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ACE — Interim / Quarterly Report 2025
Apr 8, 2026
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Interim / Quarterly Report
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Jinan Acetate Chemical Co., Ltd. and Subsidiaries
Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 and Independent Auditors' Review Report
INDEPENDENT AUDITORS' REVIEW REPORT
The Board of Directors and Shareholders
Jinan Acetate Chemical Co., Ltd.
Introduction
We have reviewed the accompanying consolidated balance sheets of Jinan Acetate Chemical Co., Ltd. (the "Company") and its subsidiaries (collectively referred to as the "Group") as of September 30, 2025 and 2024, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the "consolidated financial statements"). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.
Scope of Review
We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the consolidated financial position of the Group as of September 30, 2025 and 2024, and of its consolidated financial performance and 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 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
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The engagement partners on the reviews resulting in this independent auditors’ report are Yao-Ling Huang and Shih-Chieh Chou.
Deloitte & Touche
Taipei, Taiwan
Republic of China
November 13, 2025
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.
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JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)
| ASSETS | September 30, 2025 | December 31, 2024 | September 30, 2024 | |||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | |
| CURRENT ASSETS | ||||||
| Cash and cash equivalents (Note 6) | $ 7,470,502 | 37 | $ 13,258,890 | 63 | $ 10,167,229 | 54 |
| Financial assets at amortized cost - current (Notes 8 and 28) | 5,018,879 | 25 | 1,136,674 | 6 | 2,638,876 | 14 |
| Notes and accounts receivable, net (Notes 9 and 21) | 1,037,155 | 5 | 902,260 | 4 | 908,834 | 5 |
| Accounts receivable from related parties (Notes 9, 21 and 27) | 91,602 | 1 | 21,161 | - | 14,884 | - |
| Other receivables (Note 27) | 60,231 | - | 75,418 | - | 110,634 | 1 |
| Current tax assets (Note 4) | 24 | - | - | - | - | - |
| Inventories, net (Note 10) | 1,476,417 | 7 | 769,431 | 4 | 681,113 | 4 |
| Prepayments (Note 16) | 592,917 | 3 | 572,843 | 3 | 453,033 | 2 |
| Other current assets (Notes 16, 27 and 28) | 80,608 | 1 | 67,100 | - | 207,024 | 1 |
| Total current assets | 15,828,335 | 79 | 16,803,777 | 80 | 15,181,627 | 81 |
| NON-CURRENT ASSETS | ||||||
| Financial assets at fair value through other comprehensive income - non-current (Notes 7 and 12) | 64,036 | - | 66,642 | - | 65,194 | - |
| Investments accounted for using the equity method (Notes 7, 12 and 27) | 11,488 | - | - | - | - | - |
| Property, plant and equipment (Notes 13 and 28) | 3,310,848 | 17 | 3,132,915 | 15 | 2,437,596 | 13 |
| Investment properties (Note 14) | 25,139 | - | - | - | - | - |
| Right-of-use assets (Notes 15 and 28) | 707,212 | 4 | 659,706 | 3 | 497,707 | 3 |
| Deferred tax assets (Note 4) | 23,351 | - | 25,030 | - | 17,584 | - |
| Other non-current assets (Note 16) | 57,523 | - | 291,560 | 2 | 597,244 | 3 |
| Total non-current assets | 4,199,597 | 21 | 4,175,853 | 20 | 3,615,325 | 19 |
| TOTAL | $ 20,027,932 | 100 | $ 20,979,630 | 100 | $ 18,796,952 | 100 |
| LIABILITIES AND EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Short-term borrowings (Note 17) | $ 747,154 | 4 | $ - | - | $ - | - |
| Contract liabilities (Note 21) | 266,712 | 1 | 815,800 | 4 | 1,159,293 | 6 |
| Notes and accounts payable (Note 27) | 189,853 | 1 | 268,878 | 1 | 191,203 | 1 |
| Other payables (Note 18) | 599,867 | 3 | 3,012,012 | 15 | 3,238,885 | 17 |
| Current tax liabilities (Note 4) | 161,583 | 1 | 421,864 | 2 | 291,412 | 2 |
| Other current liabilities | 92,315 | - | 62,383 | - | 59,247 | - |
| Total current liabilities | 2,057,484 | 10 | 4,580,937 | 22 | 4,940,040 | 26 |
| Total liabilities | 2,057,484 | 10 | 4,580,937 | 22 | 4,940,040 | 26 |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 20) | ||||||
| Share capital | ||||||
| Ordinary shares | 989,147 | 5 | 989,147 | 5 | 991,717 | 6 |
| Capital surplus | 3,988,643 | 20 | 3,988,643 | 19 | 3,995,876 | 21 |
| Retained earnings | ||||||
| Legal reserve | 1,248,127 | 6 | 1,248,127 | 6 | 1,248,127 | 7 |
| Unappropriated earnings | 12,315,812 | 62 | 9,902,581 | 47 | 7,248,003 | 38 |
| Total retained earnings | 13,563,939 | 68 | 11,150,708 | 53 | 8,496,130 | 45 |
| Other equity | ||||||
| Exchange differences on translating the financial statements of foreign operations | (740,874) | (4) | 93,107 | - | 224,024 | 1 |
| Treasury shares | - | - | - | - | (25,619) | - |
| Total equity attributable to owners of the Company | 17,800,855 | 89 | 16,221,605 | 77 | 13,682,128 | 73 |
| NON-CONTROLLING INTERESTS | 169,593 | 1 | 177,088 | 1 | 174,784 | 1 |
| Total equity | 17,970,448 | 90 | 16,398,693 | 78 | 13,856,912 | 74 |
| TOTAL | $ 20,027,932 | 100 | $ 20,979,630 | 100 | $ 18,796,952 | 100 |
The accompanying notes are an integral part of the consolidated financial statements.
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except 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 | % | |
| OPERATING REVENUE | ||||||||
| (Notes 21 and 27) | $ 2,447,723 | 100 | $ 4,371,674 | 100 | $ 10,461,457 | 100 | $ 11,180,493 | 100 |
| OPERATING COSTS | ||||||||
| (Notes 10, 22 and 27) | (970,942) | (40) | (1,653,448) | (38) | (4,309,504) | (41) | (4,072,597) | (37) |
| GROSS PROFIT | 1,476,781 | 60 | 2,718,226 | 62 | 6,151,953 | 59 | 7,107,896 | 63 |
| OPERATING EXPENSES | ||||||||
| (Notes 22 and 27) | ||||||||
| Selling and marketing expenses | (53,148) | (2) | (78,920) | (2) | (194,781) | (2) | (245,704) | (2) |
| General and administrative expenses | (52,592) | (2) | (148,168) | (3) | (136,890) | (1) | (253,679) | (2) |
| Research and development expenses | (80,400) | (4) | (75,284) | (2) | (263,075) | (3) | (212,378) | (2) |
| Total operating expenses | (186,140) | (8) | (302,372) | (7) | (594,746) | (6) | (711,761) | (6) |
| PROFIT FROM OPERATIONS | 1,290,641 | 52 | 2,415,854 | 55 | 5,557,207 | 53 | 6,396,135 | 57 |
| NON-OPERATING INCOME AND EXPENSES | ||||||||
| (Note 22) | ||||||||
| Other income (Note 27) | 17,217 | 1 | 26,835 | 1 | 107,298 | 1 | 105,755 | 1 |
| Finance costs | (3,358) | - | - | - | (3,360) | - | (3) | - |
| Share of profit or loss of associates | (717) | - | - | - | (1,340) | - | 464 | - |
| Interest income | 109,319 | 4 | 135,817 | 3 | 367,359 | 4 | 344,300 | 3 |
| Other gains and losses | (964) | - | 1,523 | - | (2,509) | - | 78,923 | 1 |
| Foreign exchange losses | (77,960) | (3) | (146,965) | (3) | (72,848) | (1) | (15,799) | - |
| Total non-operating income and expenses | 43,537 | 2 | 17,210 | 1 | 394,600 | 4 | 513,640 | 5 |
| PROFIT BEFORE INCOME TAX | 1,334,178 | 54 | 2,433,064 | 56 | 5,951,807 | 57 | 6,909,775 | 62 |
| INCOME TAX EXPENSE | ||||||||
| (Notes 4 and 23) | (176,767) | (7) | (615,885) | (14) | (1,047,135) | (10) | (1,197,540) | (11) |
| NET PROFIT FOR THE PERIOD | 1,157,411 | 47 | 1,817,179 | 42 | 4,904,672 | 47 | 5,712,235 | 51 |
| OTHER COMPREHENSIVE INCOME | ||||||||
| Items that may be reclassified subsequently to profit or loss | ||||||||
| Exchange differences on translation of the financial statements of foreign operations | 755,224 | 31 | 216,381 | 5 | (842,468) | (8) | 501,652 | 5 |
| Total other comprehensive income | 755,224 | 31 | 216,381 | 5 | (842,468) | (8) | 501,652 | 5 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | $ 1,912,635 | 78 | $ 2,033,560 | 47 | $ 4,062,204 | 39 | $ 6,213,887 | 56 |
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JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |
|---|---|---|
| 2025 | 2024 | 2025 |
| Amount | % | Amount |
| NET PROFIT | ||
| ATTRIBUTABLE TO: | ||
| Owners of the Company | $ 1,152,069 | 47 |
| Non-controlling interests | 5,342 | - |
| $ 1,157,411 | 47 | |
| TOTAL COMPREHENSIVE INCOME | ||
| ATTRIBUTABLE TO: | ||
| Owners of the Company | $ 1,899,586 | 78 |
| Non-controlling interests | 13,049 | - |
| $ 1,912,635 | 78 | |
| EARNINGS PER SHARE (Note 24) | ||
| Basic | $ 1.16 | |
| Diluted | $ 1.16 |
The accompanying notes are an integral part of the consolidated financial statements.
