities 309,760 309,760 30,976 %30.98 766,714 157,139 48,675 Associate The Company SPV4 Taiwan Electricity activities 1,045,000 1,045,000 104,500 %100.00 1,063,356 (20,243) 14,657 Subsidiary The Company SPVE5 Taiwan Electricity activities 141,340 141,340 14,134 %100.00 139,664 2,895 2,895 Subsidiary The Company GWH Taiwan Investment activities 250,000 250,000 25,000 %100.00 270,126 16,745 41,041 Subsidiary The Company CWT Taiwan Manufacturing and trading of optoelectronic wafers and substrate material 437,924 437,924 43,836 %100.00 781,153 651,323 448,215 Subsidiary The Company GWCC Taiwan Investment activities 23,315,300 (USD750,000) 8,132,250 (USD250,000) 93,261 %79.41 23,142,076 201,016 201,016 Subsidiary ~70~
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Main Original investment amount Balance as of September 30, 2025 Net income Share of Name of investor Name of investee Location businesses and products September 30, 2025 September 30, 2025 Shares (thousands) Percentage of Ownership Carrying value (losses) of investee profits/ losses of investee Note GWJ MEMC Japan Japan Manufacturing and trading of silicon wafers 373,413 (JPY100,000) 373,413 (JPY100,000) 750 %100.00 2,463,056 79,514 - Notes 2 and 3 GWBV MEMC SpA Italy Manufacturing and trading of silicon wafers 6,732,641 (USD204,788) 6,732,641 (USD204,788) 65,000 %100.00 11,180,988 (962,789) - Notes 2 and 3 MEMC SpA MEMC SarL France Trading 1,316 (USD40) 1,316 (USD40) 0.5 %100.00 5,156 749 - Notes 2 and 3 GWBV MEMC Korea Korea Manufacturing and trading of silicon wafers 11,851,262 (USD384,605) 11,851,262 (USD384,605) 25,200 %100.00 22,196,231 282,883 - Notes 2 and 3 GWBV GTI United States Manufacturing and trading of epitaxial wafers 14,634,384 (USD491,262) 2,779,849 (USD91,262) 1 %100.00 24,250,488 (2,034,360) - Notes 2 and 3 GWBV MEMC Ipoh Malaysia Manufacturing and trading of silicon wafers 93,907 (USD1,323) 93,907 (USD1,323) 612,300 %100.00 5,343 411 - Notes 2 and 3 GWBV Topsil A/S Denmark Manufacturing and trading of silicon wafers 1,843,604 (USD60,996) 1,843,604 (USD60,996) 1,000 %100.00 2,804,644 69,392 - Notes 2 and 3 CWT Crystalwise HK Hong Kong Investment activities - (USD47,650) - (USD47,650) 47,650 %100.00 32,523 (132) - Notes 2 and 3 GTI MEMC LLC United States Research and development, manufacturing and trading of silicon wafers 543,384 (USD17,839) 543,384 (USD17,839) - %100.00 3,669,795 (1,349,907) - Notes 2 and 3 SST MEMC Sdn Bhd Malaysia Research and development, manufacturing and trading of silicon wafers 1,553,716 (USD47,315) 1,553,716 (USD47,315) 89,586 %100.00 1,951,875 52,949 - Notes 2 and 3 GTI GWA United States Manufacturing and trading of silicon wafers 15,171,535 (USD507,000) 31 (USD1) 1 %100.00 14,546,066 (552,673) - Notes 2 and 3 MEMC Korea MKCC Taiwan Investment Activities 6,241,055 (USD200,000) - 624,000 %100.00 6,071,476 72,687 - Notes 2 and 3 ~71~
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Main Original investment amount Balance as of September 30, 2025 Net income Share of Name of investor Name of investee Location businesses and products September 30, 2025 September 30, 2025 Shares (thousands) Percentage of Ownership Carrying value (losses) of investee profits/ losses of investee Note MKCC GWCC Taiwan Investment Activities 6,044,600 (USD200,000) - 24,178 %20.59 6,000,445 201,016 - Notes 2 and 3 Note 1: A limited company. Note 2: The investees are indirectly held subsidiaries of the Company. Note 3: The investor’s profits and losses included the profits and losses of the investees; therefore, the investee’s profits and losses need not be disclosed. Note 4: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. ~72~
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GlobalWafers Co., Ltd. and Subsidiaries The names of investees in Mainland China, the main businesses and products and other information For the period ended September 30, 2025 Table 8 (In Thousands of New Taiwan Dollars/other currencies) (1) The names of investees in Mainland China, the main businesses and products, and other information Accumulated Investment flows Accumulated outflow of Net Name of investee Main businesses and products Total amount of paid- in capital Method of investment outflow of investment from Taiwan as of January 1, 2025 Outflow Inflow investment from Taiwan as of September 30, 2025 income (losses) of the investee Percentage of ownership Investment income (losses) (Note 2) Book value Accumulated remittance of earnings in current period SST Processing and trading of ingots and wafers 1,429,778 (Note 5) Note 1 713,300 (USD21,729) - - 713,300 (USD21,729) 178,772 100.00% 178,772 3,174,473 - KST Trading and marketing business 26,587 Note 6 - - - - 6,845 100.00% 6,845 98,247 - SSKT Manufacturing and distributing lithium tantalate and lithium niobate wafers 102,776 Note 7 - - - - (4,719) 100.00% (4,719) 269,030 - MHTM Manufacturing and distributing lithium tantalate and lithium niobate wafers 159,588 Note 8 - - - - (3,870) 90.00% (3,483) 30,278 - YHTM Manufacturing and sales of optoelectronic and communication materials 1,787,164 Note 9 and Note 10 1,786,779 (USD57,450) - - 1,786,779 (USD57,450) (27) 100.00% (27) 39,623 - ~73~
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(2) Limitation on investment in Mainland China Company Name Accumulated Investment in Mainland China as of September 30, 2025 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment The Company 2,479,138 (USD79,337) (Note 11) 3,476,061 (USD114,002) (Note 3 and 11) 53,864,234 (Note 4) Note 1: Investments through GSI. Note 2: The basis for investment income (loss) recognition is from the audited financial statements. Note 3: Initial investment amounts denominated in foreign currencies are translated into New Taiwan Dollars using the Historical Foreign Exchange Rate. Note 4: Pursuant to the 'Guidelines Governing the Review of Investment or Technical Cooperation in the Mainland Area' dated on August 29, 2008, the total amount of investment shall not exceed 60% of the Group's net worth on September 30, 2025. Note 5: Retained earnings transferred to capital was included. Note 6: KST was funded by using the capital of SST, which cannot be considered as investment limit because there was no remittance from Taiwan. Note 7: SSKT was funded by using the capital of SST, which cannot be considered as investment limit because there was no remittance from Taiwan. Note 8: MHTM is China-based company invested by SSKT. Note 9: YHTM is China-based company invested by Crystalwise HK. Capital reduction of $59,438 thousand (USD$1,900 thousand) remitted back to crystal wise HK in March 2024. And Capital reduction of $59,823 thousand (USD$1,850 thousand) remitted back to CWT in June 2024. Note 10: Investment made directly by Taiwan-based investment company. Note 11: Includes the investment amount on November 1, 2023 for the merger of YHTM etc, a subsidiary of CWT. The cumulative investment amount is US$57,608 thousand in the Mainland China and an amount approved by the Department of Investment Review is US$57,838 thousand. ~74~