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Ascent Development Co., Ltd.
Parent Company Only 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.
Parent Company Only Financial Statements and Independent Auditors’ Report
of 2025 and 2024
Table of Contents

Items	Page/No./Index
I. Cover Page	1
II. Table of Contents	2 ~ 3
III. Independent Auditors’ Report	4 ~ 8
IV. Parent Company Only Balance Sheet	9 ~ 10
V. Parent Company Only Comprehensive Income Statement	11
VI. Parent Company Only Statement of Changes in Individual Equity	12
VII. Parent Company Only Statement of Cash Flows	13 ~ 14
VIII. Notes to Parent Company Only Financial Statements	15 ~ 67
(I) Company History	15
(II) Dates and Procedures for Approval of Financial Reports	15
(III) Application of New and Revised Standards and Interpretations	15 ~ 17
(IV) Summary of Significant Accounting Policies	17 ~ 28
(V) Major Sources of Uncertainty in Major Accounting Judgments, Estimates and Assumptions	29
(VI) Explanation of Important Accounting Items	29 ~ 53
(VII) Related Party Transactions	53 ~ 57
(VIII) Assets Collateralized (Pledged)	57

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Items	Page/No./Index
(IX) Significant Contingent Liabilities and Unrecognized Contractual Commitments	57
(X) Losses from Major Disasters	57
(XI) Subsequent Events	58
(XII) Others	58 ~ 66
(XIII) Other Disclosures	66 ~ 67
(XIV) Information on Operating Segment	67
IX. Significant Accounting Statements
Statement of Cash and Cash Equivalents	Schedule 1
Inventory Statement	Schedule 2
Statement of Changes in Land and Construction in Progress	Schedule 3
Statement of Changes in Investment Using the Equity Method	Schedule 4
Statement of Short-term Borrowings	Schedule 5
Statement of Operating Income	Schedule 6
Statement of Operating Costs	Schedule 7
Statement of Sales and Marketing Expenses	Schedule 8
Statement of Administrative Expenses	Schedule 9
Summary Table of Employee Benefits, Depreciation, Depletion, and Amortization Expenses Incurred in the Current Period by Function	Schedule 10

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Independent Auditors' Report
(2026) Cai-Shen-Bao-Zi No. 25003692

To ASCENT DEVELOPMENT CO., LTD.:

Audit Opinions

ASCENT DEVELOPMENT CO., LTD.'s balance sheets of December 31 of 2025 and 2024, the parent company only income statement, changes in equity, and parent company only cash flow statement from January 1 to December 31 of 2025 and 2024 and the notes to the parent company only 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 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 Parent Company Only Financial Statements section of our report. We are independent of the Company 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 parent company only financial statements based on our professional judgment. These matters have been dealt with in the process of checking the overall parent company only financial statements and reaching audit opinions, and the we do not express opinions on these matters independently.

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The key audit items of the Company's parent company only financial statements of 2025 are as follows:

Occurrence of sales revenue from real estate

Descriptions

Please refer to Note 4(26) of the parent company only cash flow statements for the accounting policy of operating revenue in the construction industry, and Note 6(15) to the parent company only 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 investments of the Company under the equity method of the Company have not been audited by us, but by other independent auditors. Therefore, in the opinions expressed by us on the above-mentioned parent company only 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$1,080,716 thousand and NT$1,080,646 thousand, respectively, accounting for 24% and 24% of the total parent company only

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assets. In 2025 and 2024 the individual profits and losses recognized for the aforementioned companies were NT$96,069 thousand and NT$199,995 thousand, respectively, accounting for 46% and 102% of the individual profits and losses for the current period.

Responsibilities of Management Level and Governance Units for the Parent Company Only Financial Statements

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

In preparing the parent company only financial statements, management is responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

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

Responsibilities of Auditor to Audit Parent Company Only Financial Statements

The purpose of our audit of the parent company only financial statements is to obtain reasonable assurance as to whether there is any material misrepresentation in the parent company only 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 parent company only financial statements. Misstatements may result from fraud or error. Misstatement of individual amounts or aggregated amounts is considered material if it can reasonably be expected to affect economic decisions made by users of the parent company only 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

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throughout the audit. We also:

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or 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 Company'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 ASCENT DEVELOPMENT CO., LTD's 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 parent company only 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 Company to cease to continue as a going concern.
Assess the overall presentation, structure and content of the parent company only financial statements (including relevant notes), and whether the parent company only 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 Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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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 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 parent company only 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

Ascent Development Co., Ltd.
Parent Company Only 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)	$ 260,446	6	$ 257,011	6
1150	Notes receivable, net	VI(II)	-	-	28,983	1
1170	Accounts receivable, net	VI(II)	24,308	1	-	-
1200	Other receivables		341	-	8,500	-
1220	Current income tax assets		293	-	293	-
130X	Inventory	VI(III)(IV), VII and VIII	1,897,230	42	1,916,395	43
1410	Prepayments		12,295	-	7,196	-
1476	Other financial assets - current	VIII	94,368	2	154,730	3
1479	Other current assets - others		57,801	1	55,551	1
11XX	Total current assets		2,347,082	52	2,428,659	54
Non-current assets
1517	Financial assets at FVTOCI - non-current	VI(V)	90,557	2	104,140	2
1550	Investments accounted for using equity method	VI(VI)	2,000,197	44	1,878,918	42
1600	Property, plants, and equipment		6,082	-	4,908	-
1755	Right-of-use assets	VI(VII)	32,360	1	36,350	1
1760	Investment property, net	VI(VIII)	30,669	1	28,090	1
1780	Intangible assets		1,493	-	2,588	-
1840	Deferred income tax assets	VI(XXII)	653	-	338	-
1920	Guarantee deposits paid	VII	1,166	-	1,166	-
1990	Other non-current assets - others		3,790	-	3,790	-
15XX	Total non-current assets		2,166,967	48	2,060,288	46
1XXX	Total assets		$ 4,514,049	100	$ 4,488,947	100