(Concluded)
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Thousands of New Taiwan Dollars)
| Equity Attributable to Owners of the Company | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares (In Thousands) | Share Capital Ordinary Shares | Capital Surplus | Retained Earnings | Other Equity Exchange Differences on Translating the Financial Statements of Foreign Operations | Treasury Shares | Total | Non-controlling Interests | Total Equity | ||||
| Legal Reserve | Special Reserve | Unappropriated Earnings | Total | |||||||||
| BALANCE ON JANUARY 1, 2024 | 86,286 | $ 862,861 | $ 3,896,248 | $ 504,983 | $ 276,776 | $ 4,967,581 | $ 5,749,340 | $ (271,221) | $ (38,081) | $ 10,199,147 | $ 123,670 | $ 10,322,817 |
| Appropriation of 2023 earnings | ||||||||||||
| Legal reserve | - | - | - | 743,144 | - | (743,144) | - | - | - | - | - | - |
| Special reserve | - | - | - | - | (276,776) | 276,776 | - | - | - | - | - | - |
| Cash dividends distributed by the Company | - | - | - | - | - | (2,791,882) | (2,791,882) | - | - | (2,791,882) | - | (2,791,882) |
| Share dividends distributed by the Company | 12,886 | 128,856 | - | - | - | (128,856) | (128,856) | - | - | - | - | - |
| 12,886 | 128,856 | - | 743,144 | (276,776) | (3,387,106) | (2,920,738) | - | - | (2,791,882) | - | (2,791,882) | |
| Net profit for the nine months ended September 30, 2024 | - | - | - | - | - | 5,667,528 | 5,667,528 | - | - | 5,667,528 | 44,707 | 5,712,235 |
| Other comprehensive income for the nine months ended September 30, 2024, net of income tax | - | - | - | - | - | - | - | 495,245 | - | 495,245 | 6,407 | 501,652 |
| Total comprehensive income for the nine months ended September 30, 2024 | - | - | - | - | - | 5,667,528 | 5,667,528 | 495,245 | - | 6,162,773 | 51,114 | 6,213,887 |
| Treasury shares transferred to employees | - | - | 99,628 | - | - | - | - | - | 12,462 | 112,090 | - | 112,090 |
| BALANCE ON SEPTEMBER 30, 2024 | 99,172 | $ 991,717 | $ 3,995,876 | $ 1,248,127 | $ - | $ 7,248,003 | $ 8,496,130 | $ 224,024 | $ (25,619) | $ 13,682,128 | $ 174,784 | $ 13,856,912 |
| BALANCE ON JANUARY 1, 2025 | 98,915 | $ 989,147 | $ 3,988,643 | $ 1,248,127 | $ - | $ 9,902,581 | $ 11,150,708 | $ 93,107 | $ - | $ 16,221,605 | $ 177,088 | $ 16,398,693 |
| Appropriation of 2024 earnings | ||||||||||||
| Cash dividends distributed by the Company | - | - | - | - | - | (2,472,867) | (2,472,867) | - | - | (2,472,867) | - | (2,472,867) |
| Net profit for the nine months ended September 30, 2025 | - | - | - | - | - | 4,886,098 | 4,886,098 | - | - | 4,886,098 | 18,574 | 4,904,672 |
| Other comprehensive loss for the nine months ended September 30, 2025, net of income tax | - | - | - | - | - | - | - | (833,981) | - | (833,981) | (8,487) | (842,468) |
| Total comprehensive income (loss) for the nine months ended September 30, 2025 | - | - | - | - | - | 4,886,098 | 4,886,098 | (833,981) | - | 4,052,117 | 10,087 | 4,062,204 |
| Non-controlling interests | - | - | - | - | - | - | - | - | - | - | (17,582) | (17,582) |
| Change in par value of shares | 890,232 | - | - | - | - | - | - | - | - | - | - | - |
| BALANCE ON SEPTEMBER 30, 2025 | 989,147 | $ 989,147 | $ 3,988,643 | $ 1,248,127 | $ - | $ 12,315,812 | $ 13,563,939 | $ (740,874) | $ - | $ 17,800,855 | $ 169,593 | $ 17,970,448 |
The accompanying notes are an integral part of the consolidated financial statements.
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
| | For the Nine Months Ended
September 30 | |
| --- | --- | --- |
| | 2025 | 2024 |
| CASH FLOWS FROM OPERATING ACTIVITIES | | |
| Income before income tax | $ 5,951,807 | $ 6,909,775 |
| Adjustments for: | | |
| Depreciation expenses | 266,535 | 262,256 |
| Net loss on fair value changes of financial assets and liabilities at fair value through profit or loss | - | 361 |
| Finance costs | 3,360 | 3 |
| Interest income | (367,359) | (344,300) |
| Compensation cost of employee share options | - | 99,628 |
| Share of profit or loss of associates | 1,340 | (464) |
| Loss on disposal of property, plant and equipment | 225 | 353 |
| Gain on disposal of investments | - | (91,063) |
| Write-down (reversal of write-down) of inventories | 259 | (4,824) |
| Changes in operating assets and liabilities | | |
| Financial assets at fair value through profit or loss | - | (270) |
| Notes and accounts receivable | (134,895) | (666,226) |
| Accounts receivable from related parties | (70,441) | 98,204 |
| Other receivables | 3,194 | 37,539 |
| Inventories | (707,245) | (190,035) |
| Prepayments | (20,074) | (223,635) |
| Other current assets | (13,508) | (45,859) |
| Contract liabilities | (549,088) | 451,141 |
| Notes and accounts payable | (79,025) | 11,493 |
| Other payables | (185,814) | 27,359 |
| Other current liabilities | 720 | (1,693) |
| Cash generated from operations | 4,099,991 | 6,329,743 |
| Interest paid | (3,360) | (3) |
| Income tax paid | (1,305,761) | (1,239,200) |
| Net cash generated from operating activities | 2,790,870 | 5,090,540 |
| CASH FLOWS FROM INVESTING ACTIVITIES | | |
| Purchase of financial assets at amortized cost | (5,018,393) | (2,638,876) |
| Proceeds from sale of financial assets at amortized cost | 1,136,188 | 449,935 |
| Acquisition of investments accounted for using the equity method | (13,719) | - |
| Proceeds from disposal of long-term equity investments accounted for using the equity method | - | 41,237 |
| Payments for property, plant and equipment | (343,464) | (787,480) |
| Proceeds from disposal of property, plant and equipment | 153 | 85 |
| Decrease (increase) in refundable deposits | 279 | (5,232) |
| Payments for right-of-use assets | (88,503) | (334,348) |
| Decrease (increase) in other non-current assets | 777 | (34,529) |
| | | (Continued) |
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JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
| | For the Nine Months Ended
September 30 | |
| --- | --- | --- |
| | 2025 | 2024 |
| Increase in prepayments for equipment | $ (35,308) | $ (462,484) |
| Interest received | 379,352 | 296,445 |
| Net cash used in investing activities | (3,982,638) | (3,475,247) |
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Proceeds from short-term borrowings | 747,154 | 6,816 |
| Repayments of short-term borrowings | - | (6,816) |
| Proceeds from guarantee deposits received | 29,212 | 10,328 |
| Dividends paid to owners of the Company | (4,706,373) | - |
| Treasury shares transferred to employees | - | 12,462 |
| Changes in non-controlling interests | (10,407) | - |
| Net cash (used in) generated from financing activities | (3,940,414) | 22,790 |
| EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE
OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN
CURRENCIES | (656,206) | 412,817 |
| NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS | (5,788,388) | 2,050,900 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD | 13,258,890 | 8,116,329 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ 7,470,502 | $ 10,167,229 |
The accompanying notes are an integral part of the consolidated financial statements.
(Concluded)
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JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
1. GENERAL INFORMATION
Jinan Acetate Chemical Co., Ltd. (the "Company") was incorporated in Cayman Islands on September 25, 2014. The Company was established mainly for organizational restructuring. In accordance with the equity exchange agreement, the Company has become the holding company of the consolidated entities after the organizational restructuring have been completed on September 25, 2014.
The Company's shares have been listed on the Taiwan Stock Exchange (TSE) since November 9, 2015.
The consolidated financial statements are presented the Company's functional currency in New Taiwan dollars.
2. APPROVAL OF FINANCIAL STATEMENTS
The consolidated financial statements were approved by the Company's board of directors on November 13, 2025.
3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the FSC.
The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Group's accounting policies.
b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026
| New, Amended and Revised Standards and Interpretations | Effective Date Announced by IASB |
|---|---|
| Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” | January 1, 2026 |
| Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” | January 1, 2026 |
| Annual Improvements to IFRS Accounting Standards - Volume 11 | January 1, 2026 |
| IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17) | January 1, 2026 |
As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.
c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC
| New, Amended and Revised Standards and Interpretations | Effective Date Announced by IASB (Note 1) |
|---|---|
| Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” | To be determined by IASB |
| IFRS 18 “Presentation and Disclosure in Financial Statements” | January 1, 2027 (Note 2) |
| IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19) | January 1, 2027 |
Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.
IFRS 18 “Presentation and Disclosure in Financial Statements”
IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:
1) Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
2) The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
3) Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
4) Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.
Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing other impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.
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4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
a. Statement of compliance
These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.
b. Basis of preparation
The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.
The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:
1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
c. Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries).
Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.
All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.
See Note 11, Tables 7 and 8 for detailed information of subsidiaries (including percentages of ownership and main businesses).
- 11 -
d. Other material accounting policies
Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.
Income tax expense
Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.
- MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
For the summary of material accounting judgements and key sources of estimation uncertainty, please refer to the consolidated financial statements for the year ended December 31, 2024.
- CASH AND CASH EQUIVALENTS
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Cash on hand | $ 128 | $ 267 | $ 399 |
| Demand deposits | 3,496,923 | 4,781,817 | 3,488,800 |
| Cash equivalents (investments with original maturities of less than 3 months) | |||
| Time deposits | 3,973,451 | 8,476,806 | 6,678,030 |
| $ 7,470,502 | $ 13,258,890 | $ 10,167,229 |
- FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Investments in Equity Instruments at FVTOCI
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Non-current | |||
| Unlisted shares | |||
| Ordinary shares - Eleung Limited (“ELEUNG”) | $ 53,775 | $ 56,381 | $ 56,948 |
| Ordinary shares - Holyard International Co., Ltd. (“HOLYARD”) | 10,261 | 10,261 | 8,246 |
| $ 64,036 | $ 66,642 | $ 65,194 |
The Group originally accounted its investments in associated companies, HOLYARD and ELEUNG, under the equity method. In April 2024, the Group lost significant influence over HOLYARD due to the resignation of its board member. Similarly, in June 2024, the Group lost significant influence over ELEUNG following a board re-election in which it did not retain its directorship, and subsequently sold 15% of its equity in ELEUNG. As a result, the aforementioned investments were reclassified as financial assets at fair value through other comprehensive income. Please refer to Note 12 for more details on the resignation of the board member and the sale.
These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes.
8. FINANCIAL ASSETS AT AMORTIZED COST
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Current | |||
| Domestic investments | |||
| Time deposits with original maturities of more than 3 months | $ 5,018,879 | $ 1,136,674 | $ 2,638,876 |
a. The ranges of interest rates for time deposits with original maturities of more than 3 months were approximately 1.25%-4.87%, 1.25%-5.90% and 1.50%-6.05% per annum as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively.
b. Refer to Note 28 for information relating to investments in financial assets at amortized cost pledged as security.
9. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Notes and accounts receivable | |||
| At amortized cost | |||
| Gross carrying amount | $ 1,037,155 | $ 902,260 | $ 908,834 |
| Less: Allowance for impairment loss | - | - | - |
| $ 1,037,155 | $ 902,260 | $ 908,834 | |
| Accounts receivable from related parties | |||
| At amortized cost | |||
| Gross carrying amount | $ 91,602 | $ 21,161 | $ 14,884 |
| Less: Allowance for impairment loss | - | - | - |
| $ 91,602 | $ 21,161 | $ 14,884 |
The Group takes advance payments for the sales of goods through letters of credit. The credit period of sales of goods was between 30 and 180 days. No interest was charged on trade and notes receivable. The Group adopted a policy of only dealing with entities that are rated the equivalent of investment grade or higher and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group uses other publicly available financial information or its own trading records to rate its major customers. The Group's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.
The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.
The following table details the loss allowance of notes receivable and accounts receivable based on the Group's provision matrix.
September 30, 2025
| 1 to 30 Days | 31 to 60 Days | 61 to 90 Days | 91 to 120 Days | 121 to 180 Days | 181 to 360 Days | Total | |
|---|---|---|---|---|---|---|---|
| Expected credit loss rate | 0% | 0% | 0% | 0% | 0% | 0% | |
| Gross carrying amount | $ 689,721 | $ 206,138 | $ 189,862 | $ 8,148 | $ 34,888 | $ - | $ 1,128,757 |
| Loss allowance (Lifetime ECLs) | - | - | - | - | - | - | - |
| Amortized cost | $ 689,721 | $ 206,138 | $ 189,862 | $ 8,148 | $ 34,888 | $ - | $ 1,128,757 |
December 31, 2024
| 1 to 30 Days | 31 to 60 Days | 61 to 90 Days | 91 to 120 Days | 121 to 180 Days | 181 to 360 Days | Total | |
|---|---|---|---|---|---|---|---|
| Expected credit loss rate | 0% | 0% | 0% | 0% | 0% | 0% | |
| Gross carrying amount | $ 325,218 | $ 309,377 | $ 202,944 | $ 75,745 | $ 10,137 | $ - | $ 923,421 |
| Loss allowance (Lifetime ECLs) | - | - | - | - | - | - | - |
| Amortized cost | $ 325,218 | $ 309,377 | $ 202,944 | $ 75,745 | $ 10,137 | $ - | $ 923,421 |
September 30, 2024
| 1 to 30 Days | 31 to 60 Days | 61 to 90 Days | 91 to 120 Days | 121 to 180 Days | 181 to 360 Days | Total | |
|---|---|---|---|---|---|---|---|
| Expected credit loss rate | 0% | 0% | 0% | 0% | 0% | 0% | |
| Gross carrying amount | $ 647,061 | $ 146,367 | $ 53,486 | $ 24,768 | $ 52,036 | $ - | $ 923,718 |
| Loss allowance (Lifetime ECLs) | - | - | - | - | - | - | - |
| Amortized cost | $ 647,061 | $ 146,367 | $ 53,486 | $ 24,768 | $ 52,036 | $ - | $ 923,718 |
Compared to January 1, 2025 and 2024, the group did not recognize allowance for impairment loss on receivables at September 30, 2025 and 2024, respectively; resulted from the increased in accounts receivables net of those collected of $205,336 thousand and $568,022 thousand, respectively.
