APEX Science & Engineering Corp.
Parent Company Only Financial Statements and
Independent Auditors' Report
For the Years Ended December 31, 2025 and 2024
(Stock Code: 3052)

Company address: 4F, No.112, Xinmin St., Zhonghe Dist.,
New Taipei City
Tel: (02)2223-4099

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APEX Science & Engineering Corp.
Parent Company Only Financial Statements and Independent Auditor's Report for the
years ended December 31, 2025 and 2024

Contents

Item		Page
I.	Cover	1
II.	Contents	2
III.	Independent Auditors’ Report	3-6
IV.	Parent Company Only Balance Sheet	7-8
V.	Parent Company Only Statements of Comprehensive Income	9
VI.	Parent Company Only Statements of Changes in Equity	10
VII.	Parent Company Only Statements of Cash Flows	11-12
VIII.	Notes to Parent Company Only Financial Statements	13-69
	1. Company development and business scope	13
	2. Approval date and procedure of financial statements	13
	3. Application of newly promulgated and revised criteria and interpretation	13-14
	4. Summary description of crucial accounting policy	15-28
	5. Main source of major accounting judgment, estimate and assumption uncertainty	28
	6. Description of important accounting items	28-57
	7. Transactions of related parties	57-58
	8. Assets in pledge	59
	9. Significant contingent liabilities and outstanding contractual commitments	59-60
	10. Major disaster loss	60
	11. Major subsequent events	60
	12. Others	60-69
	13. Disclosure of notes	69
	14. Operation department information	69
IX.	List of significant accounting items	70-83

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Independent Auditors' Report

(2026)Cai-Shen-Bao-Zi No.25005232

To the Board of Directors and Shareholders of Apex Science & Engineering Corp.:

We have audited the accompanying financial statements of APEX SCIENCE & ENGINEERING CORP. (the Company), which comprise the balance sheet as of Dec. 31, 2025 and 2024, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financing statements present fairly, in all material respects, the financial position of the Company as of Dec. 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinions

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Auditing Standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements Section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended Dec. 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matters of the Company's parent company only financial statements for the year ended Dec. 31 2025 are stated as follows:

Accuracy of Construction Revenue Recognition

Explanation of the matter

Please refer to Notes 4(y), 5(b) and 6(u) for explanation of the accounting policies of construction revenue recognition, significant accounting estimates and relevant items.

The Company's main business items include the engineering-related business, and the construction revenue is recognized according to the stage of completion during the engineering contract period. The degree of completion is determined based on the percentage of costs incurred to date at the end of the reporting period relative to the total estimated costs for each contract. As the aforementioned total estimated costs involve accounting estimates and are therefore subject to uncertainty, and such estimates directly affect the determination of the degree of completion and the recognition of construction revenue, we have identified the accuracy of construction revenue recognition as a key audit matter.

Corresponding audit procedures

We performed the following audit procedures on the particular aspects indicated by key audit matters:

We understood and evaluated the reasonableness of policies and procedures adopted for recognition of construction revenue.
We obtained the newly-increased engineering contract, confirmed the consistency between the total price used to calculate the construction revenue and the contractual stipulation, sampled and inspected the preliminary project budget checklist approved by the project management department and confirmed the consistency in basis used for estimate of the total cost and calculation of the stage of completion.
We verified the evidence documents of major works added or reduced in the corresponding period to confirm that changes in the estimate of the total cost have been recognized appropriately.
We obtained the details of cost invested in the corresponding period, sampled and inspected relevant vouchers, checked them against the items listed in accounts to confirm that the amount of cost used for calculation of the stage of completion is appropriate, and checked the accuracy of the percentage of completion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company's financial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events

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or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our Auditor's Report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

PwC Taiwan

Chen, Ching-Chang

CPA

Liao, Fu-Ming

Financial Supervisory Commission

Approval Number:

Jin-Guan-Zheng-Shen-Zi No. 1060025060

Jin Guang Zheng Shen No. 1090350620

March 11, 2026

APEX Science & Engineering Corp.
Parent Company Only Balance Sheet
For the Years Ended December 31, 2025 and 2024
Unit: NT$1,000

Assets	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Assets
1100	Cash and cash equivalents	6(1)	$ 679,727	6	$ 236,302	3
1136	Financial assets at amortized cost - current	6(2)	137,964	1	350,381	4
1140	Contract assets - current	6(21)	263,844	2	177,650	2
1150	Notes receivable, net	6(3)	2,322	-	975	-
1170	Accounts receivable, net	6(3)	149,921	1	72,964	1
1200	Other accounts receivable	6(4)	2,351,524	20	4,385,280	50
1210	Other accounts receivables from related parties	7	1,345	-	1,950	-
130X	Inventory	6(5) and 8	694,638	6	678,362	8
1410	Prepayments	6(6)	162,475	2	163,007	2
1470	Other current assets	6(7) and 8	6,439,066	55	1,799,545	20
11XX	Total current assets		10,882,826	93	7,866,416	90
Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current	6(8)	72,592	1	76,987	1
1550	Investment accounted for using the equity method	6(9)	581,465	5	489,178	5
1600	Property, plant and equipment	6(10), 7 and 8	84,784	1	82,643	1
1755	Right-of-use assets	6(11)	1,962	-	4,955	-
1760	Investment properties, net	6(12) and 8	63,617	-	64,028	1
1840	Deferred tax assets	6(28)	1,893	-	1,723	-
1900	Other non-current assets	8	15,879	-	170,704	2
15XX	Total non-current assets		822,192	7	890,218	10
1XXX	Total assets		$ 11,705,018	100	$ 8,756,634	100

(To be continued on the next page)

APEX Science & Engineering Corp.
Parent Company Only Balance Sheet
For the Years Ended December 31, 2025 and 2024
Unit: NT$1,000

Liabilities and equity	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Liabilities
2100	Short-term borrowings	6(13)	$ -	-	$ 306,133	3
2130	Contract liabilities - current	6(21)	108,436	1	9,245	-
2150	Notes payable		14,431	-	7,698	-
2170	Accounts payable		147,044	1	106,957	1
2200	Other accounts payable		59,771	1	53,368	1
2230	Current tax liabilities		25,701	-	60,454	1
2280	Lease liabilities - current		1,887	-	3,042	-
2320	Long-term liabilities due within one year or one business cycle	6(15)(16)	1,726,973	15	2,717,803	31
2399	Other current liabilities - others	6(14)	6,106,235	52	1,594,777	18
21XX	Total current liabilities		8,190,478	70	4,859,477	55
Non-current Liabilities
2530	Bonds payable	6(15)	-	-	498,870	6
2570	Deferred tax liabilities	6(28)	54	-	144	-
2580	Lease liabilities - non-current		108	-	1,961	-
2600	Other non-current liabilities		418	-	337	-
25XX	Total non-current liabilities		580	-	501,312	6
2XXX	Total liabilities		8,191,058	70	5,360,789	61
Equity
	Capital Stock	6(18)
3110	Ordinary share capital		2,332,457	20	2,352,457	27
	Capital Surplus	6(19)
3200	Capital Surplus		309,825	2	295,433	3
	Retained Earnings	6(20)
3310	Legal reserve		351,380	3	331,407	4
3320	Special reserve		3,175	-	21,990	-
3350	Unappropriated earnings		780,630	7	674,218	8
	Other Equity
3400	Other Equity		( 7,670 )	-	( 3,175 )	-
3500	Treasury Stock	6(18) and 8	( 255,837 )	( 2 )	( 276,485 )	( 3 )
3XXX	Total equity		3,513,960	30	3,395,845	39
	Significant contingent liabilities and outstanding contractual commitments	9
	Major subsequent events	11
3X2X	Total liabilities and equity		$ 11,705,018	100	$ 8,756,634	100

The accompanying notes are an integral part of the financial report. Please read them together.

Chairman: KUO, KUO-HUA
Manager: KUO, KUO-HUA
Accounting Manager: WU, HSIU-LIN

APEX Science & Engineering Corp.
Parent Company Only Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024

Unit: NT$1,000
(Except for earnings per share)

	Item	Notes	2025		2024
			Amount	%	Amount	%
4000	Operating Revenue	6(21)	$ 1,380,688	100	$ 836,019	100
5000	Operating Costs	6(5)(26)(27) and 7	( 996,174 )	( 72 )	( 524,790 )	( 63 )
5900	Gross Profit		384,514	28	311,229	37
	Operating Expenses	6(26)(27)
6100	Selling and marketing expenses		( 34,569 )	( 3 )	( 37,487 )	( 5 )
6200	General and administrative expenses		( 112,971 )	( 8 )	( 110,658 )	( 13 )
6300	Research and development expenses		( 1,799 )	-	( 2,299 )	-
6000	Total operating expenses		( 149,339 )	( 11 )	( 150,444 )	( 18 )
6900	Operating Income		235,175	17	160,785	19
	Non-operating Income and Expenses
7100	Interest income	6(22)	34,907	3	61,138	7
7010	Other Revenue	6(23) and 7	15,853	1	7,789	1
7020	Other gains and losses	6(24)	( 1,751 )	-	( 356 )	-
7050	Finance costs	6(25)	( 15,738 )	( 1 )	( 20,100 )	( 2 )
7070	Share of profits and losses of subsidiaries, affiliated enterprises and joint ventures recognized by using the equity method	6(9)
7000	Total non-operating income and expenses		4,359	-	36,447	4
7900	Income before Tax		37,630	3	84,918	10
7950	Income tax expenses	6(28)	( 48,612 )	( 4 )	( 45,976 )	( 5 )
8200	Net Income for the current period		$ 224,193	16	$ 199,727	24
	Other comprehensive income
	Items that will not be reclassified subsequently to profit or loss
8316	Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income	6(8)
			($ 1,729 )	-	$ 3,853	-
8330	Share of profits and losses of subsidiaries, affiliated enterprises and joint ventures recognized by using the equity method - Items that will not be reclassified subsequently to profit or loss	6(9)
			( 100 )	-	150	-
	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translating the financial statements of foreign operations	6(9)
8367	Net unrealized gain/loss on debt investments measured at fair value through other comprehensive income	6(8)
			( 2,666 )	-	1,467	-
8300	Other comprehensive income (loss), after tax		($ 4,495 )	-	$ 18,333	2
8500	Total Comprehensive Income		$ 219,698	16	$ 218,060	26
	Basic earnings per share	6(29)
9750	Basic earnings per share		$	1.10	$	0.98
	Diluted earnings per share	6(29)
9850	Diluted earnings per share		$	1.09	$	0.97

The accompanying notes are an integral part of the financial report. Please read them together.

Chairman: KUO, KUO-HUA
Manager: KUO, KUO-HUA
Accounting Manager: WU, HSIU-LIN

APEX Science & Engineering Corp.
Parent Company Only Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024

Unit: NT$1,000

	Notes	Ordinary share capital	Capital Surplus				Retained Earnings			Other Equity		Treasury Stock	Total
			Capital surplus - Issuance premium	Capital surplus - Treasury stock	Capital surplus - Differences between the price of acquisition or disposal of shares of subsidiaries and the book value	Capital surplus - Others	Legal reserve	Special reserve	Unappropriated earnings	Exchange differences on translating the financial statements of foreign operations	Unrealized gains or losses on financial assets at fair value through other comprehensive income
2024
Balance as of January 1, 2024		$ 2,306,723	$ -	$ 282,694	$ 2,132	$ 175	$ 310,928	$ 19,414	$ 634,749	($ 13,346)	($ 8,645)	($ 276,485)	$ 3,258,339
Net Income for the current period		-	-	-	-	-	-	-	199,727	-	-	-	199,727
Other Comprehensive Income		-	-	-	-	-	-	-	-	12,863	5,470	-	18,333
Total Comprehensive Income		-	-	-	-	-	-	-	199,727	12,863	5,470	-	218,060
Appropriation of earnings in 2023:	6(20)
Provision for legal reserve		-	-	-	-	-	20,479	-	( 20,479 )	-	-	-	-
Provision of special reserve		-	-	-	-	-	-	2,576	( 2,576 )	-	-	-	-
Cash		-	-	-	-	-	-	-	( 91,469 )	-	-	-	( 91,469 )
Stock dividends		45,734	43	-	-	-	-	-	( 45,734 )	-	-	-	43
Number of cash dividends on the Company's shares held by its subsidiary as treasury stocks	6(9)	-	-	10,389	-	-	-	-	-	-	-	-	10,389
Disposal of Subsidiaries		-	-	-	-	-	-	-	-	483	-	-	483
Balance as of December 31, 2024		$ 2,352,457	$ 43	$ 293,083	$ 2,132	$ 175	$ 331,407	$ 21,990	$ 674,218	$ -	($ 3,175)	($ 276,485)	$ 3,395,845
2025
Balance as of January 1, 2025		$ 2,352,457	$ 43	$ 293,083	$ 2,132	$ 175	$ 331,407	$ 21,990	$ 674,218	$ -	($ 3,175)	($ 276,485)	$ 3,395,845
Net Income for the current period		-	-	-	-	-	-	-	224,193	-	-	-	224,193
Other Comprehensive Income		-	-	-	-	-	-	-	-	-	( 4,495 )	-	( 4,495 )
Total Comprehensive Income		-	-	-	-	-	-	-	224,193	-	( 4,495 )	-	219,698
Appropriation of earnings in 2024:	6(20)
Provision for legal reserve		-	-	-	-	-	19,973	-	( 19,973 )	-	-	-	-
Reversal of special reserve		-	-	-	-	-	-	( 18,815 )	18,815	-	-	-	-
Cash		-	-	-	-	-	-	-	( 116,623 )	-	-	-	( 116,623 )
Cancellation of treasury stock	6(18)	( 20,000 )	-	( 648 )	-	-	-	-	-	-	-	20,648	-
Number of cash dividends on the Company's shares held by its subsidiary as treasury stocks		-	-	13,431	-	-	-	-	-	-	-	-	13,431
Difference between consideration and carrying amount of subsidiaries acquired		-	-	-	1,609	-	-	-	-	-	-	-	1,609
Balance as of December 31, 2025		$ 2,332,457	$ 43	$ 305,866	$ 3,741	$ 175	$ 351,380	$ 3,175	$ 780,630	$ -	($ 7,670)	($ 255,837)	$ 3,513,960

The accompanying notes are an integral part of the financial report. Please read them together.

