~1~

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Financial Statements and Independent Auditors' Report
2025 and 2024
(Stock code: 1439)

Address: 11F, No. 170, Jingmao 1st Rd., Nangang Dist.,
Taipei City

Tel.: (02)2756-6777

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Consolidated Financial Statements and Independent Auditor's Report for 2025
and 2024
Table of Contents

Items	Page
I. Cover Page	1
II. Table of Contents	2 ~ 3
III. Declaration	4
IV. Independent Auditors' Report	5 ~ 9
V. Consolidated Balance Sheet	10 ~ 11
VI. Consolidated Statement of Comprehensive Income	12
VII. Consolidated Statement of Changes in Equity	13
VIII. Consolidated Statement of Cash Flows	14 ~ 15
IX. Notes to Consolidated Financial Statements	16 ~ 80
(I) Company History	16
(II) Dates and Procedures for Approval of Financial Reports	16
(III) Application of New and Revised Standards and Interpretations	16 ~ 18
(IV) Summary of Significant Accounting Policies	18 ~ 32
(V) Major Sources of Uncertainty in Major Accounting Judgments, Estimates and Assumptions	32 ~ 33
(VI) Explanation of Important Accounting Items	33 ~ 61

~2~

~3~

Items	Page
(VII) Related Party Transactions	61 ~ 67
(VIII) Assets Collateralized (Pledged)	67
(IX) Significant Contingent Liabilities or unrecognized Contractual Commitments	68
(X) Losses from Major Disasters	68
(XI) Subsequent Events	68
(XII) Others	68 ~ 78
(XIII) Other Disclosures	78 ~ 79
(XIV) Information on Operating Segment	79 ~ 80

~4~

Ascent Development Co., Ltd.
Declaration of Consolidated Financial Statements of Affiliates

In 2025 (from January 1, 2025 to December 31, 2025), the companies that should be included in the consolidated financial statements of affiliated companies based on “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those that should be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standards No. 10. The related information that should be disclosed in the consolidated financial statements of affiliated companies has already been disclosed in the consolidated financial statements for subsidiaries; therefore, separate consolidated financial statements of affiliated companies will not be prepared.

Hereby certify

Company Name: ASCENT DEVELOPMENT CO., LTD.

Person in-charge: Chia-Chi Hou

March 11, 2026

Independent Auditors' Report

(2026) Cai-Shen-Bao-Zi No. 25004636

To ASCENT DEVELOPMENT CO., LTD.:

Audit Opinions

ASCENT DEVELOPMENT CO., LTD. and its subsidiaries (the Group) balance sheets of December 31 of 2025 and 2024, the comprehensive income statement, changes in equity, and cash flow statement from January 1 to December 31 of 2025 and 2024 and the notes to the consolidated financial statements (including the summary of major accounting policies) have been audited by the Auditor of the Firm.

According to the opinions of the Auditor, the above-mentioned consolidated financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers in all material aspects, which are sufficient to express the financial status of the Group on December 31, 2025 and 2024, and the parent company only financial performance and parent company only cash flow from January 1 to December 31 in 2025 and 2024.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group and its subsidiaries in accordance with the Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on the audit results of the Auditor and the audit reports of other auditors, we believe that we have obtained sufficient and appropriate audit evidence as the basis for expressing the audit opinion.

Key Audit Matters

Key audit items refer to the most important items in the audit of the Company's 2025 consolidated financial statements based on our professional judgment. These matters have been dealt with in the process of checking the consolidated financial statements and reaching audit opinions, and the we do not express opinions on these matters independently.

Key audit matters in the Group's consolidated financial statements for the year ended December 31, 2025 are as follows:

~6~

Occurrence of sales revenue from real estate

Descriptions

Please refer to Note 4(28) of the consolidated financial statements for the accounting policy of operating revenue in the construction industry, and Note 6(17) to the consolidated financial statements for descriptions of accounting items.

The real estate sales revenue of the construction industry is recognized when the ownership transfer of the real estate is completed and the house inspection certificate is delivered to the customer. The recognition of revenue is whether it meets the criteria for revenue recognition, which is significant to the overall financial statements of the current year. Therefore, we have listed the occurrence of sales revenue from real estate as one of the most important matters in the audit.

Audit procedure

The auditor has implemented the following procedures to respond to the specific aspects described in the above key audit items:

Understand and review the procedures for recognizing sales revenue and confirm that they are adopted in the same period of the financial statements.
For the details of the annual recognized property sales revenue, samples were selected to check the corresponding property ownership transfer and actual house delivery related basis, in order to confirm the appropriateness of the property sales revenue.

Other Matters - Reference to Other Audits of Other Auditors

The financial statements of some of the Company's investments under the equity method of the Group have not been audited by us but by other independent auditors. Therefore, in our opinions on the above-mentioned consolidated financial statements, the amount listed in the financial statements of the Companies and the relevant information disclosed in Note 13 are based on the audit reports of other auditors. On December 31, 2025 and 2024, the amount of investment in the above-mentioned companies using the equity method was NT$1,220,758 thousand and NT$1,220,821 thousand, respectively, accounting for 21% and 21% of the total consolidated assets. In 2025 and 2024, the consolidated profits and losses recognized for the aforementioned companies were NT$106,765 thousand and NT$222,349 thousand, respectively, accounting for 42% and 113% of the consolidated profits and losses for the current period.

Other Matters - Parent Company Only Financial Statements

ASCENT DEVELOPMENT CO., LTD. has compiled the parent company only financial statements for 2025, and the audit report of other matter paragraphs issued by the accountant

with unqualified opinions is submitted for reference.

Responsibilities of Management Level and Governance Units for the Consolidated Financial Statements

The responsibilities of the management is to prepare consolidated financial statements that are reasonably expressed in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards approved and published by the Financial Supervisory Commission and International Accounting Standards, and interpret and explain the announcement in preparation of consolidated financial statements that are fairly presented, and maintain the necessary internal controls related to the preparation of consolidated financial statements to ensure that there are no material misstatement in the financial statements that are caused by fraud or errors.

When preparing the consolidated financial statements, the responsibilities of the management level also include assessing the ability of the Group for going concern, the disclosure of related matters, and the adoption of the going-concern accounting basis, unless the management level intends to liquidate the Group or cease operations, or except for liquidation or cease of operation or has no realistic alternative but to do so.

The governance units (including the audit committee) of the Group are responsible for supervising the financial reporting process.

Responsibilities of Auditor to Audit Consolidated Financial Statements

The purpose of our audit of the financial statements is to obtain reasonable assurance as to whether there is any material misrepresentation in the consolidated financial statements as a whole resulting from fraud or error, and to issue an audit report. Reasonable certainty is of high degree of certainty, but there is no guarantee that the audit work performed in accordance with the auditing standards of the Republic of China will be able to detect material misstatement in the consolidated financial statements. Misstatements may result from fraud or error. Misstatements of individual amounts or aggregated amounts is considered material if it can reasonably be expected to affect economic decisions made by users of the consolidated financial statements.

As part of an audit in accordance with auditing standards 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 consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive

~7~

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 overriding internal controls.

Obtain an understanding of the 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 Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management level.
Conclude on the appropriateness of management level's use of the going concern basis of accounting and whether or not a material uncertainty exists related to events or conditions that may cast a significant doubt on the Group's and its subsidiaries' ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated 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 or conditions may cause the Group to cease to continue as an ongoing concern.
Assess the overall presentation, structure and content of the consolidated financial statements (including relevant notes), and whether the financial statements properly represent relevant transactions and events.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

The planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

We also provide the governance units with the statements that the personnel of the accounting firm that is subject to independence regulations have complied with the independence statement in the professional ethics code for CPAs of the Republic of China, and communicate with the governance units all relationships that may be considered to affect

~8~

the independence of the auditors and other matters (including relevant protective measures).

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Group's consolidated financial statements for the year 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

Yi-Chang Liang

Accountant

Chi-Tung Chen

Financial Supervisory Commission

Approval No.: Jin-Guan-Zheng-Shen-Zi No. 1070303009

Jin-Guan-Zheng-Shen-Zi No. 1130350413

March 11, 2026

~10~

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Consolidated Balance Sheet
December 31, 2025 and 2024

Expressed in thousands of NT$

	Assets	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents	VI(I)	$ 689,238	12	$ 504,371	9
1110	Financial assets at fair value through profit or loss - current	VI(V)	46,490	1	34,916	-
1150	Notes receivable, net	VI(II)	1,993	-	35,780	1
1170	Accounts receivable, net	VI(II)	56,375	1	1,947	-
1180	Accounts receivable - related parties, net	VII	377	-	377	-
1200	Other receivables		2,258	-	17,087	-
1220	Current income tax assets		320	-	293	-
130X	Inventory	VI(III)(IV), VII and VIII	2,427,678	41	2,487,901	43
1410	Prepayments		20,391	-	8,851	-
1476	Other financial assets - current	VIII	106,053	2	172,515	3
1479	Other current assets - others		75,773	1	83,005	1
11XX	Total current assets		3,426,946	58	3,347,043	57
Non-current assets
1510	Financial assets at FVTPL - non-current	VI(V)	261,339	5	218,000	4
1517	Financial assets at FVTOCI - non-current	VI(VI)	119,239	2	141,737	3
1550	Investments accounted for using equity method	VI(VII)	1,297,782	22	1,299,223	22
1600	Property, plants, and equipment		6,082	-	4,909	-
1755	Right-of-use assets	VI(VIII) and VII	32,360	1	36,810	1
1760	Investment property, net	VI(IX) and VIII	729,175	12	745,599	13
1780	Intangible assets		1,707	-	2,859	-
1840	Deferred income tax assets	VI(XXIV)	2,733	-	1,228	-
1920	Guarantee deposits paid	VII	7,355	-	10,885	-
1980	Other financial assets - non-current	VIII	12,500	-	13,000	-
1990	Other non-current assets - others		3,790	-	3,790	-
15XX	Total non-current assets		2,474,062	42	2,478,040	43
1XXX	Total assets		$ 5,901,008	100	$ 5,825,083	100

(Continued on next page)

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Consolidated Balance Sheet
December 31, 2025 and 2024

Expressed in thousands of NT$

	Liabilities and equity	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current liabilities
2100	Short-term borrowings	VI(IV)(X)	$ 1,240,447	21	$ 1,475,377	26
2130	Contract liabilities - current	VI(XVII)	454,636	8	394,155	7
2150	Notes payable		38,216	1	58,912	1
2170	Accounts payable		115,494	2	74,666	1
2180	Accounts payable - related parties	VII	9,769	-	9,769	-
2200	Other payables		47,436	1	63,040	1
2230	Current income tax liabilities		11,126	-	17,656	-
2280	Lease liabilities - current	VII	5,608	-	5,888	-
2320	Long-term liabilities due within one year or one business cycle	VI(XI)	16,000	-	16,000	-
2399	Other current liabilities - others		12,205	-	10,676	-
21XX	Total of current liabilities		1,950,937	33	2,126,139	36
Non-current liabilities
2540	Long-term borrowings	VI(XI)	342,000	6	358,000	6
2570	Deferred income tax liabilities	VI(XXIV)	10	-	30	-
2580	Lease liabilities - non-current	VII	146,185	3	151,861	3
2600	Other non-current liabilities		11,736	-	8,014	-
25XX	Total non-current liabilities		499,931	9	517,905	9
2XXX	Total liabilities		2,450,868	42	2,644,044	45
Equity attributable to owners of parent company
	Share capital	VI(XIII)
3110	Common stock capital		920,000	15	920,000	16
	Capital surplus	VI(XIV)
3200	Capital surplus		228,875	4	227,986	4
	Retained earnings	VI(XV)
3310	Legal reserve		403,880	7	382,722	7
3320	Special reserve		95,172	2	80,462	1
3350	Undistributed earnings		1,483,089	25	1,251,014	21
	Other equity	VI(XVI)
3400	Other equity		( 172,338)	( 3)	( 87,316)	( 1)
31XX	Total equity attributable to owners of the parent company		2,958,678	50	2,774,868	48
36XX	Non-controlling interests		491,462	8	406,171	7
3XXX	Total equity		3,450,140	58	3,181,039	55
	Significant contingent liabilities and unrecognized contractual commitments	IX
	Subsequent events	XI
3X2X	Total liabilities and equity		$ 5,901,008	100	$ 5,825,083	100

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Chairman: Chia-Chi Hou

Manager: Wen-Yu You

Accounting Officer: Pin-Hui Yeh

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Consolidated Statement of Comprehensive Income
January 1 to December 31, 2025 and 2024

Expressed in thousands of NT$
(Except for earnings per share in NT$)

	Items	Notes	2025		2024
			Amount	%	Amount	%
4000	Revenue	VI(IV)(XVII)	$ 813,096	100	$ 98,128	100
5000	Operating Costs	VI(III)(IV)(XXII)	( 595,840)	( 73)	( 55,821)	( 57)
5900	Gross profit		217,256	27	42,307	43
	Operating expenses	VI(IV)(XXII)(XXIII) and VII
6100	Promotional expenses		( 32,020)	( 4)	( 3,504)	( 4)
6200	Administrative expenses		( 63,411)	( 8)	( 64,572)	( 66)
6000	Total operating expenses		( 95,431)	( 12)	( 68,076)	( 70)
6900	Operating income (loss)		121,825	15	( 25,769)	( 27)
	Non-operating revenues and expenses
7100	Interest income	VI(XVIII)	5,761	1	5,607	6
7010	Other income	VI(XIX)	5,488	1	6,400	6
7020	Other gains and losses	VI(XX)	50,179	6	10,387	11
7050	Financial cost	VI(XXI) and VII	( 14,942)	( 2)	( 11,742)	( 12)
7060	Profit and loss share of the affiliates and joint ventures recognized using the equity method	VI(VII)
			178,971	22	197,169	201
7000	Total non-operating income and expenses		225,457	28	207,821	212
7900	Income before tax		347,282	43	182,052	185
7950	Income tax expenses	VI(XXIV)	( 6,266)	( 1)	( 19,492)	( 20)
8200	Current period net profit		$ 341,016	42	$ 162,560	165
	Other comprehensive income (net amount)
	Items not reclassified to profit or loss	VI(XVI)
8316	Unrealized gains or losses on investments in equity instruments at FVTOCI	VI(VI)
			($ 11,667)	( 2)	$ 9,761	10
8320	Shareholding in other comprehensive income of affiliates and joint ventures under equity method - items not reclassified to income	VI(VII)
			( 73,537)	( 9)	25,296	26
8310	Total of items not reclassified to profit or loss		( 85,204)	( 11)	35,057	36
8300	Other comprehensive income (net amount)		($ 85,204)	( 11)	$ 35,057	36
8500	Total comprehensive income for the period		$ 255,812	31	$ 197,617	201
	Net profit (loss) attributable to:
8610	Owner of parent company		$ 295,725	36	$ 160,500	163
8620	Non-controlling interests		45,291	6	2,060	2
	Total		$ 341,016	42	$ 162,560	165
	Total comprehensive income attributable to:
8710	Owner of parent company		$ 210,521	25	$ 195,557	199
8720	Non-controlling interests		45,291	6	2,060	2
	Total		$ 255,812	31	$ 197,617	201
	Basic earnings per share	VI(XXV)
9750	Basic earnings per share		$	3.21	$	1.74
	Diluted earnings per share	VI(XXV)
9850	Diluted earnings per share		$	3.21	$	1.74