(Continued on next page)

Ascent Development Co., Ltd.
Parent Company Only 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)(IX)	$ 969,138	22	$ 1,162,758	26
2130	Contract liabilities - current	VI(XV)	409,237	9	324,026	7
2150	Notes payable		12,858	-	58,732	1
2170	Accounts payable		82,591	2	62,704	2
2200	Other payables		37,976	1	49,011	1
2230	Current income tax liabilities		7,113	-	14,586	-
2280	Lease liabilities - current		3,428	-	3,352	-
2300	Other current liabilities		2,865	-	5,353	-
21XX	Total of current liabilities		1,525,206	34	1,680,522	37
Non-current liabilities
2580	Lease liabilities - non-current		29,689	-	33,117	1
2645	Guarantee deposits received		476	-	440	-
25XX	Total non-current liabilities		30,165	-	33,557	1
2XXX	Total liabilities		1,555,371	34	1,714,079	38
Equity
	Share capital	VI(XI)
3110	Common stock capital		920,000	21	920,000	20
	Capital surplus	VI(XII)
3200	Capital surplus		228,875	5	227,986	5
	Retained earnings	VI(XIII)
3310	Legal reserve		403,880	9	382,722	9
3320	Special reserves		95,172	2	80,462	2
3350	Undistributed earnings		1,483,089	33	1,251,014	28
	Other equity	VI(XIV)
3400	Other equity		( 172,338)	( 4)	( 87,316)	( 2)
3XXX	Total equity		2,958,678	66	2,774,868	62
	Significant contingent liabilities and unrecognized contractual commitments	IX
	Subsequent events	XI
3X2X	Total liabilities and equity		$ 4,514,049	100	$ 4,488,947	100

The accompanying notes to parent company only financial statements constitute part of this parent company only financial report.

Chairman: Chia-Chi Hou

Manager: Wen-Yu You

Accounting Officer: Pin-Hui Yeh

Ascent Development Co., Ltd.

Parent Company Only Comprehensive Income Statement
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)(VIII)(XV)	$ 520,423	100	$ 6,960	100
5000	Operating Costs	VI(III)(IV)(XX)	( 386,887)	( 74)	( 803)	( 12)
5900	Gross profit		133,536	26	6,157	88
	Operating expenses	VI(IX)(VIII)(XV)
6100	Promotional expenses		( 16,793)	( 3)	( 25)	-
6200	Administrative expenses		( 50,516)	( 10)	( 46,267)	( 665)
6000	Total operating expenses		( 67,309)	( 13)	( 46,292)	( 665)
6900	Operating income (loss)		66,227	13	( 40,135)	( 577)
	Non-operating revenues and expenses
7100	Interest income	VI(XVI)	3,121	1	3,128	45
7010	Other income	VI(XVII)	1,484	-	2,871	41
7020	Other gains and losses	VI(XVIII)	2,520	-	5,826	84
7050	Financial cost	VI(XIX)	( 3,717)	( 1)	( 199)	( 3)
7070	Profit and loss share of subsidiaries, affiliated enterprises and joint ventures recognized using the equity method	VI(VI)
			228,948	44	203,229	2920
7000	Total non-operating income and expenses		232,356	44	214,855	3087
7900	Income before tax		298,583	57	174,720	2510
7950	Income tax expenses	VI(XXII)	( 2,858)	-	( 14,220)	( 204)
8200	Current period net profit		$ 295,725	57	$ 160,500	2306
	Other comprehensive profit and loss	VI(XIV)
8316	Unrealized gains or losses on investments in equity instruments at FVTOCI	VI(V)
			($ 13,583)	( 3)	($ 2,316)	( 33)
8330	Shares of other comprehensive profit and loss of subsidiaries, affiliates and joint ventures recognized using the equity method - items not reclassified to profit or loss	VI(VI)
			( 71,621)	( 14)	37,373	537
8310	Total of items not reclassified to profit or loss		( 85,204)	( 17)	35,057	504
8300	Other comprehensive income (net amount)		($ 85,204)	( 17)	$ 35,057	504
8500	Total comprehensive income for the period		$ 210,521	40	$ 195,557	2810
	Basic earnings per share	VI(XXIII)
9750	Basic earnings per share		$	3.21	$	1.74
	Diluted earnings per share	VI(XXIII)
9850	Diluted earnings per share		$	3.21	$	1.74

The accompanying notes to parent company only financial statements constitute part of this parent company only financial report.