Chairman: KUO, KUO-HUA

Manager: KUO, KUO-HUA

Accounting Manager: WU, HSIU-LIN

Unit: NT$1,000

APEX Science & Engineering Corp.
Parent Company Only Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024

	Notes	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Cash flows from operating activities
Net income before tax for the period		$ 272,805	$ 245,703
Adjustments for
Losses of income and expenses
Depreciation expenses (Investment properties included)	6(10)(12)(26)	3,541	3,072
Depreciation expenses of right-of-use assets	6(26)	2,993	3,300
Amortization expenses	6(26)	2,925	2,400
Interest expenses	6(25)	15,738	20,100
Interest income	6(22)	( 34,907 )	( 61,138 )
Share of profits of subsidiaries, affiliated enterprises and joint ventures recognized by using the equity method	6(9)	( 4,359 )	( 36,447 )
Gain on disposal of property, plants and equipment	6(24)	-	( 5,789 )
Loss on disposal of investments	6(24)	-	13,227
Changes in operating assets and liabilities
Net changes in operating assets
Contract assets		( 86,326 )	4,416
Notes receivable		( 1,347 )	878
Accounts receivable		( 76,825 )	( 2,805 )
Accounts receivable from related parties, net		-	67,966
Other accounts receivable		2,049,309	286,719
Other accounts receivables from related parties		605	1,082
Inventory		( 5,126 )	( 113,655 )
Prepayments		532	( 58,014 )
Other current assets		( 47,724 )	3,020
Net changes in operating liabilities
Contract liabilities		99,191	8,135
Notes payable		6,733	3,549
Accounts payable		40,087	( 515 )
Other accounts payable		6,634	( 30,525 )
Other current liabilities		29,997	( 26,024 )
Other non-current liabilities		81	17
Cash generated from operations		2,274,557	328,672
Cash collected from interest income		19,354	8,444
Cash paid for interest expenses		( 26,514 )	( 22,801 )
Income tax paid for the period		( 83,625 )	( 6,306 )
Net cash generated from operating activities		2,183,772	308,009

(To be continued on the next page)

APEX Science & Engineering Corp.
Parent Company Only Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024

Unit: NT$1,000

	Notes	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Cash flows from investing activities
Increase in investments accounted for using the equity method	6(9)	($ 100,000)	$ -
Decrease (Increase) in financial assets at amortized cost	6(2)	212,417	( 350,381 )
Disposal of investments accounted for using the equity method		-	212,524
Acquisition of property, plants and equipment	6(10)	( 5,271 )	( 3,639 )
Increase in restricted assets		( 110,336 )	( 829,643 )
Decrease (increase) in other non-current assets		151,900	( 4,767 )
Acquisition of financial assets measured at fair value through other comprehensive income		-	( 63,780 )
Cash dividend payments of the invested company evaluated with the equity method	6(9)	27,012	11,397
Proceeds from disposal of property, plants and equipment		-	27,370
Net cash inflows (outflows) from investing activities		175,722	( 1,000,919 )
Cash flows from financing activities
Proceeds from short-term borrowings		216,261	2,993,994
Repayments of short-term borrowings		( 522,394 )	( 3,004,024 )
Increase (decrease) in short-term notes payable	6(30)	-	( 60,000 )
Proceeds from long-term borrowings		1,249,376	2,751,125
Repayments of long-term borrowings		( 2,739,681 )	( 1,853,694 )
Repayment of the principal portion of lease liabilities		( 3,008 )	( 3,221 )
Cash dividends distributed	6(20)	( 116,623 )	( 91,469 )
Odd lot stock funds		-	43
Net cash generated from (used in) financing activities		( 1,916,069 )	732,754
Increase in cash and cash equivalents of the period		443,425	39,844
Balance of cash and cash equivalents at the beginning of the period		236,302	196,458
Balance of cash and cash equivalents at the end of the period		$ 679,727	$ 236,302

The accompanying notes are an integral part of the financial report. Please read them together.

Chairman: KUO, KUO-HUA
Manager: KUO, KUO-HUA
Accounting Manager: WU, HSIU-LIN

APEX Science & Engineering Corp.
Notes to Parent Company Only Financial Statements
For the Years Ended December 31, 2025 and 2024
Unit: NT$1,000
(Unless otherwise noted)

Company development and business scope

Apex Science & Engineering Corp. (hereinafter referred to as "the Company") was established on August 9, 1976, formerly known as APEX Engineering Co., Ltd. and changed its name to Apex Science & Engineering Corp. in 2001. The main operation projects are mechanical engineering, instrument and electrical engineering, environmental engineering, manufacturing and sales of electronic-related products, and entrusting construction plants to build residential and commercial buildings, as well as development of special zones. The Company's shares started for sale on the Taiwan Stock Exchange Corporation in November 1995.

Approval date and procedure of financial statements

The independent financial report was approved by the Board of Directors on March 11, 2026.

Application of newly promulgated and revised criteria and interpretation

(1) Already adopted newly promulgated, revised and issued IFRSs recognized by the Financial Supervisory Commission (FSC)

The table below summarizes the newly issued, amended, and revised International Financial Reporting Standards (IFRS) and Interpretations applicable in 2025, as approved and announced by the Financial Supervisory Commission:

Newly promulgated/amended/revised standards and interpretations	The effective date of issuance by IASB
Amendment to IAS 21 "Lack of Exchangeability"	January 1, 2025

The Company has assessed that the above standards and interpretations have no significant impact on the Company's financial position and financial performance.

(2) Have not adopted the impacts of newly promulgated IFRSs (and amendments) recognized by FSC

The following table collects standards and interpretations that have been promulgated newly, amended and revised in International Financial Reporting Standards effective in year 2025 recognized by FSC:

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Newly promulgated/amended/revised standards and interpretations	The effective date of issuance 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
IFRS 17 "Insurance Contracts"	January 1, 2023
Amendments to IFRS 17 "Insurance Contracts"	January 1, 2023
Amendment to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 - Comparative Information"	January 1, 2023
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026

The Company has assessed that the above standards and interpretations have no significant impact on the Company's financial position and financial performance.

(3) IASB has promulgated the impacts of IFRSs, which hasn't been recognized by FSC

The following table sets forth the standards and interpretations that have been promulgated by IASB but have not been newly, amended and revised in International Financial Reporting Standards and recognized by FSC:

Newly promulgated/amended/revised standards and interpretations	The effective date of issuance by IASB
Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"	To be decided by IASB
IFRS 18 "Presentation and Disclosure of Financial Statements"	January 1, 2027 (Note)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures"	January 1, 2027
Amendments to IAS 21 “Translation into a Hyperinflationary Presentation Currency”	January 1, 2027

Except as described below, upon appraisal by the Company, the standards and interpretations do not have significant impacts on the Group's financial situation or financial performance:

IFRS 18 "Presentation and Disclosure of Financial Statements"

IFRS 18 "Presentation and Disclosure of Financial Statement" replaces IAS 1 and updates the framework of the income statement, as well as adds disclosure of management performance measures, and strengthens the principles of aggregation and disaggregation applied to the primary financial statements and notes.

Summary description of crucial accounting policy

It describes below the major accounting policies adopted for the preparation of this independent financial report. Unless otherwise noted, such policies will apply during reporting period.

(1) Declaration of conformity

This independent financial report is prepared under the standards for the preparation of financial reports of securities issuers.

(2) Basis of preparation

a. This independent financial report is prepared at historical cost except for the following important items:

Financial assets at fair value through other comprehensive income.

b. It requires the use of some significant accounting estimates in the preparation of financial reports that comply with the International Financial Reporting Standards, International Accounting Standards, interpretation, and interpretation announcements (hereinafter referred to as IFRSs) approved by the FSC. The management also needs to use its judgment in applying the Company's accounting policies. Please refer to Note 5 for details for items involving high judgment or complexity, or items involving major assumptions and estimates of the independent financial report.

(3) Foreign currency conversion

The items listed in each independent financial report in the Company are measured in the currency of the main economic environment in which the independent operates (i.e. functional currency). This independent financial report is presented in the Company's functional currency New Taiwan dollar.

a. Foreign currency transaction and balance

(a) For foreign currency transaction, currency is converted into functional currency at spot exchange rate on trading day or measurement day. The difference occurred due to such transaction is recognized into current profits and losses.

(b) Monetary assets and debt balance at foreign currency are adjusted at spot exchange rate on Balance Sheets day. The conversion difference due to the adjustment is recognized into current profits and losses.

(c) Non-monetary assets and debt balance at foreign currency, which have been measured through profits and losses at fair value, are evaluated and adjusted at spot exchange rate on Balance Sheets day. The conversion difference due to the adjustment is recognized into current profits and losses. Non-monetary assets and debt balance at foreign currency,

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which have been measured through other comprehensive income/(loss) at fair value, are evaluated and adjusted at spot exchange rate on Balance Sheets day. The conversion difference due to the adjustment is recognized into other comprehensive income/(loss). The conversion difference due to the adjustment is recognized into current profits and losses. Non-monetary assets and debt balance at foreign currency, which haven't been measured at fair value, are measured at historical rate on initial trading day.

(d) All other exchange gains and losses are reported in "other gains and losses" in the income statement.

b. Conversion of overseas operations agencies

For all the Group's individuals whose functional currency differs from expressive currency, their operating results and financial conditions are converted into expressive currency in the following methods:

(a) Assets and liabilities listed in balance sheets are converted at closing rate on balance sheets statement day;

(b) Profits and losses recorded in Statements of Comprehensive Income are converted at average exchange rate for the period; and

(d) When a foreign operating entity that is partially disposed of or sold is a subsidiary, the cumulative exchange differences recognized in other comprehensive income shall be reallocated to the non-controlling interests of that foreign operating entity in proportion. Although the Group retains certain interests in its former subsidiaries, it has lost control over the foreign operating entities that were subsidiaries. Consequently, it will manage the disposal of all interests in these foreign operating entities.

(4) Standards of classifying current and non-current assets and liabilities

a. It is usually longer than one year for the Company's engineering projects period and land development operating. The assets and liabilities related to construction and construction contracts divide into current and non-current under the operating period, and the other assets and liabilities divide into one year.

b. Assets that meet one of the following conditions are classified as current assets:

(a) Expected to be realized in normal business term or intended to be sold or consumed.

(b) Held for the main purpose of transaction.

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(d) Cash or cash equivalents, unless exchanged or used to pay off debts under limitations for at least twelve months after the reporting period.

The Company classifies all assets that do not meet the above conditions as non-current.

c. Liabilities meeting one of the following conditions are classified into current liabilities:

(a) Excepted to be paid off in normal business term.
(b) Held for the main purpose of transaction.
(c) Due to be settled within twelve months after the reporting period.
(d) Does not possess the right to defer the repayment of liabilities for at least twelve months after the reporting period.

The Company classifies all liabilities that do not meet the above conditions as non-current.

(5) Accounts and notes receivable

a. Refers to accounts and notes that have the right to unconditionally receive the consideration amount in exchange for the transfer of goods or services according to the contract.
b. The discount has little impact on short-term accounts receivable and bills without interest payment, and the Company measures them based on the original invoice amount.

(6) Agency land development business

a. It is entrusted by the government to handle the development on its behalf, and some development cases are responsible for external sales.
b. During the agency period, the Company will pay for, on behalf of client, land expropriation compensation fee, construction cost, construction supervision and inspection and various development costs. And client will calculate the interests according to the costs already paid on its behalf, and pay to the Company on a period-by-period basis. The accounting treatment of the case costs of various agency land development business (industrial zone development, urban land rezoning and section expropriation) shall be handled in accordance with the entrusted development agreement and the contract with contractor; according to the actual construction progress and completion acceptance, corresponding costs and expenses are recognized. The service revenue from the agency shall list on a period-by-period basis in proportion to the input cost when entrusted to handle the operation of developing the industrial zone.

(a) Costs attributable to contracts are reasonably identifiable.
(b) Except for the confirmed disbursement that is recoverable, the remaining contract costs can be reasonably estimated.
(c) The collectable agency fees (service revenue) can be reasonably determined.

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c. The development cost is debited to "other accounts receivable - the land development funds receivable from the agent," while the land purchase price paid by the land purchasing manufacturer is credited to "other current liabilities - advance payment for the sale of industrial zone," which is offset with the land development funds receivable from the agent when the owner allocates the payment.

(7) Financial assets impairment

The Company measures the allowance loss under the amount of 12-month expected credit loss if the credit risk has not increased significantly since the original list on each balance sheet date, after considering all reasonable and verifiable information (including forward-looking ones) on debt instrument investments at fair value through other comprehensive income/(loss) and financial assets at amortized cost. The allowance loss shall be measured under the expected amount of credit loss during the duration when the credit risk has increased significantly since the original recognition. The allowance for loss is measured under the amount of expected credit loss during the duration for accounts receivable or contract assets that do not include significant financial components.

(8) Financial assets at fair value through other comprehensive income

a. Refer to one irrevocable choice at original recognition; this records fair value change invested with equity instrument not held for transaction into other comprehensive income/(loss); or meet the following conditions in debt instrument investment at the same time:

(a) The financial assets are held under the operating model for the purpose of collecting and selling contractual cash flows.

(b) Cash flows generated by the financial assets' contract terms on specified date, are solely used for payments of principal and outstanding principal interest.

b. The Company adopts settlement date accounting for financial assets at fair value through other comprehensive income/(loss) under trading practices.

c. The Company is measured at its fair value and transaction cost at the time of the initial list, and subsequently measured at fair value:

(a) Changes in the fair value of equity instruments are listed as other comprehensive profits and losses. When delisting, the cumulative benefits or losses previously listed in other comprehensive income/(loss) shall not be reclassified as income/(loss) and transferred to retained earnings. The Company lists dividend income as income/(loss) when the right to receive dividends is established, the economic benefits related to dividends are likely to flow in, and the number of dividends measures reliably.

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(b) Changes in the fair value of debt instruments are listed as other comprehensive profits and losses. When delisting, the cumulative benefits or losses previously listed in other comprehensive income/(loss) will be reclassified from equity to profits and losses.

(9) Financial assets at amortized cost

a. Those meeting all the following conditions:

(a) The financial assets are held under the operating model for the purpose of collecting contractual cash flows.

(b) Cash flows generated by the financial assets' contract terms on specified date, are solely used for payments of principal and outstanding principal interest.

b. For financial assets at amortized cost that conforms to trading practices, the Company implements accounting on settlement day.

c. The Company measures interest income at its fair value plus transaction costs on initial recognition, and subsequently recognizes interest income and impairment loss over the liquidity period using the effective interest method under the amortization procedure, and recognizes its gain or loss in profit or loss when derecognized.

(10) Financial assets are delisted

Financial assets will be delisted when the Company's contractual right to receive cash flows from financial assets expires.

(11) Inventory

Inventories are measured by costs and net realizable value (see whichever is lower) and determined by weighted cost average method. The costs of finished goods and work-in-progress goods include raw materials, direct labor costs, other direct costs and manufacture-related expenses, but exclude borrowing costs. It adopts the item-by-item comparison method when comparing the lower cost and net realizable value. Net realizable value refers to the balance of the estimated selling price in the normal course of operating after deducting the relevant variable selling expenses.

(12) Investments accounted for using the equity method - subsidiaries and associated enterprises

a. Subsidiaries refer to all independent (including special purpose independent) that the Company has the right to oversee its financial and operating policies, generally holding more than 50% of its voting shares directly or indirectly. The Company's investment in subsidiaries in independent financial reports are evaluated with the equity method.

b. Unrealized income/(loss) from transactions between the Company and its subsidiaries has been excluded. The accounting policies of the subsidiaries have been adjusted as necessary and are consistent with the policies adopted by the Company.

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c. The Company lists the share of income/(loss) of subsidiaries after the acquisition as current income/(loss), and the share of other comprehensive income/(loss) after the acquisition as other comprehensive income/(loss). The Company will continue to list the loss under the shareholding ratio if the loss share listed by the Company for a subsidiary is equal to or exceeds the equity in the subsidiary.

d. Affiliated enterprises refer to all independents over whom the Company has significant influence but no control, generally holding more than 20% of the voting shares directly or indirectly. The Company's investment in affiliated enterprises is handled by the equity method and listed at cost when obtained.

e. The Company lists the share of profits and losses obtained by related enterprises as current income/(loss), and the share of other comprehensive income/(loss) obtained by related enterprises as other comprehensive income/(loss). The Company will not list further losses if the loss share of the Company to any affiliated enterprise is equal to or exceeds its rights and interests in the affiliated enterprise (including any other unsecured receivables) unless the Company has legal obligations, constructive obligations to the affiliated enterprise or has paid money on its behalf.

f. The Company lists all equity changes as capital surplus under the shareholding ratio when there are equity changes in non-income/(loss) and other comprehensive income/(loss) of affiliated enterprises, and the shareholding ratio of affiliated enterprises is not affected.

g. Unrealized income/(loss) arising from transactions between the Company and affiliated enterprises have been written off under their proportion of equity in affiliated enterprises; Unrealized losses are also written off unless evidence shows that the assets transferred by the exchange have been impaired. The accounting policies of affiliated enterprises have been adjusted as necessary to be consistent with the policies adopted by the Company.

h. It is the same as that of the Company for the accounting treatment of all amounts previously listed in other comprehensive income/(loss) related to the related enterprise when the Company disposes of a related enterprise if it loses its significant impact on the related enterprise, and if it directly disposes of relevant assets or liabilities, that is, if the benefits or losses previously listed as other comprehensive income/(loss) will be reclassified as income/(loss) when disposing of relevant assets or liabilities, the interest or loss is reclassified from equity into income/(loss) when the significant impact on the affiliated enterprise is lost. Only the amount previously listed in other comprehensive profits and losses shall transfer out in the above manner in proportion. If it still has a significant impact on the affiliated enterprise.

i. The current income/(loss) and other comprehensive income/(loss) of independent financial reports shall be the same as the apportionment of current income/(loss) and other comprehensive income/(loss) to the owners of the parent company in the financial report

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prepared based on consolidation under the "standards for the preparation of financial reports by securities issuers", and the sovereign interests of independent financial reports shall be the same as the interests attributable to the owners of the parent company in the financial report prepared based on consolidation.