10. INVENTORIES
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Finished goods | $ 546,567 | $ 159,213 | $ 136,639 |
| Work in progress | 73,875 | 46,074 | 44,551 |
| Raw materials | 801,274 | 523,060 | 455,018 |
| Supplies | 54,701 | 41,084 | 44,905 |
| $ 1,476,417 | $ 769,431 | $ 681,113 |
The cost of inventories recognized as cost of goods sold for the three months and the nine months ended September 30, 2025 and 2024 was $970,942 thousand, $1,653,448 thousand, $4,309,504 thousand and $4,072,597 thousand, respectively. Operating costs which included inventory write-downs (reversal of write-downs) were $(5,348) thousand, $148 thousand, $259 thousand and $(4,824) thousand, respectively.
The reversal of inventory write-downs was due to the increase in the purchase price of raw materials.
11. SUBSIDIARIES
a. Subsidiaries included in the consolidated financial statements:
| Investor | Investee | Nature of Activities | Proportion of Ownership (%) | ||
|---|---|---|---|---|---|
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |||
| The Company | My Parents Living Technology Limited (Hong Kong) (“My Parents”) | Investments | 100.00 | 100.00 | 100.00 |
| My Parents | Jinan Acetate Chemical Co., Ltd. (China) (“Jinan Acetate Chemical”) | Manufacturing and sales of cellulose acetate tow | 100.00 | 100.00 | 100.00 |
| Jinan Acetate Chemical | Acetek Material Co., Ltd. (China) (“Acetek Material”) | Production and sales of cellulose acetate | 50.34 | 50.34 | 50.34 (Note 1) |
| My Parents | Acetek Chemicals Co., Ltd. (Hong Kong) (“Acetek Chemicals”) | Investments | 80.00 | 80.00 | 80.00 |
| Jinan Acetate Chemical | Acetek Momentum Co., Ltd. (China) (“Acetek Momentum”) | Manufacturing and sales of cellulose anhydride | 100.00 | 100.00 | 100.00 |
| My Parents | Acetate (Shandong) Environmental Fiber Co., Ltd. (China) (“Acetek Environmental”) | Manufacturing and sales of cellulose acetate fiber | 100.00 | 100.00 | 100.00 |
| Jinan Acetate Chemical | Acetek Aspiration (Jinan) Trading Co., Ltd. (China) (“Acetek Aspiration trading”) | Sales of cellulose acetate | 100.00 | 100.00 | 100.00 |
| Jinan Acetate Chemical | Acetek Aspiration (Shandong) Co., Ltd. (China) (“Acetek Aspiration”) | Manufacturing and sales of high-performance fibers | 20.00 | 20.00 | 20.00 |
| My Parents | Acetek Aspiration (Shandong) Co., Ltd. (China) (“Acetek Aspiration”) | Manufacturing and sales of high-performance fibers | 80.00 | 80.00 | 80.00 |
| My Parents | Acetek Material Co., Ltd. (China) (“Acetek Material”) | Production and sales of cellulose acetate | 37.66 | 37.66 | 37.66 (Note 1) |
| My Parents | Acetek Guardian (Shandong) Co., Ltd. (Acetek Guardian) | Production and sale of hydroxyethyl cellulose ether and specialty cotton cellulose | 100.00 | 100.00 | 100.00 (Note 2) |
| The Company | Acetek Co. Pte. Ltd. (Acetek SG) | Investments | 100.00 | 100.00 | 100.00 (Note 3) |
Note 1: In March 2024, Acetek Material conducted a capital increase of RMB22,000 thousand, with My Parents subscribing to RMB19,360 thousand. After the capital increase, My Parents' equity stake in Acetek Material remained at 13.17%. The Group transferred shares of Acetek Material 24.49% from Jinan Acetate Chemical to My Parents in April 2024. The Group's equity stake in Acetek Material remained at 88%.
Note 2: To meet the development needs of the industry, the board of directors of My Parents resolved on May 30, 2024 to invest in Acetek Guardian.
Note 3: To meet the development needs of the industry, the board of directors of the Company resolved on May 10, 2024 to invest in Acetek SG.
b. Subsidiaries excluded from the consolidated financial statements: None.
c. Details of subsidiaries that have material non-controlling interests
| Name of Subsidiary | Principal Place of Business | Proportion of Ownership and Voting Rights Held by Non-controlling Interests | ||
|---|---|---|---|---|
| September 30, 2025 | December 31, 2024 | September 30, 2024 | ||
| Acetek Material | Mainland China | 12.00% | 12.00% | 12.00% |
Summarized financial information in respect of Acetek Material that has material non-controlling interests is set out below. The summarized financial information below represents amounts before intragroup eliminations.
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Current assets | $ 1,245,432 | $ 1,341,547 | $ 933,855 |
| Non-current assets | 498,338 | 605,611 | 638,749 |
| Current liabilities | (520,650) | (747,108) | (413,889) |
| Non-current liabilities | - | - | - |
| Equity | $ 1,223,120 | $ 1,200,050 | $ 1,158,715 |
| Equity attributable to: | |||
| Owners of the Company | $ 1,076,346 | $ 1,056,044 | $ 1,019,669 |
| Non-controlling interests of Acetek Material | 146,774 | 144,006 | 139,046 |
| $ 1,223,120 | $ 1,200,050 | $ 1,158,715 | |
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||
| --- | --- | --- | --- |
| 2025 | 2024 | 2025 | |
| Revenue | $ 443,597 | $ 517,668 | $ 1,356,287 |
| Profit for the period | $ 19,192 | $ 63,802 | $ 139,859 |
| Other comprehensive (loss) income for the period | (55,013) | (18,951) | 56,814 |
| Total comprehensive (loss) income for the period | $ (35,821) | $ 44,851 | $ 196,673 |
| Profit attributable to: | |||
| Owners of the Company | $ 16,889 | $ 56,146 | $ 123,076 |
| Non-controlling interests of Acetek Material | 2,303 | 7,656 | 16,783 |
| $ 19,192 | $ 63,802 | $ 139,859 | |
- 17 -
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Total comprehensive income (loss) attributable to: | ||||
| Owners of the Company | $ (31,523) | $ 39,469 | $ 173,072 | $ 146,072 |
| Non-controlling interests of Acetek Material | (4,298) | 5,382 | 23,601 | 23,972 |
| $ (35,821) | $ 44,851 | $ 196,673 | $ 170,044 | |
| Cash inflow (outflow) from: | ||||
| Operating activities | $ (174,464) | $ 364,339 | ||
| Investing activities | (278,655) | (79,124) | ||
| Financing activities | (59,976) | - | ||
| Effects of exchange rate changes | (33,214) | 16,962 | ||
| Net cash inflow (outflow) | $ (546,309) | $ 302,177 | ||
| (Concluded) |
12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
Investment in Associates
| September 30, 2025 | |
|---|---|
| Associates that are not individually material | $ 11,488 |
Investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on financial statements which have not been reviewed. Management believes there is no material impact on the equity method of accounting or the calculation of the share of profit or loss and other comprehensive income from the financial statements of the above investees which have not been reviewed.
The Group held a 25% interest in Eleung and accounted for the investment as an associate. In June 2024, the Group sold 15% of its interest in Eleung to a third party for proceeds of $83,948 thousand and consequently ceased to have significant influence over Eleung. The Group retained the remaining 10% interest as financial assets at FVTOCI whose fair value at the date of disposal was $55,966 thousand. This transaction resulted in the recognition of a gain in profit or loss, calculated as follows:
| Proceeds from disposal | $ 83,948 |
|---|---|
| Plus: Fair value of retained investment (10%) | 55,966 |
| Less: Carrying amount of investment on the date of loss of significant influence | (52,368) |
| Plus: Share of other comprehensive income of the associate | 3,517 |
| Gain recognized | $ 91,063 |
In March 2025, the Group made a cash investment of $13,719 thousand to acquire a 40% equity interest in Acetek New Materials (Shandong) Co., Ltd., thereby obtaining significant influence over the company.
13. PROPERTY, PLANT AND EQUIPMENT
| Buildings | Equipment | Transportation Equipment | Other Equipment | Construction in Progress Equipment | Total | |
|---|---|---|---|---|---|---|
| Cost | ||||||
| Balance on January 1, 2025 | $ 669,734 | $ 2,878,244 | $ 21,860 | $ 11,653 | $ 1,076,415 | $ 4,657,906 |
| Additions | 281,089 | - | 2,880 | 465 | 59,030 | 343,464 |
| Disposals | (263) | (2,460) | (1,007) | (1,402) | - | (5,132) |
| Reclassification | 94,855 | 885,900 | 1,815 | 2,458 | (753,301) | 231,727 |
| Effect of foreign currency exchange differences | (35,048) | (136,429) | (1,051) | (555) | (42,202) | (215,285) |
| Balance on September 30, 2025 | $ 1,010,367 | $ 3,625,255 | $ 24,497 | $ 12,619 | $ 339,942 | $ 5,012,680 |
| Accumulated depreciation | ||||||
| Balance on January 1, 2025 | $ 150,636 | $ 1,352,995 | $ 13,095 | $ 8,265 | $ - | $ 1,524,991 |
| Depreciation expenses | 34,032 | 217,699 | 2,901 | 750 | - | 255,382 |
| Disposals | (60) | (2,336) | (956) | (1,402) | - | (4,754) |
| Reclassification | (570) | - | - | - | - | (570) |
| Effect of foreign currency exchange differences | (7,327) | (64,888) | (626) | (376) | - | (73,217) |
| Balance on September 30, 2025 | $ 176,711 | $ 1,503,470 | $ 14,414 | $ 7,237 | $ - | $ 1,701,832 |
| Carrying amounts on September 30, 2025 | $ 833,656 | $ 2,121,785 | $ 10,083 | $ 5,382 | $ 339,942 | $ 3,310,848 |
| Carrying amounts on December 31, 2024 and January 1, 2025 | $ 519,098 | $ 1,525,249 | $ 8,765 | $ 3,388 | $ 1,076,415 | $ 3,132,915 |
| Cost | ||||||
| Balance on January 1, 2024 | $ 459,643 | $ 2,284,470 | $ 18,283 | $ 8,988 | $ 93,763 | $ 2,865,147 |
| Additions | 120,772 | 382,032 | 3,999 | 1,794 | 278,883 | 787,480 |
| Disposals | - | (6,719) | (1,913) | - | - | (8,632) |
| Reclassification | 42,878 | 6,782 | 213 | - | 59,314 | 109,187 |
| Effect of foreign currency exchange differences | 23,767 | 110,360 | 870 | 439 | 10,338 | 145,774 |
| Balance on September 30, 2024 | $ 647,060 | $ 2,776,925 | $ 21,452 | $ 11,221 | $ 442,298 | $ 3,898,956 |
| Accumulated depreciation | ||||||
| Balance on January 1, 2024 | $ 116,893 | $ 1,022,953 | $ 11,692 | $ 7,514 | $ - | $ 1,159,052 |
| Depreciation expenses | 21,332 | 229,988 | 1,947 | 312 | - | 253,579 |
| Disposals | - | (6,377) | (1,817) | - | - | (8,194) |
| Effect of foreign currency exchange differences | 5,679 | 50,364 | 533 | 347 | - | 56,923 |
| Balance on September 30, 2024 | $ 143,904 | $ 1,296,928 | $ 12,355 | $ 8,173 | $ - | $ 1,461,360 |
| Carrying amounts on September 30, 2024 | $ 503,156 | $ 1,479,997 | $ 9,097 | $ 3,048 | $ 442,298 | $ 2,437,596 |
The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:
Buildings 20 years
Equipment 3-10 years
Transportation equipment 4-5 years
Other equipment 5 years
Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 28.