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

Ascent Development Co., Ltd.
Parent Company Only Statement of Changes in Individual Equity
January 1 to December 31, 2025 and 2024
Expressed in thousands of NT$

	Notes	Common stock capital	Capital surplus	Retained earnings			Unrealized gains or losses on financial assets measured at fair value through other comprehensive income	Total equity
				Legal reserve	Special reserves	Undistributed earnings
2024
Balance on January 1		$ 920,000	$ 182,854	$ 364,347	$ 212,044	$ 955,140	($ 72,606 )	$ 2,561,779
Current period net profit		-	-	-	-	160,500	-	160,500
Other comprehensive income of current period	VI(XIV)	-	-	-	-	-	35,057	35,057
Total comprehensive income for the period		-	-	-	-	160,500	35,057	195,557
Appropriation and distribution of earnings	VI(XIII)
Appropriation of legal reserve		-	-	18,375	-	( 18,375 )	-	-
Reversal of special reserve		-	-	-	( 131,582 )	131,582	-	-
Cash dividends		-	-	-	-	( 27,600 )	-	( 27,600 )
Disposal of FVTOCI equity instruments	VI(V)(XIV)	-	-	-	-	15,168	( 15,168 )	-
Disposal of equity instruments at FVTOCI by affiliates	VI(VI)(XIV)	-	-	-	-	34,599	( 34,599 )	-
Changes in the net equity value of affiliates recognized under the equity method		-	28,544	-	-	-	-	28,544
The difference between the actual price of the subsidiary's equity acquired and the book amount		-	16,588	-	-	-	-	16,588
Balance on December 31		$ 920,000	$ 227,986	$ 382,722	$ 80,462	$ 1,251,014	($ 87,316 )	$ 2,774,868
2025
Balance on January 1		$ 920,000	$ 227,986	$ 382,722	$ 80,462	$ 1,251,014	($ 87,316 )	$ 2,774,868
Current period net profit		-	-	-	-	295,725	-	295,725
Other comprehensive income of current period	VI(XIV)	-	-	-	-	-	( 85,204 )	( 85,204 )
Total comprehensive income for the period		-	-	-	-	295,725	( 85,204 )	210,521
Appropriation and distribution of earnings	VI(XIII)
Appropriation of legal reserve		-	-	21,158	-	( 21,158 )	-	-
Special reserve		-	-	-	14,710	( 14,710 )	-	-
Cash dividends		-	-	-	-	( 27,600 )	-	( 27,600 )
Disposal of FVTOCI equity instruments	VI(V)(XIV)	-	-	-	-	( 10 )	10	-
Disposal of equity instruments at FVTOCI by affiliates	VI(VI)(XIV)	-	-	-	-	( 172 )	172	-
Changes in the net equity value of affiliates recognized under the equity method		-	889	-	-	-	-	889
Balance on December 31		$ 920,000	$ 228,875	$ 403,880	$ 95,172	$ 1,483,089	($ 172,338 )	$ 2,958,678

The accompanying notes to parent company only financial statements constitute part of this parent company only financial report.

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

Ascent Development Co., Ltd.
Parent Company Only 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		$ 298,583	$ 174,720
Adjustment items
Income and expenses
Depreciation expense	VI(VII)(VIII)
	(XX)	4,857	2,230
Gains on reversal of impairment	VI(XVIII)	( 2,795 )	-
Amortization expense	VI(XX)	1,417	477
Interest income	VI(XVI)	( 3,121 )	( 3,128 )
Interest expense	VI(XIX)	3,717	199
Dividend income		-	( 1,811 )
Shares of interests in subsidiaries and affiliated companies recognized using the equity method	VI(VI)
		( 228,948 )	( 203,229 )
Gains on disposal of investment property	VI(XVIII)	-	( 5,390 )
Changes in assets/liabilities related to operating activities
Net changes in assets related to operating activities
Notes receivable		28,983	( 11,532 )
Accounts receivable		( 24,308 )	-
Other receivables		7,950	( 8,210 )
Inventory		43,872	( 215,351 )
Prepayments		( 5,099 )	( 849 )
Other financial assets - current		60,362	( 84,776 )
Other current assets - others		( 3,137 )	( 25,464 )
Net changes in liabilities related to operating activities
Contract liabilities - current		85,211	160,892
Notes payable		( 45,874 )	15,907
Accounts payable		19,887	49,574
Other payables		( 10,625 )	28,226
Other current liabilities		( 2,488 )	4,628
Cash inflow (outflow) from operations		228,444	( 122,887 )
Income tax paid		( 10,646 )	( 324 )
Interest paid		( 28,834 )	( 31,980 )
Net cash inflow (outflow) from operating activities		188,964	( 155,191 )

(Continued on next page)

Ascent Development Co., Ltd.
Parent Company Only 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		-	( 505 )
Disposal of financial assets at FVTOCI		-	453
Acquisition of investments using the equity method	VI(VI)	( 60,000 )	( 132,300 )
Acquisition of property, plant and equipment	VI(VII)	( 938 )	( 4,831 )
Price of disposal of investment property		-	103,233
Increase in guarantee deposits paid		-	( 5,341 )
Decrease in guarantee deposits paid		-	4,598
Interest collected		3,330	3,387
Dividends received		96,937	97,811
Acquisition of intangible assets		( 322 )	( 2,700 )
Net cash inflow from investing activities		39,007	83,805
Cash flow from financing activities
Increase in short-term borrowings	VI(XXIV)	427,688	223,286
Decrease in short-term borrowings	VI(XXIV)	( 621,308 )	( 159,710 )
Lease principal repayment	VI(XXIV)	( 3,352 )	( 609 )
Increase in guarantee deposits received	VI(XXIV)	36	36
Decrease in guarantee deposits received	VI(XXIV)	-	( 430 )
Distribution of cash dividends	VI(XIII)	( 27,600 )	( 27,600 )
Net cash (outflow) inflow from financing activities		( 224,536 )	34,973
Increase (decrease) in cash and cash equivalents for the period		3,435	( 36,413 )
Cash and cash equivalents at the beginning of the period		257,011	293,424
Cash and equivalent cash balance at the beginning of the period		$ 260,446	$ 257,011

The accompanying notes to parent company only financial statements constitute part of this parent company only financial report.

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

Ascent Development Co., Ltd.
Notes to Parent Company Only 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 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 Company.