(13) Property, plant and equipment

a. Acquisition costs are accounting basis for property, plants and equipment, with relevant interest capitalized during the period of construction.

b. Subsequent costs are included in the carrying amount of assets or listed as a separate asset and are likely to flow into the Company only when the future economic benefits related to the project and the project cost can be measured reliably. Book value of replaced part is excluded. When incurred, all other maintenance costs are recognized as profit or loss for the period.

c. The subsequent measurement of property, plants and equipment is based on the cost model. Except land, they are depreciated with straight-line method according to durable period. If each of property, plants and equipment is great, they should be separately depreciated.

d. The Company reviews the residual value, useful life and depreciation method of each asset on the closing day of each fiscal year. If the expected residual value and useful life are different from the previous estimate, or the future economic benefits contained in the assets have significant changes in the expected consumption pattern, then from the date of the change, they should be processed according to accounting estimate change rules in International Financial Reporting Standard 8, "Accounting Policies, Changes in Accounting Estimates and Errors."

Assets' durable periods:

Houses and buildings	50-55 years
Building improvement	3-10 years
Machinery equipment	3-8 years
Transportation equipment	5 years
Office equipment	3 years

(14) Lessee's lease transactions - the right-of-use assets/lease liabilities

a. Leased assets list as of right-of-use assets and lease liabilities on the date when they are available for use by the Company. When the lease contract is for a short-term lease or a lease of a low-value asset, lease payments are recognized as an expense based on straight line method over the lease term.

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b. As for the lease liability, the lease payment should be recorded by current value discounted according to the Group’s incremental borrowing rate from the lease start day. The lease payment consists of fixed payments by subtraction of collectable lease incentives.

The subsequent interest method is measured by the amortized cost method, and the interest expense accrues during the lease period. The lease liability will reassess and the re-measurement will be adjusted to the right-of-use assets when the lease term or lease payment changes due to non-contract modification.

c. The right-of-use asset is recognized into cost from the lease start day; the cost includes the original measurement amount of the lease liability.

Cost model measurement is adopted subsequently; right-of-use assets' durable period expires, or lease term expires (see whichever is earlier) is recorded as depreciation costs. When lease liability is reassessed, the right-of-use assets will be adjusted for remeasurement.

(15) Investment property

Investment property is recognized into costs, and subsequently measured with the cost model. Except land, to be depreciated with straight-line method; durable period is 55 years.

(16) Impairment of non-financial assets

The Company estimates the recoverable amount of assets with signs of impairment on the balance sheet date. The impairment loss list is when the recoverable amount is lower than its book amount. A recoverable amount refers to the fair value of an asset minus the cost to sell or its value in use, whichever is higher. The impairment loss reverses when the impairment of listed assets in previous years does not exist or decreases except for goodwill, but the booking amount of the assets increased by the reversal of the impairment loss does not exceed the booking amount of the assets after deducting depreciation or amortization if the impairment loss does not list.

(17) Borrowing

a. It refers to the long-term and short-term funds borrowed from banks. The Company measures the amount after deducting the transaction cost from the fair value at the time of initial recognition. Subsequently, any difference between the price after deducting the transaction cost and the redemption value is measured within the borrowing period at the amortized cost with the effective interest method.

b. When paying the expenses for establishing a loan limit, if it is highly likely to withdraw a portion or the entire limit, then the expenses are recognized as transaction costs of the loan and deferred until the occurrence of disbursement, at which point they are recognized as adjustments to the effective interest rate. If it is unlikely to withdraw a portion or the entire

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limit, then the expenses are recognized as prepaid expenses and amortized over the relevant period of the limit.

(18) Accounts and notes payable

Accounts and notes payable are obligations payable for obtaining goods or services from suppliers in the normal course of business. It is measured at fair value at the time of original recognition, and subsequently at amortized cost with the effective interest method. Due to insignificant subsequent impacts of discounting, short-term accounts payable with unpaid interest, are measured at original invoice subsequently.

(19) Ordinary bonds payable

Ordinary corporate bonds payable issued by the Company shall measure at the fair value fewer transaction costs at the time of initial recognition, and the difference between the fair value and the redemption value shall list as the excess or discount of corporate bonds payable, and shall list as an addition or deduction of corporate bonds payable. Subsequently, the effective interest method adopts to list the amortized cost as the current income/(loss) during the bond circulation period as the adjustment item of finance costs.

(20) Delisting of financial liabilities

The Company excludes financial liabilities when the obligations contained in the contract are cancelled or expire.

(21) Employee benefit

a. Short-term employee benefit

Short-term employee benefit is measured at expected paid non-discounting amount, and recorded as fees in providing related service.

b. Pension

Defined benefit plan

(a) The net obligation under a defined benefit plan is calculated by discounting the amount of future benefits earned by the employee from current or past service and subtracting the fair value of the planned assets from the present value of the defined benefit obligation on the balance sheet day. The defined net benefit obligation is calculated annually by actuary using the projected unit benefit method, and the discount rate is determined with reference to the market yield of high-quality company bonds on the balance sheet day consistent with the currency and period of the defined benefit plan; countries without market depth use the market yield on government bonds (on the balance sheet day).

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(b) Actuarial profits and losses arising from defined benefit plans are recognized as other comprehensive income/(loss) in the period in which they occur

(c) If the early-stage service cost is immediately obtainable, the related expenses will be recognized as profit or loss immediately; if not immediately obtainable, it will be recognized as profit or loss on a straight-line basis over the average obtainable period.

c. Dismiss welfare

Dismiss welfare is benefits provided to employee whose employment is terminated before the normal retirement day or when the employee decides to accept the Company's offer of benefits in exchange for termination of employment. The Company lists expenses when it can no longer revoke the offer of termination welfare or list the relevant restructuring costs, whichever is earlier. Benefits that are not expected to be fully settled 12 months after the balance sheet day should be discounted.

d. Employee dividends and remuneration of directors

Employee remuneration and remuneration of directors are recognized as expenses and liabilities when such remunerations are legal or constructive obligations and the amounts can be reasonably estimated. If there is a discrepancy between actual distribution amount and the estimated amount in subsequent resolutions, it shall be treated as a change in accounting estimate. Besides, if employees are paid in shares, the basis for calculating the number of shares is the closing price on the day before the Board of Directors' resolution.

(22) Income tax

a. Income tax includes current and deferred income tax. Income tax is recognized in profit or loss, except income tax relating to items included in other comprehensive income or directly included in equity.

b. The Company calculates the current income tax under the tax rate that has been legislated or substantively legislated on the balance sheet date in the country where the operation and taxable income generate. Management regularly assesses the status of income tax declaration as per the regulations related to applicable income tax and, where applicable, assesses income tax liabilities based on expected tax payments to tax authorities. The income tax on unappropriated earnings shall be levied under the income tax law, and the income tax expense on unappropriated earnings shall list for the distribution of actual earnings after the year following the year in which the earnings generated are approved by the shareholders' meeting.

c. Deferred income tax adopts the balance sheet method and lists the temporary difference between the tax basis of assets and liabilities and their carrying amount in the independent balance sheet. Deferred income tax liabilities from originally recognized goodwill will not be

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recognized; if deferred income tax originates from the original recognition of asset or liability in a transaction (excluding a business amalgamation), which, at the time of the transaction, does not affect accounting profit or taxable income (taxable loss), nor has it resulted in equivalent temporary differences for tax assessment and deductible purposes, such deferred income tax liabilities will not be recognized either. It will not be listed if the Company can control the time point of the reversal of the temporary difference arising from the investment in subsidiaries and affiliated enterprises, and the temporary difference is likely not to be reversed in the foreseeable future. Based on tax rates (and tax laws) enacted or substantively enacted on the balance sheet day and expected to apply when the related deferred income tax assets are realized or the deferred income tax liabilities are settled, deferred income tax is determined.

d. When temporary differences will be possibly used to offset future taxable income, and both unrecognized and recognized deferred income tax assets are reassessed on each balance sheet day.

e. When statutory enforcement right is available to allow recognized current income tax assets and liabilities to offset each other, and it is intended to pay off liabilities, on net basis, or at the same time, realize assets and pay off liabilities, current income tax assets and current income tax liabilities shall be offset; When statutory enforcement right is available to allow current income tax assets and current income tax liabilities to offset each other, and the deferred income tax assets and liabilities are generated by the same taxpayer subject to taxation by the same tax authority, or by different taxpayers but each subject intends to pay off liabilities, on net basis, or at the same time, realize assets and pay off liabilities, current income tax assets and current income tax liabilities shall be offset.

(23) Capital Stock

a. Ordinary shares classified into rights and interests. Incremental costs directly attributable to the issued new shares or stock options, after deduction of income tax, are shown as a deduction in equity.

b. When the Company repurchases issued shares, the consideration paid (including any incremental costs that are directly attributable, is recognized) as a net tax deduction in shareholders' equity. On subsequent reissues of the repurchased shares, the difference between the consideration received (after deduction of any directly attributable incremental costs and the effect of income taxes) and the book amount is recognized as an adjustment to shareholders' equity.

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(24) Dividend distribution

Dividends are distributed to the shareholders of the Company list in the financial report when the shareholders' meeting of the Company decides to distribute dividends, and cash dividends are listed as liabilities.

(25) Revenue recognition

a. Commodity sale

(a) The Company's sales revenue is recognized when the control of the product is transferred to the customer, that is, when the product is delivered to the customer. The customer has the discretion to sell the product and decide the price, and the Company has no outstanding performance obligations that may affect the customer to accept the product. Delivery of goods occurs when the product has been shipped to the designated location, the risk of obsolescence and loss has passed to the customer, and the customer has accepted the product in accordance with sales contract, or there is objective evidence that all acceptance criteria have been met.

(b) Accounts receivable are recognized when the goods are delivered to the customer, as the Group has an unconditional right to the contract price from that point on, and it only takes time to collect the consideration from the customer.

b. Land development and resale

(a) The Company engages in land development and sales of residential properties, and revenue will be recognized when control of property is transferred to customer. For the signed residential sales contract, due to the restrictions of the contract terms, the property has no other use for the Company. However, until the legal ownership of the property is transferred to the customer, the Company has an enforceable right to the contract money. Revenue is recognized after the legal ownership transfer to the customer.

(b) Revenue is measured as agreed contract price, which has been paid by the customer when legal title to the property is transferred. On rare occasions, the Company and customer agree on deferred payment period, but if the deferred repayment period does not exceed 12 months, and it is judged that the contract does not have a significant financial component, the consideration will not be adjusted.

c. Cost of obtaining client contract

For the incremental costs (primarily sales commissions) incurred by the Company in getting customer contracts, the expected collectable parts are recognized as assets (listed as other non-current assets listed in the sheet) at the time of occurrence, and amortized according to the consistency of commodities or labor services related to the assets. In subsequent periods, if the

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amount that the expected consideration deducts costs not yet recognized as expenses is lower than book value recognized in the asset, an impairment loss is recognized for the excess of the asset's book value.

d. Project revenue

(a) The Company provides engineering construction-related services. Income from labor services is recognized as income during the financial reporting period of providing the services to customers. Revenue from fixed-price contracts is recognized based on the ratio of services actually provided to all to-be-provided services by the balance sheet day, and the completion ratio of services is determined based on the ratio of incurred costs to estimated total transaction costs. The considerations of some contracts may change due to the transfer price or similar items. Only when the future uncertainty is eliminated, it is highly probable that there will not be a significant reversal of the recognized cumulative revenue amount included in the transaction price. The customer pays the contract price under the agreed payment schedule. It is listed as contract assets when the service provided by the Company exceeds the customer's payable. It is listed as contract liabilities if the customer's payable exceeds the service provided by the Company.

(b) The Company's estimates of revenue, costs and degree of completion are revised as circumstances change. Any increase or decrease in estimated revenue or costs due to change of estimate is reflected in profit or loss for the period in which the circumstances leading to the revision are known to management.

e. Service revenue

(a) The Group offers services about agency land development. Income from labor services is recognized as income during the financial reporting period of providing the services to customers. The income from fixed price contracts is recognized as the ratio of the services actually provided to the total services to be provided by the balance sheet day. Since the Company engage in the development, planning, and management of industrial zones on behalf of government entities, the services are subject to supervision. The completion rate of the service is determined on the basis of the actual labor hours accounted for the estimated total labor hours.

(b) The Company provides agency land development services. It is mainly entrusted by government units to develop on their behalf. Some development projects are also responsible for external sales. It is identified as a performance obligation that is gradually fulfilled over time. The Company recognizes revenue as the proportion of input costs to the estimated total costs.

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(c) The Company's estimates of revenue, costs and degree of completion are revised as circumstances change. Any increase or decrease in estimated revenue or costs due to change of estimate is reflected in profit or loss for the period in which the circumstances leading to the revision are known to management.

(d) Please refer to Note 4 (6) for the list of relevant revenue.

Main source of major accounting judgment, estimate and assumption uncertainty

When the Company prepares this independent financial report, the management has used its judgment to determine the accounting policies adopted and made accounting estimates and assumptions based on the reasonable expectation of future events under the situation at the balance sheet date. Significant accounting estimates and assumptions made may differ from actual results and will be continuously evaluated and adjusted by taking into account historical experience and other factors. These estimates and assumptions carry risks that will result in material adjustment of the book values of assets and liabilities in the next financial year. Please refer to the following descriptions on the uncertainty of significant accounting judgments, estimates and assumptions:

(1) Important judgment for adopting accounting policy

None.

(2) Major accounting estimates and assumptions

Revenue recognition

The Company shall estimate the total cost of completion based on the characteristics of the project and various objective factors. The revenue confirmation is based on the estimation of the percentage of input cost, and the Company regularly reviews the rationality of the estimation. It may cause changes in the estimated total cost of completion and affect the amount listed by the Company affected by the changes in the industrial environment and construction conditions.

Description of important accounting items

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 1,254	$ 1,280
Check deposits	7,007	6,269
Current deposits	161,466	138,753
Fixed deposits	510,000	90,000
	$ 679,727	$ 236,302

a. The possibility of default is very low because the credit quality of the Company's financial institutions is good, and the Company has dealings with multiple financial institutions to spread credit risk.

b. The Company has appropriately reclassified the provision of cash as a pledge guarantee. Please refer to Note 8 for details of the pledge guarantee.