- 19 -
14. INVESTMENT PROPERTIES
September 30, 2025
Investment properties
$ 25,139
Investment properties are depreciated using the straight-line method over their estimated useful lives as follows:
Buildings
20 years
The abovementioned investment properties are leased out for 10 years. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.
Management was unable to reliably measure the fair value of investment property located at Zaozhuang City, Shandong Province, China because it is designated as industrial zone land. The market for comparable properties is inactive and alternative reliable measurements of fair value are not available; therefore, the Group determined that the fair value of the investment property is not reliably measurable.
15. LEASE ARRANGEMENTS
a. Right-of-use assets
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Carrying amount | |||
| Land | $ 707,212 | $ 659,706 | $ 497,707 |
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||
| 2025 | 2024 | 2025 | |
| Additions to right-of-use assets | $ 88,503 | $ 334,348 | |
| Depreciation charge for right-of-use assets | |||
| Land | $ 3,936 | $ 5,089 | $ 10,617 |
Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets for the nine months ended September 30, 2025 and 2024.
Right-of-use assets pledged as collateral for bank borrowings are set out in Note 28.
b. Material leasing activities and terms
As lessees, Jinan Acetate Chemical Co., Ltd., Acetek Material Co., Ltd., Acetek Momentum Co., Ltd., Acetate (Shandong) Environmental Fiber Co., Ltd. and Acetek Aspiration (Shandong) Co., Ltd. are leasing certain lands for the use of factory with lease terms of 20 to 50 years. These arrangements do not contain purchase options at the end of the lease terms.
c. Other lease information
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Expenses relating to short-term leases | $ 486 | $ 161 | $ 1,353 | $ 479 |
| Expenses relating to low-value asset leases | $ 4 | $ 4 | $ 12 | $ 12 |
| Total cash outflow for leases | $ (1,365) | $ (491) |
- OTHER ASSETS
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Current | |||
| Prepayments | |||
| Advanced payments | $ 236,881 | $ 314,172 | $ 253,276 |
| Prepayment | 176,329 | 94,719 | 141,158 |
| Tax overpaid retained for effecting | 179,707 | 163,952 | 58,599 |
| $ 592,917 | $ 572,843 | $ 453,033 | |
| Other current assets | |||
| Pledge deposits (Note 28) | $ 79,052 | $ 50,470 | $ 63,723 |
| Refundable deposits | 427 | 9,409 | 40,125 |
| Others | 1,129 | 7,221 | 103,176 |
| $ 80,608 | $ 67,100 | $ 207,024 | |
| Non-current | |||
| Other non-current assets | |||
| Prepayments for equipment | $ 36,326 | $ 269,307 | $ 540,967 |
| Prepayments for land | 16,016 | 16,793 | 50,755 |
| Refundable deposits | 5,181 | 5,460 | 5,522 |
| $ 57,523 | $ 291,560 | $ 597,244 |
- BORROWINGS
Short-term Borrowings
September 30, 2025
Unsecured borrowings
Line of credit borrowings
$ 747,154
The interest rates on the bank's revolving borrowings ranged from 3.72% to 4.00% as of September 30, 2025.
18. OTHER PAYABLES
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Payables for security production fee | $ 239,696 | $ 180,438 | $ 164,060 |
| Payables for purchases of equipment | 211,176 | 301,116 | 97,633 |
| Accrued remuneration to employees and directors | 52,907 | 86,237 | 60,962 |
| Payables for steam fee | 27,071 | 30,021 | 31,233 |
| Payables for freight | 21,132 | 34,131 | 24,048 |
| Payables for commission | 17,745 | 29,639 | 23,185 |
| Payables for dividends | 7,175 | 2,233,506 | 2,791,882 |
| Payables for salaries | 2,521 | 60,782 | 3,769 |
| Others | 20,444 | 56,142 | 42,113 |
| $ 599,867 | $ 3,012,012 | $ 3,238,885 |
19. RETIREMENT BENEFIT PLANS
Jinan Acetate Chemical, Acetek Material, Acetek Momentum, Acetek Environmental and Acetek Aspiration of the Group adopted a defined contribution plan. Under the plan, an entity makes contributions to employees' pension account at percentages of the salary of employees. The pension account is managed by the authorized insurance institution located in China. The employees can withdraw the pension contributed by the Company and by themselves as well as the interest upon retirement.
20. EQUITY
a. Ordinary shares
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Number of shares authorized (in thousands) | 1,000,000 | 100,000 | 100,000 |
| Shares authorized | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
| Number of shares issued and fully paid (in thousands) | 989,147 | 98,915 | 99,172 |
| Shares issued | $ 989,147 | $ 989,147 | $ 991,717 |
On May 30, 2024, the shareholders' meeting resolved to distribute unappropriated earnings accumulated in 2023 as shareholders' dividends, and issue 12,886 thousand ordinary shares with a par value of $10. The subscription base date was authorized to determine by the board of directors to be September 18, 2024.
The company resolved in the board of directors meeting on August 23, 2024, to cancel 257 thousand treasury shares, each with a par value of $10, representing a capital reduction of 0.25%. After the capital reduction, the paid-in capital amounts to $989,147 thousand. Furthermore, capital surplus of $7,233 thousand and retained earnings of $15,816 thousand have been written off. The effective date of the capital reduction is October 29, 2024, and the registration for the capital reduction was completed on November 11, 2024.
On May 22, 2025, the shareholders' meeting resolved the amendments to the Company's Articles of Incorporation (the "Articles") to change the par value per share from $10 to $1. The change of par value was approved by the competent authority and new shares have been reissued. After the reissuance, the authorized shares amounted to 1,000,000 thousand shares, and the issued and fully paid-in shares amounted to 989,147 thousand shares. The board of directors resolved to set June 27, 2025 as the date for the reissuance of shares for the change in par value.
b. Capital surplus
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) | |||
| Issuance of ordinary shares | $ 2,951,581 | $ 2,951,581 | $ 2,958,814 |
| Conversion of bonds | 1,011,544 | 1,011,544 | 1,011,544 |
| May be used to offset a deficit only | |||
| Changes in percentage of ownership interests in subsidiaries (2) | 25,518 | 25,518 | 25,518 |
| $ 3,988,643 | $ 3,988,643 | $ 3,995,876 |
1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and once a year).
2) Such capital surplus arises from the effect of changes in ownership interest in a subsidiary that resulted from equity transactions other than actual acquisition.
c. Retained earnings and dividends policy
According to the Articles of Incorporation, the Company, in addition to the dividends to be distributed at the end of each financial year, may distribute interim dividends to the Members on semi-year basis. If the board of directors decides not to distribute interim dividends, the board of directors shall adopt a resolution to confirm such non-distribution after the relevant first half of the financial year.
The Company is in the growing stage. According to the Articles of Incorporation, the board of directors should propose the distribution of shareholders' dividends and submit it to the shareholders' meeting for appropriations of earnings, only after taking into consideration the Company's earnings, overall development, financial planning, capital requirements, industry outlook and future prospects of the Company for each of the fiscal year.
- 22 -
During the period when the shares are listed or traded in Taipei Exchange or Taiwan Stock Exchange, the board of directors when making proposal for distribution of earnings shall first appropriate the earnings in each fiscal year as follows: (i) reserve for tax of the relevant fiscal year; (ii) amount to offset past losses; (iii) from the remaining amount, 10% for legal reserve; and (iv) special reserve required by the securities authorities of the Republic of China in accordance with the rules of a public company. For the policies on the distribution of employees' compensation and remuneration of directors and supervisors after the amendment, refer to employees' compensation and remuneration of directors and supervisors in Note 22-g.
The Company may distribute interim dividend in accordance with a proposal for profits distribution approved by the board of directors, provided that if the interim dividend will be distributed by way of applying such sum in paying up in full unissued shares, in addition to the approval of the board of directors, such distribution shall also be sanctioned by the Members by a Supermajority Resolution in a general meeting.
After considering the financial, business and operational factors, according to the Cayman Company Law and the Public Company Rules, all or parts of the unappropriated earnings accumulated in previous years, plus no less than 10% of the after-tax earnings in the current year, can be distributed as shareholders' dividends according to the shareholding ratio. Shareholders' dividends are distributed as stock dividends, cash dividends, or both; cash dividends must not be less than 10% of total dividends.
Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.
The appropriations of the earnings for the six months ended June 30, 2024 resolved by the Company's board of directors, were as follows:
| For the Six Months Ended June 30 | |
|---|---|
| Date of board resolution | August 23, 2024 |
| Legal reserve | $ 385,634 |
| (Reversal of) special reserve | $ (271,221) |
| Cash dividends | $ 2,233,506 |
| Cash dividends per share (NT$) | $ 2.6 |
The appropriations of earnings for 2024 and 2023 approved in the shareholders' meetings on May 22, 2025 and May 30, 2024, respectively, were as follows:
| Appropriation of Earnings | ||
|---|---|---|
| For the Year Ended December 31 | ||
| 2024 | 2023 | |
| Legal reserve | $ 385,634 | $ 517,718 |
| Special reserve | $ (271,221) | $ 140,979 |
| Cash dividends | $ 4,706,373 | $ 932,597 |
| Share dividends | $ - | $ 128,856 |
| Cash dividends per share (NT$) | $ 5.10 | $ 1.15 |
| Share dividends per share (NT$) | - | 0.15 |
The aforementioned cash dividend per share may be affected by the number of outstanding shares. For the actual amount distributed per share, please refer to the "Market Observation Post System" website of the Taiwan Stock Exchange.
d. Non-controlling interests
| For the Nine Months Ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance on January 1 | $ 177,088 | $ 123,670 |
| Share in profit for the period | 18,574 | 44,707 |
| Other comprehensive (loss) income during the period | ||
| Exchange differences on translating the financial statements of foreign entities | (8,487) | 6,407 |
| Subsidiary distributes cash dividends to non-controlling interests | (17,582) | - |
| Balance on September 30 | $ 169,593 | $ 174,784 |
e. Treasury shares
| Purpose of Buy-back | Shares Transferred to Employees (In Thousands of Shares) |
|---|---|
| Number of shares on January 1, 2024 | 382 |
| Transfer of treasury shares to employees | (125) |
| Number of shares on September 30, 2024 | 257 |
On August 23, 2024, the board of directors resolved to transfer 125 thousand shares of treasury stock to employees at a transfer price of $99.69. The base date for employee stock options was August 23, 2024, and recognized compensation cost of employee share options of $99,628 thousand.
On August 23, 2024, the board of directors resolved to cancel 257 thousand treasury shares, each with a par value of $10, representing a capital reduction of 0.25%. After the capital reduction, the paid-in capital amounts to $989,147 thousand. Furthermore, capital surplus of $7,233 thousand and retained earnings of $15,816 thousand have been written off. The effective date of the capital reduction is October 29, 2024, and the registration for the capital reduction was completed on November 11, 2024.
Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as the rights to dividends and to vote.
- 25 -
21. REVENUE
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenue from contracts with customers | ||||
| Revenue from sale of goods | $ 2,447,723 | $ 4,371,674 | $ 10,461,457 | $ 11,180,493 |
a. Contract information
The goods are sold at the fair value of the consideration received or receivable. The Company eliminates the estimated customer returns, discounts and other similar discounts from the amount of goods sold to determine the revenue from sale of goods.
b. Contract balances
| September 30, 2025 | December 31, 2024 | September 30, 2024 | January 1, 2024 | |
|---|---|---|---|---|
| Notes and accounts receivables (include related parties) (Note 9) | $ 1,128,757 | $ 923,421 | $ 923,718 | $ 355,696 |
| Contract liabilities - current | $ 266,712 | $ 815,800 | $ 1,159,293 | $ 708,152 |
c. Disaggregation of revenue
Refer to Note 32 for information about disaggregation of revenue.
22. NET PROFIT
a. Other income
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Government subsidy income | $ 9,637 | $ 763 | $ 92,357 | $ 60,925 |
| Others | 7,580 | 26,072 | 14,941 | 44,830 |
| $ 17,217 | $ 26,835 | $ 107,298 | $ 105,755 |
b. Finance costs
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Interest on bank loans | $ 3,358 | $ - | $ 3,360 | $ 3 |
c. Interests income
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Bank deposits | $ 109,319 | $ 135,817 | $ 367,359 | $ 344,300 |
d. Other gains and losses
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Gain (loss) on disposal of property, plant and equipment | $ 89 | $ (250) | $ (225) | $ (353) |
| Gain on disposal of investment (Note 12) | - | - | - | 91,063 |
| Net loss on fair value changes of financial assets and liabilities at fair value through profit or loss | - | - | - | (361) |
| Other | (1,053) | 1,773 | (2,284) | (11,426) |
| $ (964) | $ 1,523 | $ (2,509) | $ 78,923 |
e. Depreciation expense
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Property, plant and equipment | $ 91,796 | $ 68,733 | $ 255,382 | $ 253,579 |
| Right-of-use assets | 3,936 | 5,089 | 10,617 | 8,677 |
| Investment properties | 192 | - | 536 | - |
| $ 95,924 | $ 73,822 | $ 266,535 | $ 262,256 | |
| An analysis of depreciation by function | ||||
| Operating costs | $ 90,289 | $ 68,860 | $ 246,167 | $ 241,945 |
| Operating expenses | 5,550 | 4,962 | 19,939 | 20,311 |
| Other profits and losses | 85 | - | 429 | - |
| $ 95,924 | $ 73,822 | $ 266,535 | $ 262,256 |
f. Employee benefits expense
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Short-term benefits | $ 79,114 | $ 186,914 | $ 286,859 | $ 374,976 |
| Post-employment benefits | 6,925 | 6,206 | 20,776 | 16,239 |
| Other employee benefits | 1,030 | 824 | 5,248 | 4,130 |
| Total employee benefits expense | $ 87,069 | $ 193,944 | $ 312,883 | $ 395,345 |
| An analysis of employee benefits expense by function | ||||
| Operating costs | $ 53,225 | $ 42,894 | $ 171,825 | $ 129,703 |
| Operating expenses | 33,844 | 151,050 | 141,058 | 265,642 |
| $ 87,069 | $ 193,944 | $ 312,883 | $ 395,345 |
g. Employees' compensation and remuneration of directors and supervisors
According to the Articles of Incorporation of the Company, the Company accrues employees' compensation at a rate of no less than 1% when the Company earned profits in the year. Employees' compensation is paid to employees of subordinate companies that meet certain conditions. When the Company is able to increase the amount of profit, it accrues directors' remuneration at a rate of no more than 3% of the profit of the year. However, if the Company has accumulated losses, it should first retain the amount to offset the losses before accruing employees' and directors' remuneration in accordance with the above-mentioned proportion. The aforementioned profit refers to the Company's pre-tax net profit. To avoid confusion, the pre-tax net profit refers to the amount before the accrual for employees and directors' remuneration.
The employees' compensation and the remuneration of directors for the three months and the nine months ended September 30, 2025 and 2024, were as follows:
Accrual rate
| For the Nine Months Ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Compensation of employees | 1.00% | 1.00% |
| Remuneration of directors | 0.03% | 0.03% |
Amount
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Compensation of employees | $ 11,855 | $ 18,499 | $ 49,370 | $ 57,462 |
| Remuneration of directors | $ 500 | $ 500 | $ 1,500 | $ 1,500 |
If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate in the subsequent period.
The employees' compensation and the remuneration of directors for the years ended December 31, 2024 and 2023, which were approved by the Company's board of directors on March 5, 2025 and March 12, 2024, respectively, were as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2024 | 2023 | |
| Cash | Cash | |
| Compensation of employees | $ 84,237 | $ 52,839 |
| Remuneration of directors | 2,000 | 2,000 |
There is no difference between the actual amounts of employees' compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.
Further information on the employees' compensation and remuneration of directors approved in the meetings of the board of directors is available at the "Market Observation Post System" website of the TSE.
h. Gains or losses on foreign currency exchange
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Foreign exchange gains | $ 68,124 | $ 118,614 | $ 428,174 | $ 288,380 |
| Foreign exchange losses | (146,084) | (265,579) | (501,022) | (304,179) |
| Net profit and loss | $ (77,960) | $ (146,965) | $ (72,848) | $ (15,799) |
23. INCOME TAXES
a. Income tax recognized in profit or loss
Major components of income tax expense are as follows:
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Current tax | ||||
| In respect of the current period | $ (168,034) | $ (622,500) | $ (1,031,562) | $ (1,203,776) |
| Adjustments for prior year | (9,720) | 5,358 | (13,646) | 20,136 |
| Deferred tax | ||||
| In respect of the current period | 1,017 | 1,862 | (527) | (13,055) |
| Adjustments for prior year | (30) | (605) | (1,400) | (845) |
| Income tax expense recognized in profit or loss | $ (176,767) | $ (615,885) | $ (1,047,135) | $ (1,197,540) |
b. Income tax assessments
The income tax declarations of Jinan Acetate Chemical, Acetek Material, Acetek Momentum, Acetek Environmental, Acetek Aspiration Trading, Acetek Guardian, Acetek Aspiration and My Parents of the Group have been completed within the deadlines set by the local tax collection office.
24. EARNINGS PER SHARE
Unit: NT$ Per Share
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Basic earnings per share | $ 1.16 | $ 1.83 | $ 4.94 | $ 5.74 |
| Diluted earnings per share | $ 1.16 | $ 1.83 | $ 4.93 | $ 5.73 |
The weighted average number of shares outstanding used for the earnings per share computation was adjusted retroactively for the effect of par value change and stock dividend on June 27, 2025 and September 18, 2024, respectively. The basic and diluted earnings per share adjusted retrospectively for the nine months ended September 30, 2024 were as follows:
Unit: NT$ Per Share
| Before Retrospective Adjustment | After Retrospective Adjustment | |||
|---|---|---|---|---|
| For the Three Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | |
| Basic earnings per share | $ 18.32 | $ 57.36 | $ 1.83 | $ 5.74 |
| Diluted earnings per share | $ 18.31 | $ 57.31 | $ 1.83 | $ 5.73 |
The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:
Net Profit for the Period
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Profit for the period attributable to owners of the Company | $ 1,152,069 | $ 1,811,190 | $ 4,886,098 | $ 5,667,528 |
Number of Shares
Unit: Thousand Shares
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Weighted average number of ordinary shares used in the computation of basic earnings per share | 989,147 | 988,427 | 989,147 | 988,075 |
| Effect of potentially dilutive ordinary shares | ||||
| Compensation of employees | 784 | 650 | 993 | 800 |
| Weighted average number of ordinary shares used in the computation of diluted earnings per share | 989,931 | 989,077 | 990,140 | 988,875 |
If the Group offered to settle the compensation or bonuses paid to employees in cash or shares, then the Group should assume that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.
25. CAPITAL MANAGEMENT
The Group manages its capital to ensure that it has the necessary financial resources and operating plans to meet the working capital, capital expenditure and debt repayment requirements for the next 12 months, and that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
Key management personnel of the Group review the capital structure on a regular basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders, the number of new shares issued or repurchased, and/or the amount of new debt issued or existing debt redeemed.
26. FINANCIAL INSTRUMENTS
a. Fair value of financial instruments that are not measured at fair value
In the management's opinion, the carrying value of financial instruments that are not measured at fair value approximates the fair value of the financial instruments.
b. Fair value of financial instruments that are measured at fair value on a recurring basis
1) Fair value hierarchy
September 30, 2025
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial assets at FVTOCI | ||||
| Investments in equity | ||||
| instruments | $ - | $ - | $ 64,036 | $ 64,036 |
| December 31, 2024 | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Financial assets at FVTOCI | ||||
| Investments in equity | ||||
| instruments | $ - | $ - | $ 66,642 | $ 66,642 |
| September 30, 2024 | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Financial assets at FVTOCI | ||||
| Investments in equity | ||||
| instruments | $ - | $ - | $ 65,194 | $ 65,194 |
There were no transfers between Levels 1 and 2 for the nine months ended September 30, 2025 and 2024.
2) Reconciliation of Level 3 fair value measurements of financial instruments
For the nine months ended September 30, 2025
| Financial Assets | Financial Assets at FVTOCI
Equity Instruments |
| --- | --- |
| Balance on January 1 | $ 66,642 |
| Effect of exchange rate | (2,606) |
| Balance on September 30 | $ 64,036 |
| For the nine months ended September 30, 2024 | |
| Financial Assets | Financial Assets at FVTOCI
Equity Instruments |
| Balance on January 1 | $ - |
| Reclassification | 64,212 |
| Effect of exchange rate | 982 |
| Balance on September 30 | $ 65,194 |
3) Valuation techniques and inputs applied for Level 3 fair value measurement
As of September 30, 2024, the required input cost of evaluating domestic and foreign unlisted shares is not economical, so the Group used the recent transaction price net value of investment target company as the basis for evaluation. The fair value of unlisted equity investments, both domestic and overseas, amounted to $66,642 thousand as of December 31, 2024. These investments were valued using the asset-based approach. In assessing the value, the Company considered the nature of the investees, referencing their financial condition, operating performance, and net asset value, while also applying liquidity and control premium or discount adjustments based on the level of control over the investees. According to management's assessment, there was no material change in fair value as of September 30, 2025, compared to December 31, 2024.
c. Categories of financial instruments
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Financial assets | |||
| Financial assets at amortized cost (Note 1) | $ 13,763,029 | $ 15,459,742 | $ 13,949,827 |
| Financial assets at FVTOCI | |||
| Equity instruments | 64,036 | 66,642 | 65,194 |
| Financial liabilities | |||
| Financial liabilities at amortized cost (Note 2) | 1,607,880 | 3,322,684 | 3,430,088 |
1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable and accounts receivable, accounts receivable from related parties, other receivables, other current assets (pledged deposits and refundable deposits) and other non-current assets (refundable deposits).
2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, notes and accounts payable, other payables and other current liabilities (guarantee deposit received).
d. Financial risk management objectives and policies
The Group's major financial instruments include cash and cash equivalents, equity instruments, debt investments, accounts receivable, borrowings, accounts payable and bonds payable. The Group's Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk and interest risk), credit risk and liquidity risk.
The Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Group's policies approved by the board of directors, which provided written principles on foreign currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
- 32 -
- 33 -
1) Market risk
The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).