II. Dates and Procedures for Approval of Financial Reports

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

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(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 Company has assessed that the above standards and interpretations have no material impact on the Company'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 as described below, the Company has assessed that the above standards and interpretations have no material impact on its financial position or 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 parent company only financial statements are described below. Unless otherwise stated, these policies apply consistently throughout all reporting periods.

(I) Compliance statement

The parent company only financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Compilation basis

Except for the financial assets at fair value through other comprehensive profit and loss which are at fair value, this parent company only financial statement is prepared at historical cost.
The compilation of financial statements in compliance with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations (collectively referred to herein as the "IFRSs") that came into effect as endorsed by the Financial Supervisory Commission requires the use of some important accounting estimates. In the process of adopting the Company's accounting policies, management also needs to adopt the judgments, which involve highly judgmental or complex items, or major assumptions and estimated items in parent company only financial statements. For details, please refer to Note 5.

(III) Foreign currency conversion

The items listed in the Company's parent company only financial statement are all measured in the currency of the main economic environment in which the Company operates (the functional currency). The parent company only financial statement is presented in the Company's functional currency "NT$" as the presentation currency.

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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 Parent Company Only Income Statement.

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

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

(V) 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.

(VI) 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 Company adopts transaction-day accounting for financial assets at fair value through other comprehensive gains and losses that conform to transaction practices.
The Company 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 Company recognizes dividend income in profit or loss.

(VII) 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

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principal amount.

The Company adopts transaction-day accounting for financial assets at cost after amortization that complies with customary transactions.
The Company 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 Company 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.

(VIII) 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 Company measures them based on the original invoiced amount.

(IX) 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 Company 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.

(X) Delisting of financial assets

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

(XI) 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.

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(XII) 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 refers to the balance after deducting the estimated selling price in the normal course of business and the estimated cost to be invested in completion and related variable expenses.

(XIII) Investments/subsidiaries and affiliates using the equity method

The subsidiary refers to an entity controlled by the Company, 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 the entity, it shall be regarded that the Company is controlling the entity.
The unrealized gains and losses arising from transactions between the Company and its subsidiaries have been eliminated. The accounting policies of the subsidiaries have been adjusted as necessary to be consistent with the policies adopted by the Company.
The Company 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 Company and its subsidiaries as other comprehensive profit or loss. If the share of losses recognized by the Company for a subsidiary is equal to or exceeds the equity in the subsidiary, the Company will continue to recognize losses in proportion to its shareholding.
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 being 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.
When the Company 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

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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 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 subsidiary is lost, the benefit or loss will be reclassified from equity to profit or loss.

Affiliated enterprises refer to all entities over which the Company has significant influence but no control, generally directly or indirectly holding more than 20% of their voting shares. The Company adopts the equity method to dispose of the investment in affiliated enterprises, and recognizes it at cost when acquired.
The Company 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 Company'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 Company will not recognize further losses unless the Company has any legal or constructive obligations to, or has paid on behalf of the affiliated enterprise.
When the affiliate has any non-profit or loss and other comprehensive profit or loss equity changes that do not affect the shareholding ratio, the Company will recognize all equity changes as "capital surplus" based on the shareholding ratio.
The unrealized gains and losses arising from transactions between the Company and affiliates 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. Necessary adjustments have been made to the accounting policies of the affiliate, which are consistent with the policies adopted by the Group.
In the event that an affiliate issues new shares, and the Company 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

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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.

According to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the profit or loss and other comprehensive income or loss for the current period in the parent company only financial statement should be the same as the apportionment of profit or loss and other comprehensive income or loss attributable to the owners of the parent company in the financial statements prepared on a consolidated basis, and the owners' equity in the individual financial statements should be the same as the equity attributable to the owners of the parent company only financial statement prepared on the basis of consolidation.

(XIV) Joint agreements

For the interests in joint operations, the Company 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 parent company only financial statement.

(XV) 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 assets or recognized as a separate asset only when the future economic benefits related to the project are likely to flow into the Company and the cost of the project 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 Company examines the residual value, service life and depreciation method of each asset at the end of each financial year. If the expected value of the residual value and service life is different from the previous estimate, or the future economic value contained in the asset has a significant change in the expected consumption pattern, it shall be handled in accordance with the accounting estimate change provisions of International Accounting Standard No. 8 "Accounting Policies, Changes in Accounting Estimates and Errors" from the date

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of the change.

The useful lives of each asset are as follows:

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

(XVI) 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 Company. 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 Company'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 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.

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(XVII) 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 10 to 60 years.

(XVIII) Intangible assets

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

(XIX) Impairment of non-financial assets

On the balance sheet date, the Company estimates the recoverable amount of assets which may be subject to impairment, and recognizes an impairment loss if 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.

(XX) Borrowings

Refers to short-term borrowings from banks. The Company 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.

(XXI) 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 Company measures them based on the original invoiced amount.

(XXII) Delisting of financial liabilities

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

(XXIII) 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 Company 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.

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.

(XXIV) 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 Company 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

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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 parent company only 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 Company 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 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.

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(XXV) 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.

(XXVI) Revenue recognition

Real estate sales for land development

(1) The main business of the Company 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 Company, but the Company 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) Some of the Company's sales contracts include variable consideration for price reduction, and the Company takes the expected value or the most likely amount as the appropriate estimate of the change consideration.

(3) The Company'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 Company 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.