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Chairman: Chia-Chi Hou
Manager: Wen-Yu You
Accounting Officer: Pin-Hui Yeh

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Consolidated Statement of Changes in Equity
January 1 to December 31, 2025 and 2024
Expressed in thousands of NT$

	Notes	Equity attributable to owners of parent company	Total	Non-controlling interests	Total equity
Retained earnings	Unrealized gains or losses on financial assets measured at fair value through other comprehensive income	Total
Common stock capital	Capital surplus	Legal reserve	Special reserve	Undistributed earnings
2024
Balance on January 1		$ 920,000	$ 182,854	$ 364,347	$ 212,044
Current period net profit		-	-	-	-
Other comprehensive income of current period	VI(XVI)	-	-	-	-
Total comprehensive income for the period		-	-	-	-
Appropriation and distribution of earnings:	VI(XVI)
Appropriation of legal reserve		-	-	18,375	-
Reversal of special reserve		-	-	-	( 131,582 )
Cash dividends		-	-	-	-
Disposal of FVTOCI equity instruments	VI(VI)(XVI)	-	-	-	-
Disposal of equity instruments at FVTOCI by affiliates	VI(XVI)	-	-	-	-
Changes in the net equity value of affiliates recognized under the equity method	VI(VII)	-	28,544	-	-
The difference between the actual price of the subsidiary's equity acquired and the carrying amount	VI(XXVII)	-	16,588	-	-
Balance on December 31		$ 920,000	$ 227,986	$ 382,722	$ 80,462
2025
Balance on January 1		$ 920,000	$ 227,986	$ 382,722	$ 80,462
Current period net profit		-	-	-	-
Other comprehensive income of current period	VI(XVI)	-	-	-	-
Total comprehensive income for the period		-	-	-	-
Appropriation and distribution of earnings:	VI(XVI)
Appropriation of legal reserve		-	-	21,158	-
Special reserve		-	-	-	14,710
Cash dividends		-	-	-	-
Disposal of FVTOCI equity instruments	VI(VI)(XVI)	-	-	-	-
Disposal of equity instruments at FVTOCI by affiliates	VI(XVI)	-	-	-	-
Changes in the net equity value of affiliates recognized under the equity method	VI(VII)	-	889	-	-
Changes in non-controlling interests		-	-	-	-
Balance on December 31		$ 920,000	$ 228,875	$ 403,880	$ 95,172

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Chairman: Chia-Chi Hou

Manager: Wen-Yu You

Accounting Officer: Pin-Hui Yeh

~14~

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

Consolidated Statement of Cash Flows

January 1 to December 31, 2025 and 2024

Expressed in thousands of NT$

	Notes	January 1 to December 31, 2025	January 1 to December 31, 2024
Cash flow from operating activities
Net income before tax		$ 347,282	$ 182,052
Adjustment items
Income and expenses
Depreciation expense	VI(VIII)(IX)(XXII)	24,365	21,751
Gains or losses on financial assets at fair value through profit or loss	VI(XX)	( 46,745 )	( 279 )
Gains on financial assets at fair value through profit or loss	VI(XX)	( 1,044 )	( 4,294 )
Amortization expense	VI(XXII)	1,474	492
Interest expense	VI(XXI)	14,942	11,742
Interest income	VI(XVIII)	( 5,761 )	( 5,607 )
Dividend income	VI(VI)(XIX)	( 2,587 )	( 4,679 )
Gains on reversal of impairment	VI(IX)(XX)	( 2,795 )	-
Shareholding in the profit of the affiliates under the equity method	VI(VII)	( 178,971 )	( 197,169 )
Gains on disposal of investment property	VI(XX)	-	( 5,390 )
Gains on lease modification	VI(XX)	( 3 )	-
Changes in assets/liabilities related to operating activities
Net changes in assets related to operating activities
Financial assets at fair value through profit or loss - current		( 7,124 )	1,282
Notes receivable		33,787	( 8,112 )
Accounts receivable		( 54,428 )	5,167
Other receivables		8,505	( 7,869 )
Prepayments		( 3,631 )	( 2,176 )
Inventory		95,110	( 276,719 )
Other financial assets - current		66,462	( 102,554 )
Other current assets		6,346	( 32,658 )
Financial assets at FVTPL - non-current		-	( 132,000 )
Net changes in liabilities related to operating activities
Contract liabilities		60,481	208,837
Notes payable		( 20,696 )	15,120
Accounts payable		40,828	56,338
Other payables		( 17,003 )	24,080
Other current liabilities		1,529	4,580
Other non-current liabilities - others		4,000	-
Cash inflow (outflow) from operations		364,323	( 248,065 )
Interest paid		( 50,179 )	( 49,559 )
Income tax paid		( 14,348 )	( 6,934 )
Net cash inflow (outflow) from operating activities		299,796	( 304,558 )

(Continued on next page)

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Consolidated Statement of Cash Flows
January 1 to December 31, 2025 and 2024
Expressed in thousands of NT$

	Notes	January 1 to December 31, 2025	January 1 to December 31, 2024
Cash flow from investment activities
Disposal of financial assets measured at amortized cost		$ -	$ 20,000
Acquisition of financial assets at FVTOCI		( 4,687 )	( 65,398 )
Disposal of financial assets at FVTOCI		15,518	104,206
Acquisition of equity of subsidiaries	VI(XXVII)	-	( 132,300 )
Decrease in other financial assets - non-current		500	-
Price of disposal of investment property		-	103,233
Acquisition of property, plant and equipment		( 938 )	( 4,831 )
Acquisition of investment property	VI(IX)	( 143 )	-
Increase in guarantee deposits paid		( 48 )	( 5,380 )
Decrease in guarantee deposits paid		3,578	4,638
Interest collected		5,970	5,910
Acquisition of intangible assets		( 322 )	( 2,986 )
Dividends received		110,305	111,533
Net cash inflow from investing activities		129,733	138,625
Cash flow from financing activities
Short-term borrowings	VI(XXVI)	653,654	272,286
Repayment of short-term borrowings	VI(XXVI)	( 888,584 )	( 159,710 )
Lease principal repayment	VI(XXVI)	( 5,854 )	( 3,092 )
Repayment of long-term borrowings	VI(XXVI)	( 16,000 )	( 16,000 )
Increase in guarantee deposits received	VI(XXVI)	2,297	6,222
Decrease in guarantee deposits received	VI(XXVI)	( 2,575 )	( 6,905 )
Distribution of cash dividends	VI(XV)
	(XXVI)	( 27,600 )	( 27,600 )
Changes in non-controlling interests		40,000	-
Net cash (outflow) inflow from financing activities		( 244,662 )	65,201
Increase (decrease) in cash and cash equivalents for the period		184,867	( 100,732 )
Cash and cash equivalents at the beginning of the period		504,371	605,103
Cash and equivalent cash balance at the beginning of the period		$ 689,238	$ 504,371

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Chairman: Chia-Chi Hou
Manager: Wen-Yu You
Accounting Officer: Pin-Hui Yeh

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES
Notes to Consolidated Financial Statements
2025 and 2024
Expressed in thousands of NT$
(unless otherwise stated)

I. Company History

(I) ASCENT DEVELOPMENT CO., LTD. (hereinafter referred to as “the Company”), formerly CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD. was established on August 19, 1964 in accordance with the Company Act. On June 23, 2022, the resolution of the shareholders’ meeting approved the change of name. The main business of the Company and its subsidiaries (hereinafter referred to as “the Group”) is real estate development, lease and sale. The Company’s stock has been listed on the Taiwan Stock Exchange since May 22, 1989.

(II) Hanyang Global Co., Ltd. holds 53.41% equity of the Company, and Hanshin Asset Management Co., Ltd. is the ultimate parent company of the Group.

II. Dates and Procedures for Approval of Financial Reports

The consolidated financial statements were approved and issued by the Board of Directors on March 11, 2026.

III. Application of New and Revised Standards and Interpretations

(I) The impact of the newly released and revised International Financial Reporting Standards (“IFRSs”) that have been approved and issued by the Financial Supervisory Commission (FSC)

The following table summarizes the newly issued, amended, and revised standards and interpretations of the International Financial Reporting Standards (IFRSs) applicable in 2025 that were recognized and issued by the FSC:

Application of new/corrected/revised standards and interpretations	Effective date of IASB’s announcement
Amendments to IAS 21 “Lack of Exchangeability”	January 1, 2025

The Group has assessed that the above standards and interpretations have no material impact on the Group’s financial position and financial performance.

~16~

(II) The impact of the newly released and revised International Financial Reporting Standards that have not yet been adopted by the FSC

The following table summarizes the newly issued, amended, and revised standards and interpretations of the International Financial Reporting Standards applicable in 2026 that were recognized and issued by the FSC:

Application of new/corrected/revised standards and interpretations	Effective date of IASB's announcement
Amendments to IFRS 9 and IFRS 7 “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
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023
Annual improvements to IFRS - Volume 11	January 1, 2026

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

(III) Impacts of IFRSs issued by the IASB but not yet endorsed by the FSC

The following table summarizes the newly released, amended, and revised standards and interpretations of the IFRSs issued by the IASB but not yet recognized by the FSC:

Application of new/corrected/revised standards and interpretations	Effective date of IASB's announcement
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 “Expression and Disclosure of Financial Statements”	January 1, 2027 (Note)
IFRS 19 “Subsidiaries Without Public Accountability: Disclosure”	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note: In the press release on September 25, 2025, the FSC announced that the International Financial Reporting Standards No. 18 (the "IFRS 18") shall apply to

public companies starting from 2028. In addition, if an enterprise has the requirement to adopt IFRS 18 early, it may opt to adopt IFRS 18 early after FSC has endorsed IFRS 18.

Except for the following, the Group has assessed that the above standards and interpretations have no material impact on the Group's financial position and performance:

IFRS 18 "Expression and Disclosure of Financial Statements"

IFRS 18 "Expression and Disclosure of Financial Statements" has replaced IAS 1, updated the structure of the statement of comprehensive income, added the disclosure of management performance measurement, and strengthened the summary and division of the use in the main financial statements and notes.

IV. Summary of Significant Accounting Policies

The major accounting policies adopted in the preparation of the financial statements are described below. Unless otherwise stated, these policies apply consistently throughout all reporting periods.

(I) Compliance statement

The consolidated financial report has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRSs), International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC.

(II) Compilation basis

Except for financial assets at FVTPL and financial assets at FVTOCI, the financial statement is prepared based on historical costs.
The compilation of financial statement in compliance with IFRSs requires the use of some important accounting estimates. In the process of adopting the Group's accounting policies, management also needs to adopt the judgments, which involve highly judgmental or complex items, or major assumptions and estimated items in financial statements. For details, please refer to Note 5.

(III) Consolidation basis

Basis for preparation of consolidated financial statements

(1) The Group incorporates all subsidiaries into entities for the preparation of financial statements. The subsidiary refers to an entity controlled by the Group, when the firm is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over

~18~

the entity, it shall be regarded that the Group is controlling the entity. Subsidiaries are included in the consolidated financial report from the date when the Group obtains control, and are terminated from the date when control is lost.

(2) Intra-group transactions, balances and unrealized gains and losses are eliminated. The accounting policies of the subsidiaries have been adjusted as necessary to be consistent with the policies adopted by the Group.

(3) Profit and loss and other components of comprehensive profit and loss are attributable to the owners and non-controlling interests of the parent company; the total comprehensive profit and loss is also attributable to the owners and non-controlling interests of the parent company, even if the non-controlling interests suffer losses due to this.

(4) If the change in the shareholding of the subsidiary does not result in a loss of control (transactions with non-controlling interests), it will be regarded as an equity transaction, which is regarded as the transaction with the owner. Any difference between the adjusted amount of non-controlling interests and the fair value of the consideration paid or received is directly recognized in equity.

(5) When the Group loses control over the subsidiary, the remaining investment in the former subsidiary is remeasured at fair value and adopted as the fair value of the originally recognized financial assets or the cost of the originally recognized investment in affiliated enterprises or joint ventures. The difference between the fair value and the carrying amount is recognized as profit or loss of the current period. For all amounts previously recognized in other comprehensive profit or loss related to the subsidiary, the accounting treatment is the same as if the Group directly disposes of the relevant assets or liabilities, that is, if the benefit or loss previously recognized as other comprehensive profit or loss will be reclassified as profit or loss when disposing of the relevant assets or liabilities, when control of the subsidiary is lost, the benefit or loss will be reclassified from equity to profit or loss.

Subsidiaries included in the financial statements are as follows:

Name of the Investment Company	Name of Investee	Business type	Percentage of shareholding		Explanation
			December 31, 2025	December 31, 2024
The Company	HCW INVESTMENT CO., LTD.	General investment	100.00	100.00
The Company	Hanlin Development Co., Ltd.	Investment in real estate and buildings	51.00	51.00
The Company	Chun Feng Development Co., Ltd.	Investment in real estate and buildings	60.00	-	Note

Note: Refer to a newly established subsidiary by the Group in 2025.

Subsidiaries not included in the consolidated financial statements: None.
Different adjustments and treatments in the accounting period of subsidiaries: None.
Major restrictions: None.
Subsidiaries with significant non-controlling equity of the Group:

The total amount of non-controlling interests of the Group as of December 31, 2025 and 2024 was NT$491,462 and NT$406,171, respectively. The following is the information about the significant non-controlling interests of the Group and its subsidiaries:

		Non-controlling interests		Non-controlling interests
		December 31, 2025		December 31, 2024
Name of Investee	Principal place of business	Amount	Percentage of shareholding	Amount	Percentage of shareholding
Hanlin Development	Taiwan	$ 451,497	49	$ 406,171	49

Summarized financial information of subsidiaries - Hanlin Development:

Balance Sheet

	December 31, 2025		December 31, 2024
Current assets	$	838,612	$	795,028
Non-current assets		980,828		959,838
Current liabilities	(	428,177)	(	441,562)
Non-current liabilities	(	469,840)	(	484,384)
Total net assets	$	921,423	$	828,920

Statement of Comprehensive Income

	2025		2024
Income	$	295,932	$	91,191
Income before tax	$	94,532	$	5,974
Income tax expenses	(	2,029)	(	2,425)
Current period net profit		92,503		3,549
Total comprehensive income for the period	$	92,503	$	3,549
Comprehensive income attributed to non-controlling interests	$	45,326	$	2,060

Statement of Cash Flow

	2025		2024
Net cash inflow (outflow) from operating activities	$	120,264	($	17,149)
Net cash inflow (outflow) from investing activities		3,876	(	132,285)
Net cash inflow (outflow) from financing activities	(	56,089)		30,264
Increase (decrease) in cash and cash equivalents for the period		68,051	(	119,170)
Cash and cash equivalents at the beginning of the period		158,968		278,138
Cash and equivalent cash balance at the beginning of the period	$	227,019	$	158,968

(IV) Foreign currency conversion

Items included in the financial statements of each entity within the Group are measured using the currency of the primary economic environment in which the entity operates (i.e. the functional currency). The consolidated financial statements are presented in the Company's functional currency "NT$".