There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.
a) Foreign currency risk
Several subsidiaries have foreign currency sales and purchases, which exposes the Group to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilizing foreign exchange forward contracts.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Notes 30.
Sensitivity analysis
The Group is mainly exposed to the USD, EUR and HKD.
The following table details the Group’s sensitivity to a 1% increase and decrease in the RMB and New Taiwan dollar (i.e., the individual functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. A positive number below indicates a decrease in pre-tax profit and other equity associated with the RMB and New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the RMB against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.
| Impact on Profit or Loss | ||
|---|---|---|
| For the Nine Months Ended September 30 | ||
| Currency Type | 2025 | 2024 |
| USD | $ 98,333 | $ 79,667 |
| EUR | 11,920 | - |
| HKD | (7,472) | - |
The above impact was mainly attributable to the exposure on outstanding receivables, payables and borrowings in USD, EUR and HKD which were not hedged at the end of the reporting period.
In the management’s opinion, the sensitivity analysis is not representative of the inherent foreign currency risk because the exposure at the end of the reporting period does not reflect the exposure during the period.
b) Interest rate risk
The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates.
The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Fair value interest rate risk | |||
| Financial assets | $ 9,071,382 | $ 9,663,949 | $ 9,388,634 |
| Cash flow interest rate risk | |||
| Financial assets | 3,496,923 | 4,781,818 | 3,488,800 |
| Financial liabilities | 747,154 | - | - |
Sensitivity analysis
The sensitivity analysis below was based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the nine months ended September 30, 2025 and 2024 would have increased/decreased by $20,623 thousand and $26,166 thousand, which was mainly attributable to the Group’s exposure to interest rates of its variable-rate bank deposits.
2) Credit risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation, could be equal to the carrying amount of the respective recognized financial assets as stated in the balance sheets.
In order to mitigate credit risk, the management of the Group assigns a team responsible for credit facilities, credit approvals and other monitoring procedures to ensure that appropriate actions are taken for the recovery of overdue receivables. In addition, the Group reviews the recoverable amount of the receivables on the date of the financial statements to ensure that receivables that cannot be recovered have been provided with allowance for impairment loss. Accordingly, the management reckons that the credit risk of the Group has been significantly reduced.
Accounts receivable cover a wide range of customers and are spread across different industries and geographic regions. The Company continuously evaluates the financial position of customers.
In addition, since the counterparty of current funds are financial institutions and companies with good credit ratings, the credit risk is limited.
The Group transacts with a large number of unrelated customers and, thus, no concentration of credit risk was observed.
- 34 -
3) Liquidity risk
The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.
The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 2025, December 31, 2024 and September 30, 2024, the Group had available unutilized short-term bank loan facilities as set out in (b) below.
a) Liquidity and interest rate risk tables for non-derivative financial liabilities
The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.
To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.
September 30, 2025
| On Demand or Less than 1 Month | 1-3 Months | 3 Months to 1 Year | 1-5 Years | |
|---|---|---|---|---|
| Non-derivative financial liabilities | ||||
| Non-interest bearing | $ 327,401 | $ 78,342 | $ 454,983 | $ - |
| Floating rate instrument | 184,514 | - | 562,640 | - |
| $ 511,915 | $ 78,342 | $ 1,017,623 | $ - | |
| December 31, 2024 | ||||
| On Demand or Less than 1 Month | 1-3 Months | 3 Months to 1 Year | 1-5 Years | |
| Non-derivative financial liabilities | ||||
| Non-interest bearing | $ 2,590,369 | $ 67,350 | $ 664,965 | $ - |
September 30, 2024
| On Demand or Less than 1 Month | 1-3 Months | 3 Months to 1 Year | 1-5 Years | |
|---|---|---|---|---|
| Non-derivative financial liabilities | ||||
| Non-interest bearing | $ 793,648 | $ 99,708 | $ 2,536,732 | $ - |
The amount included above for variable interest rate instruments for non-derivative financial liabilities were subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the period.
b) Financing facilities
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Unsecured bank loan facilities which may be extended by mutual agreements: | |||
| Amount used | $ 747,154 | $ - | $ - |
| Amount unused | 5,834,480 | 746,300 | 760,115 |
| $ 6,581,634 | $ 746,300 | $ 760,115 | |
| Secured bank loan facilities which may be extended by mutual agreements: | |||
| Amount unused | $ 1,723,110 | $ 1,071,657 | $ 1,289,556 |
- TRANSACTIONS WITH RELATED PARTIES
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. In addition to those disclosed in other notes, transactions between the Group and other related parties are disclosed below:
a. Related party name and category
| Related Party Name | Related Party Category |
|---|---|
| Global Filter S.A (GF) | Substantive related party |
| Tabacalera Hernandarias S.A. (TH) | Substantive related party |
| LA/ES LAMINATI ESTRUSI TERMOPLASTICI S.R.L. (LA/ES) | Substantive related party (Note 1) |
| Eleung Limited (ELEUNG) | Substantive related party (Note 1) |
| Yan Kuangmeihua Supply And Marketing Limited Company | Substantive related party (Note 2) |
| Yankuang Lunan Chemical Co., Ltd. (Yankuang Lunan Chemical) | Substantive related party (shareholder of a subsidiary) |
| (Note 2) | |
| (Continued) |
Related Party Name
Related Party Category
Zhongshan Taly Plastic Extrusion Co., Ltd.
Jinan Hezhen Industry And Trade CO., Ltd.
Wang, Chung-Hsuan
Wang, Ke-Chang
Acetek New Materials (Shandong) Co., Ltd.
Substantive related party
Substantive related party
Substantive related party
Key management
Associate
(Concluded)
Note 1: Due to the Group’s resignation from the board of ELEUNG and the sale of 15% of its shares to LA/ES and ELEUNG, it lost significant influence, LA/ES and ELEUNG have not been considered related parties since June 28, 2024.
Note 2: Jinan Acetate Chemical acquired 8% additional ownership interest in Acetek Material from Yankuang Lunan Chemical. Hence, transactions with Yankuang Kuangmeihua and Yankuang Lunan Chemical were not related party transactions since November 2023.
b. Operating revenue
| Line Item | Related Party Category/Name | For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||
|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||
| Sales | Substantive related party | $ 39,469 | $ 41,770 | $ 98,840 | $ 199,579 |
| Associate | 38,125 | - | 74,036 | - | |
| $ 77,594 | $ 41,770 | $ 172,876 | $ 199,579 |
The Group’s sales prices to related parties are consistent with those offered to ordinary customers, and the collection periods from substantial related parties are comparable to those for regular customers. For the associate, the Group’s payment terms are 180 days.
c. Purchases of goods
| Line Item | Related Party Category/Name | For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||
|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||
| Purchases of goods | Substantive related party | $ - | $ 97 | $ - | $ 13,779 |
| Associate | 44 | - | 44 | - | |
| $ 44 | $ 97 | $ 44 | $ 13,779 |
The purchase prices in related-party transactions were not significantly different from those for transactions with third parties.
d. Receivables from related parties
| Line Item | Related Party Category/Name | September 30, 2025 | December 31, 2024 | September 30, 2024 |
|---|---|---|---|---|
| Accounts receivable | Substantive related party | |||
| GF | $ 14,218 | $ 6,079 | $ 5,889 | |
| TH | 27,469 | - | 8,995 | |
| Other | - | 15,082 | - | |
| 41,687 | 21,161 | 14,884 | ||
| Associate | 49,915 | - | - | |
| $ 91,602 | $ 21,161 | $ 14,884 | ||
| Other receivables | Substantive related party | |||
| ELEUNG | $ - | $ - | $ 31,321 | |
| LA/ES | - | - | 11,390 | |
| $ - | $ - | $ 42,711 |
The outstanding receivables from related parties were unsecured. No impairment loss was recognized on accounts receivable from related parties as of September 30, 2025, December 31, 2024 and September 30, 2024.
e. Payables to related parties
| Line Item | Related Party Category/Name | September 30, 2025 |
|---|---|---|
| Accounts payable | Associate | $ 184 |
The outstanding payables to related parties were unsecured.
f. Refundable deposits (classified as other current assets)
| Related Party Category/Name | September 30, 2024 |
|---|---|
| Substantive related party | $ 452 |
g. Disposal of financial assets
For the nine months ended September 30, 2024
| Related Party Category/Name | Line Item | Number of Shares | Underlying Assets | Proceeds |
|---|---|---|---|---|
| Substantive related party/ LA/ES | Investments accounted for using the equity method | 146,667 | Shares of ELEUNG | $ 61,562 |
| Substantive related party/ ELEUNG | Investments accounted for using the equity method | 53,333 | Shares of ELEUNG | 22,386 |
| $ 83,948 |
For the nine months ended September 30, 2024, the gain recognized from a realized profit of $52,527 thousand (proceeds of $83,948 thousand less the carrying amount of the interest disposed of amounting to $31,421 thousand) and an unrealized profit of $38,536 thousand (fair value less the carrying amount of the 10% retained interest). Please refer to Note 12 for details on the sale.
h. Other transactions with related parties
| Line Item | Related Party Category/Name | For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||
|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||
| Operating expense - rental | Key management | $ 90 | $ 90 | $ 270 | $ 270 |
| Substantive related party | 330 | - | 880 | - | |
| $ 420 | $ 90 | $ 1,150 | $ 270 | ||
| Other revenue - rental | Associate | $ 473 | $ - | $ 634 | $ - |
| Other revenue | Associate | $ 590 | $ - | $ 922 | $ - |
The key management and the substantive related party provides rental service to the Company, the rental is based on the rental level of similar assets, and it pays a fixed lease payment on a monthly basis according to the lease contract.
The associate leases the Company's plant and pays utility expenses, the rental is based on the rental level of similar assets, and it pays a fixed lease payment on a monthly basis according to the lease contract.
i. Remuneration of key management personnel
| For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Short-term employee benefits | $ 4,990 | $ 84,245 | $ 16,443 | $ 93,912 |
| Post-employment benefits | 89 | 3 | 245 | 145 |
| $ 5,079 | $ 84,248 | $ 16,688 | $ 94,057 |
The remunerations of directors and key executives were determined by the remuneration committee on the basis of individual performance and market trends.
- 40 -
28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY
The following assets were provided as collateral for bank loan facilities, letters of credit bank’s acceptance bills:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Financial assets at amortized cost | $ - | $ 9,409 | $ 3,970 |
| Pledge deposits (classified as other current assets) | 79,052 | 50,470 | 63,723 |
| Property, plant and equipment, net | 31,031 | 42,252 | 42,252 |
| Right-of-use assets | 10,884 | 98,728 | 98,728 |
| $ 120,967 | $ 200,859 | $ 208,673 |
29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
In addition to those disclosed in other notes, significant commitments and contingencies of the Group were as follows:
As of September 30, 2025, December 31, 2024 and September 30, 2024, unused letters of credit for purchases of raw materials and machinery and equipment amounted to approximately $204,263 thousand, $268,071 thousand and $203,703 thousand, respectively.