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

When the Company prepared these parent company only 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:

(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 Company immediately assesses the impairment of the investment. The Company 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 Company shall adopt judgment and estimation to determine the net realizable value of inventories on the balance sheet date. The management of the Company 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
Working capital	$ 50	$ 50
Demand deposits	200,396	224,616
Time deposits	60,000	32,345
	$ 260,446	$ 257,011

The credit quality of the financial institutions that the Company interacts with is good, and the Company 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 the Company's trust deposit account as collateral (recorded in "other financial assets - current").

(II) Notes receivable and net accounts

	December 31, 2025	December 31, 2024
Notes receivable	$ -	$ 28,983
Accounts receivable	$ 24,308	$ -

The Company's notes receivable and accounts receivable are not overdue, and there was no impairment.
The Company's notes receivable 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$17,451.
The Company 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 Company'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 and accounts receivable.

(III) Inventory

	December 31, 2025	December 31, 2024
Premises for sale
Project Kuo Yang Intercontinental	$ 180,288	$ 556,344
Building and land under construction
Project Kuo Yang Digital	657,654	535,974
Ascent Development Original Project	751,556	557,595
(3) Project Kuo Yang Innovation (formerly known as the Project Tucheng Zhongyi)	304,891	263,641
	1,714,101	1,357,210
Others
Capacity	2,841	2,841
	$ 1,897,230	$ 1,916,395

The inventories as of December 31, 2025 and 2024 were the percentage of shares held by the Company in joint operations. Please refer to Note 6(4) for details.
The cost of inventory recognized as expenses by the Company in 2025 and 2024 was NT$386,671 and NT$0, respectively.
The capitalized amount of the inventory interest of the Company in 2025 and 2024 was NT$24,707 and NT$31,343, respectively, and the capitalized interest rate was 2.53%~3.00% and 2.53%~2.885%, respectively.
Please refer to Note 8 for details of the Company's provision of guarantees for inventories.

(IV) Joint operation

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

Project name	Shareholding percentage	Co-builder	Explanation
Ascent Development Original Project	40%	Weili International Development Co., Ltd. and other three companies	Zhonghe District, New Taipei 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
(3) Project Kuo Yang Innovation (formerly known as the Project Tucheng Zhongyi)	10%	Kuo Yang Construction Co., Ltd. and other four companies	Tucheng District, New Taipei City

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

	December 31, 2025
	Project Kuo Yang Intercontinental	Project Kuo Yang Innovation	Project Kuo Yang Digital	Ascent Development Original Project
Balance Sheet
Current assets
Inventory	$ 181,132	$ 304,891	$ 659,651	$ 751,556
Other current assets	27,751	22,001	39,992	118,814
	208,883	326,892	699,643	870,370
Non-current assets	1	8	-	-
Total assets	$ 208,884	$ 326,900	$ 699,643	$ 870,370
Current liabilities
Short-term borrowings	$ -	$ 159,250	$ 294,900	$ 514,988
Other current liabilities	45,921	13,682	44,760	167,340
	45,921	172,932	339,660	682,328
Non-current liabilities	-	-	-	-
Total liabilities	$ 45,921	$ 172,932	$ 339,660	$ 682,328
Statement of Comprehensive Income
Income	$ 499,436	$ -	$ -	$ -
Costs	$ 386,671	$ -	$ -	$ -
Expenses	$ 16,900	$ 300	$ -	$ -

	December 31, 2024
	Project Kuo Yang Intercontinental	Project Kuo Yang Innovation	Project Kuo Yang Digital	Ascent Development Original Project
Balance Sheet
Current assets
Inventory	$557,188	$263,641	$537,971	$557,595
Other current assets	50,348	5,506	95,260	136,383
	607,536	269,147	633,231	693,978
Non-current assets	-	8	-	-
Total assets	$607,536	$269,155	$633,231	$693,978
Current liabilities
Short-term borrowings	$317,448	$159,710	$284,400	$401,200
Other current liabilities	161,778	360	232,923	89,077
	479,226	160,070	517,323	490,277
Non-current liabilities	-	-	-	-
Total liabilities	$479,226	$160,070	$517,323	$490,277
Statement of Comprehensive Income
Income	$-	$-	$-	$134
Costs	$-	$-	$-	$-
Expenses	$271	$299	$426	$23

(V) Financial assets at FVTOCI - non-current

	December 31, 2025	December 31, 2024
Equity instruments
Stocks of listed/OTC companies	$218,353	$218,353
Evaluation adjustment	(127,796)	(114,213)
	$90,557	$104,140

The Company categorizes strategic investments and equity instrument investments for stable dividend collection as financial assets at fair value through other comprehensive profit and loss, and the fair values of these investments on December 31, 2025 and 2024 were NT$90,557 and NT$104,140, 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
1
Disposal of equity instruments at FVTOCI
Changes in fair value recognized in other comprehensive profit or loss	($ 13,583)	($ 2,316)
Accumulated benefits or loss transferred to retained earnings due to delisting	$ -	($ 513)
Dividend income recognized in profit or loss
Held at the end of the current period	$ -	$ 1,811

Regardless of the collateral held or other credit enhancements, the most representative financial assets held by the Company at fair value through other comprehensive profit and loss were as follows. On December 31, 2025 and 2024, the amount of risky exposure with the maximum credit risk was NT$90,557 and NT$104,140, respectively.
The Company has not provided financial assets at FVTOCI as pledge guarantees.