~22~

Foreign currency transactions and balances

Foreign currency transactions are converted into functional currency at the spot exchange rate on the transaction date or measurement date, and the conversion difference arising from the conversion of these transactions is recognized as current profit or loss.
The balance of foreign currency monetary assets and liabilities is evaluated and adjusted according to the spot exchange rate on the balance sheet date, and the translation difference arising from the adjustment is recognized as current profit or loss.
The balance of foreign currency non-monetary assets and liabilities, which are at FVTPL, shall be adjusted according to the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment shall be recognized as current profit or loss; if it is at FVTOCI, it shall be adjusted at the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment shall be recognized in other comprehensive profit or loss; if it is not at fair value, it shall be at the historical exchange rate on the initial transaction date.
All exchange gains and losses are listed in “Other Gains and Losses” in the Consolidated Income Statement.

(V) Classification criteria for current and non-current assets and liabilities

The Group is engaged in entrusting construction companies to build or sell buildings, and its business cycle is usually longer than one year. Assets and liabilities related to construction projects are classified as current or non-current based on the business cycle; and the standards for the classification of other items as current and non-current are as follows:

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

(1) The asset is expected to be realized, sold or consumed in the normal business cycle.

(2) Mainly held for the purpose of trading.

(3) Those expected to be realized within 12 months after the reporting period.

(4) Cash or cash equivalents, except those that can be exchanged at least 12 months after the reporting period or used to settle liabilities that are restricted.

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

Liabilities that meet one of the following conditions are classified as current liabilities:

(1) Expected to be settled in the normal business cycle.

(2) Mainly held for the purpose of trading.

(3) Those to be settled upon expiry within 12 months after the reporting period.
(4) The repayment period cannot be unconditionally postponed at least 12 months after the reporting period.

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

(VI) Cash equivalents

Cash equivalents refer to short-term and highly liquid investments that can be converted into fixed amounts of cash at any time with little risk of changes in value. Time deposits that meet the definition above and are held to meet short-term cash commitments in operations (including time deposits with a contract period of less than 12 months) are classified as cash equivalents.

(VII) Financial assets at FVTPL

Refers to financial assets that are not at amortized cost or at FVTOCI.
The Group adopts transaction-day accounting for financial assets at FVTPL that conform to customary transactions.
The Group measures it at fair value at the time of initial recognition, and the relevant transaction costs are recognized in profit or loss, and subsequently at fair value, and its profits or losses are recognized in profit or loss.
When the right to receive dividends is established, the economic benefits related to dividends are likely to flow in, and the amount of dividends can be measured reliably, hence the Group recognizes dividend income in profit or loss.

(VIII) Financial assets at FVTOCI

Refers to an irrevocable choice made at the time of original recognition to present changes in the fair value of equity instrument investments not held for trading in other comprehensive income.
The Group adopts transaction-day accounting for financial assets at FVTOCI that conform to customary transactions.
The Group measures at its fair value plus transaction costs at the time of original recognition, and subsequently at fair value:

Changes in the fair value of equity instruments are recognized in other comprehensive profit or loss. When delisting, the accumulated gains or losses previously recognized in other comprehensive profit or loss shall not be reclassified to profit or loss, and shall be transferred to retained earnings. When the right to receive dividends is established, the economic benefits related to dividends are likely to flow in, and the amount of dividends can be measured reliably, hence the Group

~23~

recognizes dividend income in profit or loss.

(IX) Financial assets at amortized cost

Refers to those who meet the following conditions at the same time:

(1) The financial asset is held under the business model for the purpose of collecting contractual cash flow.

(2) The contract terms of the financial asset generate cash flow on a specific date, which is entirely the payment of principal and interest on the outstanding principal amount.

The Group adopts transaction-day accounting for financial assets at cost after amortization that complies with customary transactions.
The Group measures its fair value plus transaction costs at the time of initial recognition, and then adopts the effective interest method to recognize interest income and impairment losses during the circulation period according to the amortization procedure, and when delisting, it will be recognized the gain or loss is recognized in profit or loss.
The time deposits held by the Group that are not categorized as cash equivalents are measured by the investment amount because the holding period is short and the impact of discounting is not significant.

(X) Accounts and notes receivable

Refers to accounts and notes that have the unconditional right to receive the consideration amount in exchange for the transfer of goods or services in accordance with the contract.
For unpaid short-term accounts and notes receivable, since discounting has little effect, the Group measures them based on the original invoiced amount.

(XI) Impairment of financial assets

On each balance sheet date, for financial assets at amortized cost, after considering all reasonable and supportable information (including forward-looking information), the Group has no significant increase in credit risk since the original recognition, which measures the allowance loss by the amount of 12-month expected credit losses; for those whose credit risk has increased significantly since the original recognition, the allowance for loss shall be measured according to the amount of expected credit loss during the duration; for accounts receivable that do not include significant financial components, the allowance for loss shall be measured according to the amount of expected credit loss during the duration.

~24~

(XII) Delisting of financial assets

Financial assets will be delisted when the Group's contractual rights to receive cash flows from the financial assets lapse.

(XIII) Lessor's lease transaction - Business lease

Lease income from business leases and net of any incentives given to the lessee will be amortized on a straight-line basis over the lease term and recognized as current profit or loss.

(XIV) Inventory

Including land for construction, premises under construction, and premises for sale, etc., the acquisition cost is adopted as the accounting basis, and the project profit and loss is recognized according to the completed contract method. The land for construction is listed as the premises under construction when it is actively developed, and the relevant interest is capitalized from the time of active development or construction to the completion of the work.
Inventory at the end of the period is measured by the lower of cost and net realizable value. When comparing the lower of cost and net realizable value, the item-by-item comparison method is adopted; and the net realizable value is the estimated selling price in the normal course of business less the estimated cost to complete and the estimated cost to complete the sale.

(XV) Investments using the equity method - Affiliated enterprises

Affiliated enterprises refers to all entities over which the Group has significant influence but no control, generally directly or indirectly holding more than 20% of their voting shares. The Group adopts the equity method to dispose of the investment in affiliated enterprises, and recognizes it at cost when acquired.
The Group recognizes the share of profit and loss acquired by the affiliated enterprises as profit and loss of the current period, and the share of other comprehensive profit and loss acquired by the Group as other comprehensive profit or loss. If the Group's share of losses to any affiliated enterprise is equivalent to or exceeds its equity in the affiliated enterprise (including any other unsecured receivables), the Group will not recognize further losses unless the Group has any legal or constructive obligations to, or has paid on behalf of the affiliated enterprise.
When the affiliated enterprise has any non-profit or loss and other comprehensive profit or loss equity changes that do not affect the shareholding ratio, the Group will recognize all equity changes as "capital surplus" based on the shareholding

~25~

ratio.

The unrealized gains and losses arising from transactions between the Group and affiliated enterprises have been eliminated in proportion to its equity in the affiliated enterprises; unless there is further evidence that the assets transferred in the transaction have been impaired, unrealized losses will also be eliminated. The accounting policies of the affiliated enterprises have been adjusted as necessary to be consistent with the policies adopted by the Group.
In the event that an affiliate enterprise issues new shares, and the Group does not subscribe to the new shares in accordance with the proportion, resulting in a change in the investment ratio but still having a significant impact on it, the increase or decrease of the change in the net equity value is to adjust the "capital surplus" and "investments accounted for under the equity method". If the proportion of investment is reduced, in addition to the above-mentioned adjustments, the gains or losses related to the reduction of ownership interests that have been previously recognized in other comprehensive profit or loss, and the gains or losses must be reclassified to profit or loss when disposing of related assets or liabilities, it shall be reclassified to profit or loss according to the reduction ratio.
When the Group disposes of an affiliated enterprise and loses its significant influence on such affiliated enterprise, for all amounts previously recognized in other comprehensive profit or loss related to the affiliated enterprise, the accounting treatment is the same as if the Company directly disposes of the relevant assets or liabilities, that is, if the benefit or loss previously recognized as other comprehensive profit or loss will be reclassified as profit or loss when disposing of the relevant assets or liabilities, when control of the affiliated enterprise is lost, the benefit or loss will be reclassified from equity to profit or loss. If there is still a significant influence on the affiliated enterprises, only the amount previously recognized in other comprehensive profit and loss shall be transferred out in the above-mentioned manner on a proportionate basis.

(XVI) Joint agreements

For the interests in joint operations, the Group recognizes the direct rights (and their shares) to the assets, liabilities, income and expenses of the joint operations, and has included them in the applicable items of the financial report.
When participating in a joint venture without joint control, the Group will handle its interest in the agreement in accordance with the provisions of IFRS 9 "Financial Instruments".

~26~

(XVII) Property, plants, and equipment

Real estate, plant and equipment are recorded on the basis of acquisition cost.
Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset only when the future economic benefits related to the item are likely to flow into the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part shall be delisted. All other maintenance expenses are recognized as current profit or loss when incurred.
The subsequent measurement of property, plant and equipment adopts the cost model. Except for land, which is not listed for depreciation, the depreciation will be calculated using the straight-line method based on the estimated service life. If the composition of property, plant and equipment is significant, it will be depreciated separately.
The Group examines the residual value, service life and depreciation method of each asset at the end of each financial year. If the expected residual value or service life is different from the previous estimate, or if there is a significant change in the expected consumption pattern of the asset's future economic benefits, the change shall be accounted for as a revision of accounting estimates in accordance with International Accounting Standard No. 8 "Accounting Policies, Changes in Accounting Estimates and Errors" from the date of the change. The service life of each asset is as follows:

Houses and buildings	20 years
Office equipment	5 to 23 years
Lease improvement	3 to 10 years

(XVIII) Lessee's lease transaction - right-of-use asset/lease liability

Lease assets are recognized as right-of-use assets and lease liabilities on the day they become available to the Group. When the lease contract is a short-term lease or a lease of a low-value underlying asset, the lease payment is recognized as an expense during the lease period using the straight-line method.
Lease liabilities are recognized at the present value of unpaid lease payments discounted at the Group's incremental borrowing rate on the lease commencement date. Lease payments are fixed payments, less any lease incentives that can be received.

Subsequent adoption of the interest method is measured by the amortized cost

~27~

method, and interest expenses are provided during the lease period. When the lease term or lease payment changes due to non-contract modification, the lease liability will be reassessed, and the re-measurement amount will be adjusted to the right-of-use asset.

The right-of-use asset is recognized at cost on the lease commencement date, and the cost is the original measured amount of the lease liability. Subsequent measurement is made using the cost model, and depreciation expenses are provided when the service life of the right-of-use asset expires or when the lease period expires, whichever is earlier. When the lease liability is reassessed, the right-of-use asset will adjust any remeasurement of the lease liabilities.
For a lease modification that reduces the scope of the lease, the lessee will reduce the book amount of the right-of-use asset to reflect partial or complete termination of the lease and recognize the difference between it and the remeasured amount of the lease liability in profit or loss. For all other lease modifications, right-of-use assets shall be adjusted accordingly based on the remeasurement amount of lease liabilities.

(XIX) Investment property

Investment real estate is recognized at acquisition cost, and the subsequent measurement adopts the cost model. Except for land, depreciation is provided by the straight-line method according to the estimated service life which ranges from 5 to 60 years.

(XX) Intangible assets

The cost is recognized with computer software and amortized in accordance with the straight-line method over the estimated lifespan of 2 to 5 years.

(XXI) Impairment of non-financial assets

On the balance sheet date, the Group will estimate the recoverable amount of assets which may be subject to impairment, and recognize the impairment loss when the recoverable amount is lower than its book amount. The recoverable amount is the fair value of an asset less costs of disposal or its value in use, whichever is higher. When the asset impairment recognized in the previous year does not exist or decreases, the impairment loss shall be reversed. However, the increase in the carrying amount of the asset due to the reversal of the impairment loss shall not exceed the book amount of the asset after deducting depreciation or amortization if no impairment loss is recognized.

~28~

(XXII) Borrowings

The long- and short-term funds borrowed from banks. The Group measured it at the fair value less transaction costs at the time of original recognition, and subsequently recognized any difference between the price after deducting transaction costs and the redemption value, and adopted the effective interest method and amortizing procedures to recognize interest expenses during the circulation period in profit and loss.

(XXIII) Notes and accounts payable

Refers to the debts incurred due to the purchase of raw materials, commodities, or services on credit, and the notes payable incurred due to business and non-business matters.
For unpaid short-term accounts and notes payable, since discounting has little effect, the Group measures them based on the original invoiced amount.

(XXIV) Delisting of financial liabilities

The Group delists financial liabilities when the obligations specified in the contract are performed, canceled or expired.

(XXV) Employee benefits

Short-term employee benefits

Short-term employee benefits are at non-discounted amounts expected to be paid and are recognized as an expense when the related service is rendered.

Pension

For a definite contribution plan, the amount of the pension fund that shall be appropriated is recognized as the current pension cost on the basis of accruals. Advance payments are recognized as assets to the extent that they are refundable in cash or reduce future payments.

Severance benefits

Severance benefits are benefits provided when the employee's employment is terminated before the normal retirement date or when the employee decides to accept the company's welfare offer in exchange for the termination of employment. The Group recognizes an expense when it is no longer possible to withdraw the offer of termination benefits or when the related restructuring costs are recognized, whichever is earlier. Benefits that are not expected to be fully settled within 12 months after the balance sheet date will be discounted.

~29~

Employees and directors remuneration

Employee remuneration and directors' remuneration are recognized as expenses and liabilities when there is a legal or constructive obligation, and the amount can be reasonably estimated. If there is a discrepancy between the actual distribution amount and the estimated amount in subsequent resolutions, it shall be treated as a change in accounting estimate. In addition, if employee remuneration is paid by stock, the basis for calculating the number of shares is the closing price on the day before the resolution of the board of directors.

(XXVI) Income tax

Income tax expense includes current and deferred income tax. Income taxes are recognized in profit or loss, except for income taxes that relate to items that are recognized in other comprehensive profit or loss or directly in equity, respectively.
The Group calculates current income tax based on the tax rate that has been enacted or substantively enacted on the balance sheet date in the country where the Group operates and generates taxable income. The management level periodically assesses the status of income tax filings with respect to applicable income tax regulations and, where applicable, estimates income tax liabilities based on the expected tax payments to the taxation competent authorities. For undistributed earnings, additional income tax is levied in accordance with the Income Tax Law. In the year following the year in which the earnings are generated, the undistributed earnings income tax expense shall be recognized based on the distribution of the actual earnings after the shareholders' meeting approves the earnings distribution proposal.
The balance sheet method is adopted for deferred income tax, which is recognized according to the temporary difference between the tax basis of assets and liabilities and their carrying amount on the balance sheet. Deferred income tax liabilities arising from the original recognition of goodwill are not recognized if the deferred income tax arises from the original recognition of assets or liabilities in a transaction (excluding business combinations) and at the time of the transaction. If it does not affect accounting profit or taxable income (tax loss), and does not generate equivalent taxable and deductible temporary differences, it will not be recognized. For temporary differences related to investment in subsidiaries and affiliated enterprises, if the Group can control the timing of the reversal of the temporary difference and it is highly likely that the temporary difference will not reverse in the foreseeable future, it

~30~

will not be recognized. The deferred income tax is based on the tax rate (and taxation laws) that has been enacted or substantively enacted on the balance sheet date and is expected to be applicable when the relevant deferred income tax assets are realized or the deferred income tax liabilities are settled.