Unrecognized commitments were as follows:
| September 30, 2025 | December 31, 2024 | September 30, 2024 | |
|---|---|---|---|
| Payments for property, plant and equipment | $ 69,609 | $ 67,215 | $ 79,969 |
30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
The Group entities’ significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:
September 30, 2025
| Foreign Currencies | Exchange Rate | Carrying Amount | |
|---|---|---|---|
| Financial assets | |||
| Monetary items | |||
| USD | $ 303,704 | 7.128 (USD:RMB) | $ 9,216,692 |
| USD | 24,712 | 30.45 (USD:NTD) | 752,371 |
| EUR | 33,484 | 8.3351 (EUR:RMB) | 1,192,001 |
| Financial liabilities | |||
| Monetary items | |||
| USD | 4,474 | 7.128 (USD:RMB) | 135,764 |
| HKD | 190,941 | 3.913 (HKD:NTD) | 747,154 |
December 31, 2024
| Foreign Currencies | Exchange Rate | Carrying Amount | |
|---|---|---|---|
| Financial assets | |||
| Monetary items | |||
| USD | $ 141,104 | 7.321 (USD:RMB) | $ 4,551,735 |
| USD | 96,799 | 32.79 (USD:NTD) | 3,173,563 |
| Financial liabilities | |||
| Monetary items | |||
| USD | 7,110 | 7.321 (USD:RMB) | 228,855 |
| September 30, 2024 | |||
| Foreign Currencies | Exchange Rate | Carrying Amount | |
| Financial assets | |||
| Monetary items | |||
| USD | $ 144,792 | 6.998 (USD:RMB) | $ 4,589,480 |
| USD | 109,776 | 31.65 (USD:NTD) | 3,474,400 |
| Financial liabilities | |||
| Monetary items | |||
| USD | 3,069 | 6.998 (USD:RMB) | 97,138 |
The significant (realized and unrealized) foreign exchange gains (losses) were as follows:
| For the Three Months Ended September 30 | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Foreign Currency | Exchange Rate | Net Foreign Exchange Gains (Losses) | Exchange Rate | Net Foreign Exchange Gains (Losses) |
| USD | 7.1193 (USD:RMB) | $ (107,753) | 7.1150 (USD:RMB) | $ (118,503) |
| Other | - | 29,793 | - | (28,462) |
| $ (77,960) | $ (146,965) | |||
| For the Nine Months Ended September 30 | ||||
| --- | --- | --- | --- | --- |
| 2025 | 2024 | |||
| Foreign Currency | Exchange Rate | Net Foreign Exchange Gains (Losses) | Exchange Rate | Net Foreign Exchange Gains (Losses) |
| USD | 7.1280 (USD:RMB) | $ (131,280) | 7.1085 (USD:RMB) | $ (5,388) |
| Other | - | 58,432 | - | (10,411) |
| $ (72,848) | $ (15,799) |
31. SEPARATELY DISCLOSED ITEMS
a. Information on significant transactions and investees:
1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Significant marketable securities held (excluding investment in subsidiaries, associates and joint ventures). (Table 3)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)
6) Intercompany relationships and significant intercompany transactions. (Table 6)
b. Information on investees. (Table 7)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 8)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (None)
a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
c) The amount of property transactions and the amount of the resultant gains or losses.
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.
- 42 -
- 43 -
32. SEGMENT INFORMATION
Information reported to the chief operating decision maker for resource allocation and assessment of segment performance focuses on the types of goods and services to be delivered. The Group focuses its business mainly on the manufacturing and sales of cellulose acetate products. According to IFRS 8, the Group has organized management and resource allocation in a single department. The operating activities are related to R&D and manufacturing of acetate products, and the operating income of the operating activities accounts for more than 90% of the total revenue.
a. Segment revenue
The following is an analysis of the Group’s revenue from continuing operations from its major products and services.
| For the Nine Months Ended September 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Cellulose acetate tow | $ 9,002,189 | $ 10,045,978 |
| Cellulose acetate | 1,459,268 | 1,128,381 |
| Cellulose anhydride | - | 6,134 |
| $ 10,461,457 | $ 11,180,493 |
b. Total segment assets and liabilities
The Group has no key operational personnel to monitor segment performance, and thus, the amounts of segment assets and liabilities are not disclosed.
TABLE I
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
FINANCING PROVIDED TO OTHERS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| No. | Lender | Borrower | Financial Statement Account | Related Part† | Highest Balance for the Period (Note 1) | Ending Balance (Note 1) | Actual Borrowing Amount | Interest Rate (%) | Nature of Financing | Business Transaction Amount | Reasons for Short-term Financing | Allowance for Impairment Loss | Collateral | Financing Limit for Each Borrower | Aggregate Financing Limit | Note | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Value | ||||||||||||||||
| 1 | Jinan Acetate Chemical | Jinan Acetate Chemical Co., Ltd. | Other receivables | Yes | $ 60,000 | ||||||||||||
| (US$ 2,000 thousand) | $ 60,000 | ||||||||||||||||
| (US$ 2,000 thousand) | $ - | 1.5 | Short-term financing | $ - | Operation turnover | $ - | - | - | $ 3,783,695 | $ 5,044,926 | Note 3 |
Note 1: The maximum balance for the period and ending balance represent the amounts approved by the board of directors.
Note 2: For foreign subsidiaries whose voting shares are 100% owned, directly or indirectly, by the Company, when the funds are used for financing, the total amount shall not exceed 100% of the net worth of the lender. The total amount for lending to a company for funding shall not exceed 30% of the net worth of the Company.
Note 3: For companies with short-term funding needs, the amount for lending to a company shall not exceed 30% of the net worth of the lender. The total amount for lending shall not exceed 40% of the net worth of the Company.
Note 4: The limit on the amount for lending is calculated according to the recent financial statements reviewed by the Company's independent accountants.
Note 5: Spot buy/sell average exchange rates of Bank of Taiwan on September 30, 2025 are used to estimate the amount in New Taiwan dollar.
TABLE 2
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| No. (Note 1) | Endorser/Guarantor | Endorsee/Guarantee Receiver | Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3) | Maximum Amount Endorsed/ Guaranteed During the Period | Outstanding Endorsement/ Guarantee at the End of the Period | Actual Borrowing Amount | Amount Endorsed/ Guaranteed by Collaterals | Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%) | Aggregate Endorsement/ Guarantee Limit (Note 3) | Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries | Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent | Endorsement/ Guarantee Given on Behalf of Companies in Mainland China | Note | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Name | Relationship | |||||||||||||
| 0 | Jinan Acetate Chemical Co., Ltd. | Jinan Acetate Chemical | b | $ 44,502,138 | $ 1,182,310 | $ 947,405 | $ - | $ - | 5.32 | $ 44,502,138 | Y | N | Y | Notes 4 and 5 |
| Acetek Material | b | 5,340,257 | 487,990 | 338,505 | 76,476 | - | 1.90 | 17,800,855 | Y | N | Y | Notes 4 and 5 | ||
| Acetek Momentum | b | 44,502,138 | 85,420 | 42,710 | - | - | 0.24 | 44,502,138 | Y | N | Y | Note 4 | ||
| Acetek Environmental | b | 44,502,138 | 128,130 | 128,130 | - | - | 0.72 | 44,502,138 | Y | N | Y | Note 4 | ||
| Acetek Aspiration | b | 44,502,138 | 128,130 | 128,130 | 50,984 | - | 0.72 | 44,502,138 | Y | N | Y | Note 4 | ||
| 1 | Jinan Acetate Chemical | Jinan Acetate Chemical Co., Ltd. | c | 2,522,463 | 152,225 | 152,225 | - | - | 1.21 | 6,306,158 | N | Y | N | - |
| Acetek Material | b | 2,522,463 | 91,335 | 91,335 | 91,335 | - | 0.72 | 6,306,158 | Y | N | Y | - | ||
| Acetek Environmental | d | 2,522,463 | 268,856 | 268,856 | - | - | 2.13 | 6,306,158 | N | N | Y | - | ||
| Acetek Aspiration | d | 2,522,463 | 542,530 | 542,530 | - | - | 4.30 | 6,306,158 | Y | N | Y | - |
Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:
a. "0" for the Company.
b. Subsidiaries are numbered from "1".
Note 2: Relationships between the endorser/guarantor and the endorsee/guarantee receiver:
a. The Company in relation to business.
b. The Company which holds, directly or indirectly, over 50% of the voting shares.
c. The Company which holds, directly or indirectly, over 50% of the shares.
d. The Company which holds, directly or indirectly, over 90% of the voting shares.
e. Based on contract projects among their peers in accordance with contract provisions which need mutual insurance company.
f. Owing to the joint venture funded by the shareholders on its endorsement of its holding company.
g. Compliance guarantees for the performance of the sales contracts of pre-sold homes within the same industry in accordance with the Consumer Protection Law.
Note 3: The calculation for the amount of endorsement is as follows:
a. The total amount of guarantee provided by the Company to any entity whose voting shares are 100% owned, directly and indirectly, shall not exceed two-hundred-and-fifty percent (250%) of the Company's net worth.
b. The total amount of guarantee provided by the Company to any individual entity shall not exceed ten percent (30%) of the Company's net worth. Except for the guarantee provided to any entity whose voting shares are 100% owned, the total balance of guarantee shall not exceed the Company's total net worth.
c. The total amount of guarantee provided by Jinan Acetate Chemical shall not exceed fifty percent (50%) of its net worth. The total amount of guarantee provided to any individual entity shall not exceed twenty percent (20%) of its net worth.
Note 4: In the joint endorsement and guarantee case involving the Company, the endorsed and guaranteed companies include Jinan Acetate Chemical with a balance of RMB30,000,000, Acetek Material with a balance of RMB30,000,000, and Acetek Momentum with a balance of RMB10,000,000, for a total of three companies. The total amount utilized by these three companies shall not exceed RMB30,000,000. Due to the renewal of the credit limit, the Board of Directors of the Company resolved on March 5, 2025, to provide joint endorsement guarantees, resulting in a duplication in the calculation of the maximum remaining endorsement guarantee balance. Furthermore, on May 2025, Acetek Aspiration was added as an endorsed and guaranteed company with a balance of RMB30,000,000, and on August 2025, Acetek Environmental was added as an endorsed and guaranteed company with a balance of RMB30,000,000, but the total amount utilized shall remain not exceeding RMB30,000,000.
Note 5: On May 10, 2024, the Board of Directors resolved to provide endorsements and guarantees for its subsidiaries (Jinan Acetate Chemical and Acetek Material). Due to adjustments in the credit limit, the Company's Board of Directors further resolved on August 23, 2024, to provide joint endorsements and guarantees for the subsidiaries. The endorsed and guaranteed parties include Jinan Acetate Chemical with a balance of RMB35 million and Acetek Material with a balance of RMB35 million, with the total amount for both companies not exceeding RMB35 million, due to the renewal of the credit facility, the joint guarantee was approved by the Company's Board of Directors on August 22, 2025, causing the maximum endorsed guarantee balance in this announcement to be counted twice in accordance with regulations.
Note 6: The limit on the amount for endorsement guarantee is calculated according to the recent financial statements reviewed by the Company's independent accountants.
Note 7: Spot buy/sell average exchange rates of Bank of Taiwan on September 30, 2025 are used to estimate the amount in New Taiwan dollar.
TABLE 3
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
SIGNIFICANT MARKETABLE SECURITIES HELD
SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Holding Company Name | Type and Name of Marketable Securities (Note 1) | Relationship with the Holding Company (Note 2) | Financial Statement Account | September 30, 2025 | Note (Note 4) | |||
|---|---|---|---|---|---|---|---|---|
| Number of Shares | Carrying Amount (Note 3) | Percentage of Ownership (%) | Fair Value | |||||
| Acetek Chemicals | Common stocks | |||||||
| ELEUNG | - | Financial assets at fair value through other comprehensive income - non-current | 133 | $ 53,775 | 11 | $ 53,775 | - | |
| Jinan Acetate Chemical Co., Ltd. | HOLYARD | - | Financial assets at fair value through other comprehensive income - non-current | 3,153 | 10,261 | 19 | 10,261 | - |
Note 1: The marketable securities in this table are related to shares, bonds, beneficiary certificates and short-term investments of IFRS 9 "Financial Instruments."
Note 2: If the issuer of marketable securities is not a related party, the column is not required to be filled in.
Note 3: The carrying amount of the financial assets at fair value through profit or loss is shown as the carrying amount after adjustment for fair value and net of allowance for losses. The carrying amount of the financial assets that is not measured at fair value is the carrying amount of the amortized cost (net of allowance for losses).