(VI) Investments accounted for using equity method

	2025	2024
January 1	$ 1,878,918	$ 1,556,884
Increase in investments using the equity method	60,000	132,300
Investment gains and losses recognized using the equity method	228,948	203,229
Distribution of investment surplus using the equity method	( 96,937)	( 96,000)
Changes in capital surplus	889	45,132
Changes in other equity	( 71,621)	37,373
December 31	$ 2,000,197	$ 1,878,918

	December 31, 2025	December 31, 2024
Investee
HCW INVESTMENT CO., LTD.	$ 315,671	$ 297,120
Hanlin Development Co., Ltd.	466,839	422,750
Chun Feng Development Co., Ltd.	59,947	-
Affiliate
Hanshin Shopping Plaza Co., Ltd.	1,080,716	1,080,646
Jollify Creative, Ltd.	77,024	78,402
Jollify4ever Ltd.	-	-
	$ 2,000,197	$ 1,878,918

For information on subsidiaries, please refer to Note 4(3) of the Company's 2025 consolidated financial statements.
In addition, the Company's reacquired shares in Hanlin Development Co., Ltd. on March 11, 2024 increased from $33\%$ to $51\%$ . Please refer to Note 6(25) for details.
Affiliated enterprises

(1) Basic information of the major affiliates of the Company 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	16.00%	16.00%	Affiliate	Equity method

(2) The summarized financial information of the major affiliates of the Company 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	18,971,952	9,257,697
Current liabilities	( 3,411,932)	( 3,431,803)
Non-current liabilities	( 15,575,579)	( 5,955,404)
Total net assets	$ 4,873,283	$ 4,853,715
Proportion of net assets of affiliated enterprises	$ 785,059	$ 784,989
Goodwill	295,657	295,657
Carrying amount of affiliated enterprises	$ 1,080,716	$ 1,080,646

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 total carrying amount of the individual non-significant affiliates of the Company was NT$77,024 and NT$78,402, respectively. The share of the operating result is summarized as follows:

	2025		2024
Net loss 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 Company. For 2025 and 2024, the recognized share of investment income on investments accounted for using the equity method was NT$228,948 and NT$203,229, respectively; the share of other comprehensive income was (NT$71,621) and NT$37,373, respectively. All are based on the valuation of the financial statements audited and certified by the CPA of each investee company for the same period.

(VII) Lease transactions - Lessee

The underlying assets leased by the Company include office equipment and buildings, 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
Houses and buildings	$ 32,360	$ 36,322
Office equipment	-	28
	$ 32,360	$ 36,350

	2025	2024
	Depreciation expense	Depreciation expense
Houses and buildings	$ 3,962	$ 660
Office equipment	28	67
	$ 3,990	$ 727

The increase in the Company's right-of-use assets for 2025 and 2024 was NT$0 and NT$36,982, respectively.
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	$ 1,072	$ 192
Expenses of short-term lease contracts	65	2,324

The total cash outflow for leases of the Company in 2025 and 2024 amounted to NT$4,489 and NT$3,125, respectively.

(VIII) Investment property

Investment property refers to the Company's own investment property. The Company signs commercial property lease contracts for its own investment properties. The lease contract term is usually 1~2 years, and the details are as follows:

	2025
	Land	Houses and buildings	Total
January 1	$ 24,892	$ 3,198	$ 28,090
Depreciation expense	-	( 216)	( 216)
Reversal of impairment	1,410	1,385	2,795
December 31	$ 26,302	$ 4,367	$ 30,669
	2024
---	---	---	---
	Land	Houses and buildings	Total
January 1	$ 72,160	$ 55,211	$ 127,371
Disposal - cost	( 47,268)	( 60,211)	( 107,479)
Disposal - depreciation	-	9,636	9,636
Depreciation expense	-	( 1,438)	( 1,438)
December 31	$ 24,892	$ 3,198	$ 28,090

Rent income and direct operating expenses of investment property:

	2025	2024
Rental income from investment real estate	$ 2,265	$ 2,162
Direct operating expenses incurred in the investment real estate generating rental income in the current period	$ 216	$ 493
Direct operating expenses incurred in the investment real estate not generating rental income in the current period	$ -	$ 1,892

The fair values of the investment real estate held by the Company on December 31, 2025 and 2024 were NT$129,672 and NT$84,915, respectively, based on the recent transaction prices of similar comparable targets in the area where the investment real estate is located and on evaluation results of independent evaluation experts. On December 31, 2025, the valuation was based on the comparative approach and the income approach, which was a Level 3 fair value. The main assumption was that the capitalization rate of gains was 1.14%.
The Company does not provide any investment property as collateral.

(IX) Short-term borrowings

Nature of loan	December 31, 2025	Interest rate range	Collaterals
Bank loans
Secured loans	$ 958,638	2.530%~2.825%	Please refer to Note 8
Other short-term borrowings
Secured loans	10,500	3.000%	Promissory note
	$ 969,138
Nature of loan	December 31, 2024	Interest rate range	Collaterals
Bank loans
Secured loans	$ 1,083,210	2.530%~2.825%	Please refer to Note 8
Credit loans	79,548	2.675%~2.775%	None
	$ 1,162,758

Secured borrowings presented in the book refer to the share recognized by the Company in the joint operation according to the percentage of shareholding. Please refer to the descriptions in Note 6(4).
Other short-term borrowings as of December 31, 2025 were due to loans from construction companies for a joint operation construction project developed by the Company. The total loan amount was NT$70,000, which the Company recognized in proportion to its 15% investment ratio.
The interest expenses recognized in profit or loss in 2025 and 2024 were NT$2,638 and NT$0, respectively.

(X) Pension

Since July 1, 2005, the Company has established a defined retirement contribution in accordance with the "Labor Pension Act", which is applicable to domestic employees. The Company shall contribute 6% of its employees' monthly salaries into individual accounts held by the Bureau of Labor Insurance for those 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 a lump sum.