Deferred income tax assets are recognized within the scope of temporary differences, unused tax losses and unused income tax credits that are likely to be available in future taxable income, and are reassessed on each balance sheet date. Evaluate unrecognized and recognized deferred tax assets.
The later part of the unused income tax deduction due to the purchase of equipment or technology, research and development expenditure, and equity investment, etc., which is within the scope of future taxable income that is likely to be used for the unused income tax deduction. Recognize deferred income tax assets.

(XXVII) Dividend distribution

The dividends distributed to the shareholders of the Company are recognized in the financial report when the shareholders' meeting of the Company resolves to distribute dividends, and the distribution of cash dividends is recognized as the liability.

(XXVIII) Revenue recognition

Real estate sales for land development

(1) The main business of the Group is land development and sales of real estate, and the revenue is recognized when the control of real estate is transferred to customers. For the signed residential sales contracts, due to the restrictions of the contract terms, the real estate has no other use for the Group, but the Group will not have the enforceable right to the contract payment until the legal ownership or use right of the real estate is transferred to the customer. Revenue is recognized when the ownership or use right is transferred to the customer.

(2) Part of the Group's sales contracts include the change consideration of price reduction, and the Group takes the expected value or the most likely amount as the appropriate estimate of the change consideration.

~31~

(3) The Group's contract for the sale of pre-sale houses contains the terms of advance payment from customers, and the time interval between the time of advance receipt and the transfer of commodity control is longer than one year. According to the provisions of IFRS15, if the Group judges that there are significant financial components in individual pre-sale house contracts, it should adjust the amount of promised consideration and recognize interest expenses. In addition, IFRS15 states that enterprises shall only consider the materiality of financial components at the contract level, and not consider whether financial financing is significant at the portfolio level.

Lease revenue

A lease is classified as a finance lease when the terms of the lease transfer substantially all the risks and rewards of the leased asset to the lessee. The others are classified as operating leases. Under a finance lease, amounts due from the lessee are included as lease receivables. Financing income is apportioned to each accounting period to reflect the fixed rate of return available in each period. Lease income from operating leases is recognized as income on a straight-line basis over the term of the relevant lease.

(XXIX) Operating segment

Information on the Group's operating segments is reported in a manner consistent with the internal management reports provided to the chief decision-maker of business operation. The chief decision-maker of business operation is responsible for allocating resources to operating departments and evaluating their performance.

V. Major Sources of Uncertainty in Major Accounting Judgments, Estimates and Assumptions

When the Group prepared these financial statements, the management level has adopted its judgment to determine the accounting policies adopted, and made accounting estimates and assumptions based on the current situation at the balance sheet date and reasonable expectations of future events. The major accounting estimates and assumptions made may differ from the actual results, and will be continuously evaluated and adjusted taking into account historical experience and other factors. These estimates and assumptions have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Please explain in detail the following explanations on the uncertainty of major accounting judgments, estimates and assumptions:

~32~

(I) Important Judgments for Adoption of Accounting Policies

None.

(II) Important Accounting Estimates and Assumptions

Impairment testing of investment using the equity method

When there is an indication of impairment that an investment using the equity method may have been impaired so that the carrying amount cannot be recovered, the Group immediately assesses the impairment of the investment. The Group evaluates the recoverable amount based on the discounted present value of the expected future cash flow of the invested company, and analyzes the rationality of the relevant assumptions.

Evaluation of inventory

Because inventories shall be priced at the lower of cost and net realizable value, the Group shall adopt judgment and estimation to determine the net realizable value of inventories on the balance sheet date. The management of the Group mainly relies on historical experience and the amount of future market sales value. It is the basis of estimation and therefore may be subject to material changes.

VI. Explanation of Important Accounting Items

(I) Cash and cash equivalents

	December 31, 2025		December 31, 2024
Cash on hand	$	71	$	55
Demand deposits		590,167		432,971
Time deposits		99,000		71,345
	$	689,238	$	504,371

The credit quality of the financial institutions that the Group interacts with is good, and the Group interacts with a number of financial institutions to diversify the credit risk, and the risk of default is expected to be very low.
Please refer to Note 8 for details of the Group's performance guarantee, reserve account and trust deposit account, and the collateral account as a pledge guarantee (account listed in "Other Financial Assets - Current and Non-Current").

~33~

~34~

(II) Notes receivable and net accounts

	December 31, 2025	December 31, 2024
Notes receivable	$ 1,993	$ 35,780
Accounts receivable	$ 56,375	$ 1,947

The Group's notes and accounts receivable are not overdue and not impaired.
The Group's notes and accounts receivable balances on December 31, 2025 and 2024 were all due to customer contracts, and the balance of receivables from customer contracts on January 1, 2024 was NT$34,782.
The Group has not provided pledge guarantees for bills receivable and accounts.
Regardless of the collateral held or other credit enhancements, the maximum credit risk exposure of the Group's notes and accounts receivable as of December 31, 2025, and 2024, was the carrying amount of notes and accounts receivable for each period.
Please refer to Note 12 (2) for the credit risk information of relevant notes receivable and accounts receivable.

(III) Inventory

	December 31, 2025	December 31, 2024
Premises for sale
Project Kuo Yang Intercontinental	$ 180,288	$ 556,344
Project Emerald Forest (Ryukyu White Villa and The Green World)	87,110	17,550
Project Smiling Era	8,397	8,614
	275,795	582,508
Building and land under construction
Project Kuo Yang Digital	657,654	535,974
Project Kuo Yang Prospect (formerly known as the Project Xizhi Jiangbei)	238,780	227,084
Project Emerald Forest (The Green World)	-	116,885
Ascent Development Original Project	940,216	696,994
Project Kuo Yang Innovation (formerly known as the Tucheng Project)	304,891	263,641
	2,141,541	1,840,578
Land for construction
Project Zhongxiao Mansion	6,601	6,601
	6,601	6,601
Others
Project Emerald Forest	-	54,473
Capacity	3,741	3,741
	3,741	58,214
	$ 2,427,678	$ 2,487,901

Accounting inventory refers to the share recognized in accordance with the holding ratio of the Group's participation in joint operations. Please refer to Note 6(4) for details.
Project Smiling Era is No. 1492 to 1496 of Shengxing Section, Qianzhen District, Kaohsiung City, the "contract for setting of surface rights of state-owned non-public land" signed by "Shenyang Construction Co., Ltd". on April 28, 2014 with the Southern Branch of National Property Administration, MOF, and the duration of surface rights is 70 years (from April 28, 2014 to April 27, 2084), and the premium for surface rights is NT$878,000. The Group started construction in 2015, which was

completed in 2018 while the transfer of ownership and right-of-use began, the revenue for the sold part was recognized, and the above-mentioned royalties was listed as costs of sales according to the sales ratio.

Inventory costs recognized as expenses in 2025 and 2024 by the Group were NT$566,174 and NT$32,915, respectively.
The Group's capitalized amounts of interest on inventories in 2025 and 2024 were NT$34,887 and NT$39,132, respectively, and the capitalization rates were 2.53% to 3.159% and 2.53% to 3.151%, respectively.
Please refer to Note 8 for details of the Group's provision of guarantees for inventories.

(IV) Joint operation

Part of the Group's development and construction projects are joint operations. For the rights and interests of joint operations, the Group recognizes direct interests (and their shares) in the assets, liabilities, income and expenses of joint operations, and has included them in the consolidated financial report of the applicable items.
The information on the joint operation and development projects held by the Group is as follows:

Project name	Shareholding percentage	Co-builder	Explanation
Ascent Development Original Project	50%	Weili International Development Co., Ltd. and two other companies	Zhonghe District, New Taipei City
Project Smiling Era	30%	Shenyang Construction Co., Ltd.	Qianzhen District, Kaohsiung City
Project Kuo Yang Digital	15%	Kuo Yang Construction Co., Ltd. and other four companies	Sanchong District, New Taipei City
Project Kuo Yang Intercontinental	10%	Kuo Yang Construction Co., Ltd. and other five companies	Neihu District, Taipei City
Project Kuo Yang Innovation (formerly known as the Tucheng Project)	10%	Kuo Yang Construction Co., Ltd. and other four companies	Tucheng District, New Taipei City
Project Emerald Forest	10%	Kuo Yang Construction Co., Ltd. and other five companies	Annan District, Tainan City
Project Kuo Yang Prospect (formerly known as the Project Xizhi Jiangbei)	10%	Kuo Yang Construction Co., Ltd. and other four companies	Xizhi District, New Taipei City

The aggregate information on the shares of joint operation held by the Group is as follows:

Balance Sheet	December 31, 2025
	Project Kuo Yang Intercontinental	Project Kuo Yang Digital	Ascent Development Original Project	Other projects
Current assets
Inventory	$ 181,132	$ 659,651	$ 940,216	$ 646,679
Others	27,751	39,992	148,517	186,838
	208,883	699,643	1,088,733	833,517
Non-current assets	1	-	-	92
Total assets	$ 208,884	$ 699,643	$ 1,088,733	$ 833,609
Current liabilities
Short-term borrowings	$ -	$ 294,900	$ 643,735	$ 301,812
Others	45,921	44,760	209,175	13,682
	45,921	339,660	852,910	315,494
Non-current liabilities	-	-	-	-
Total liabilities	$ 45,921	$ 339,660	$ 852,910	$ 315,494
Statement of Comprehensive Income
Income	$ 499,436	$ -	$ -	$ 244,116
Costs	$ 386,671	$ -	$ -	$ 179,550
Expenses	$ 16,900	$ -	$ -	$ 15,553

December 31, 2024

Balance Sheet	Project Kuo Yang Intercontinental	Project Kuo Yang Digital	Ascent Development Original Project	Other projects
Current assets
Inventory	$ 557,188	$ 537,971	$ 696,994	$ 695,748
Others	50,348	95,260	170,783	140,118
	607,536	633,231	867,777	835,866
Non-current assets	-	-	-	18,708
Total assets	$ 607,536	$ 633,231	$ 867,777	$ 854,574
Current liabilities
Short-term borrowings	$ 317,448	$ 284,400	$ 501,500	$ 372,029
Others	161,778	232,923	111,856	153,740
	479,226	517,323	613,356	525,769
Non-current liabilities	-	-	-	-
Total liabilities	$ 479,226	$ 517,323	$ 613,356	$ 525,769
Statement of Comprehensive Income
Income	$ -	$ -	$ 167	$ 38,180
Costs	$ -	$ -	$ -	$ 32,915
Expenses	$ 271	$ 426	$ 29	$ 3,456

~39~

(V) Financial assets at FVTPL

Items	December 31, 2025	December 31, 2024
Financial assets
mandatorily at FVTPL
Current item
Stocks of listed/OTC companies	$ 44,340	$ 36,172
Evaluation adjustment	2,150	( 1,256)
	$ 46,490	$ 34,916
Non-current items
Joint development projects	$ 218,000	$ 218,000
Evaluation adjustment	43,339	-
	$ 261,339	$ 218,000

The Group's financial assets at FVTPL had a net (loss) income of NT$48,764 and NT$5,102 recognized in profit or loss in 2025 and 2024, respectively.
The Group did not provide financial assets at FVTPL as pledge guarantees.
In 2019, Hanlin Development signed a joint investment and land development agreement with other five companies. Therefore, the investment purpose of Hanlin Development is only to share profits without joint control. The interest in the agreement is treated in accordance with IFRS 9 "Financial Instruments" and listed as financial assets that are mandatory to be at FVTPL.

(VI) Financial assets at FVTOCI - non-current

	December 31, 2025		December 31, 2024
Equity instruments
Stocks of listed/OTC companies	$	243,881	$	254,722
Evaluation adjustment	(	124,642)	(	112,985)
	$	119,239	$	141,737

The Group categorizes strategic investments and equity instrument investments for stable dividend collection as financial assets at fair value through other comprehensive income and loss, and the fair values of these investments on December 31, 2025 and 2024 were NT$119,239 and NT$141,737, respectively.

The details of the financial assets at fair value through other comprehensive profit and loss recognized in profit or loss and comprehensive profit or loss are as follows:

	2025	2024
Disposal of equity instruments at FVTOCI
Changes in fair value recognized in other comprehensive profit or loss	($ 11,667)	$ 9,761
Accumulated (losses) gains transferred to retained earnings due to derecognition	($ 10)	$ 15,168
Dividend income recognized in profit or loss
Held at the end of the current period	$ 1,563	$ 3,752
Delisted during the current period	50	398
	$ 1,613	$ 4,150

Regardless of the collateral held or other credit enhancements, the maximum credit risk exposure of the Group's financial assets measured at fair value through other comprehensive income (FVTOCI) as of December 31, 2025, and 2024, was the carrying amount of these financial assets for each period.
The Group has not provided financial assets at FVTOCI as pledge guarantees.

(VII) Investments accounted for using equity method

	December 31, 2025		December 31, 2024
January 1	$	1,299,223	$	1,155,041
Investment gains and losses recognized using the equity method		178,971		197,169
Distribution of investment surplus using the equity method	(	107,764)	(	106,827)
Changes in capital surplus		889		28,544
Changes in other equity	(	73,537)		25,296
December 31	$	1,297,782	$	1,299,223

~41~

	December 31, 2025	December 31, 2024
Affiliate
Hanshin Shopping Plaza Co., Ltd.	$ 1,220,758	$ 1,220,821
Jollify Creative, Ltd.	77,024	78,402
Jollify4ever Ltd.	-	-
	$ 1,297,782	$ 1,299,223

1. Affiliated enterprises

(1) The basic information of the major affiliated enterprises of the Group is as follows:

Company name	Principal place of business	Shareholding percentage		Nature of relationship	Measurement method
		December 31, 2025	December 31, 2024
Hanshin Shopping Plaza Co., Ltd.	Taiwan	17.80%	17.80%	Affiliate	Equity method

(2) The consolidated financial information of the Group's major affiliated enterprises is as follows:

Balance Sheet

	Hanshin Shopping Plaza Co., Ltd.
	December 31, 2025	December 31, 2024
Current assets	$ 4,888,842	$ 4,983,225
Non-current assets	19,186,418	9,505,072
Current liabilities	( 3,412,608)	( 3,432,323)
Non-current liabilities	( 15,550,688)	( 5,936,257)
Total net assets	$ 5,111,964	$ 5,119,717
Proportion of net assets of affiliated enterprises	$ 877,025	$ 877,088
Goodwill	343,733	343,733
Carrying amount of affiliated enterprises	$ 1,220,758	$ 1,220,821

Statement of Comprehensive Income

	Hanshin Shopping Plaza Co., Ltd.
	2025	2024
Income	$ 3,237,962	$ 3,652,209
Net income from continuing operations	$ 1,088,843	$ 1,193,805
Other comprehensive income (net, after tax)	( 391,924)	154,476
Total comprehensive income for the period	$ 696,919	$ 1,348,281

(3) As of December 31, 2025 and 2024, the book amount of the non-significant individual affiliates of the Group was NT$77,024 and NT$78,402, respectively. The share of the operating result is summarized as follows:

	2025		2024
Net (loss) gain from continuing operations	$	2,446	$	1,963
Other comprehensive income (net, after tax)	(	3,777)	(	1,847)
Total comprehensive income for the period	($	1,331)	$	116

Jollify Creative, Ltd. handled a cash capital increase in October 2024. The Company did not participate in the subscription according to the shareholding ratio, and hence the shareholding ratio of Jollify Creative, Ltd. decreased from 37.46% to 25.84%. The Company is the largest single shareholder of that company. However, the combined shareholding of the other three largest shareholders exceeds the shareholding of the Company. This shows that the company has no actual ability to lead relevant activities, so it is judged that it has no control over the company and only has a significant influence.
In June 2025, Jollify4ever Ltd. was resolved in the shareholders' meeting to reduce capital to make up for losses and increase capital in cash. The capital reduction amounted to NT$100,000, and 10,000 thousand shares were written off, representing a capital reduction ratio of 61.35%; the capital increase was NT$37,000. The Company has not participated in the subscription according to the shareholding ratio, and thus the shareholding of Jollify4ever Ltd. was reduced from 29.34% to 18.49%.