(2) Financial assets at amortized cost

Item	December 31, 2025	December 31, 2024
Current items:
Bond/note repurchase transactions	$ 137,964	$ 350,381

a. The details of financial assets at amortized cost presented in profit or loss are as follows:

	2025	2024
Interest income	$ 3,581	$ 4,323

b. Under the condition of not taking into account collateral or other credit enhancements, the carrying amount of the Company's financial assets measured at amortized cost represents the maximum exposure to credit risk as of 2025 and 2024.

c. Please refer to Note 12 (2) for information on the credit risk of financial assets at amortized cost.

(3) Accounts receivable and notes receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 2,322	$ 975
Accounts receivable	152,449	75,624
Less: Allowance for bad debts	( 2,528)	( 2,660)
	$ 152,243	$ 73,939

a. The Company does not hold any collateral.

b. For credit risk information about accounts receivable and notes receivable, please refer to Note 12(2).

c. Analysis of account receivable age of accounts receivable and notes receivable:

	December 31, 2025	December 31, 2024
Not overdue	$ 154,751	$ 76,211
Overdue for 1 to 120 days	14	382
Overdue for 121 days and above	6	6
	$ 154,771	$ 76,599

The information above represents that account age is analyzed based on days overdue.

d. The balance of accounts receivable and notes receivable as of December 31, 2025, and December 31, 2024, were generated by customer contracts. Furthermore, it was $72,012 for the balance of accounts receivable under customer contracts as of January 1, 2024.
e. Under the condition of not taking into account collateral or other credit enhancements, the carrying amount of the Company's notes receivable as of December 31, 2025 and 2024 represents the maximum exposure to credit risk; likewise, the carrying amount of the Company's accounts receivable as of December 31, 2025 and 2024 represents the maximum exposure to credit risk.

(4) Other accounts receivable

	December 31, 2025	December 31, 2024
Receivable agency land development funds	$ 2,347,285	$ 4,381,777
Interest receivable	3,337	2,832
Other accounts receivable - Other	902	671
	$ 2,351,524	$ 4,385,280

a. The land development funds receivable from the agency are the contract signed by the Company with the Chiayi county government in May 2013 for the Chiayi County Machohou Industrial Park Phase I. The development period is expected to be four years from the date of signing the contract. And the Company signed a contract with the government of Chiayi County for the Chiayi County Machohou industrial Park Phase I in October 2018 to entrust the development of the industrial park. The development period is expected to be six years from the date of signing the contract. The Group signed a contract with the Tainan Municipal Government for the development, rental, sale and management of Cigu Science and Technology Industrial Park in January 2021, and was entrusted to develop the industrial park. The development period is expected to be six years from the date of notification of performance.

(a) The details of land development funds receivable from the Company refer to follows:

	December 31, 2025	December 31, 2024	December 31, 2025, cumulative recognized service revenue	Client
Machohou Industry Park Development Project - Phase I	$ -	$ 10,590	$ 430,986	Chiayi County Government
Machohou Industry Park Development Project - Later Phase I	901,996	2,501,769	986,385	"
Development of Cigu Science and Technology Industrial Zone	1,445,289	1,869,418	187,752	Tainan City Government
	$ 2,347,285	$ 4,381,777	$ 1,605,123

(b) The changes in land development receivables of the Company in 2025 and 2024 are as follows:

	2025
	Opening balance	Increase for the period	Collected amount for the period	Ending balance
Machohou Industry Park Development Project - Phase I	$ 10,590	$ -	($ 10,590)	$ -
Machohou Industry Park Development Project - Later Phase I	2,501,769	1,665,283	(3,265,056)	901,996
Development of Cigu Science and Technology Industrial Park	1,869,418	1,158,494	(1,582,623)	1,445,289
	$ 4,381,777	$ 2,823,777	($ 4,858,269)	$ 2,347,285

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	2024
	Opening balance	Increase for the period	Collected amount for the period	Ending balance
Machohou Industry Park Development Project - Phase I	$ 10,710	($ 120)	$ -	$ 10,590
Machohou Industry Park Development Project - Later Phase I	2,807,052	2,004,667	( 2,309,950)	2,501,769
Development of Cigu Science and Technology Industrial Park	876,584	992,834	-	1,869,418
	$ 3,694,346	$ 2,997,381	($ 2,309,950)	$ 4,381,777

b. The Company listed the prepaid interest of the land development funds receivable from the agency in 2025 and 2024, and the amount of capitalized interest expense offset is $41,873 and $68,265 respectively. Please refer to Note 6(25) for details.

(5) Inventory

	December 31, 2025	December 31, 2024
Inventory of commodity	$ 2,900	$ 2,232
Finished product	9,352	12,356
Semi-finished product	5,711	11,199
Work-in-progress product	1,385	3,249
Raw material	3,709	3,372
Property for sale	74,841	74,841
To-be-constructed land	573,825	562,674
Property under construction	27,533	13,057
Subtotal	699,256	682,980
Less: Allowance for price drop loss	( 4,618)	( 4,618)
Total	$ 694,638	$ 678,362

a. The cost of inventories listed by the Company is:

	2025	2024
Costs of inventories sold	$ 136,381	$ 120,858
Project costs	851,574	403,932
Other operating costs (service costs)	8,219	-
Total	$ 996,174	$ 524,790

b. Some inventories have been provided as collateral for bank loans, please refer to Note 8 for details.

c. The capitalized amounts of interest on inventories of the Company in 2025 and 2024 are $11,150 and $3,618, respectively.

(6) Prepayments

	December 31, 2025	December 31, 2024
Prepayment of engineering amount	$ 138,648	$ 134,007
Tax retained	2,044	1,796
Others	21,783	27,204
	$ 162,475	$ 163,007

(7) Other current assets

	December 31, 2025	December 31, 2024
Project deposit and bid bond	$ 48,396	$ 672
Restricted assets	6,390,670	1,798,873
	$ 6,439,066	$ 1,799,545

As of December 31, 2025 and December 31, 2024, restricted assets total $6,084,467 and $1,571,340, respectively, for the agency land development business, to collect the land auction deposit and land price transferred from the buyer to the special trust account. The rest consist of pledged time deposits and reserve accounts as collateral for bank guarantees and loan limits.

(8) Financial assets at fair value through other comprehensive income

Item	December 31, 2025	December 31, 2024
Non-current items:
Debt instruments
Ordinary corporate bonds	$ 63,780	$ 63,780
Appraisal adjustment	( 1,199)	1,467
Subtotal	62,581	65,247
Equity instrument
Non-listed, OTC, and emerging stock	14,727	14,727
Appraisal adjustment	( 4,716)	( 2,987)
Subtotal	10,011	11,740
Total	$ 72,592	$ 76,987

a. The Company chose to classify securities investment as a strategic investment as financial assets at fair value through other comprehensive income/(loss). As of December 31, 2025 and 2024, they were $72,592 and $76,987, respectively, for the fair values of these investments.

b. Financial assets at fair value through other comprehensive income are recognized as profit and loss, and comprehensive income:

	December 31, 2025	December 31, 2024
Financial instruments at fair value through other comprehensive income
Changes of fair value recognized in other comprehensive income	($ 1,729)	$ 3,853
Debt instruments at fair value through other comprehensive income
Changes of fair value recognized in other comprehensive income	($ 2,666)	$ 1,467
Interest income recognized in profit or loss	$ 3,972	$ 2,431

c. Please refer to note 12 (2) for information on the credit risk of financial assets at fair value through other comprehensive income.

(9) Investment accounted for using the equity method

	2025		2024
January 1	$	489,178	$ 665,996
Investment profit and loss accounted for using the equity method		4,359	36,447
Investment earning distribution using the equity method	(	27,012)	( 11,397)
Number of cash dividends on the Company’s shares held by its subsidiary as treasury stocks		13,431	10,389
Acquisition of equity interests in subsidiaries (capital increase in cash)		100,000
Long-term investments using the equity method		-	( 225,270)
Changes in capital surplus		1,609	-
Changes in other equity	(	100)	13,013
December 31	$	581,465	$ 489,178

a. Details of subsidiaries listed by equity method are as follows:

	December 31, 2025	December 31, 2024
Chang Ji Construction Co., Ltd.	$ 549,372	$ 449,742
REINFORCE ENERGY COMPANY LTD. (Note)	-	-
XINDIN ENGINEERING CONSULTANTS CORP.	32,093	39,436
	$ 581,465	$ 489,178

Note: The equity interest in REINFORCE ENERGY COMPANY LTD. was disposed of in August 2024, and the transfer was approved by the Ministry of Economic Affairs in September 2024. The disposal consideration amounted to RMB 46,786 thousand (approximately NT$212,524 thousand), resulting in a loss on disposal of investments of NT$13,227 thousand. The transfer was approved in September 2024, and the full consideration was received in the same month.

b. Subsidiaries

(a) The basic information of the Company's major subsidiaries is as follows:

Company Name	Main operating property	Percentage (%)		Nature of relation	Measurement method
		December 31, 2025	December 31, 2024
Chang Ji Construction Co., Ltd.	Taiwan	91.80%	90.53%	Subsidiaries	Equity method

(b) The summary financial information of the Company's major subsidiaries is as follows: Balance Sheets

	Chang Ji Construction Co., Ltd.
	December 31, 2025	December 31, 2024
Current Assets	$ 2,310,933	$ 1,703,547
Non-current assets	360,449	343,870
Current Liabilities	( 1,668,596)	( 1,144,577)
Non-current Liabilities	( 11,853)	( 30,179)
Total net assets	$ 990,933	$ 872,661
Share in associated enterprise's net assets	$ 909,676	$ 790,020
Book value in associated enterprise	$ 549,372	$ 449,742

Statements of Comprehensive Income

	Chang Ji Construction Co., Ltd.
	2025	2024
Revenue	$ 2,135,696	$ 1,767,528
Net Income for the current period of Continuing Operations Unit	$ 18,898	$ 33,946
Other comprehensive income (after-tax net amount)	20,373	( 9,100)
Total Comprehensive Income	$ 39,271	$ 24,846
Dividends received from affiliated enterprises	$ 14,631	$ 11,475
	REINFORCE ENERGY CO. LTD.
---	---	---
	2025	2024
Revenue	$ -	$ -
Net Income for the current period of Continuing Operations Unit	$ -	$ 7,710
Other comprehensive income (after-tax net amount)	-	12,863
Total Comprehensive Income	$ -	$ 20,573

c. Please refer to the notes to Note 4 (3) of the Company's consolidated financial statements in 2025 for information on the Company's subsidiaries.

(10) Property, plant and equipment

	Land	Houses and buildings	Machinery equipment	Transportation equipment	Office equipment	Other Equipment	Total
January 1, 2025
Cost	$49,415	$47,431	$438	$5,995	$5,486	$1,580	$110,345
Accumulated depreciation and impairment	-	(20,376)	(94)	(3,482)	(3,618)	(132)	(27,702)
	$49,415	$27,055	$344	$2,513	$1,868	$1,448	$82,643
2025
January 1	$49,415	$27,055	$344	$2,513	$1,868	$1,448	$82,643
Add	-	-	-	3,880	1,391	-	5,271
Depreciation expense	-	(1,245)	(62)	(709)	(851)	(263)	(3,130)
December 31	$49,415	$25,810	$282	$5,684	$2,408	$1,185	$84,784
December 31, 2025
Cost	$49,415	$47,431	$438	$9,033	$6,877	$1,580	$114,774

	Land	Houses and buildings	Machinery equipment	Transportation equipment	Office equipment	Other Equipment	Total
Accumulated depreciation and impairment	-	(21,621)	(156)	(3,349)	(4,469)	(395)	(29,990)
	$49,415	$25,810	$282	$5,684	$2,408	$1,185	$84,784
	Land	Houses and buildings	Machinery equipment	Transportation equipment	Office equipment	Other Equipment	Total
January 1, 2024
Cost	$63,859	$58,809	$438	$4,350	$5,282	$-	$132,738
Accumulated depreciation and impairment	-	(23,384)	(31)	(3,150)	(2,926)	-	(29,491)
	$63,859	$35,425	$407	$1,200	$2,356	$-	$103,247
2024
January 1	$63,859	$35,425	$407	$1,200	$2,356	$-	$103,247
Add	-	-	-	1,855	204	1,580	3,639
Disposal	(14,444)	(7,047)	-	(90)	-	-	(21,581)
Depreciation expense	-	(1,323)	(63)	(452)	(692)	(132)	(2,662)
December 31	$49,415	$27,055	$344	$2,513	$1,868	$1,448	$82,643
December 31, 2024
Cost	$49,415	$47,431	$438	$5,995	$5,486	$1,580	$110,345
Accumulated depreciation and impairment	-	(20,376)	(94)	(3,482)	(3,618)	(132)	(27,702)
	$49,415	$27,055	$344	$2,513	$1,868	$1,448	$82,643

a. No interest capitalization of property, plants, and equipment in the years 2025 and 2024.
b. For information about guarantee with property, plants and equipment, please refer to Note 8.

(11) Leasing Transactions – Lessee

a. The Company leases company vehicles as the underlying assets, with lease terms typically ranging from two to three years. Lease contracts are negotiated on an individual basis and incorporate a variety of terms and conditions. Except for the restriction that the leased assets may not be pledged as collateral, no other significant restrictions are imposed.
b. Information on the carrying amount of right-of-use assets and the depreciation expense recognized is as follows:

December 31, 2025	2025	December 31, 2024	2024
Book value	Depreciation expense	Book value	Depreciation expense

Transportation equipment

$ 1,962 $ 2,993 $ 4,955 $ 3,300

c. The additions to right-of-use assets for the Company amounted to $0 and $4,388 for the years 2025 and 2024, respectively.

d. Information on profit or loss items related to lease contracts is as follows:

	2025	2024
Items affecting current profit or loss:
Interest expense on lease liabilities	$ 58	$ 115
Expenses relating to short-term leases	1,011	1,009
Expenses relating to leases of low-value assets	823	760

e. The total cash outflow for leases amounted to $4,900 and $5,105 for the years 2025 and 2024, respectively.

(12) Investment property

	2025	2024
January 1
Land	$ 55,380	$ 55,380
Houses and buildings	24,584	24,584
Cumulative depreciation	( 15,936)	( 15,526)
	$ 64,028	$ 64,438
January 1	$ 64,028	$ 64,438
Depreciation expense	( 411)	( 410)
December 31	$ 63,617	$ 64,028
December 31
Land	$ 55,380	$ 55,380
Houses and buildings	24,584	24,584
Cumulative depreciation	( 16,347)	( 15,936)
	$ 63,617	$ 64,028

a. Rental income and direct operation cost of investment properties:

	2025	2024
Rental income of investment properties	$ 2,063	$ 1,833

Direct operating expenses incurred by investment properties that generate rental income in the current period
$ 411 $ 410

b. As of December 31, 2025, and 2024, the fair values of the investment property held by the Company were $112,407 and $109,727, respectively, for the fair values of the investment property held by the Company, based on the evaluation results of independent evaluation experts, which adopted the comparative method. Based on the comparison target price, compare, analyze and adjust the evaluated price under its situation, price date, region, and independent factors.

c. For information about guarantee with investment property, please refer to Note 8.

(13) Short-term borrowings

The Company had no short-term borrowings as of December 31, 2025.

Nature of loan	December 31, 2024	Interest rate range	Collateral
Bank loan
Guaranteed loan	$ 163,128	2.37%~2.47%	Inventory, land, houses and buildings (listed property, plants and equipment and investment property)
Credit loan	143,005	2.22%~2.35%	None
	$ 306,133

For guarantee on short-term borrowings, please refer to Note 8.