Note 4: If the marketable securities listed are subject to restrictions due to the provision of guarantees, pledged borrowings or other contractual restrictions, the number of shares provided as guarantees or pledged borrowings, the amounts of guarantees or pledged borrowings and the restrictions on their use should be indicated in the note column.
Note 5: The information about subsidiaries and associates ventures, please refer to Tables 7 and 8.
TABLE 4
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Buyer | Related Party | Relationship | Transaction Details | Abnormal Transaction (Note 1) | Notes/Accounts Receivable (Payable) | Notes | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Purchase/Sales | Amount | % to Total | Payment Terms | Unit Price | Payment Terms | Ending Balance | % to Total | ||||
| Jinan Acetate Chemical | Acetek Material | Subsidiary | Purchase | $ 502,715 | 11 | Same as those for unrelated parties | No significant difference | No significant difference | $ - | - | Note 2 |
| Acetek Material | Jinan Acetate Chemical | Parent company | Sales | (502,715) | (4) | Same as those for unrelated parties | No significant difference | No significant difference | - | - | Note 3 |
| Acetek Momentum | Acetek Material | Brother-sister corporation | Sales | (240,314) | (2) | Same as those for unrelated parties | No significant difference | No significant difference | 105,884 | 6 | - |
| Acetek Material | Acetek Momentum | Brother-sister corporation | Purchase | 240,314 | 5 | Same as those for unrelated parties | No significant difference | No significant difference | (105,884) | (12) | - |
| Jinan Acetate Chemical | Acetek Environmental | Brother-sister corporation | Purchase | 238,760 | 5 | Same as those for unrelated parties | No significant difference | No significant difference | (434,489) | (48) | - |
| Acetek Environmental | Jinan Acetate Chemical | Brother-sister corporation | Sales | (238,760) | (2) | Same as those for unrelated parties | No significant difference | No significant difference | 434,489 | 25 | - |
| Jinan Acetate Chemical | Brother-sister corporation | Purchase | 331,522 | 7 | Same as those for unrelated parties | No significant difference | No significant difference | - | - | - | |
| Jinan Acetate Chemical | Acetek Environmental | Brother-sister corporation | Sales | (331,522) | (3) | Same as those for unrelated parties | No significant difference | No significant difference | - | - | - |
| Acetek Aspiration | Brother-sister corporation | Purchase | 183,648 | 4 | Same as those for unrelated parties | No significant difference | No significant difference | (60,611) | (7) | - | |
| Acetek Aspiration | Jinan Acetate Chemical | Brother-sister corporation | Sales | (183,648) | (2) | Same as those for unrelated parties | No significant difference | No significant difference | 60,611 | 4 | - |
| Acetek Material | Jinan Acetate Chemical | Parent company | Purchase | 106,354 | 2 | Same as those for unrelated parties | No significant difference | No significant difference | - | - | - |
| Jinan Acetate Chemical | Acetek Material | Subsidiary | Sales | (106,354) | (1) | Same as those for unrelated parties | No significant difference | No significant difference | - | - | - |
Note 1: Differences in the condition of transactions between related parties and general customers should be noted on the table.
Note 2: The prepayment of $163,137 thousand; purchase prices have no significant difference from general customers.
Note 3: The advance receipt of $163,137 thousand; purchase prices have no significant difference from general customers.
Note 4: Actual capital amount is the actual amount from the parent company, issuer of no par stock or par value stock less than $10 New Taiwan dollar shall follow the actual capital amount as 20% of transaction amount rule; equity is calculated at 10% of the equity in the parent company's balance sheet.
Note 5: The transactions between the Company and investee companies have already been eliminated in the preparation of the consolidated financial statements.
TABLE 5
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Company Name | Related Party | Relationship | Ending Balance | Turnover Rate | Overdue | Amount Received in Subsequent Period | Allowance for Impairment Loss | Note | |
|---|---|---|---|---|---|---|---|---|---|
| Amount | Actions Taken | ||||||||
| My Parents | Jinan Acetate Chemical | Parent-subsidiary | Other receivables $ 975,844 | - | $ - | - | $ - | $ - | Notes 1 and 2 |
| Acetek Environmental | Jinan Acetate Chemical | Brother-sister corporation | Account receivables 434,489 | 0.95 | - | - | - | - | Note 1 |
| Acetek Momentum | Acetek Material | Brother-sister corporation | Account receivables 105,884 | 2.53 | - | - | - | - | Note 1 |
Note 1: All transactions listed in the table have been eliminated in the preparation of the consolidated statements.
Note 2: The dividends receivable of $975,844 thousand.
TABLE 6
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| No. (Note 1) | Investee Company | Counterparty | Relationship (Note 2) | Transaction Details | |||
|---|---|---|---|---|---|---|---|
| Financial Statement Account | Amount | Payment Terms | % to Total Sales or Assets (Note 3) | ||||
| 1 | My Parents | Jinan Acetate Chemical | 3 | Other non-current liabilities | $ 344,135 | In accordance with mutual contracts | 2 |
| Jinan Acetate Chemical | 3 | Other receivables | 975,884 | In accordance with mutual contracts | 5 | ||
| 2 | Jinan Acetate Chemical | Acetek Material | 3 | Prepayments | 163,137 | In accordance with mutual contracts | 1 |
| Acetek Material | 3 | Purchases | 502,715 | In accordance with mutual contracts | 5 | ||
| Acetek Environmental | 3 | Purchases | 238,760 | In accordance with mutual contracts | 2 | ||
| Acetek Environmental | 3 | Payables | 434,489 | In accordance with mutual contracts | 2 | ||
| Acetek Aspiration | 3 | Purchase | 183,648 | In accordance with mutual contracts | 1 | ||
| 3 | Acetek Material | Acetek Momentum | 3 | Purchases | 240,314 | In accordance with mutual contracts | 2 |
| Acetek Momentum | 3 | Payables | 105,884 | In accordance with mutual contracts | 1 | ||
| Jinan Acetate Chemical | 3 | Purchase | 106,354 | In accordance with mutual contracts | 1 | ||
| 4 | Acetek Environmental | Jinan Acetate Chemical | 3 | Purchases | 331,522 | In accordance with mutual contracts | 3 |
Note 1: Companies are identified by number, as follows:
a. "0" represents the parent company.
b. "1" represents the subsidiary.
Note 2: The flow of transactions is as follows:
a. 1 - from the parent company to the subsidiary.
b. 2 - from the subsidiary to the parent company.
c. 3 - between subsidiaries.
Note 3: Percentage of consolidated operating revenues or consolidated total assets: If the account is in the balance sheet, it was calculated by dividing the ending balance by the consolidated total assets; if the account is in the income statement, it was calculated by dividing the interim cumulative balance by the consolidated operating revenue.
Note 4: The important transactions listed accord with the materiality principle of the Company.
Note 5: All transactions listed in the table have been eliminated in the preparation of the consolidated statements.
TABLE 7
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
INFORMATION ON INVESTEES
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Investor Company | Investee Company | Location | Main Business and Product | Original Investment Amount | As of September 30, 2025 | Net Income of the Investee | Share of Profit | Note | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2025 | December 31, 2024 | Shares | % | Carrying Amount | |||||||
| Jinan Acetate Chemical Co., Ltd. | My Parents | Hong Kong | Investments | $ 974,921 | $ 974,921 | (Note 2) | 100 | $ 17,835,029 | |||
| (Note 1) | $ 4,922,699 | $ 4,922,699 | |||||||||
| (Note 1) | - | ||||||||||
| Acetek SG | Singapore | Investments | - | - | 1 | 100 | - | - | - | - | |
| My Parents | Acetek Chemical | Hong Kong | Investments | 39,196 | 39,196 | (Note 2) | 80 | 65,729 | |||
| (Note 1) | 671 | 537 | |||||||||
| (Note 1) | - |
Note 1: All eliminated at the time the consolidated financial statements are prepared.
Note 2: The investee company is limited and has no shares.
Note 3: Information on investments in mainland China, please refer to Table 8.
TABLE 8
JINAN ACETATE CHEMICAL CO., LTD. AND SUBSIDIARIES
INFORMATION ON INVESTMENTS IN MAINLAND CHINA
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Investee Company | Main Businesses and Products | Paid-in Capital | Method of Investment (Note 1) | Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 | Remittance of Funds | Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2025 | Net Income (Loss) of the Investee | Ownership of Direct or Indirect Investment | Investment Gain (Loss) (Note 2) | Carrying Amount as of September 30, 2025 | Accumulated Repatriation of Investment Income as of September 30, 2025 | Note | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Outward | Inward | ||||||||||||
| Jinan Acetate Chemical | Manufacturing and sales of cellulose acetate tow | $ 3,031,898 (RMB 693,296 thousand) | c | $ - | $ - | $ - | $ - | $ 4,850,057 | 100 | $ 4,850,057 (Note 2 b (2)) | $ 12,484,186 (Note 4) | $ - | - |
| Acetek Material | Manufacturing and sales of cellulose acetate | 797,492 (RMB 176,000 thousand) | c | - | - | - | - | 139,859 | 88 | 135,228 (Note 2 b (2)) | 1,123,177 (Note 4) | - | Note 3 |
| Acetek Momentum | Manufacturing and sales of cellulose anhydride | 394,799 (RMB 91,103 thousand) | c | - | - | - | - | 43,157 | 100 | 43,157 (Note 2 b (2)) | 464,592 (Note 4) | - | - |
| Acetek Environmental | Manufacturing and sales of cellulose acetate fiber | 1,104,579 (RMB 248,897 thousand) | c | - | - | - | - | 67,849 | 100 | 67,849 (Note 2 b (2)) | 1,378,016 (Note 4) | - | - |
| Acetek Aspiration Trading | Sales of cellulose acetate | 4 (RMB 1 thousand) | c | - | - | - | - | (2) | 100 | (2) (Note 2 b (2)) | 405 (Note 4) | - | - |
| Acetek Aspiration | Manufacturing and sales of high-performance fibers | 1,950,896 (RMB 443,700 thousand) | c | - | - | - | - | 163,514 | 100 | 184,004 (Note 2 b (2)) | 2,153,248 (Note 4) | - | Note 3 |
| Acetek Guardian | Manufacturing and sale of hydroxyethyl cellulose ether and specialty cotton cellulose | 562,076 (RMB 128,235 thousand) | c | - | - | - | - | 2,888 | 100 | 2,888 (Note 2 b (2)) | 545,018 (Note 4) | - | - |
| Acetek New Materials Co., Ltd. | Manufacturing and sales of cellulose acetate pellets | 36,209 (RMB 8,000 thousand) | c | - | - | - | - | (3,350) | 40 | (1,340) (Note 2 (2)) | 11,488 | - | - |
| Accumulated Outward Remittance for Investment in Mainland China as of September 30, 2025 | Investment Amounts Authorized by Investment Commission, MOEA | Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA | |||||||||||
| --- | --- | --- | |||||||||||
| $ | $ - | $ - |
Note 1: Investment is divided into the following three categories which can be marked:
a. Direct investment in mainland China.
b. Reinvestment in mainland China companies through the third region (please indicated the third area of investment company).
c. Others.
(Continued)
Note 2: The investment income (loss) recognized in current period:
a. No investment income (loss) has been recognized due to the investment is still in development stage.
b. The investment income (loss) was determined on the following basis:
1) The financial report was reviewed and certified by an international accounting firm in cooperation with accounting firm in the ROC.
2) The financial statements were reviewed by the CPA of the parent company in Taiwan.
3) Others.
Note 3: The realized and unrealized profits and losses among the companies were considered.
Note 4: All eliminated at the time the consolidated financial statements are prepared.
(Concluded)