There is no public quotation for the investment targets of the Group. For 2025 and 2024, the recognized share of investment income on investments accounted for using the equity method was NT$178,971 and NT$197,169, respectively. These are based on the valuation of the financial statements audited and certified by the CPA of each investee company over the same period.

(VIII) Lease transactions - Lessee

The underlying assets leased by the Group are office, office equipment and transportation equipment, and the lease contract period is usually 2 to 9 years. Lease contracts are negotiated individually and contain various terms and conditions. Except that the leased assets may not be used as loan guarantees, no other restrictions are imposed.
The book amount of the right-of-use assets and the information on recognized depreciation expenses are as follows:

	December 31, 2025		December 31, 2024
	Carrying amount		Carrying amount
Office equipment	$	-	$	28
Houses and buildings		32,360		36,322
Transportation equipment		-		460
	$	32,360	$	36,810
	2025	2024
---	---	---
	Depreciation expense	Depreciation expense
Office equipment	$ 28	$ 67
Houses and buildings	3,962	660
Transportation equipment	362	395
	$ 4,352	$ 1,122

The increase in the Group's right-of-use assets for 2025 and 2024 was NT$0 and NT$36,982, respectively.

~43~

The information of income items related to lease contracts is as follows:

	2025	2024
Items affecting current profit and loss
Interest expense of lease liabilities - investment property	$ 2,517	$ 2,561
Interest expense of lease liabilities - right-of use assets	1,077	206
Expenses of short-term lease contracts	190	2,499
Gains on lease modification	3	-

The total cash outflow for leases of the Group in 2025 and 2024 amounted to NT$9,638 and NT$8,358, respectively.

(IX) Investment property

Investment property refers to the Group's own investment property. The Group signs commercial property lease contracts for its own investment properties. The lease contract term is usually 1 to 50 years, and the details are as follows:

	2025
	Land	Houses and buildings	Land use right assets	Total
January 1	$ 24,892	$ 606,431	$ 114,276	$ 745,599
Additions	-	143	-	143
Depreciation expense	-	( 16,321)	( 3,041)	( 19,362)
Reversal of impairment	1,410	1,385	-	2,795
December 31	$ 26,302	$ 591,638	$ 111,235	$ 729,175
	2024
---	---	---	---	---
	Land	Houses and buildings	Land use right assets	Total
January 1	$ 72,160	$ 674,530	$ 119,118	$ 865,808
Disposal - cost	( 47,268)	( 60,211)	-	( 107,479)
Disposal - depreciation	-	9,636	-	9,636
Depreciation expense	-	( 17,524)	( 3,041)	( 20,565)
Remeasurement	-	-	( 1,801)	( 1,801)
December 31	$ 24,892	$ 606,431	$ 114,276	$ 745,599

Land use rights

(1) On July 10, 2018, Hanlin Development signed a contract with Jimei Construction Co., Ltd. for the purchase of the land rights of its building and land located in Section 4, Minsheng East Road, Songshan District, Taipei City, Taiwan. This right is the "Contract for the Creation of Surface Rights over State-Owned Non-communal Land" signed with the North District Branch of the State-owned Property Administration, Ministry of Finance, under Land Nos. 115-3 and 115-10, Minsheng Section, Songshan District, Taipei City, with the surface rights lasting for 50 years (from August 8, 2012 to August 7, 2062).

(2) The Group presents its "lease liabilities - current" and "lease liabilities - non-current" based on rents payable each year during its duration. In addition, the debt allowances have been provided for the dismantling, removal, or recovery obligations to be borne upon the expiry of superficies, which are presented under item "other non-current assets - others".

Rent income and direct operating expenses of investment property:

	2025	2024
Rental income from investment real estate	$ 53,992	$ 55,100
Direct operating expenses incurred in the investment real estate generating rental income in the current period	$ 22,626	$ 22,596
Direct operating expenses incurred in the investment real estate not generating rental income in the current period	$ -	$ 1,893

The fair values of the investment real estate held by the Group on December 31, 2025 and 2024 were NT$1,094,638 and NT$1,025,532, respectively, which were based on the recent transaction prices of similar comparable targets in the area where the investment real estate is located and based on evaluation results of independent evaluation experts. The valuation by an independent appraiser was based on the comparative and income approach, resulting in a Level 3 fair value. The main assumptions were that the capitalization rates for gains were 1.14% and 1.19% to 1.3%, respectively.

~45~

Please refer to Note 8 for details of the guarantee provided by the Group with investment real estate.

(X) Short-term borrowings

Nature of loan	December 31, 2025	Interest rate range	Collaterals
Bank loans
Secured loans	$ 1,229,947	2.53%~3.159%	Please refer to Note 8
Other short-term borrowings
Secured loans	10,500	3.000%	Promissory note
	$ 1,240,447
Nature of loan	December 31, 2024	Interest rate range	Collaterals
Bank loans
Secured loans	$ 1,395,829	2.530%~3.151%	Please refer to Note 8
Credit loans	79,548	2.675%~2.775%	None
	$ 1,475,377

Secured borrowings and other short-term borrowings presented in the book refer to the share recognized by the Group in the joint operation according to the percentage of shareholding. Please refer to the descriptions in Note 6(4).
The interest expenses recognized in profit or loss in 2025 and 2024 were NT$11,338 and NT$8,967, respectively.

~46~

~47~

(XI) Long-term borrowings

Nature of loan	Duration and repayment method	Interest rate	December 31, 2025	December 31, 2024
Secured loans	From February 23, 2022 to February 23, 2039, interest is paid on the 23rd of each month in three-month installments of NT$4,000 thousands every 3 months and the remaining balance is paid in a lump sum.	2.375%
			$ 358,000	$ 374,000
			358,000	374,000
Less: Long-term borrowings due within one year or one business cycle			( 16,000)	( 16,000)
			$ 342,000	$ 358,000

Please refer to Note 8 for details of the assets provided by the Group for secured borrowings.

(XII) Pension

Since July 1, 2005, the Company and its domestic subsidiaries have established a defined retirement contribution allocation policy in accordance with the "Labor Pension Act", which is applicable to domestic employees. The Company and its domestic subsidiaries shall contribute 6% of their monthly salaries into individual accounts held by the Bureau of Labor Insurance for employees who elect to apply the labor pension system under the "Labor Pension Act". Depending on the amount of the personal pension account and the accumulated income, the pension will be paid on a monthly basis or in lump sum.

In 2025 and 2024, the Group recognized pension costs amounting to NT$2,091 and NT$946, respectively, in accordance with the above regulations governing the recognition of pension funds.

(XIII) Share capital

As of December 31, 2025 and 2024, the Company's authorized capital was NT$1,100,000, which was divided into 110,000 thousand shares and issued in tranches. The paid-in capital was NT$920,000, and the par value was NT$10 per share. The payment for the shares issued by the Company has been received.

(XIV) Capital surplus

According to the Company Act, in addition to the surplus from the issuance of shares in excess of the par value and from the capital surplus from the receipt of gifts, which may be used to make up for losses, the Company shall pay dividends, in which case new shares or cash may be issued, in proportion to the original shares when the Company has no accumulated losses. new shares or cash. In addition, according to the relevant regulations of the Securities and Exchange Act, the total amount of the above-mentioned capital surplus to be appropriated as capital may not exceed 10% of the paid-in capital each year. The Company may not use the surplus reserve to supplement the capital deficit, except when there is insufficient surplus reserve to cover the capital deficit.

	December 31, 2025	December 31, 2024
Treasury stock trading	$ 8,516	$ 8,516
Impact of organizational reorganization - subsidiaries	30,461	30,461
Impact of organizational reorganization - affiliates	11,286	11,286
Changes in the net equity value of affiliates	161,854	160,965
The difference between the actual price of the subsidiary's equity acquired and the carrying amount	16,588	16,588
Others	170	170
	$ 228,875	$ 227,986

(XV) Retained earnings

According to the Articles of Incorporation, annual surpluses concluded by the Company are first subject to taxation and making up for previous losses, followed by a 10% provision for legal reserves; however, no further provision is needed when legal reserves have accumulated to the same amount as the Company's paid-in capital. Any surpluses remaining shall then be subject to provision or reversal of special reserves, as the laws. The residual balance (if any) can then be added to undistributed earnings carried from previous years per board resolution, and the shareholder meeting resolved to distribute shareholder bonus

shares.

On June 19, 2025, the shareholders' meeting approved the amendment to the Company's Articles of Association. According to the surplus distribution policy of the Company's Articles of Association, profit distribution or loss compensation can be carried out after the end of each year in accordance with the Company Act. When distributing surplus, it is necessary to estimate and retain tax payables, make up for losses according to law, set legal reserves, and transfer or reverse special reserves in accordance with relevant laws and regulations. When the distribution of earnings in this item is made by issuing new shares, it shall be subject to a resolution of the shareholders' meeting in accordance with Article 240 of the Company Act; if it is distributed in cash, it shall be subject to a resolution of the board of directors.
The Company's dividend distribution policy depends on factors such as the company's current and future investment environment, capital needs, domestic and foreign competition conditions, and capital budgets, taking into account the interests of shareholders, balancing dividends, and the company's long-term financial planning. Dividends shall be distributed in combination, of which cash dividends shall not be less than 20% of the total dividends.
According to the Company Act, the legal reserve shall be contributed until its total amount reaches the total capital. The legal reserve shall not be used except to make up for the company's losses and to issue new shares or cash in proportion to the shareholders' original shares. However, the issuance of new shares or cash shall be limited to the portion of the reserve exceeding 25% of the paid-in capital.
When the Company distributes surplus, according to the laws, the debit balance of other equity items on the balance sheet date of the current year shall be withdrawn as a special reserve for distribution. When the debit balance of other equity items is subsequently reversed, the reversed amount may be included in the distributable surplus.

When adopting IFRSs for the first time, the special surplus reserve was listed in the official letter Jin-Guan-Zheng-Fa-Zi No. 1090150022 issued on March 31, 2021. When the Company subsequently uses, disposes or reclassifies the relevant assets, it will reverse the original proportion of the special reserve.

~49~

On June 19, 2025 and June 27, 2024, the shareholders' meeting resolved to distribute surplus for 2024 and 2023 as follows:

	2024		2023
	Amount	Dividends per share (NT$)	Amount	Dividends per share (NT$)
Legal reserve	$ 21,158		$ 18,375
Reversal of special reserve	-		( 131,582)
Special reserve	14,710		-
Cash dividends	27,600	$ 0.30	27,600	$ 0.30

On March 11, 2026, the Group's 2025 surplus distribution proposed by the Board of Directors is as follows:

	2025
	Amount	Dividends per share (NT$)
Legal reserve	$ 29,554
Special reserve	85,022
Cash dividends	46,000	$ 0.50

The above-mentioned earnings distribution resolved by the Board of Directors and Shareholders' Meeting is available on the "Market Observation Post System" of Taiwan Stock Exchange.

(XVI) Other equity items

	2025		2024
	Unrealized gains or losses on financial assets at FVTOCI		Unrealized gains or losses on financial assets at FVTOCI
January 1	($	87,316)	($	72,606)
Evaluation adjustment:
- The Group	(	11,667)		9,761
- Affiliated enterprises	(	73,537)		25,296
Transfer of evaluation adjustments to retained earnings:
- The Group		10	(	15,168)
- Affiliated enterprises		172	(	34,599)
December 31	($	172,338)	($	87,316)

(XVII) Revenue

	2025	2024
Revenue from customer contracts
Real estate sales for land development	$ 743,393	$ 38,148
Service income	15,434	4,630
Lease revenue	54,180	55,311
Other operating Income	89	39
	$ 813,096	$ 98,128

The revenue from the Group's customer contracts comes from goods transferred at a certain point in time or income that is gradually transferred over time. The income may be categorized as follows. Please refer to Note 14 for detailed breakdown of revenue by operating department.

	2025	2024
Time for revenue recognition
Revenue recognized at a point in time	$ 743,393	$ 38,148
Revenue transferred over time	15,434	4,630
	$ 758,827	$ 42,778

For the sales contracts entered by the Group, the aggregate amount of the transactions amortized from the performance obligations that have not yet been met and the estimated revenue for the year is as follows:

	The year expected to be recognized as revenue	Amount of contract entered into
December 31, 2025	2026 to 2028	$ 2,044,499
December 31, 2024	2025 to 2028	$ 1,490,204

3. Contract assets and liabilities

The contractual liabilities related to the contract revenue recognized by the Group are as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities
- current:
- Advance payment for land	$ 234,422	$ 214,180	$ 98,917
- Prepaid housing payment	220,214	179,975	86,401
	$ 454,636	$ 394,155	$ 185,318

(1) The Group's contract for the sale of pre-sale houses contains the terms of advance payment from customers, and the time interval between the time of advance receipt and the transfer of commodity control is longer than one year. Recognize contract liabilities related to pre-sale house contracts according to the requirements of IFRS 15.

(2) Revenue recognized from contract liabilities at the beginning of the year

	2025	2024
Balance of contract liabilities at the beginning of the year
Recognized as income
Pre-sale contract for construction projects	$ 84,645	$ 2,059

(XVIII) Interest income

	2025	2024
Interest on bank deposit	$ 5,740	$ 5,125
Interest income from financial assets at amortized cost	-	462
Other interest income	21	20
	$ 5,761	$ 5,607

(XIX) Other income

	2025	2024
Dividend income	$ 2,587	$ 4,679
Other income - others	2,901	1,721
	$ 5,488	$ 6,400

(XX) Other gains and losses

	2025		2024
Disposal of investment gains	$	1,044	$	4,294
Gains on financial assets at FVTPL		46,745		279
Foreign exchange (loss) gain	(	326)		2,208
Gains on reversal of impairment		2,795		-
Other gains and losses	(	130)	(	188)
Gains on disposal of investment property		-		5,390
Gains on lease modification		3		-
Miscellaneous expenses		48	(	1,596)
	$	50,179	$	10,387

(XXI) Financial cost

	2025		2024
Interest expense
Bank loans	$	46,063	$	48,099
Other short-term borrowings		162		-
Interest on lease liabilities		3,594		2,767
Others		10		8
		49,829		50,874
Less: Amount of capitalized assets that meet the criteria	(	34,887)	(	39,132)
	$	14,942	$	11,742

(XXII) Additional information on nature of expenses

	2025
	Attributable to operating costs	Attributable to operating expenses	Total
Operating costs for the current period	$ 566,174	$ -	$ 566,174
Lease cost for the current period	10,304	-	10,304
Employee welfare expenses	-	35,859	35,859
Depreciation expense	19,362	5,003	24,365
Amortization expense	-	1,474	1,474
	$ 595,840	$ 42,336	$ 638,176

	2024
	Attributable to operating costs	Attributable to operating expenses	Total
Operating costs for the current period	$ 32,915	$ -	$ 32,915
Lease cost for the current period	6,312	-	6,312
Employee welfare expenses	-	31,425	31,425
Depreciation expense	16,594	4,227	20,821
Amortization expense	-	492	492
	$ 55,821	$ 36,144	$ 91,965

(XXIII) Employee welfare expenses

	2025	2024
Salary expenses	$ 22,715	$ 19,381
Director Compensation	6,928	8,724
Labor and health insurance premiums	1,606	1,781
Pension expense	2,091	946
Other employee expenses	2,519	593
	$ 35,859	$ 31,425

According to the Company's Articles of Incorporation, the Company shall appropriate $0.5\% \sim 5\%$ of the balance as remuneration to employees, among which no less than $1\%$ to $10\%$ shall be appropriated as remuneration distributed to non-executive employees, and no more than $0.2\%$ to the remuneration to Directors, after deducting the accumulated losses based on the current profit status of the Company.
The remuneration to employees was estimated at NT$1,508 and NT$882 in 2025 and 2024, respectively; the remuneration to directors was estimated at NT$1,508 and NT$882. The remuneration of employees and the remuneration of directors in 2025 are estimated according to the profits of the current period and in accordance with the Articles of Incorporation.