(14) Other current liabilities

	December 31, 2025	December 31, 2024
Advance collection of down payment for industry zone sold	$ 6,052,720	$ 1,571,259
Deposits received - Tender deposit for land sale	9,047	-
Others	44,468	23,518
	$ 6,106,235	$ 1,594,777

The deposit received in advance for the sale of the industrial zone and the deposit for the sale of the land are entrusted by the Chiayi County Government to the Company for the "Entrusted Development, Sale and Management Case of the First Phase of Machohou Industrial Park in Chiayi County" and the "Second-stage Entrusted Development of the Machohou Industrial Park in Chiayi County, Sales and Management Case." When the land is sold by auction, the land deposit that the

external company has won the bid will be charged accordingly for the land development fee. Please refer to Note 6 (4) and (7) for details.

(15) Bonds payable

	December 31, 2025	December 31, 2024
Bonds payable	$ 500,000	$ 500,000
Less: Discount price of payable company bonds	( 525)	( 1,130)
	499,475	498,870
Less: Due within one year or one operating cycle, or exercise of company bonds' redemption right	( 499,475)	-
	$ -	$ 498,870

a. The Company raised and issued the first domestic secured ordinary corporate bonds in 2021 with the approval of the competent authority, with a total issuance amount of NT$500,000 and a coupon rate of 0.56%. The issuance period is five years. It was listed and traded on the OTC market of the ROC on November 9, 2021, and the circulation period is from November 9, 2021 to November 9, 2026. The Company's bonds are paid via one-off principal repayment when due.

b. The aforesaid company's bonds payable are issued by financial instruments under guarantee; for guarantee, please refer to Note 8.

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(16) Long-term borrowings

Nature of loan	Borrowing period and repayment method	Interest rate range	Collateral	December 31, 2025
Long-term bank credit loan
Taiwan Cooperative Bank	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	None	$ 175,177
Taiwan Business Bank	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	100,750
Bank of Taiwan	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	67,780
Bank of Kaohsiung	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	67,780
The Shanghai Commercial & Savings Bank, Ltd.	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	67,780
Agricultural Bank of Taiwan	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	32,680
Chang Hwa Bank	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	32,680
Taiwan Cooperative Bank	Monthly payment of interests from April 7, 2023 to October 7, 2026	2.68%	"	181,553
Far Eastern International Bank	Monthly payment of interests from December 5, 2023 to May 22, 2026	2.64%	"	55,318
Long term bank guaranteed loan
E.SUN Commercial Bank, Ltd.	Monthly payment of interests from August 29, 2024 to August 29, 2030	2.50%	Inventories - To-be-constructed land	446,000
				1,227,498
Less: Long-term borrowings due within one year or one operating period				( 1,227,498)
				$ -

Nature of loan	Borrowing period and repayment method	Interest rate range	Collateral	December 31, 2025
Long-term bank credit loan
Taiwan Cooperative Bank	Monthly payment of interests from April 13, 2020 to February 12, 2026	4.09%	None	$ 200,490
Taiwan Business Bank	Monthly payment of interests from April 13, 2020 to February 12, 2026	4.09%	"	148,310
Chang Hwa Bank	Monthly payment of interests from April 13, 2020 to February 12, 2026	4.09%	"	148,310
Agricultural Bank of Taiwan	Monthly payment of interests from April 13, 2020 to February 12, 2026	4.09%	"	98,240
Hua Nan Commercial Bank, Ltd.	Monthly payment of interests from April 13, 2020 to February 12, 2026	4.09%	"	49,070
Land Bank of Taiwan	Monthly payment of interests from April 13, 2020 to February 12, 2026	4.09%	"	49,070
Taiwan Cooperative Bank	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	434,520
Taiwan Business Bank	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	250,010
Chang Hwa Bank	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	81,070
Agricultural Bank of Taiwan	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	81,070
The Shanghai Commercial & Savings Bank, Ltd.	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	168,240
Bank of Taiwan	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	168,240
Bank of Kaohsiung	Monthly payment of interests from November 3, 2022 to October 7, 2028	3.67%	"	168,240
Taiwan Cooperative Bank	Monthly payment of interests from April 7, 2023 to October 7, 2026	2.68%	"	163,870
Far Eastern International Bank	Monthly payment of interests from December 5, 2023 to May 22, 2026	2.64%	"	63,053
Long term bank guaranteed loan
E.SUN Commercial Bank, Ltd.	Monthly payment of interests from August 29, 2024 to August 29, 2030	2.50%	Inventories - To-be-constructed land	446,000
				2,717,803
Less: Long-term borrowings due within one year or one operating period				( 2,717,803)
				$ -

a. In October 2019, the Company signed a joint credit contract with credit-granting bank groups such as Taiwan Cooperative Bank, Chang Hwa Bank, and Taiwan Business Bank as the execution fund of the entrusted development, sale and management case of the later phase of the Chiayi County Machohou industrial Park signed by the Company in October 2018. The total credit limit is established at $6,780,000, which comprises a guarantee limit of $780,000 and a loan limit of $6,000,000. The primary credit period is calculated from the date of the first drawdown and extends for six years. In 2024, the credit limit was extended to October 2026 in collaboration with the credit banking consortium. As of December 31, 2025, the Company has used the performance guarantee amount of $364,626 and the loan amount of $0. President of the Company agrees, on personal behalf, to be the joint guarantor of this credit line case. During the term of this credit line case, the Company mainly undertakes to promise as follows:

(a) Financial ratios in annual consolidated financial statement should be maintained as follows:

Tangible equity: After deduction of intangible assets, stockholders' equity shall not be lower than NT$2.5 billion.

(b) Within 2 years from the first use day of this development project, it should complete the first notice for sale or registration.

(d) Within 3 years from the first notice for sale or registration, sales rate shall reach 35% (inclusive).

(e) During the existence of this credit case, if there is an advance from a shareholder, the Company shall obtain a consent letter signed by the shareholder, agreeing that the shareholder shall not be repaid until the credit case is fully paid, and the interest rate shall not be higher than this credit extension. The loan interest rate at the time of the case or later, unless the advance is converted into a capital company.

b. In September 2022, the Company entered into a joint credit agreement with a syndicate of creditors, including Taiwan Cooperative Bank, for the Group to fund the implementation of the "Development, Rental, Sales and Management Plan for the Tainan Cigu Science and Technology Industrial Park" signed with the Tainan City Government in January 2021. The total credit limit is NT$2,487,000 (including the guaranteed limit of NT$487,000 and the intermediate loan limit of NT$2,000,000). The main credit period is 6 years from the date of first use. As of December 31, 2025, the Company has used the performance guarantee amount of $308,481 and the loan amount of $544,627. President of the Company agrees, on personal

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behalf, to be the joint guarantor of this credit line case. During the term of this credit line case, the Company mainly undertakes to promise as follows:

(a) Financial ratios in annual consolidated financial statement should be maintained as follows:

Tangible equity: After deduction of intangible assets, stockholders' equity shall not be lower than NT$2.5 billion.

(b) During the existence of this credit case, if there is an advance from a shareholder, the Company shall obtain a consent letter signed by the shareholder, agreeing that the shareholder shall not be repaid until the credit case is fully paid, and the interest rate shall not be higher than this credit extension. The loan interest rate at the time of the case or later, unless the advance is converted into a capital company.

The Company did not violate the above commitments in 2025 and 2024.

(17) Pension

Confirmation of allocation plan

a. Since July 1, 2005, the Company and its domestic subsidiaries have formulated a retirement method with certain contributions in accordance with the "Labor Pension Act," which is applicable to employees of their own nationalities. For employees who choose to apply the labor pension system stipulated in the "Labor Pension Regulations," the Company and its domestic subsidiaries pay the labor pension at 6% of the salary to the employee's personal account of the Bureau of Labor Insurance. The payment of the employee pension is based on the employee. The individual pension account and the amount of accumulated income are collected in the form of monthly pension or lump sum pension.

b. The pension costs listed by the Company under the above pension regulations were $5,124 and $4,830, respectively, in 2025 and 2024.

(18) Capital Stock

a. As of December 31, 2025, the Company's authorized capital was NT$3,500,000, the paid-in capital was NT$2,332,457, and the par value per share was NT$10, totaling 233,246 thousand shares. The adjustment of the Company's ordinary outstanding shares at the beginning and end of the period is as follows (unit: thousand shares):

	2025 (note)	2024 (note)
January 1	233,246	228,673
Capitalization of earnings	-	4,573
December 31	233,246	233,246

Note: The number of shares of the Company held by subsidiaries is not deducted.

b. Treasury stock

(a) Cause and quantity of withdrawing share

Name of companies holding share	Withdrawal cause	December 31, 2025
		Number of Shares	Book value
The Company	Transfer of shares to employees (Note)	-	$ -
Subsidiary - Chang Ji	Safeguard stockholders' equity	29,261 thousand shares	255,837
			$ 255,837
		December 31, 2024
Name of companies holding share	Withdrawal cause	Number of Shares	Book value
The Company	Transfer of shares to employees (Note)	2,000 thousand shares	$ 20,648
Subsidiary - Chang Ji	Safeguard stockholders' equity	29,261 thousand shares	255,837
			$ 276,485

Note: On July 12, 2022, the Company approved the repurchase of 2,000 thousand treasury shares through the Board of Directors' resolution. By September 12, 2022 (the expiry of the execution period), a total of 2,000 thousand treasury shares were repurchased, in total of NT$20,648. The Company's Board of Directors resolved on August 13, 2025, to proceed with a capital reduction through share cancellation, with the record date set as September 5, 2025, and the amendment registration was duly completed on November 13, 2025.

(b) The Securities and Exchange Act stipulates that the Company's repurchase of outstanding shares shall not exceed 10% of the Company's total issued shares, and the total repurchase amount of shares shall not exceed the retained earnings plus the premium of the issued shares and the realized capital reserve amount.

(c) The treasury stocks held by the Company shall not be pledged in accordance with the Securities and Exchange Act, or enjoy the rights of shareholders before they are transferred.

(d) According to the Securities and Exchange Act, the shares transferable to employees bought back shall be transferred within five years from the date of the buyback. If not, the Company shall be deemed as not having issued shares, and shall make registration change and cancellation of shares. To maintain the Company's credit and shareholders' equity, the repurchased shares shall be subject to change registration and cancellation of the shares within six months from the date of repurchase.

(e) For pledge and guarantee information, please refer to Note 8(2).

c. On June 13, 2024, the shareholders' meeting resolved to approve the capitalization of undistributed earnings from the fiscal year 2023, amounting to NT$45,734. This capitalization involved the issuance of 4,573 thousand new shares at a par value of NT$10 per share. The capital increase proposal has been approved by the Financial Supervisory Commission and set by the Board of Directors on August 7, 2024. The capital increase reference date was determined to be August 31, 2024. The total issued shares after the capital increase amounted to NT$2,352,457, divided into 235,246 thousand shares. The registration change was completed on September 18, 2024.

(19) Capital Surplus

In accordance with the Company Act, the overage from the issuance of shares in excess of the par value and the receipt of the capital reserve as gifts, can be used to make up for losses, but when the Company has no accumulated losses, can be distributed in the form of new shares or cash on the basis of former shareholding ratio. In addition, in accordance with the Securities and Exchange Act, when the above-mentioned capital reserve is allocated to capital, the total annual amount of such allocation shall not exceed 10% of the paid-in capital. The Company shall not use the capital reserve to supplement the surplus even if it is still insufficient to make up for the capital loss.

(20) Retained Earnings

a. According to these articles of association, if there is a surplus in the annual final accounts, besides paying all taxes and levies according to law, the losses of previous years should be made up for first, and later 10% should be set aside as the legal reserve. If any surplus occurs afterward, keep it or distribute it according to the resolution of the shareholders' meeting. The Company shall also appropriate or reverse special reserves in accordance with laws or regulations stipulated by the competent authorities. The Company shall also appropriate or reverse special reserves in accordance with laws or regulations stipulated by the competent authorities. With regard to the earnings and undistributed earnings of same period (including adjustment on undistributed earnings), the Board of Directors shall submit an earnings distribution proposal to distribute dividends to shareholders, subject to the approval at the shareholders' meeting.

b. Our dividend policy is as follows: The industrial life cycle of the Company is in the growth period. To coordinate the Company's long-term financial planning for sustainable management and stable growth, the dividend policy adopts the residual dividend policy. According to the Company's budget plan, cash dividends shall first be reserved. If there is a remaining balance, a cash dividend shall be distributed. If the cash dividend can be distributed in the year, it shall not be lower than 5% of the total dividend amount.

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c. Except for making up for the Company's losses and distributing new shares or cash in the shareholders' existing shares proportion, the legal reserve shall not be used. However, if new shares or cash are issued, such reserve shall not exceed 25% of the paid-in capital.

d. Special reserve

(a) When the Company distributes surplus, the debit balance of other equity items on the balance sheet day of the year must be set aside as a special reserve before distribution. When the debit balance of other equity items is reversed, the reversal amount may be included in the surplus available for distribution.

(b) It shall handle under paragraph 1 of Article 41 of the securities and exchange law in line with the Order No. 1010047490 issued by the FSC stipulates that the accounting treatment of a public company's reinvested subsidiary holding shares of the parent company. Therefore, it shall calculate and set aside the same amount of special reserve for the listed, OTC, and emerging companies under the shareholding ratio for the difference between the market price of the parent company's shares held by the subsidiary at the end of the period and the book value. If the market price rebounds subsequently, the listed, OTC, and emerging companies may transfer the amount to the special reserve in accordance with the shareholding ratio.

e. Surplus distribution

The Company passed the following profit distribution projects for 2024 and 2023 by the resolution of the shareholders' meeting on June 11, 2025, and June 13, 2024:

	2024		2023
	Amount	Dividends Per Share (NT$)	Amount	Dividends Per Share (NT$)
Provision for legal reserve	$ 19,973		$ 20,479
Rotary special surplus reserve	( 18,815)		2,576
Cash	116,623	$ 0.50	91,469	$ 0.40
Stock dividends	-	-	45,734	0.20
Total	$117,781		$160,258

f. On March 11, 2026, the Company's Board of Directors passed the resolution on annual profit distribution plan for the year 2025.

The relevant surplus distribution is as follows:

	2025
	Amount	Dividends Per Share (NT$)
Provision for legal reserve	$ 22,419
Provision of special reserve	4,497
Cash	139,947	$ 0.60
Total	$166,863

By March 11, 2026, the above-mentioned for surplus distribution proposal for the year 2025 has not been resolved by the shareholders' meeting.

g. Dividends recognized as distributions to owners for the year 2024 amounted to $137,203 (NT$0.6 per share). On June 13, 2024, as resolved by the shareholders' meeting, it was decided to distribute the earnings for the fiscal year 2023 as follows: a cash dividend of NT$0.4 per common share and a stock dividend of NT$0.2 (totaling 4,573 thousand shares). The total amount was NT$137,203. The record date for the above cash and stock dividends was August 31, 2024.

h. Dividends recognized as distributions to owners for the year 2025 amounted to $116,623 (NT$0.5 per share). On June 11, 2025, the shareholders' meeting resolved to distribute a cash dividend of NT$0.5 per common share out of the 2024 earnings. The record date for the aforementioned cash dividend distribution was September 6, 2025.