In 2025 and 2024, the Company recognized pension costs amounting to NT$2,064 and NT$901, respectively, in accordance with the above regulations governing the recognition of pension funds.

(XI) 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.

(XII) Capital surplus

According to the requirements of IFRS Questions and Answers, Letter (95) Ji-Mi-Zi No. 081 and Letter (100) Ji-Mi-Zi No. 390 published by the Accounting Research and Development Foundation on October 26, 2018, the acquisition of the Company's shares in Hanlin Development Co., Ltd., a subsidiary of the ultimate parent company, is considered an organizational reorganization under common control. The consideration paid by the Company exceeds the ultimate parent company's carrying amount of the investment under the equity method, and capital surplus-issuance premium shall be adjusted. If the capital surplus-issuance premium is insufficient, the retained earnings shall be adjusted down.

~40~

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

(XIII) 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. 1010012865 issued on April 6, 2012. When the Company subsequently uses, disposes of or reclassifies the relevant assets, it will reverse the original proportion of the special reserve.

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
Appropriation (reversal) of special reserve	14,710		( 131,582)
Cash dividends	27,600	$ 0.30	27,600	$ 0.30

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

	2025
	Amount	Dividends per share (NT$)
Legal reserve	$ 29,554
Special reserves	85,022
Cash dividends	46,000	$ 0.5

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.

(XIV) 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 Company	( 13,583)	( 2,316)
- Subsidiaries	1,916	12,077
- Affiliated enterprises	( 73,537)	25,296
Valuation adjustment transferred to retained earnings
- the Company	-	513
- Subsidiaries	10	( 15,681)
- Affiliated enterprises	172	( 34,599)
December 31	($ 172,338)	($ 87,316)

(XV) Revenue

	2025	2024
Revenue from customer contracts
Revenue from construction projects	$ 499,436	$ -
Service income	18,521	4,630
Lease revenue	2,466	2,330
Total	$ 520,423	$ 6,960

The revenue of the Company's customer contracts comes from goods transferred at a certain point in time, or services that are gradually transferred over time. The revenue may be broken down according to the type of operation as follows.

	Construction projects sales	Service	Total
2025
Time for revenue recognition
Revenue recognized at a point in time	$ 499,436	$ -	$ 499,436
Revenue transferred over time	-	18,521	18,521
	$ 499,436	$ 18,521	$ 517,957
2024
Time for revenue recognition
Revenue transferred over time	$ -	$ 4,630	$ 4,630

For the sales contracts entered by the Company as of December 31, 2025 and 2024, the aggregate amount of the transactions amortized from the performance obligations that have not yet been met and the estimated revenue for the year are as follows:

	The year expected to be recognized as revenue	Amount of contract entered into
December 31, 2025	2026 to 2028	$ 1,805,540
December 31, 2024	2025 to 2028	$ 1,092,369

~45~

3. Contract assets and liabilities

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

	December 31,
	2025	December 31, 2024	January 1, 2024
Contract liabilities
- current:
- Advance	$ 210,084	$ 173,461	$ 85,309
payment for land
- Prepaid housing	199,153	150,565	77,825
payment
	$ 409,237	$ 324,026	$ 163,134

(1) The Company'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 reclassified to income in the current period
Pre-sale contract for construction projects	$ 43,533	$ -

(XVI) Interest income

	2025	2024
Interest on bank deposit	$ 3,101	$ 2,646
Interest income from financial assets at amortized cost	-	462
Other interest income	20	20
	$ 3,121	$ 3,128

(XVII) Other income

	2025	2024
Dividend income	$ -	$ 1,811
Other income - others	1,484	1,060
	$ 1,484	$ 2,871

(XVIII) Other gains and losses

	2025	2024
Disposal of gains on disposal of property, plants and equipment	$ -	$ 5,390
Foreign exchange gain	( 323)	2,032
Gains on reversal of impairment	2,795	-
Miscellaneous expenses	48	( 1,596)
	$ 2,520	$ 5,826

(XIX) Financial cost

	2025	2024
Interest expense
Bank loans	$ 27,183	$ 31,343
Other short-term borrowings	162	-
Interest on lease liabilities	1,072	192
Others	7	7
	28,424	31,542
Less: Amount of capitalized assets that meet the criteria	( 24,707)	( 31,343)
	$ 3,717	$ 199

(XX) Additional information on nature of expenses

	2025
	Attributable to operating costs	Attributable to operating expenses	Total
Operating costs for the current period	$ 386,671	$ -	$ 386,671
Lease cost for the current period	-	-	-
Employee welfare expenses	-	35,264	35,264
Depreciation expense	216	4,641	4,857
Amortization expense	-	1,417	1,417
	$ 386,887	$ 41,322	$ 428,209
	2024
	Attributable to operating costs	Attributable to operating expenses	Total
Lease cost for the current period	$ 296	$ -	$ 296
Employee welfare expenses	-	30,269	30,269
Depreciation expense	507	792	1,299
Amortization expense	-	477	477
	$ 803	$ 31,538	$ 32,341

(XXI) Employee welfare expenses

	2025	2024
Salary expenses	$ 22,256	$ 18,504
Labor and health insurance premiums	1,541	1,677
Pension expense	2,064	901
Director Compensation	6,928	8,724
Other employee expenses	2,475	463
	$ 35,264	$ 30,269

According to the Company's Articles of Incorporation, the Company shall appropriate 0.5%~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.