As resolved by the Board of Directors, the remuneration of employees and

directors for 2024 is consistent with the recognized amounts in the 2024 financial statements.

Information on remuneration to employees and directors approved by the Company's Board of Directors is available on the Market Observation Post System.

(XXIV) Income tax

Income tax expenses

Components of income tax expense:

	2025	2024
Current income tax:
Income tax on current income	$ 3,139	$ 2,366
Additional tax on undistributed earnings	8,898	14,712
(Overestimation)
underestimation of income tax in previous years	( 4,835)	1,245
Income tax subject to minimum tax liability	-	2,249
Land appreciation tax included in current income tax	589	282
Total income tax for the period	7,791	20,854
Deferred income tax:
The original generation and reversal of temporary difference	( 1,525)	( 1,362)
Total deferred income tax	( 1,525)	( 1,362)
Income tax expenses	$ 6,266	$ 19,492

Relationship between income tax expenses and accounting profit

	2025	2024
Income tax on net profit before tax calculated at statutory tax rate	$ 82,235	$ 38,709
Income exempted from taxation under the Tax Act	( 94,932)	( 45,927)
Additional tax on undistributed earnings	8,898	14,712
Deferred income tax assets for unrecognized taxation losses (Overestimation)	14,311	6,780
underestimation of income tax in previous years	4,835)	1,245
Income tax effect under minimum tax system	-	2,249
Separate tax amount	-	1,442
Land appreciation tax included in current income tax	589	282
Income tax expenses	$ 6,266	$ 19,492

The amounts of deferred income tax assets or liabilities arising from temporary differences are as follows:

	2025
	January 1	Recognized in profit or loss	Recognized in other comprehensive net income	December 31
Deferred income tax assets
Deferred interest expense	$ 890	$ 426	$ -	$ 1,316
Impairment loss of investment property	338	( 338)	-	-
Unrealized sales gains	-	617	-	617
Debt allowances	-	800	-	800
	$ 1,228	$ 1,505	$ -	$ 2,733
Deferred income tax liabilities
Unrealized exchange gain	( 30)	20	-	( 10)
	$ 1,198	$ 1,525	$ -	$ 2,723

~58~

	2024
	January 1	Recognized in profit or loss	Recognized in other comprehensive net income	December 31
Deferred income tax assets
Unrealized exchange loss	$ 5	($ 5)	$ -	$ -
Deferred interest expense	-	890	-	890
Impairment loss of investment property	338	-	-	338
	$ 343	$ 885	$ -	$ 1,228
Deferred income tax liabilities
Unrealized exchange gain	( 507)	477	-	( 30)
	($ 164)	$ 1,362	$ -	$ 1,198

The effective periods of the Group's unused tax losses and the related amounts of unrecognized deferred income tax assets are as follows:

December 31, 2025

Year of occurrence	Amount reported/ authorized	Amount yet to be offset	Amount of unrecognized deferred income tax assets	Last crediting year
2018	$ 59,130	$ 24,080	$ 24,080	2028
2020	23,942	23,942	23,942	2030
2021	16,759	16,759	16,759	2031
2023	78,087	78,087	78,087	2033
	$ 177,918	$ 142,868	$ 142,868

December 31, 2024

Year of occurrence	Amount reported/ authorized	Amount yet to be offset	Amount of unrecognized deferred income tax assets	Last crediting year
2018	$ 59,130	$ 24,080	$ 24,080	2028
2020	23,942	23,942	23,942	2030
2021	16,759	16,759	16,759	2031
2023	78,087	78,087	78,087	2033
	$ 177,918	$ 142,868	$ 142,868

Deductible temporary differences not recognized as deferred income tax assets

	December 31, 2025	December 31, 2024
Deductible temporary difference	$ 9	$ 92

The income tax for the profit-seeking business of the Company has been approved by the tax collection authority up to 2023.

(XXV) Earnings per share

	2025
	After-tax amount	Weighted average outstanding shares (thousand shares)	Earnings per share (NTD)
Basic earnings per share
Net income attributable to common stock shareholders of the parent company	$ 295,725	92,000	$ 3.21
Diluted earnings per share
Effect of potential dilutive common stock (employee remuneration)	-	52
Net income attributable to common shareholders of the parent company plus effect of potential common shares	$ 295,725	$ 92,052	$ 3.21

	2024
	After-tax amount	Weighted average outstanding shares (thousand shares)	Earnings per share (NTD)
Basic earnings per share
Net income attributable to common stock shareholders of the parent company	$ 160,500	92,000	$ 1.74
Diluted earnings per share
Effect of potential dilutive common stock (employee remuneration)	-	35
Net income attributable to common shareholders of the parent company plus effect of potential common shares	$ 160,500	92,035	$ 1.74

(XXVI) Changes in liabilities from financing activities

	2025
	Short-term borrowings	Lease liabilities	Long-term borrowings	Guarantee deposits received	Dividends payable	Total liabilities from financing activities
January 1	$1,475,377	$ 157,749	$ 374,000	$ 8,014	$ -	$2,015,140
Increase in the current period	653,654	-	-	2,297	27,600	683,551
Decrease in the current period	( 888,584)	( 5,854)	( 16,000)	( 2,575)	( 27,600)	( 913,013)
Interest expenses paid (Note)	-	( 3,594)	-	-	-	( 3,594)
Other non-cash changes	-	3,492	-	-	-	3,492
December 31	$1,240,447	$ 151,793	$ 358,000	$ 7,736	$ -	$1,785,576
	2024
---	---	---	---	---	---	---
	Short-term borrowings	Lease liabilities	Long-term borrowings	Guarantee deposits received	Dividends payable	Total liabilities from financing activities
January 1	$1,362,801	$ 125,660	$ 390,000	$ 8,697	$ -	$1,887,158
Increase in the current period	272,286	36,982	-	6,222	27,600	343,090
Decrease in the current period	( 159,710)	( 3,092)	( 16,000)	( 6,905)	( 27,600)	( 213,307)
Interest expenses paid (Note)	-	( 2,767)	-	-	-	( 2,767)
Other non-cash changes	-	966	-	-	-	966
December 31	$1,475,377	$ 157,749	$ 374,000	$ 8,014	$ -	$2,015,140

Note: Cash flow from operating activities is presented in the table.

(XXVII) Transactions with non-controlling interests

Extra equity of acquisition of subsidiaries

The Group purchased 18% of the issued shares of Hanlin Development Co., Ltd. on March 11, 2024 for an amount of NT$132,300 thousand. The carrying amount of the non-controlling interests in Hanlin Development Co., Ltd. on the acquisition date was NT$827,158. This transaction resulted in a decrease of NT$148,888 in non-controlling interests and an increase of NT$16,588 in equity attributable to the owners of the parent. The impact of changes in equity on the owners' equity of the parent company of Hanlin Development Co., Ltd. is as follows:

	March 11, 2024
Carrying amount of non-controlling interests purchased	$ 148,888
Consideration paid to the non-controlling interests	( 132,300)
Capital surplus - the difference between the actual price of the subsidiary's equity acquired and the carrying amount	$ 16,588

VII. Related Party Transactions

(I) Names of related parties and their relationship

Name of related party	Relationship with the Group
Hanshin Asset Management Co., Ltd.	The Company's ultimate parent company
Hanshen Department Store Co., Ltd. (Hanshin Department Store)	Other related parties
Hi-Lai Foods Co., Ltd. (Hi-Lai Foods)	Other related parties
Weili International Development Co., Ltd. (Weili International)	Other related parties
The Pu-Li Management Consulting Co., Ltd.(Pu-Li Management)	Other related parties
Kuo Yang Construction Co., Ltd.(Kuo Yang Construction)	Other related parties
Liyang Agricultural Technology Co., Ltd. Grand Hi-Lai Hotel Co., Ltd. (Grand Hi-Lai Hotel)	Other related parties
Hanqi Technology Co., Ltd. Shenyang Construction Co., Ltd. (Shenyang Construction)	Other related parties

Zu Sheng International Co., Ltd. Other related parties
Hanshin Shopping Plaza Co., Ltd. Other related parties
KUO HSIEH CORPORATION Other related parties
Xue Yong Co., Ltd. Other related parties
Aquas Sports Culture Co., Ltd. Other related parties

(II) Material transactions with related parties

1. Revenue - revenue from management services

	2025	2024
Other related party-
WEINIG International	$ 3,087	$ 772
Other related party -
Shenyang Construction	12,347	3,086
	$ 15,434	$ 3,858

The Group enters into joint investment and development contracts with related parties, and the Group acts as the business manager of projects based on the contracts and collects revenue from management services based on the percentage agreed in the contracts.

2. Rental expenses

	2025	2024
Ultimate parent company	$ -	$ 3,002
Other related party -
Hanshin Department
Store Co., Ltd.	23	-
	$ 23	$ 3,002

The Group signs lease contracts with related parties based on general market conditions, and rents are paid within the periods agreed in the contracts.

3. Entertainment expenses

	2025	2024
Other related party - Hi-Lai Foods	$ 503	$ 583
Other related party - Grand Hi-Lai Hotel	-	8
Other related party - Hanshin Department Store Co., Ltd.	6	6
	$ 509	$ 597

The Group's entertainment expenses are mainly gifts given to customers, and the payment terms to related parties are "paid when incurred".

4. Employee benefits

	2025	2024
Other related party - Grand Hi-Lai Hotel	$ 409	$ -
Other related parties - Kuo Yang Construction	-	101
Other related party - Hi-Lai Foods	165	54
	$ 574	$ 155

5. Donation

	2025	2024
Other related parties - Aquas Sports Culture	$ 2,100	$ 950

6. Lease transactions - Lessee

(1) The Group rented an office from its ultimate parent company in November 2024 and recognized right-of-use assets of NT$36,983. The period of the lease contract is from November 2024 to February 2034, and the rent is paid on a monthly basis.

(2) Lease liabilities

A. Balance at the end of period:

	December 31, 2025	December 31, 2024
Ultimate parent company	$ 33,117	$ 36,441

B. Interest expense:

	2025	2024
Ultimate parent company	$ 1,072	$ 191

7. Accounts receivable

	December 31, 2025	December 31, 2024
Ultimate parent company	$ 377	$ 377

~64~

Guarantee deposits paid

	December 31, 2025	December 31, 2024
Ultimate parent company	$ 1,154	$ 1,154

Accounts payable

	December 31, 2025	December 31, 2024
Ultimate parent company	$ 9,769	$ 9,769

Endorsements and guarantees provided to related parties

	December 31, 2025	December 31, 2024
Other related party-WEINIG International	$ 1,878,600	$ -

Regarding joint development projects in which the Group participates, if the lending financial institution for a project requires a joint guarantee, the parties shall jointly bear the responsibilities in accordance with the agreements in the investment and development contract. The abovementioned is the total borrowing limit, and the Group shall bear 20% based on its investment percentage.

Others

(1) Project Kuo Yang Digital

On July 15, 2021, the Company entered into a joint investment and development contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Hanshin Asset Management Co., Ltd., and Grand Hi-Lai Hotel Co., Ltd. for 9 pieces of land including No. 28, Zhongxing Section, Sanchong District, with a total area of 1,828.28 pings, with Guo Yang Construction Co., Ltd. acting as the manager of the project according to the contract. The investment ratio was 15% by the Company, 10% by Weili International Development Co., Ltd., 50% by Guo Yang Construction Co., Ltd., 10% by Hanshin Asset Management Co., Ltd., and 15% by Grand Hi-Lai Hotel Co., Ltd.

(2) Project Kuo Yang Intercontinental

On November 23, 2020, the Company entered into a joint investment and development contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Hanshin Asset Management Co., Ltd., Liyang Agricultural Technology Co., Ltd. and Grand Hi-Lai Hotel Co., Ltd. for 4 pieces of land including 83-1, Jiuzong Section, Neihu District, Taipei City, with a total

area of 2,127.33 pings. Guo Yang Construction Co., Ltd. was the manager of the project according to the contract. 10% of the investment was by the Company, 50% by Guo Yang Construction Co., Ltd., and 10% by all other companies.

(3) Project Kuo Yang Innovation (formerly known as the Project Tucheng Zhongyi)
On January 28, 2021, the Company entered into a joint investment and development contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Hanshin Asset Management Co., Ltd., Liyang Agricultural Technology Co., Ltd. and Grand Hi-Lai Hotel Co., Ltd. for 19 pieces of land including Lot No. 365, Zhongyi Section, Tucheng District, New Taipei City, with a total area of 5,344.27 pings. Guo Yang Construction Co., Ltd. was the project manager under the contract. 10% of the investment was by the Company, 50% by Guo Yang Construction Co., Ltd., and 10% by all other companies. On June 29, 2021, "Grand Hi-Lai Hotel Co., Ltd." withdrew from the project, and its initial shareholding was transferred to Hanshin Asset Management Co., Ltd. The changes to the investment ratio took effect on July 1, 2021. Subsequently, on November 3, 2025, "Hanshin Asset Management Co., Ltd." sold 10% of its 20% interest in Project Tucheng Zhongyi to "Grand Hi-Lai Hotel Co., Ltd." The changes to the investment ratio took effect on November 1, 2025.