(21) Operating Revenue

a. Subdivision of customer contract revenue

The revenue of the Company comes from the provision of goods and services gradually listed over time and listed at a certain point in time. The revenue can divide into the following main product lines:

2025	Sales revenue	Project revenue	Service revenue	Total
Revenue recognition time point
Revenue recognized at certain time point	$ 190,124	$ -	$ 9,143	$ 199,267
Revenue recognized over time	-	875,884	305,537	1,181,421
	$ 190,124	$ 875,884	$ 314,680	$ 1,380,688
2024	Sales revenue	Project revenue	Service revenue	Total
Revenue recognition time point
Revenue recognized at certain time point	$ 172,155	$ -	$ -	$ 172,155
Revenue recognized over time	-	455,423	208,441	663,864
	$ 172,155	$ 455,423	$ 208,441	$ 836,019

b. Contractual assets and contractual liabilities

They are as follows for the contract assets and contract liabilities related to customer contract revenue listed by the Company:

For information on credit risk related to contract assets, please refer to Note 12(2).

c. Opening contractual liabilities are recognized as revenue of the period

	2025	2024
Project revenue	$ 8,987	$ 1,110

d. As of December 31, 2025, and December 31, 2024, the allocated transaction prices for engineering and service contracts signed by the Company with its clients, which have not yet been fulfilled or have not been fully fulfilled, are $2,785,579 and $3,721,243, respectively. Management expects that the transaction prices allocated to unsatisfied performance obligations as of December 31, 2025 and 2024 will be recognized as revenue during the periods from 2026 to 2028 and from 2025 to 2028, respectively.

e. In 2020, the Company undertook the Changhua Post Office construction project. The project was subsequently suspended due to changes in the building design initiated by the client. As the suspension period exceeded six months, meeting the contractual condition under which the Company was entitled to terminate the contract, the Company exercised its right to terminate the contract and, in 2024, initiated legal proceedings against the client to claim damages arising from the termination. The case was adjudicated by the Taiwan Taipei District Court in the first instance in 2025, and the Company has adjusted the relevant profit or loss in accordance with the first-instance judgment. Subsequently, both parties filed lawful appeals to the second instance within the statutory period. As of March 11, 2026, the second-instance court has not yet rendered a judgment.

(22) Interest income

	2025	2024
Bank deposit interest	$ 12,211	$ 4,348
Interest income from financial assets at amortized cost	3,581	4,323

Interest revenue from financial assets at fair value through other comprehensive income
3,972
2,431
Other interest income
15,143
50,036
$ 34,907
$ 61,138

(23) Other Revenue

	2025	2024
Rental income	$ 3,042	$ 2,796
Other Revenue	12,811	4,993
Total	$ 15,853	$ 7,789

(24) Other gains and losses

	2025	2024
Conversion gains (losses) of net foreign currency exchange	($ 1,340)	$ 7,493
Gain on disposal of property, plants and equipment	-	5,789
Loss on disposal of investments	-	(13,227)
Other losses	(411)	(411)
Total	($ 1,751)	($ 356)

(25) Finance costs

	2025	2024
Interest expenses:
Bank loan	$ 63,520	$ 88,462
Payment of interests for company bonds	2,800	2,800
Discounted amortization of company bonds	605	600
Others	1,836	121
Less: Capitalization amount of assets meeting the requirements	( 11,150)	( 3,618)
Industry park interest repayment	( 41,873)	( 68,265)
Total	$ 15,738	$ 20,100

(26) Additional information about the expense nature

	2025
	Included in operating costs	Included in operating expenses	Total

Employee benefit expenses	$ 50,034	$ 97,961	$ 147,995
Depreciation expenses (Investment properties included)	44	3,497	3,541
Depreciation expenses of right-of-use assets	-	2,993	2,993
Amortization expenses	3	2,922	2,925
	2024
---	---	---	---
	Included in operating costs	Included in operating expenses	Total
Employee benefit expenses	$ 45,475	$ 94,837	$ 140,312
Depreciation expenses (Investment properties included)	-	3,072	3,072
Depreciation expenses of right-of-use assets	-	3,300	3,300
Amortization expenses	-	2,400	2,400

(27) Employee benefit expenses

	2025
	Included in operating costs	Included in operating expenses	Total
Salary	$ 41,885	$ 78,216	$ 120,101
Labor expense	4,079	6,150	10,229
Pension expense	2,223	2,901	5,124
Remuneration Paid to Directors	-	8,102	8,102
Other labor expense	1,847	2,592	4,439
	$ 50,034	$ 97,961	$ 147,995
	2024
---	---	---	---
	Included in operating costs	Included in operating expenses	Total
Salary	$ 38,095	$ 75,903	$ 113,998
Labor expense	3,626	5,958	9,584
Pension expense	2,000	2,830	4,830
Remuneration Paid to Directors	-	7,410	7,410
Other labor expense	1,754	2,736	4,490
	$ 45,475	$ 94,837	$ 140,312

a. According to the provisions of the Company's Articles of Incorporation, if the Company generates profits in a given year, $8\%$ shall be appropriated as employee compensation and up to $2\%$ as director remuneration. However, when there are accumulated losses (including adjustment on undistributed earnings), the Company shall reserve appropriate amounts for offsetting before making the remuneration. From the amount allocated for employee

remuneration, at least 1% must be distributed to frontline employees. The above remuneration to the employees may be allotted in cash or stock, and the eligible personnel shall include employees at subsidiaries that meet related requirements. The above remuneration to the directors shall be in cash. Clauses in preceding two paragraphs shall be determined upon the resolution by the Board of Directors and reported to the Shareholders' Meeting.

b. The estimated amount of employee remuneration of the Company in 2025 and 2024 is $24,249 and $21,840, respectively. The estimated amount of remuneration for Director of Board is $6,062 and $5,460, respectively, and the above amount is recorded in the salary expense account. In 2025, depending on the year's profits, 8% and 2% are estimated and recorded respectively. The actual amounts distributed as resolved by the Board of Directors are consistent with the amounts recognized in the financial statements. Employee compensation is paid in cash. The employee remuneration of $21,840 and director remuneration of $5,460 for the year 2024 approved by the Board of Directors are consistent with the amounts recognized in the financial report for the year 2024.

Information on the remuneration of employees and directors approved by the Director of Board of the Company can be found at the Market Observation Post System|MOPS.

c. It was 125 and 126 respectively for the number of employees of the Company on December 31, 2025, and 2024, of which the number of directors who were not concurrently employees was five persons, respectively.

d. The Company's shares have been listed and traded on the stock exchange, the following information shall be added:

(a) It was $1,166 and $1,098 respectively for the average employee welfare expenses in 2025 and 2024.

(b) It was $1,001 and $942 respectively for the average employee salary expenses in 2025 and 2024.

(d) As the Company has set up an audit committee, it does not apply to supervisor of board, and there is no need to disclose the remuneration information of supervisors.

~52~

e. Salary and remuneration policy of the Company

(a) The overall salary level of employees takes external competitiveness and internal fairness as important considerations, and can effectively attract and retain talents.

i. It provides employee development motivation and drives the positive development of the Company through the performance management system and employee compensation.

ii. It achieves the purpose of motivating employees in combination with the achievement of the Company's long-term and short-term goals, the time invested by individuals, the positions held, and the overall work performance.

(b) Directors: Remuneration only includes transportation expenses incurred for meetings and the annual profit distribution designated for directors' remuneration. The director's remuneration is distributed under the articles of association and by the resolution of the Board of Directors.

(c) Manager: the payment standard and combination are divided into fixed salary and variable salary. It determines the responsibilities of the positions they hold, with reference to the level of similar positions in the industry, and is submitted to the Remuneration Committee and the Board of Directors for approval.

(28) Income tax

a. Income tax expenses

Components of income tax expense:

	2025	2024
Income tax for the period:
Income tax from gains of the current period	$ 53,056	$ 62,447
Undistributed surplus tax	4,097	2,227
Land VAT	-	3,042
Underestimate (overestimate) number of income of previous years	( 8,281)	( 6,120)
Total income tax for the period	48,872	61,596
Deferred income tax:
Original generation and return of temporary difference	( 260)	( 15,620)
Income tax expenses	$ 48,612	$ 45,976

b. Relationship of income tax expense with accounting profit

	2025	2024
Calculation of income tax of pre-tax net profit at statutory tax rate (Note)	$ 54,561	$ 46,099
Expenses and income exempted from tax under the tax law	( 872)	( 5,205)
Land VAT	-	3,042
Deferred income tax assets' realizable evaluation changes	( 893)	5,933
Overestimate number of income of previous years	( 8,281)	( 6,120)
Undistributed surplus tax	4,097	2,227
Income tax expenses	$ 48,612	$ 45,976

Note: The tax rate is based on the tax rate applicable to the ROC.

c. The amounts of each deferred income tax asset or liability arising from temporary differences and tax losses are as follows:

	January 1	Recognized as profit or loss	2025 Recognized as other comprehensive income/(loss)	December 31
Temporary difference:
- Deferred tax assets:
Unrealized bad debt loss	$ 269	$ 132	$ -	$ 401
Unrealized inventories and idle inventory losses	924	-	-	924
Unrealized foreign investment loss	317	-	-	317
Unrealized impairment loss	84	-	-	84
Unpaid leave bonus	129	38	-	167
Subtotal	1,723	170	-	1,893
- Deferred tax liabilities:
Unrealized conversion profit	( 144)	90	-	( 54)
Subtotal	( 144)	90	-	( 54)
Total	$ 1,579	$ 260	$ -	$ 1,839

~55~

	January 1	Recognized as profit or loss	2024 Recognized as other comprehensive income/(loss)	December 31
Temporary difference:
— Deferred tax assets:
Unrealized bad debt loss	$ 282	($ 13)	$ -	$ 269
Unrealized inventories and idle inventory losses	924	-	-	924
Unrealized foreign investment loss	317	-	-	317
Unrealized impairment loss	84	-	-	84
Unrealized conversion profit	719	( 719)	-	-
Loss offset	18,985	( 18,985)	-	-
Unpaid leave bonus	103	26	-	129
Subtotal	21,414	( 19,691)	-	1,723
— Deferred tax liabilities:
Unrealized foreign investment profit	( 32,319)	32,319	-	-
Conversion difference of foreign operating agency	( 3,136)	3,136	-	-
Unrealized conversion profit	-	( 144)	-	( 144)
Subtotal	( 35,455)	35,311	-	( 144)
Total	($ 14,041)	$ 15,620	$ -	$ 1,579

d. The effective period of the Company's unused tax losses and the related amount of unlisted deferred income tax assets are as follows:

Occurrence year	Approved amount	December 31, 2025
		Amount without deduction	Income tax asset component	Last deduction year
2020	$ 175,349	$ -	$ -	2030

e. Deductible temporary differences not listed as deferred income tax assets by the Company in addition to tax losses above item 4 described:

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 6,311	$ 6,311

f. The Company's profit-making enterprise income tax has been approved by the tax collection authority until 2023.

(29) Earnings per share

	2025
	After-tax amount	Weighted average number of outstanding shares (thousand shares)	Earnings per share (NT$)
Basic earnings per share
Current net profit attributable to shareholders of ordinary shares	$ 224,193	203,985	$ 1.10
Diluted earnings per share
Influence of potential ordinary shares with dilution effect
Employee dividends	-	2,353
Impact of current net profit and potential ordinary shares belonging to shareholders of ordinary shares	$ 224,193	206,338	$ 1.09
	2024
	After-tax amount	Weighted average number of outstanding shares (thousand shares)	Earnings per share (NT$)
Basic earnings per share
Current net profit attributable to shareholders of ordinary shares	$ 199,727	203,985	$ 0.98
Diluted earnings per share
Influence of potential ordinary shares with dilution effect
Employee dividends	-	2,266
Impact of current net profit and potential ordinary shares belonging to shareholders of ordinary shares	$ 199,727	206,251	$ 0.97

(30) Changes of liabilities from financing activities

	Short-term borrowings	Long-term borrowings (including long-term loans due within one year or one operating period)	Corporate bonds payable (including corporate bonds due within one year or one operating period)	Total liabilities from financing activities
January 1, 2025 to	$ 306,133	$ 2,717,803	$ 498,870	$3,522,806
Changes of financing cash flow	( 306,133)	( 1,490,305)	-	( 1,796,438)
Other non-cash changes	-	-	605	605
December 31, 2025	$ -	$ 1,227,498	$ 499,475	$1,726,973
	Short-term borrowings	Short-term bills payable	Long-term borrowings (including long-term loans due within one year or one operating period)	Corporate bonds payable (including corporate bonds due within one year or one operating period)
---	---	---	---	---
January 1, 2024	$316,163	$ 60,000	$1,820,372	$ 498,270
Changes of financing cash flow	( 10,030)	( 60,000)	897,431	-
Other non-cash changes	-	-	-	600
December 31, 2024	$306,133	$ -	$2,717,803	$ 498,870

Transactions of related parties

(1) Name and relationship of related parties

Name of related parties
CHANG JI CONSTRUCTION CO., LTD. (Chang Ji)
XINDIN ENGINEERING CONSULTANTS CORP. (XINDIN)

Relationship with the Company
Subsidiaries of the Company
Subsidiaries of the Company

(2) Major transactions with related parties

a. Goods purchased

	2025	2024
Project costs:
Chang Ji	$ 131,859	$ -
Development cost of agent industrial zone:
Chang Ji	$ 1,327,609	$ 1,530,172
XINDIN	53,819	38,678
Total	$ 1,381,428	$ 1,568,850

The transaction price and payment terms of the Company's goods purchased from related parties are not significantly different from those of ordinary customers. The transaction price shall be determined by both parties through negotiation when the related party contracts the project of the Company. Its payment terms are handled by monthly settlement, which is not significantly different from ordinary customers.

b. Receivable amount of related parties

	December 31, 2025	December 31, 2024
Other accounts receivable:
Chang Ji	$ 1,345	$ 1,950

The expenses for project valuation fees and the accrual of payroll expenses were borne by the subsidiary on behalf of the Company.

c. Endorsements/commitments

The project contract awarded by the Company to Chang Ji will still pay the project funds of $257,763 and $11,395 in future years as of December 31, 2025 and 2024.

d. Leasing and property transactions

(a) The Company leased the Zhonghe Xinmin Street office to Chang Ji in 2025 and 2024, and the rental income listed in 2025 and 2024 were both $840.
(b) The Company leased the Zhonghe Xinmin Street office to XINDIN in 2025 and 2024, and the rental income listed in 2025 and 2024 were both $36.

(3) Remuneration of key management

	2025	2024
Salary and other short-term employee benefit	$ 32,428	$ 26,074
Benefit after retirement	613	549
Total	$ 33,041	$ 26,623

~59~

8. Assets in pledge

(1) The details of the guarantee provided for the company's assets are as follows:

Asset item	Book value		Guarantee purpose
	December 31, 2025	December 31, 2024
Inventory
— Property for sale	$ 46,500	$ 46,500	Guarantee for bank financing limit and guarantee for short-term notes payable
— To-be-constructed land	572,986	561,836	Guarantee for bank financing limit
— Property under construction	27,533	13,057	Guarantee for bank financing limit
Other current assets
— Pledged deposit	14,752	14,212	Project bond, performance bond and bank financing limit guarantee
— Reserve account	290,340	161,381	Performance bond, bank financing line guarantee, and corporate bonds payable
— Special account for trust	6,085,578	1,623,280	Performance bond
— Project deposit and bid bond	48,396	672	Project deposit and bid bond
Property, plant and equipment	61,888	62,422	Guarantee for bank financing limit
Investment property	63,720	64,028	Guarantee for bank financing limit
Other non-current assets
Refundable deposits	12,538	13,618	General deposit and golf pass
Reserve account	-	153,677	Bonds payable
	$ 7,224,231	$ 2,714,683

(2) As of December 31, 2025 and December 31, 2024, Chang Ji pledged 29,261 thousand shares and 23,687 thousand shares (listed as treasury stock) of the Company against a loan.

