1. Interest Rate

The Company anticipates no additional borrowing in either NT dollars or foreign currencies in the coming year; therefore, there is currently no significant risk of increased interest expenses resulting from rising interest rates. The Company maintains appropriate financing channels to support business development and sustains good relationships with banks. Going forward, the Company will evaluate available credit facilities, funding costs, and its business and financial development plans comprehensively when arranging financing. As such, interest rate fluctuations are expected to have minimal impact on the Company’s profit and loss.

2. Exchange Rate

Since the Company’s accounts receivable and accounts payable are primarily denominated in U.S. dollars, most of the foreign exchange risk is naturally hedged. Nevertheless, the Company continues to monitor global macroeconomic trends and will adopt appropriate measures to mitigate potential risks from exchange rate fluctuations.

3. Inflation

Inflation has not had a material impact on the Company’s profit and loss to date. Should inflation affect the Company’s procurement costs, such costs can be transferred to sales prices. Therefore, inflation is not expected to have a significant impact on the Company’s financial performance.
 

High-Risk/Leverage Investments, Loans, Guarantees, and Derivatives – Policies, Profit/Loss Drivers, and Mitigation Measures

The Company is not currently engaged in any high-risk or high-leverage investments, loans to others, endorsements and guarantees, or derivatives trading. In compliance with applicable regulations, the Company has established the “Procedures for Acquisition and Disposal of Assets,” “Procedures for Endorsements and Guarantees,” and “Procedures for Loans to Others” to govern and regulate any such activities in the future.