(4) Project Emerald Forest
On June 29, 2012, Guo Yang Construction Co., Ltd. and Weili International Development Co., Ltd. signed a joint investment and development agreement for joint development and construction of a residential complex on the land held by Taiwan Sugar Corporation at Lot 24, Hetuan Section, Annan District, Tainan City (77,479.53 square meters). Subsequently, a management letter was signed, which entrusted Guo Yang Construction Co., Ltd. to take charge of the overall development plan, architectural planning, construction and sales of collective housing. Weili International Development Co., Ltd. is the representative of the project and executed the Project in accordance with the contract signed with Taiwan Sugar Corporation, and acted as the organizer of the Project, coordinating as the selling company (issuing sales invoices) for the sale of premises and as the purchasing company (issuing certificates) for the purchase of goods or services, and is responsible for the settlement of the Project. Subsequently, the "Joint Development Supplementary Agreement" was signed on March 15, 2016 to change the capital contribution and settlement distribution ratio to the Company's subsidiaries. After the change, the ratios of Hanlin Development, Weili International Development Co., Ltd.,

~65~

Feminine Co., Ltd., Zu Sheng International Co., Hanshin Asset Management Co., Ltd., Crowell Development Corp., and Kuo Yang Construction Co., Ltd. were 5%, 6%, 1.5%, 4%, 13.5%, 10%, and 60%, respectively. Subsequently, Crowell Development Corp. withdrew from the project on July 15, 2019. The "Joint Development Supplementary Agreement" was signed on with Weili International Development Co., Ltd. to change the capital contribution and settlement distribution ratio to the Company's subsidiaries. After the change, the ratios of Hanlin Development, Weili International Development Co., Ltd., Feminine Co., Ltd., Zu Sheng International Co., Hanshin Asset Management Co., Ltd., and Kuo Yang Construction Co., Ltd. were 10%, 6%, 1.5%, 4%, 13.5%, and 65%, respectively.

(5) Ascent Development Original Project

On August 11, 2022, the Company and its subsidiary, Hanlin Development Co., Ltd., entered into a joint investment and development contract with Guo Yang Construction Co., Ltd., Weili International Development Co., Ltd., and Shenyang Construction Co., Ltd. for 12 pieces of land, with an area of 2,259.85 pings, including Lot 258, Zhongyuan Section, Zhonghe District, New Taipei City, and according to the contract, the Company serves as the operating manager of this project. Its investment ratio includes the Company (40%), Hanlin Development (10%), Shenyang Construction Co., Ltd. (40%), and Weili International Development Co., Ltd. (10%).

(6) Project Kuo Yang Prospect

On July 4, 2022, the Company's subsidiary, Hanlin Development Co., Ltd., entered into a joint investment contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Grand Hi-Lai Hotel Co., Ltd., Hanshin Asset Management Co., Ltd., and Grand Hi-Lai Hotel Co., Ltd., and Hanshin Shopping Plaza Co., Ltd. for 29 pieces of land including Lot 895, Jiangbei Section, Shih Chi District, New Taipei City, with a total area of 5,531.35 pings, with Guo Yang Construction Co., Ltd. acting as the manager of the project according to the contract. The investment ratio was 10% by Hanlin Development Co., Ltd., 50% by Guo Yang Construction Co., Ltd., 20% by Weili International Development Co., Ltd., 10% by Grand Hi-Lai Hotel Co., Ltd., and 10% by Hanshin Shopping Plaza Co., Ltd.

(7) Project Smiling Era

On June 3, 2016, the Company's subsidiary, Hanlin Development, entered into a joint investment and development contract with Shenyang Construction Co., Ltd. for the land rights for 5 pieces of land, including No. 1492 of Shengxing Section, Qianzhen District, Kaohsiung City, with an area of 11,411 square

~66~

meters. Its investment ratio is 30% by Hanlin Development and 70% by Shenyang Construction Co., Ltd.

(8) Project Global Innovation

On April 15, 2019, the Company's subsidiary, Hanlin Development, entered into a joint investment and development contract with Weili International Development Co., Ltd., Liyang Agricultural Technology Co., Ltd., Goldshare Investment Corporation, Xueyong Co., Ltd., and Jinzan Industrial Co., Ltd. for 6 pieces of land, including 33, 34, 35-1, 36, 39 and 42 in Baoyuan Section, Xindian District, New Taipei City, with an area of 1,332 pings. The investment ratio was 20% by Hanlin Development Co., Ltd., 20% by Weili International Development Co., Ltd., 25% by Liyang Agricultural Technology Co., Ltd., 15% by Goldshare Investment Corporation, 15% by Xueyong Co., Ltd., and 5% by Jinzan Industrial Co., Ltd.

(III) Remuneration of key management personnel

	2025	2024
Short-term employee benefits	$ 11,427	$ 11,288

VIII. Assets collateralized (pledged)

The details of collateral for the Group's assets are as follows:

Assets	Carrying amount		Purpose of guarantee
	December 31, 2025	December 31, 2024
Inventory	$ 2,133,297	$ 2,362,366	Short-term borrowings
Other financial assets - current (time deposits and restricted deposits)	106,053	172,515	Reserves account and trust deposit account
Investment property	587,271	603,233	Long-term borrowings
Other financial assets - non-current (time deposits and restricted deposits)	12,500	13,000	Performance bond and provisions account
	$ 2,839,121	$ 3,151,114

IX. Significant Contingent Liabilities or Unrecognized Contractual Commitments

As of December 31, 2025, the total cost of construction contracts entered into between the Group and non-related parties amounted to NT$1,666,957, and the amount signed but not yet paid amounted to NT$1,201,647.

X. Losses from Major Disasters

None.

XI. Subsequent Events

Please refer to Note 6(15) for the Company's 2025 earnings distribution proposal approved by the Board of Directors on March 11, 2026.

XII. Others

(I) Capital management

The Group's capital management objective is to maintain a sound credit rating and a good capital ratio to support corporate operations and maximize shareholders' equity. The Group manages and adjusts the capital structure according to the economic situation, and may achieve the purpose of maintaining and adjusting the capital structure by adjusting the payment of dividends, returning capital or issuing new shares.

(II) Financial instruments

Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at FVTPL
Financial assets mandatorily at FVTPL	$ 307,829	$ 252,916
Financial assets at FVTOCI
Investment in designated equity instruments	$ 119,239	$ 141,737
Financial assets at amortized cost
Cash and cash equivalents	$ 689,238	$ 504,371
Notes receivable	1,993	35,780
Accounts receivable (including related parties)	56,752	2,324
Other receivables	2,258	17,087
Other financial assets - current	106,053	172,515
Guarantee deposits paid	7,355	10,885
Other financial assets - non-current	12,500	13,000
	$ 876,149	$ 755,962

	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortized cost
Short-term borrowings	$ 1,240,447	$ 1,475,377
Notes payable	38,216	58,912
Accounts payable (including related parties)	125,263	84,435
Other payables (including related parties)	47,436	63,040
Long-term borrowings (Long-term liabilities due within one year or one business cycle)	358,000	374,000
Guarantee deposits received	7,736	8,014
	$ 1,817,098	$ 2,063,778
Lease liabilities	$ 151,793	$ 157,749

2. Risk management policies

(1) The Group's financial risk management objectives are mainly to manage market risks, credit risks and liquidity risks related to operating activities. The Group identifies, measures and manages the aforementioned risks in accordance with the Group's policies and risk preferences.

(2) The Group has established appropriate policies, procedures, and internal controls for the aforementioned financial risk management in accordance with relevant regulations, and important financial activities must be reviewed by the board of directors in accordance with relevant regulations and internal controls. During the execution of financial management activities, the Group shall faithfully comply with the relevant regulations on financial risk management.

(3) The Group has not undertaken derivatives to avoid financial risks.

3. Nature and extent of material financial risks

(1) Market risk

Interest rate risk

A. The Group is exposed to exchange rate risks arising from transactions that are relatively different from the functional currencies of the Company and its subsidiaries, mainly in USD. The associated exchange rate risk arises from future commercial trades and recognized assets and liabilities.

B. The management of the Group has established a policy requiring each company within the Group to manage the exchange rate risk relative to its

functional currency.

C. Only a small portion of leased assets of the Group is denominated in non-functional currencies (the functional currency of the Company and its subsidiaries is NT$); therefore, the impacts of exchange rate fluctuations are insignificant.

D. The Group's monetary items have a significant impact due to exchange rate fluctuations. The total amount of all exchange (losses) benefits recognized in 2025 and 2024 (including realized and unrealized) was (NT$326) and NT$2,208, respectively.

Price risk

A. The equity instruments that the Group is exposed to price risk are financial assets held at FVTPL and financial assets at FVTOCI. In order to manage the price risk of equity instrument investment, the Group manages the price risk of equity securities by diversifying investment and setting limits for single and overall equity investment. The information on investment portfolio of equity securities needs to be regularly provided to the senior management of the Company, and the board of directors must review all equity securities investment decisions and approve the diversification of its investment portfolio.

B. The Group mainly invests in equity instruments issued by domestic companies and joint development projects. The prices of these equity instruments and contracts will be affected by the uncertainty of the future value of the investment target. If the value of these equity instruments increases or decreases by 10%, and all other factors remain unchanged, the after-tax net profit in 2025 and 2024 comes from the gain or loss on equity instruments at FVTPL will increase or decrease by NT$4,649 and NT$3,492 respectively; the gain or loss on equity investments classified as FVTOCI will increase or decrease by NT$11,924 and NT$14,174 respectively. If the value of the equity instruments rises or falls by 5%, the gain or loss of joint development projects due to the classification as equity instruments at FVTOCI will increase or decrease by NT$13,067 and NT$10,900.

Cash flow and fair value interest rate risk

A. The Group's interest rate risk mainly comes from short-term loans issued at floating rates, as well as long-term loans which expose the Group to cash flow interest rate risk. In 2025 and 2024, the Group's loans issued at

~70~

floating rates were mainly denominated in NT$.

B. When the NT$ loan interest rate increases or decreases by 1%, and all other factors remain unchanged, the after-tax net profit in 2025 and 2024 will decrease or increase by NT$12,788 and NT$14,795, respectively, mainly due to the fluctuation in interest expenses caused by variable-rate loans.

(2) Credit risk

A. The credit risk of the Group is the risk of financial loss of the Group due to the inability of the customer or the counterparty of the financial instrument to perform the contractual obligations, which mainly arises from the inability of the counterparty to settle the receivables paid on collection terms.

B. Each unit of the Group follows credit risk policies, procedures and controls to manage credit risk. The credit risk assessment of all customers is based on comprehensive consideration of the customer's financial status, credit rating agency ratings, past historical transaction experience, current economic environment, and the Group's internal rating standards and other factors.

C. The Group's Finance and Accounting Department manages the credit risks of bank deposits, fixed-income securities and other financial instruments in accordance with the Group's policies. Because the Group's transaction partners are determined by internal controls procedures, and they are banks with good credit, financial institutions, corporate organizations and government agencies with investment grades, and hence there is no significant credit risk.

D. The Group mainly engages in the leasing and selling of residential buildings, industrial plants and commercial buildings. The sale of premises is recognized as revenue when the contract price is fully collected, the ownership transfer is completed, and the actual house is handed over. Hence, the number of accounts receivable arising from the sale of premises should be small, and the risk of irrecoverability is minor for notes receivable. The amount of credit impairment assessed by the Group as of December 31, 2025 and 2024, was insignificant. In addition, for the accounts receivable arising from other transactions, the Group shall manage the credit risk. When the contract payment is overdue for more than 90 days according to the agreed payment terms, it shall be deemed as a breach of contract.

~71~

E. The Group adopts the presumption provided by IFRS 9. When the contract payment is overdue for more than 30 days according to the agreed payment terms, it is considered that the credit risk of the financial asset has increased significantly since the original recognition.

(3) Liquidity risk

A. Cash flow forecasting is performed by each operating entity within the Group and summarized by the Group's finance department. The Group's finance department monitors the forecast of the Group's liquidity needs to ensure that it has sufficient funds to meet operating needs and maintain sufficient unused loan commitments at any time, so that the Group will not violate the relevant loaning limit or terms. These forecasts take into account the group's debt financing plan, compliance with debt terms, and financial ratio targets in line with the internal balance sheet.

B. The Group invests the remaining funds in interest-bearing demand deposits, time deposits and securities, and the instruments it chooses have appropriate maturity dates or sufficient liquidity to respond to the above forecasts and provide sufficient dispatch levels.

C. The Company's unused loan is as follows:

	December 31, 2025	December 31, 2024
Floating interest rate
Due within one year	$ 425,530	$ -
Overdue in more than one year	997,265	1,578,981
	$ 1,422,795	$ 1,578,981

Note: NT$300,000 in the non-utilized borrowing limit was provided by the ultimate parent company of the Company.

D. The following table categorizes the Group's non-derivative financial liabilities according to the relevant maturity date, and analyzes based on the remaining period from the balance sheet date to the contractual maturity date. Except for notes payable and other payables, the undiscounted contractual cash flow amount is approximately equivalent to its carrying amount and is due within one year. The undiscounted contractual cash flow amounts of the remaining financial liabilities are detailed in the table below:

~72~

Non-derivative financial liabilities:

December 31, 2025	Within 1 year	1-2 years	2-3 years	3 years or above
Short-term borrowings	$ 185,800	$ 309,354	$ 160,948	$ 673,638
Lease liabilities	9,046	9,156	9,178	180,262
Long-term loans (including due within one year)	24,328	23,948	23,568	365,377
Accounts payable	72,496	-	42,998	9,769
Guarantee deposits received	7,293	443	-	-
Non-derivative financial liabilities:
December 31, 2024	Within 1 year	1-2 years	2-3 years	3 years or above
Short-term borrowings	$ 40,008	$ 511,028	$ 306,887	$ 740,908
Lease liabilities	9,482	9,114	9,156	189,440
Long-term loans (including due within one year)	24,250	23,890	23,530	385,633
Accounts payable	60,603	14,049	-	9,783
Guarantee deposits received	8,013	-	-	-

E. The Group does not expect that the cash flow in the due date analysis will occur significantly earlier, or that the actual amount will be significantly different.

(III) Fair Value Information

The definitions of the various levels of evaluation techniques adopted to measure the fair value of financial and non-financial instruments are as follows:

Level 1: Quoted prices (unadjusted) in an active market for the same assets or liabilities available to the enterprise on the measurement date. An active market is one in which transactions in assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the listed/OTC stock invested by the Group belongs to this category.

Level 2: Observable inputs, directly or indirectly, for assets or liabilities other than quoted prices included in Level 1.

Level 3: Unobservable inputs to assets or liabilities. The Group's investments in joint development projects without an active market belong to this category.

For information on the fair value of investment real estate at cost, please refer to

Note 6(9).

Financial instruments not measured by fair value

The Group's cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables, other financial assets - current, guarantee deposits paid, other financial assets - non-current, short-term loans, the book amounts of short-term bills payable, bills payable, accounts payable (including related parties), other payables, guarantee deposits received and long-term loans are reasonable approximations of fair values.

Financial and non-financial instruments measured by fair value are classified by the Group based on the nature, characteristics and risks of assets and liabilities and the basis of fair value levels. The relevant information is as follows:

(1) The Group classifies them according to the nature of assets and liabilities, and the relevant information is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value
Financial assets at FVTPL
Equity securities	$ 46,490	$ -	$ -	$ 46,490
Joint investment and development contract	-	-	261,339	261,339
Subtotal	46,490	-	261,339	307,829
Financial assets at FVTOCI
Equity securities	119,239	-	-	119,239
	$ 165,729	$ -	$ 261,339	$ 427,068
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value
Financial assets at FVTPL
Equity securities	$ 34,916	$ -	$ -	$ 34,916
Joint investment and development contract	-	-	218,000	218,000
Subtotal	34,916	-	218,000	252,916
Financial assets at FVTOCI
Equity securities	141,737	-	-	141,737
	$ 176,653	$ -	$ 218,000	$ 394,653

(2) The methods and assumptions used by the Group to measure the fair value are as follows:

A. The Group adopts market quotation for fair value inputs (i.e. Level 1), which are broken down

by the characteristics of the instruments as follows:

Market quotation	Listed (OTC) stock
	Closing price

B. Except for the above-mentioned financial instruments with active markets, the fair value of other financial instruments is obtained by evaluation techniques or by referring to the quotations of counterparties. The fair value obtained through valuation techniques can be calculated referring to the current fair value of other financial instruments with substantially similar conditions and characteristics, discounted cash flow method or other valuation techniques, including the use of market information available on the consolidated balance sheet date.