9. Significant contingent liabilities and outstanding contractual commitments

Commitments

There are still major commitments and contingencies summarized as follows in addition to those mentioned in Notes 6 (7) and 7:

(1) Warranty

a. The Company shall sign the entrustment guarantee contract or provide the pledge guarantee of certificate of deposit if the Company entrusts the bank to provide joint and several guarantees for the bid deposit, performance bond, advance payment guarantee, and other project guarantees required for project contracting. It is $890,910 for the guarantee amount as of December 31, 2025.

b. It was $185,315 the performance guarantee notes issued by the Company due to the requirements of the project owner and the sale of land as of December 31, 2025.

(2) As of December 31, 2025, It is $1,840,040 for the project payment still payable in the next year for the contracted project contract signed by the Company.

Major disaster loss

No such circumstance.

Major subsequent events

On March 11, 2026, the Board of Directors of the Company passed the resolution on the profit distribution plan and the payment of remuneration of employees and directors for the year 2025. Please refer to Note 6 (20) 6. and Note 6 (27) for details.

Others

(1) Capital management

The Company's capital management objectives are to ensure the continued operation of the group, maintain the best capital structure, reduce capital costs, and provide remuneration to shareholders. The Company may adjust the number of dividends paid to shareholders to maintain or adjust the capital structure, return capital to shareholders, issue new shares or sell assets to reduce debts. The Company uses the debt to capital ratio to monitor its capital, which is calculated by dividing net debt by total capital. Net debt is calculated as total borrowings (including "current and non-current borrowings" reported in the independent balance sheet) less cash and cash equivalents. The total capital is calculated as the equity reported in the independent balance sheet and the net debt.

As of December 31, 2025, and 2024, the debt capital ratio of the Company is as follows:

	December 31, 2025	December 31, 2024
Total borrowing	$ 1,726,973	$ 3,522,806
Less: Cash and cash equivalents	( 679,727)	( 236,302)
Net liabilities	1,047,246	3,286,504
Total equity	3,513,960	3,395,845
Total capital	$ 4,561,206	$ 6,682,349
Debt-to-capital ratio	22.96%	49.18%

(2) Financial instrument

a. Category of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through other comprehensive income
Select the designated equity instrument investment	$ 72,592	76,987
Financial assets at amortized cost
Cash and cash equivalents	679,727	236,302
Financial assets at amortized cost	137,964	350,381
Notes receivable	2,322	975
Accounts receivable	149,921	72,964
Other accounts receivable	2,351,524	4,385,280
Other accounts receivable-Related person	1,345	1,950
Refundable deposits	12,538	13,618
Other financial assets	6,439,066	1,953,222
	$ 9,846,999	$ 7,091,679
Financial liabilities
Short-term borrowings	$ -	$ 306,133
Notes payable	14,431	7,698
Accounts payable	147,044	106,957
Other accounts payable	59,771	53,368
Payable company bonds (inclusive of company bonds mature within one year or one operating cycle)	499,475	498,870
Long-term borrowings (inclusive of long-term loan mature within one year or one operating cycle)	1,227,498	2,717,803
Deposits received	23,223	3,467
Rental liabilities	1,995	5,003
	$ 1,973,437	$ 3,699,299

b. Risk management policy

The financial risks of the Company are mainly the risks associated with investing in financial products and the exchange rate risk of foreign currency transactions. The Company has always adopted the most strict control standards for the financial risks of various financial commodity investments. All financial investments and operations have been comprehensively evaluated for their possible market risks, credit risks, liquidity risks, and cash flow risks, and must choose

the one with the least risk. The Company also seeks optimized risk positions and maintains appropriate liquidity positions based on policy risk management objectives to achieve the best hedging strategy for the exchange rate risk of foreign currency transactions.

c. Significant financial risk - Nature and degree

(a) Market risk

Exchange rate risk

i. As the Company's operating involves several non-functional currencies, it is affected by exchange rate fluctuations. It is as follows for the information of foreign currency assets and liabilities with significant exchange rate fluctuations:

	December 31, 2025
	Foreign currency (NT$ thousand)	Exchange rate	Book value (New Taiwan Dollars)	Sensitivity analysis
				Fluctuation range	Influence of profit and loss	Influence of rights and interests
(Foreign currency: Functional currency)
Financial assets
Monetary item
US$: NT$	$5,402	31.43	$169,758	1%	$1,072	$ 626
Financial liabilities
Monetary item
US$: NT$	$ 136	31.43	$ 4,242	1%	($ 42)	$ -
	December 31, 2024
---	---	---	---	---	---	---
	Foreign currency (NT$ thousand)	Exchange rate	Book value (New Taiwan Dollars)	Sensitivity analysis
				Fluctuation range	Influence of profit and loss	Influence of rights and interests
(Foreign currency: Functional currency)
Financial assets
Monetary item
US$: NT$	$3,731	32.79	$122,235	1%	$ 570	$ 652
Financial liabilities
Monetary item
US$: NT$	$ 144	32.79	$ 4,650	1%	($ 47)	$ -

ii. Due to significant influence of exchange rate fluctuation, the Company recognizes aggregate amounts of all the exchange profits and losses (including realized and unrealized) of monetary items as ($1,340) and $7,493, respectively in 2025 and 2024.

Price risk

The equity instruments to which the Company is exposed to price risk are financial assets at fair value through other comprehensive income. The Company disperses its investment portfolio under the limit set by the Company to manage the price risk of equity instrument investment.

Interest rate risk of cash flow and fair value

The interest rate risk of the Company comes from bank borrowings. Loans issued at floating interest rates expose the Company to cash flow interest rate risk, which is partially offset by cash and cash equivalents held at floating interest rates. Loans issued at a fixed interest rate expose the Company to fair value interest rate risk. The Company's borrowings calculated at floating interest rates were denominated in New Taiwan dollars in 2025 and 2024, and the increased cash outflows were $12,275 and $30,239, respectively when the market interest rate increased by 1%.

(b) Credit risk

i. Credit risk refers to the risk that the Company will incur financial losses due to the failure of customers or counterparties of financial instruments to perform their contractual obligations. Each operating independent in the group shall conduct management and credit risk analysis under the Company's internal explicit credit policy for each new customer before setting the terms and conditions for payment and delivery. Internal risk control is to assess the credit quality of customers by taking into account their financial status, experience and other factors. Individual risk limits are set by the Board of Directors based on internal or external ratings and are used to regularly monitor credit lines. The main credit risk comes from deposits made with banks and financial institutions, as well as credit risk from wholesale and retail customers, and includes uncollected accounts receivable.

ii. In 2025 and 2024, there was no items exceeding the credit limit, and the management did not expect any significant losses due to the counterparty's non-performance of contracts.

iii. The Company adopts IFRS 9 to provide the following assumptions as to the basis for judging whether the credit risk of financial instruments has increased significantly since the original list:

When the contract payment is overdue for more than 30 days according to the agreed

payment terms, it is deemed that the credit risk of the financial asset has increased significantly after the original recognition.

iv. The Company adopts IFRS9 to provide premise assumptions. It deems to have breached the contract when the contract payment is overdue for more than 90 days under the agreed payment terms.

v. The Company groups the accounts receivable, contract assets, and lease receivables of customers under the characteristics of customer types, and adopts a simplified method to estimate the expected credit loss based on the reserve matrix and loss rate method.

vi. The Company incorporated the prosperity observation report of the Taiwan Economic Research Institute into the consideration of future foresight and adjusted the loss rate established under the historical and current information of a specific period to estimate the allowance loss of accounts receivable and contract assets. It is as follows for the preparation matrix and loss rate method as of December 31, 2025, and 2024:

	Not overdue	Overdue 1-120 days	Overdue More than 121 days	Total
December 31, 2025
Expected loss ratio	0%~2.92%	2.92%~100%	100%
Total book value	$ 416,405	$ 14	$ 6	$416,425
Allowance for loss	2,640	14	6	2,660
	Not overdue	Overdue 1-120 days	Overdue More than 121 days	Total
December 31, 2024
Expected loss ratio	0%-5.61%	5.61%-100%	100%
Total book value	$ 252,886	$ 382	$ 6	$253,274
Allowance for loss	2,407	247	6	2,660

vii. It is as follows for the statement of changes in the allowance for loss of receivables adopted by the Company in a simplified way:

	2025
	Accounts receivable	Contract assets	Notes receivable
January 1	$ 2,660	$ -	$ -
Impairment loss record	-	132	-
Reversal of impairment loss	(132)	-	-
December 31	$ 2,528	$ 132	$ -

~65~

	2024
	Accounts receivable	Contract assets	Notes receivable
January 1 (Same as December 31)	$ 2,660	$ -	$ -

i. The cash flow forecast implements by each operating independent in the Company and summarized by the financial department of the Company. The Finance Department monitors the prediction of the Company's working capital demand, ensures sufficient funds to meet the needs of the operation, and maintains sufficient unspent loan commitments at any time to prevent the Company from violating the relevant loan limits or terms. Such prediction takes into account the Company's debt financing project, compliance with the debt terms, compliance with the financial ratio target of the internal balance sheet, and the requirements of external regulatory laws and regulations.

ii. It is as follows for the details of the unused loan limit of the Company:

	December 31, 2025	December 31, 2024
Mature within a year	$ 1,881,950	$ 1,367,207
Mature for over a year	8,705,502	7,115,197
	$ 10,587,452	$ 8,482,404

As of December 31, 2025 and 2024, in the Company's unutilized borrowing limit mature for more than one year of $7,455,373 and $5,955,120, respectively, are loan limits in execution of the Second-stage Entrusted Development of the Machohou Industrial Park in Chiayi County and the Cigu Technology Industrial Park Development, Rent, Sale and Management Project commissioned by the Tainan City Government specified in Note 6 (16).

iii. The following table shows the non-derivative financial liabilities of the Company, grouped under the relevant maturity date, and analyzed under the remaining period from the balance sheet date to the contract maturity date. The contract cash flow presented in the following table is a non-discounted amount.

Non-derivative financial liabilities:

December 31, 2025	Within 1 year	1 to 5 years
Notes payable	$ 14,431	$ -
Accounts payable (including related persons)	109,663	37,381
Other accounts payable	59,771	-

~66~

Non-derivative financial liabilities:

Rental liabilities	1,899	106
Bonds payable	502,941	-
Long-term borrowings
(inclusive of long-term loan
mature within one year or one
operating cycle)	36,562	1,306,210
Deposits received	9,047	14,176

Non-derivative financial liabilities:

December 31, 2024	Within 1 year	1 to 5 years
Short-term borrowings	$ 308,613	$ -
Notes payable	7,698	-
Accounts payable (including related persons)	53,519	53,438
Other accounts payable	53,368	-
Rental liabilities	3,100	1,972
Bonds payable	3,405	506,346
Long-term borrowings
(inclusive of long-term loan
mature within one year or one
operating cycle)	95,135	2,943,085
Deposits received	-	3,467

(3) Fair value information

a. The levels of evaluation techniques used to measure the fair value of financial and non-financial instruments are defined as follows:

Level 1: Market prices (unadjusted) that enterprises could obtain identical assets or liabilities over active markets on the measurement date. Active market is where transactions of assets or liabilities occur with sufficient frequency and volume, which provide pricing information on an ongoing basis. The fair values of the OTC stocks and beneficiary certificates invested by the Company belong to Level 1.

Level 2: Assets or liabilities' directly or indirectly observable input values, but excluding prices of level 1.

Level 3: Assets or liabilities' unobservable input values. All equity instrument investments without an active market invested by the Company belong to level 3.

b. For fair values of investment property measured with costs, please refer to Note 6(12).

c. Financial instruments measuring not with fair value

The carrying amount of the Company's cash and equivalent cash equivalents, notes receivable, accounts receivable, other receivables, short-term loans, notes payable, accounts payable and other payables is a reasonable approximation of the fair value.

d. Financial and non-financial instruments measured at fair value are classified by the Company under the nature, characteristics, risks, and fair value level of assets and liabilities. The relevant information is as follows:

(a) The Company classifies the assets and liabilities under their nature. The relevant information is as follows:

| December 31, 2025
Assets | Level 1 | Level 2 | Level 3 | Total |
| --- | --- | --- | --- | --- |
| Repeatable fair value | | | | |
| Financial assets at fair value
through other comprehensive
income | | | | |
| Equity securities | $ - | $ - | $10,011 | $10,011 |
| Debt securities | 62,581 | - | - | 62,581 |
| Total | $62,581 | $ - | $10,011 | $72,592 |
| December 31, 2024
Assets | Level 1 | Level 2 | Level 3 | Total |
| Repeatable fair value | | | | |
| Financial assets at fair value
through other comprehensive
income | | | | |
| Equity securities | $ - | $ - | $11,740 | $11,740 |
| Debt securities | 65,247 | - | - | 65,247 |
| Total | $65,247 | $ - | $11,740 | $76,987 |

(b) As for the methods and assumptions used by the Company to measure the fair value, they are described as follows:

i. The breakdown is as follows according to the characteristics of the instrument in the case of the Company applying the market quotation as the fair price input value (i.e. the first level):

Repurchase agreements

Market prices

ii. Except for financial instruments of aforesaid active markets, other financial instruments' fair values have been obtained with evaluation technique or by referring to counterparties' quotations. The fair value obtained through the evaluation technology can calculate by referring to the current fair value of other financial instruments with substantially similar conditions and characteristics, the discounted cash flow method, or other evaluation technologies, including applying the model based on the market information available on the balance sheet date (e.g. the OTC center's reference yield curve and the average quotation of Reuters commercial promissory note interest rate).

iii. The Company adopts the evaluation technology widely used by market participants when evaluating non-standardized and less complex financial instruments, such as debt instruments without the active market, interest rate exchange contracts, exchange contracts, and options. Parameters used for such financial instrument's evaluation model are generally observable information over the market.

e. No transfer between level 1 and level 2 in 2025 and 2024.

f. The following are third-level changes in 2025 and 2024:

	2025	2024
January 1	$ 11,740	$ 7,887
Profit or loss recognized in other comprehensive income
Unrealized evaluation loss through other comprehensive income/(loss)	( 1,729)	3,853
December 31	$ 10,011	$ 11,740

g. No level 3 shifts in or out in 2025 and 2024.

h. The Company's evaluation process for the fair value classified as level 3 makes the evaluation results close to the market state through independent source data, confirms that the data source is independent, reliable, consistent with other resources and represents the executable price, regularly calibrates the evaluation model, conduct backtracking test, update the input values and data required by the evaluation model and any other necessary fair value adjustment, which ensure that the evaluation results are reasonable. The external appraiser is entrusted to appraise the price of the investment property.

i. The quantitative information about the significant unobservable input value and the sensitivity analysis of the change of the significant unobservable input value of the evaluation model used in level 3 fair value measurement items are explained as follows:

~68~

~69~

	Fair value on December 31, 2025	Evaluation technique	Significant unobservable input value	Range (weighted average)	Relation between input value and fair value
Non-derivative equity instrument:
Venture capital company shares' private equity fund investment	$ 10,011	Net asset value method	N/A	-	N/A
	Fair value on December 31, 2024	Evaluation technique	Significant unobservable input value	Range (weighted average)	Relation between input value and fair value
Non-derivative equity instrument:
Venture capital company shares' private equity fund investment	$ 11,740	Net asset value method	N/A	-	N/A

13. Disclosure of notes

(1) Relevant information of major transactions

a. Loan to others: No such circumstance.
b. Endorse for others: No such circumstance.
c. Significant securities held at the end of the period (excluding investments in subsidiaries, affiliated enterprises, and joint venture interests): Please refer to Attached table I.
d. The amount of related parties purchasing and selling goods reaches 0.1 billion New Taiwan dollars or over 20% of paid-in capital: No such circumstance.
e. The amount of related parties receivable reaches 0.1 billion New Taiwan dollars or over 20% of paid-in capital: No such circumstance.
f. For business relations and major transactions between the parent company and subsidiary and between subsidiaries, their circumstances and amounts: No such circumstance.