C. When evaluating non-standardized and less complex financial instruments, such as joint development projects, the Group adopts evaluation techniques widely used by market participants. The parameters adopted in the evaluation models of such financial instruments are usually market observable information.

The Group did not have any transfers between Level 1 and 2 in 2025 and 2024.
The following table shows that there was no inward or outward transfer into or from Level 3 in 2025 and 2024.
The Group is responsible for verifying the fair value of financial instruments, using independent source data to make the evaluation results close to the market status, confirming that the data source is independent, reliable, and other data sources Consistent and representative executable prices, and regularly calibrate the evaluation model, conduct backtesting, update the input values and data required for the evaluation model, and make any other necessary fair value adjustments to ensure that the evaluation results are reasonable.
The quantitative information of the significant unobservable input value and the sensitivity analysis of the change of the significant unobservable input value of the evaluation model used for the third-level fair value measurement items are as follows:

~75~

December 31, 2025

	Fair value	Evaluation technique	Unobservable significant input	Interval (weighted average)	Relationship between input value and fair value
Non-derivative equity instruments: Joint investment and development contract	Income approach $ 261,339		Not applicable	-	Not applicable
	December 31, 2024
	Fair value	Evaluation technique	Unobservable significant input	Interval (weighted average)	Relationship between input value and fair value
Non-derivative equity instruments: Joint investment and development contract	Net asset approach $ 218,000		Not applicable	-	Not applicable

The Group selects and adopts the valuation models and valuation parameters after careful assessment; therefore, they are reasonable for the fair value measurement. However, the use of different valuation model or valuation parameters may result in different valuation results.

(IV) The total amount of the Group's current assets and current liabilities expected to be recovered and paid within or over 12 months

December 31, 2025	Carrying amount	Within 12 months	Over 12 months
Assets
Cash and cash equivalents	$ 689,238	$ 689,238	$ -
Financial assets at fair value through profit or loss - current	46,490	46,490	-
Notes receivable, net	1,993	1,993	-
Accounts receivable, net	56,375	36,118	20,257
Accounts receivable - related parties, net	377	-	377
Other receivables	2,258	1,866	392
Current income tax assets	320	320	-
Inventory	2,427,678	580,686	1,846,992
Prepayments	20,391	20,391	-
Other financial assets - current	106,053	106,053	-
Other current assets - others	75,773	43,404	32,369
December 31, 2025	Carrying amount	Within 12 months	Over 12 months
Liabilities
Short-term borrowings	$ 1,240,447	$ 153,062	1,087,385
Contract liabilities - current	454,636	293,363	161,273
Notes payable	38,216	38,216	-
Accounts payable	115,494	72,496	42,998
Accounts payable - related parties	9,769	-	9,769
Other payables	47,436	47,436	-
Current income tax liabilities	11,126	11,126	-
Lease liabilities - current	5,608	5,608	-
Long-term liabilities due within one year or one business cycle	16,000	16,000	-
Other current liabilities - others	12,205	10,205	2,000

December 31, 2024	Carrying amount	Within 12 months	Over 12 months
Assets
Cash and cash equivalents	$ 504,371	$ 504,371	$ -
Financial assets at fair value through profit or loss - current	34,916	34,916	-
Notes receivable, net	35,780	35,780	-
Accounts receivable, net	1,947	1,947	-
Accounts receivable - related parties, net	377	-	377
Other receivables	17,087	8,554	8,533
Current income tax assets	293	293	-
Inventory	2,487,901	753,867	1,734,034
Prepayments	8,851	8,851	-
Other financial assets - current	172,515	172,515	-
Other current assets - others	83,005	30,911	52,094
Liabilities
Short-term borrowings	$ 1,475,377	$ 317,448	$ 1,157,929
Contract liabilities - current	394,155	100,176	293,979
Notes payable	58,912	58,912	-
Accounts payable	74,666	60,604	14,062
Accounts payable - related parties	9,769	-	9,769
Other payables	63,040	63,040	-
Current income tax liabilities	17,656	17,656	-
Lease liabilities - current	5,888	5,888	-
Long-term liabilities due within one year or one business cycle	16,000	16,000	-
Other current liabilities - others	10,676	7,590	3,086

XIII. Other Disclosures

(1) Information about important transactions

Loans to others: None.
Endorsements/guarantees provided for others: Table 1.
Material marketable securities held at the end of the period (excluding investments in subsidiaries, affiliates, and joint venture interests): Please refer to

~79~

Table 2.

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: None.
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.
Business relationships and significant transactions between the parent company and subsidiaries: None.

(II) Information on invested businesses

The name and location of the investee company and other relevant information (excluding mainland China investee companies): Please refer to Table 3.

(III) Investment information in Mainland China

Basic information: None.
Significant transactions with investee companies in Mainland China directly or indirectly through businesses in a third region: None.

XIV. Information on Operating Segment

(I) General information

The Group only engages in a single industry, and the management of the Group evaluates the overall performance and allocates resources of the Group, thus determining that the Group is a single reportable segment.

(II) Measurement of departmental information

Assets of reportable segments provided to major operational decision-makers are as follows:

	2025
	Construction projects sales	Service	Lease	Others	Total
Net external income	$ 743,393	$ 15,434	$ 54,180	$ 89	$ 813,096
Revenue of internal departments	-	-	-	-	-
Departmental revenue	$ 743,393	$ 15,434	$ 54,180	$ 89	$ 813,096
Departmental profit or loss before tax	$ 177,219	$ 15,434	$ 24,514	$ 130,115	$ 347,282

~80~

	2024
	Construction projects sales	Service	Lease	Others	Total
Net external income	$ 38,148	$ 4,630	$ 55,311	$ 39	$ 98,128
Revenue of internal departments	-	-	-	-	-
Departmental revenue	$ 38,148	$ 4,630	$ 55,311	$ 39	$ 98,128
Departmental profit or loss before tax	$ 5,232	$ 4,630	$ 32,405	$ 139,785	$ 182,052

Since the Group's assets and liabilities are not the indicators used by the operational decision-makers, the relevant amounts were not disclosed.

(III) Reconciliation information of departmental profit and loss

The external revenue and department profit and loss provided to the operational decision-maker are measured in the same way as the revenue and pre-tax profit or loss in the financial statements, so no adjustment is required.

(IV) Information by geographical location

Information of the Group by region in 2025 and 2024 is as follows:

	2025		2024
	Income	Non-current assets	Income	Non-current assets
Taiwan	$ 813,096	$ 769,324	$ 98,128	$ 790,177

Note: Non-current assets include property, plant and equipment, right-of-use assets, investment property, and intangible assets.

Ascent Development Co., Ltd.

Making endorsements/guarantees for others

January 1 to December 31, 2025

Expressed in thousands of NT$

(unless otherwise stated)

Table 1

No. (Note 1)	Name of endorsing/guaranteeing company	Endorsed/ guaranteed parties		Limit on endorsements/guarantees provided to a single enterprise (Note 3)	Balance of the highest endorsement/guarantee amount (Note 4)	Balance of the endorsement/guarantee amount at the end of the period (Note 5)	Actual amount contributed (Note 6)	Endorsement/guarantee amount secured by property	Percentage of accumulative endorsements/guarantees to net value in the most recent financial statements	Highest limit on endorsements/guarantees (Note 3)	Endorsements/guarantees provided by parent company to subsidiary (Note 7)	Endorsements/guarantees provided by subsidiary to parent company (Note 7)	Endorsement/guarantee made for Mainland China (Note 7)	Note
		Company name	Relationship (Note 2)
1	Hanlin Development Co., Ltd.	Weili International Development Co., Ltd.	5.6	$ 2,303,558	$ 1,878,600	$ 1,878,600	$ 1,878,600	$ -	203.88%	$ 2,764,629	N	N	N

Note 1: The description of the number column is as follows:

(1). Issuer: "0".

(2). The investees are numbered sequentially, starting from 1, based on each company.

Note 2: There are seven types of relationships between the endorser/guarantor and the endorsed/guaranteed object, and it is sufficient to indicate the type:

(1). A company with business dealings.

(2) A company in which the Company directly or indirectly holds more than 50% of the voting shares.

(3). A company that directly and indirectly holds more than 50% of the voting shares in the company.

(4). A company in which the Company directly or indirectly holds 90% or more of the voting shares.

(5). Where the Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.

(6). Where all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding ratios.

(7). Where companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: Please set out the Procedures for Endorsement and Guarantee Provided of the Company, establish the limit on endorsements/guarantees for individual counterparties, and describe the individual counterparties for endorsements/guarantees and the calculation method for the total limit.

(1). The amount of the endorsements/guarantees of the Company shall not exceed the total amount of the transactions made with the Company in the most recent year; the term "total amount of the transactions" refers to the higher between the purchase or sales amount; however, the subsidiary directly or indirectly 100% owned by the Company is not subject to the restriction.

(2). The total amount of the endorsements/guarantees made by the Company must not exceed 300% of the net worth of the Company; the sum of the endorsements/guarantees made by the Company and the subsidiaries must not exceed 300% of the net worth of the Company.

(3). The amount of the endorsement/guarantees provided by the Company to any single entity must not exceed 250% of the net worth of the Company; the sum of the endorsements/guarantees made by the Company and the subsidiaries to any single entity must not exceed 250% of the net worth of the Company.

Note 4: The maximum balance of the endorsements and guarantees made for others in the current year.

Note 5: The amount approved by the Board of Directors shall be entered. However, if the Board of Directors authorizes the Chairman to make decisions under subparagraph 8 of Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, it refers to the amount determined by the Chairman.

Note 6: The amount utilized by the company being endorsed/guaranteed within the scope of the endorsement/guarantee balance shall be entered.

Note 7: Please fill in "Y" if it is an endorsement/guarantee provided by a listed parent company to a subsidiary, an endorsement/guarantee provided by a subsidiary to a listed parent company, or an endorsement/guarantee made in China.

Page 1 of Table 1

Page 1 of Table 2

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

Material marketable securities held at the end of the period (excluding investments in subsidiaries, affiliates, and jointly venture interests)

December 31, 2025

Table 2
Expressed in thousands of NT$ (unless otherwise stated)

Company	Type and name of marketable securities	Relationship with the issuer of securities	Presentation account	End of period				Note
				Number of shares	Carrying amount	Ownership held by the Company	Fair value
Ascent Development Co., Ltd.	Kuo Yang Construction Co., Ltd.	Other related parties	Financial assets at FVTOCI - non-current	4,527,820	$ 90,557	1.19%	$ 90,557

Note: This table discloses marketable securities with an amount of NT$15,000 or more based on the principle of materiality.

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

The name and location of the investee company and other relevant information (excluding mainland China investee companies)

December 31, 2025

Table 3
Expressed in thousands of NT$
(unless otherwise stated)

Name of the Investment Company	Name of the Invested Company	Location of the Company	Main business activities	Initial investment amount		Held at end of period			Profit or loss of investees for the period	Investment income recognized in the current period	Note
				End of current period	End of last year	Number of shares	Percentage	Carrying amount
Ascent Development Co., Ltd.	HCW INVESTMENT CO., LTD.	Taiwan	General investment	$ 200,000	$ 200,000	20,000,000	100.00	$ 315,671	$ 23,661	$ 23,661	Investee
Ascent Development Co., Ltd.	Hanlin Development Co., Ltd.	Taiwan	Real estate investment development, construction, lease of residential, and building development, rental and leasing	363,300	363,300	35,700,000	51.00	466,839	92,503	44,090	Investee
Ascent Development Co., Ltd.	Chun Feng Development Co., Ltd.	Taiwan	Real estate investment development, construction, lease of residential, and building development, rental and leasing	60,000	-	6,000,000	60.00	59,947	( 88)	( 53)	Investee
Ascent Development Co., Ltd.	Jollify International Co., Ltd.	Taiwan	Retail sale of unclassified other garments, wholesale of watches, clocks and related components, whole sale of kitchen cabinets, wholesale of unclassified other garments	365,013	365,013	1,848,596	18.49	-	( 18,976)	-	Affiliate
Ascent Development Co., Ltd.	Jollify Venture Co., Ltd.	Taiwan	Retail sale of unclassified other garments, wholesale of watches, clocks and related components, whole sale of kitchen cabinets, wholesale of unclassified other garments	37,462	37,462	3,746,163	25.84	77,024	9,466	2,446	Affiliate
Ascent Development Co., Ltd.	Hanshin Shopping Plaza Co., Ltd.	Taiwan	Operation of department store, rental and leasing, retail sale, restaurants and supermarket business.	480,000	480,000	8,000,000	16.00	1,080,716	763,923	158,805	Affiliate
HCW INVESTMENT CO., LTD.	Hanshin Shopping Plaza Co., Ltd.	Taiwan	Operation of department store, rental and leasing, retail sale, restaurants and supermarket business.	97,443	97,443	902,250	1.80	140,042	763,923	17,720	Affiliate

AI assistant

ASCENT — Annual Report 2025

51802_rns_2026-04-30_2f06ac31-ad12-45e5-a696-21e2d90c3efc.pdf

Audit Opinions

Basis for Opinion

Key Audit Matters

Occurrence of sales revenue from real estate

Descriptions

Audit procedure

Other Matters - Reference to Other Audits of Other Auditors

Other Matters - Parent Company Only Financial Statements

Responsibilities of Management Level and Governance Units for the Consolidated Financial Statements

Responsibilities of Auditor to Audit Consolidated Financial Statements

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

Consolidated Statement of Cash Flows

IV. Summary of Significant Accounting Policies

(I) Compliance statement

(II) Compilation basis

(III) Consolidation basis

Statement of Cash Flow

(IV) Foreign currency conversion

Foreign currency transactions and balances

(V) Classification criteria for current and non-current assets and liabilities

(II) Notes receivable and net accounts

(V) Financial assets at FVTPL

(VI) Financial assets at FVTOCI - non-current

1. Affiliated enterprises

3. Contract assets and liabilities

(XXVII) Transactions with non-controlling interests

VII. Related Party Transactions

(I) Names of related parties and their relationship

(II) Material transactions with related parties

1. Revenue - revenue from management services

2. Rental expenses

3. Entertainment expenses

4. Employee benefits

5. Donation

6. Lease transactions - Lessee

7. Accounts receivable

(8) Project Global Innovation

(III) Remuneration of key management personnel

VIII. Assets collateralized (pledged)

2. Risk management policies

3. Nature and extent of material financial risks

(1) Market risk

Interest rate risk

Price risk

Cash flow and fair value interest rate risk

XIII. Other Disclosures

(1) Information about important transactions

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

More from ASCENT

ASCENT Annual Report 2025