(2) Information about the shift investment business

Relevant information about the name and region of the invested company (excluding the invested company in Chinese Mainland): Please refer to Attached table II.

(3) Information about investment in Mainland China

a. Basic Information: None.
b. Significant transactions that, directly or indirectly, through third regional business, transfers to invest in the invested company in Mainland China: No such circumstance.

14. Operation department information

N/A.

APEX Science & Engineering Corp.
List of cash and cash equivalents
December 31, 2025
Unit: NT$1,000

Item	Summary	Amount
Cash on hand and working capital		$ 1,254
Bank deposits:
Check deposits		7,007
Current deposits
– USD	US$ 1,691 (NT$ thousand) with exchange rate 31.43.	53,141
– NT$		108,226
– Others		99
Time Deposits Expiring		161,466
Within Three Months		510,000
		$ 679,727

~70~

~71~

APEX Science & Engineering Corp.
List of notes receivable and accounts receivable
December 31, 2025

Unit: NT$1,000

Customer name	Amount	Remark
General customers
Company A	$ 121,380
Company B	16,642
		The balance of each sporadic customer does not exceed 5% of the balance of this account
Others	16,749
Subtotal	154,771
Less: Allowance for bad debts	( 2,528)
Total	$ 152,243

~72~

APEX Science & Engineering Corp.

List of construction in progress

January 1, 2025, to December 31, 2025

Unit: NT$1,000

Project case no.	Opening balance	Project costs	Project income/(loss)	Transfer out after completion	Ending balance
ALNG18	$ 667,980	$ 21	$ 135	$ -	$ 668,136
ANFA01	231,590	6,013	681	-	238,284
ATY21	448,183	2,661	( 2,661)	-	448,183
AEX01	201,513	361	( 1,076)	-	200,798
ABK01	206,518	320,921	26,635	-	554,074
AMD03	53,765	114,714	137		168,616
ARE01	1,939	317,406	5,085		324,430
Others	170,988	89,478	( 4,626)	( 26,023)	229,817
	$ 1,982,476	$ 851,575	$ 24,310	($ 26,023)	2,832,338

Accounting contract assets $ 1,550,069
Allowance for loss ($ 132)
Accounting reduction of contract liabilities $ 1,282,269

APEX Science & Engineering Corp.
List of inventory
December 31, 2025
Unit: NT$1,000

Amount

Item	Cost	Net realizable value	Remark
Goods	$ 2,900	$ 2,335
Finished product	9,352	8,300
Semi-finished product	5,711	4,397
Work-in-progress product	1,385	1,385
Raw material	3,709	2,022
Property for sale	74,841	74,841	Note
To-be-constructed land	573,825	573,825	"
Property under construction	27,533	27,533	"
	699,256	$ 694,638
Less: Allowance for price drop loss	( 4,618)
Total	$ 694,638

Note: The market price listed in the table means that it is not lower than the cost due to the industry characteristics of the construction company, the market price of the property under construction is not easy to determine.

~73~

APEX Science & Engineering Corp.
List of long-term equity investment
January 1, 2025, to December 31, 2025
Unit: NT$1,000

Name	Opening balance		Increase for the period		Decrease in the current period			Ending balance
	Number of shares (shares)	Amount	Number of shares (shares)	Amount	Number of shares (shares)	Amount	Investment Profit (Loss)	Number of shares (shares)	Percentage of Ownership	Amount	Net equity	Evaluation basis	Provision of guarantee or pledge
XINDIN ENGINEERING CONSULTANTS CORP.	1,800,000	$ 39,436	-	$ -	-	($ 8,000)	$ 657	1,800,000	100%	$ 32,093	$ 32,093	Equity method	None
Chang Ji Construction Co., Ltd.	54,320,000	449,742	14,345,600	115,040		(19,112)	3,702	68,665,600	91.80%	549,372	990,933	#	#
		$ 489,178		$115,040		($ 27,112)	$ 4,359			$ 581,465	$1,023,026

Note 1: The difference between the ending balance and the net equity of each investee includes adjustments such as the elimination of investments accounted for under the equity method, where shares of the parent company held by subsidiaries are treated as treasury shares.
Note 2: Increases during the current period include capital injections to subsidiaries in cash, stock dividends received from subsidiaries, and cash dividends distributed to subsidiaries.
Note 3: Decreases during the current period include unrealized gains or losses on equity instrument investments measured at fair value through other comprehensive income (FVOCI) by investees, as well as dividends received from subsidiaries.

APEX Science & Engineering Corp.
List of accounts payable
December 31, 2025
Unit: NT$1,000

Supplier name	Amount	Remark
General supplier
Company A	$ 22,452
Company B	16,551
Company C	13,814
Company D	9,401
Company E	9,093
Company F	8,288
Company G	8,049
Company H	7,814
Others	51,582	The balance of each sporadic manufacturer does not exceed 5% of the balance of this account
Subtotal	$ 147,044

~75~

~76~

APEX Science & Engineering Corp.

List of project funds received in advance

January 1, 2025, to December 31, 2025

Unit: NT$1,000

Project case no.	Opening balance	Increase (decrease) in current period	Transfer out after completion	Ending balance
AEX01	$ 179,783	$ 24,796	$ -	$ 204,579
ALNG18	668,393	14,042	-	682,435
ANFA01	235,126	-	-	235,126
ATY21	448,184	-	-	448,184
ABK01	139,069	203,970	-	343,039
AMD03	7,263	146,915	-	154,178
ARE01	-	405,017	-	405,017
Others	136,253	94,010	( 26,023)	204,240
	$ 1,814,071	$ 888,750	($ 26,023)	$ 2,676,798
Contract liabilities listed - construction contract payment				$ 1,390,705
Deduction of contract assets				$ 1,286,093

APEX Science & Engineering Corp.
List of operating revenue
January 1, 2025, to December 31, 2025
Unit: NT$1,000

Item	Summary	Amount	Remark
Sales revenue		$ 190,444
Less: Sales returns		( 11)
Sales allowances		( 309)
Subtotal		190,124
Project revenue		875,884
Service revenue		314,680
Total		$1,380,688

~77~

APEX Science & Engineering Corp.
List of cost of goods sold
January 1, 2025, to December 31, 2025
Unit: NT$1,000

Item	Summary	Amount
Beginning raw materials		$ 14,571
Add: Purchase		12,936
Others		60
Less: Ending materials		( 9,420)
Cost of raw materials sold		( 1,028)
Transfer to operating expenses		( 435)
Consumable materials		16,684
Direct labor		6,206
Manufacturing overheads		1,313
Manufacturing cost		24,203
Add: beginning WIP		3,249
Less: ending WIP		( 1,385)
Cost of finished products		26,067
Add: beginning finished products		12,356
Outsourcing expenses		448
Others		84
Less: Ending finished products		( 9,352)
Transfer to operating expenses		( 182)
Production and marketing cost		29,421
Beginning commodity		2,232
Add: Goods purchased in current period		106,715
Others		524
Less: Ending goods		( 2,900)
Transfer to operating expenses		( 638)
Cost of goods sold		105,933
Add: Cost of raw materials sold		1,027
Cost of goods sold		$ 136,381

~78~

APEX Science & Engineering Corp.
List of project costs
January 1, 2025, to December 31, 2025
Unit: NT$1,000

Item	Summary	Amount
Beginning construction materials		$ -
Add: Purchase		232,957
Less: Ending construction materials		-
Construction materials		232,957
Direct labor		192
Contract payment		557,946
Construction expenses		60,479
Project costs		$ 851,574

~79~

~80~

APEX Science & Engineering Corp.
List of operating expenses
January 1, 2025, to December 31, 2025
Unit: NT$1,000

Subject	Selling and marketing expenses	General and administrative expenses	Research and development expenses	Total
Salary expenses	$ 21,218	$ 67,998	$ 3	$ 89,219
Miscellaneous expenses	897	14,410	131	15,438
Insurance premiums	2,661	5,075	-	7,736
Others	9,793	25,488	1,665	36,946
	$ 34,569	$ 112,971	$ 1,799	$ 149,339

~81~

APEX Science & Engineering Corp.
List of functional summary of employee welfare, depreciation, depletion, and amortization expenses
incurred in the current period
December 31, 2025
Unit: NT$1,000

Please refer to notes 6 (26) and (27) for additional information on the nature of expenses and employee welfare expenses.

Apex Science & Engineering Corp. and Its Subsidiary Companies

Marketable securities held at the end (excluding the parts controlled by investment subsidiaries, associated enterprises and joint ventures)

December 31, 2025

Table 1.
Unit: NT$1,000
(Unless otherwise noted)

Holding company	Type and name of marketable securities (Note 1)	Relationship with securities issuers (Note 2)	Ledger account	Ending term				Remark (Note 4)
				Number of Shares	Book value	Percentage of Ownership	Fair value
Apex Science & Engineering Corp.	HOLY STONE ENTERPRISE CO., LTD.	-	Financial assets at fair value through other comprehensive income- non-current	2,648,106	$ 10,011	16.07	$ 10,011
Apex Science & Engineering Corp.	Cathay Life Insurance corporate bonds	-	"	-	62,581	-	62,581
Apex Science & Engineering Corp.	Mega Securities note/bond repurchase transactions	-	Financial assets at amortized cost - current	-	89,916	-	89,916
Apex Science & Engineering Corp.	GRAND BILLS FINANCE CORP. Repurchase agreement on U.S. dollar-denominated bonds	-	Financial assets at amortized cost - current	-	48,048	-	48,048
Chang Ji Construction Co., Ltd.	Apex Science & Engineering Corp.	The Company	Financial assets at fair value through other comprehensive income- non-current	29,261,043	352,596	12.44	352,596	(Note 5)
Chang Ji Construction Co., Ltd.	BIG SUN Group	-	"	1,035,578	119	0.24	119

Note 1: "Marketable securities" in this sheet refers to stocks, bonds, beneficiary certificates and the marketable securities derived from the above items that fall within the scope of International Accounting Standard 9 - "Financial Instruments".
Note 2: If marketable securities issuers are not interested persons, it's not needed to fill in the column.
Note 3: If it is measured at fair value, please fill in the book balance after adjustment by fair value evaluation and deduction of accumulated impairment in column B of book value; if not measured at fair value, please fill the original acquisition cost or book value after deduction of accumulated impairment from cost after amortization.
Note 4: All marketable securities have restricted users due to the provision of guarantees, pledged loans or other agreements, and the number of guarantees or pledged shares; the shares and amounts of guarantees or pledges and the restricted use conditions shall be indicated in the column "Remarks".
Note 5: In order to acquire financing credit limit from banks, Chang Ji used its29,261 thousand shares held in the Company as a pledge guarantee by December 31, 2024.

Apex Science & Engineering Corp. and Its Subsidiary Companies

Relevant information about the name and region of the invested company (excluding the invested company in Chinese Mainland)

Jan. 1 - Dec. 31, 2025

Unit: NT$1,000

(Unless otherwise noted)

Table 2.

Name of the investment company	Name of investee company (Notes 1 and 2)	Region	Main operating item	Original investment amount		Holding at the end of the period			Current income of the invested company (Note 2(b))	Investment profit and loss recognized for the period (Note 2(c))
				End of the period	End of last year	Number of Shares	Ratio	Book value
Apex Science & Engineering Corp.	XINDIN ENGINEERING CONSULTANTS CORP.	Taiwan	Engineering technical consultant, urban update reconstruction, management consultant, other consulting service	$ 8,000	$ 8,000	1,800,000	100.00	$ 32,093	$ 657	$ 657
Apex Science & Engineering Corp.	Chang Ji Construction Co., Ltd.	Taiwan	Construction of civil and structural works and water conservancy projects, etc.	596,856	496,856	68,665,600	91.80	549,372	18,898	3,702

Note 1: If a public offering company has a foreign holding company and according to local laws and regulations, the consolidated financial report is the main financial report, the disclosure of the foreign invested company may only relate to news of the holding company.

Note 2: For situations not specified in Note 1, please fill in as per the following provisions:

(1) Columns such as "Name of the invested company", "Region", "Main operating item", "Original investment amount" and "Holding at the end of the period" should be filled in based on the (public offering) Company's reinvestment situation and each directly or indirectly controlled invested company's re-investment in order, and indicate the relationship of each invested company with the Company (public offering) in the "Remarks" column (if it is a subsidiary or a sub-subsidiary company).

(2) In the column "Current profit and loss of the invested company", the invested company's profit and loss amounts for the period shall be filled.

(3) In the column "Investment profit and loss recognized for the period", only the profit and loss of each subsidiary for direct reinvestment recognized by this (public offering) Company, and each invested company evaluated by the equity method should be filled in, and the rest can be omitted. In filling in the "current income amount of each subsidiary listed for direct reinvestment", it should be confirmed that the amounts of profits and losses of each subsidiary for the period have included the investment profits and losses of its re-investment that should be recognized in accordance with regulations.

Note 3: REINFORCE was disposed of in August 2024 and received approval for transfer from the Ministry of Economic Affairs in September 2024.

AI assistant

APEX Audit Report / Information 2025

52284_rns_2026-05-12_11b5b0c6-39d4-44a1-ab98-87dcd3010264.pdf

Basis for Opinions

Key Audit Matters

Accuracy of Construction Revenue Recognition

Explanation of the matter

Corresponding audit procedures

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Auditors' Responsibilities for the Audit of the Financial Statements

(13) Property, plant and equipment

(14) Lessee's lease transactions - the right-of-use assets/lease liabilities

(4) Other accounts receivable

(6) Prepayments

(7) Other current assets

(8) Financial assets at fair value through other comprehensive income

(11) Leasing Transactions – Lessee

(15) Bonds payable

(17) Pension

(18) Capital Stock

(21) Operating Revenue

(27) Employee benefit expenses

(29) Earnings per share

8. Assets in pledge

9. Significant contingent liabilities and outstanding contractual commitments

Commitments

13. Disclosure of notes

14. Operation department information

APEX Science & Engineering Corp.

List of construction in progress

APEX Science & Engineering Corp.

List of project funds received in advance

Apex Science & Engineering Corp. and Its Subsidiary Companies

Apex Science & Engineering Corp. and Its Subsidiary Companies

Relevant information about the name and region of the invested company (excluding the invested company in Chinese Mainland)

AI assistant

APEX — Audit Report / Information 2025

52284_rns_2026-05-12_11b5b0c6-39d4-44a1-ab98-87dcd3010264.pdf

Basis for Opinions

Key Audit Matters

Accuracy of Construction Revenue Recognition

Explanation of the matter

Corresponding audit procedures

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Auditors' Responsibilities for the Audit of the Financial Statements

(13) Property, plant and equipment

(14) Lessee's lease transactions - the right-of-use assets/lease liabilities

(4) Other accounts receivable

(6) Prepayments

(7) Other current assets

(8) Financial assets at fair value through other comprehensive income

(11) Leasing Transactions – Lessee

(15) Bonds payable

(17) Pension

(18) Capital Stock

(21) Operating Revenue

(27) Employee benefit expenses

(29) Earnings per share

8. Assets in pledge

9. Significant contingent liabilities and outstanding contractual commitments

Commitments

13. Disclosure of notes

14. Operation department information

APEX Science & Engineering Corp.

List of construction in progress

APEX Science & Engineering Corp.

List of project funds received in advance

Apex Science & Engineering Corp. and Its Subsidiary Companies

Apex Science & Engineering Corp. and Its Subsidiary Companies

Relevant information about the name and region of the invested company (excluding the invested company in Chinese Mainland)

More from APEX

APEX Audit Report / Information 2025