(XXII) Income tax

Income tax expenses

Components of income tax expense:

	2025	2024
Current income tax:
Income tax on current income	$ -	$ 1,442
Additional tax on undistributed earnings	7,340	13,468
Overestimation of income tax in previous years	( 4,672)	( 183)
Land appreciation tax included in current income tax	505	-
Total income tax for the period	3,173	14,727
Deferred income tax:
The original generation and reversal of temporary difference	( 315)	( 507)
Income tax expenses	$ 2,858	$ 14,220

Relationship between income tax expenses and accounting profit

	2025		2024
Income tax on net profit before tax calculated at statutory tax rate	$	59,717	$	33,866
Income exempted from taxation under the Tax Act	(	74,325)	(	41,008)
Additional tax on undistributed earnings		7,340		13,468
Deferred income tax assets for unrecognized taxation losses		14,293		6,635
Overestimation of income tax (in previous years		4,672)	(	183)
Land appreciation tax included in current income tax		505		-
Separate tax amount		-		1,442
Income tax expenses	$	2,858	$	14,220

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
Impairment loss of investment property	$ 338	($ 338)	$ -	$ -
Unrealized sales gains	-	617	-	617
Deferred interest	-	36	-	36
	$ 338	$ 315	$ -	$ 653
Deferred income tax liabilities
Unrealized exchange gain	-	-	-	-
	$ 338	$ 315	$ -	$ 653

~50~

	2024
	January 1	Recognized in profit or loss	Recognized in other comprehensive net income	December 31
Deferred income tax assets
Impairment loss of investment property	$ 338	$ -	$ -	$ 338
Deferred income tax liabilities
Unrealized exchange gain	( 507)	507	-	-
	($ 169)	$ 507	$ -	$ 338

The effective periods of the Company'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
2022	-	-	-	2032
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

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

(XXIII) 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 shareholders	$ 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 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 shareholders	$ 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 plus effect of potential common shares	$ 160,500	92,035	$ 1.74

(XXIV) Changes in liabilities from financing activities

	2025
	Short-term borrowings	Lease liabilities	Guarantee deposits received	Dividends payable	Total liabilities from financing activities
January 1	$1,162,758	$36,469	$440	$-	$1,199,667
Increase in the current period	427,688	-	36	27,600	455,324
Decrease in the current period	(621,308)	(3,352)	-	(27,600)	(652,260)
Interest expenses paid (Note)	-	(1,072)	-	-	(1,072)
Other non-cash changes	-	1,072	-	-	1,072
December 31	$969,138	$33,117	$476	$-	$1,002,731
	2024
---	---	---	---	---	---
	Short-term borrowings	Lease liabilities	Guarantee deposits received	Dividends payable	Total liabilities from financing activities
January 1	$1,099,182	$95	$834	$-	$1,100,111
Increase in the current period	223,286	36,983	36	27,600	287,905
Decrease in the current period	(159,710)	(609)	(430)	(27,600)	(188,349)
Interest expenses paid (Note)	-	(192)	-	-	(192)
Other non-cash changes	-	192	-	-	192
December 31	$1,162,758	$36,469	$440	$-	$1,199,667

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

(XXV) 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. in 2024 is as follows:

	2024
Carrying amount of non-controlling interests purchased	$ 148,888
Consideration paid to the non-controlling interests	( 132,300)
Capital surplus - difference between the actual acquisition or disposal price of subsidiary equity and its carrying amount	$ 16,588

VII. Related Party Transactions

(I) Names of related parties and their relationship

Name of related party	Relationship with the Company
Hanshin Asset Management Co., Ltd.	The Company's ultimate parent company
HCW INVESTMENT CO., LTD.	Investee
Hanlin Development Co., Ltd.	Investee
Chun Feng Development Co., Ltd.	Investee
Hi-Lai Foods Co., Ltd.	Other related parties
Grand Hi-Lai Hotel Co., Ltd.	Other related parties
Hanqi Technology Co., Ltd.	Other related parties
Hanshin Department Store Co., Ltd.	Other related parties
Kuo Yang Construction Co., Ltd.	Other related parties
Weili International Development Co., Ltd.	Other related parties
Shenyang Construction Co., Ltd.	Other related parties
Liyang Agricultural Technology Co., Ltd.	Other related parties
Aquas Sports Culture Co., Ltd.	Other related parties

~54~

(II) Material transactions with related parties

Revenue - revenue from management services

	2025	2024
Hanlin Development Co., Ltd.	$ 3,087	$ 772
Weili International Development Co., Ltd.	3,087	772
Shenyang Construction Co., Ltd.	12,347	3,086
	$ 18,521	$ 4,630

The Company enters into joint investment and development contracts with related parties, and the Company 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.

Administrative expenses

	2025	2024
Ultimate parent company	$ -	$ 2,931

The Company signs lease contracts with related parties in accordance with general market conditions, and rents are paid on a monthly basis in accordance with the contracts.

Entertainment expenses

	2025	2024
Hi-Lai Foods Co., Ltd.	$ 466	$ 560
Grand Hi-Lai Hotel Co., Ltd.	-	8
Hanshin Department Store Co., Ltd.	6	6
	$ 472	$ 574

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

~55~

Employee benefits

	2025	2024
Grand Hi-Lai Hotel Co., Ltd.	$ 409	$ -
Hi-Lai Foods Co., Ltd.	165	33
Kuo Yang Construction Co., Ltd.	-	96
	$ 574	$ 129

Donation

	December 31, 2025	December 31, 2024
Aquas Sports Culture Co., Ltd.	$ 2,100	$ -

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:

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

B. Interest expense:

	2025	2024
Ultimate parent company	$ 1,072	$ 191

Guarantee deposits paid

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

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

~56~

Hotel Co., Ltd." The changes to the investment ratio took effect on November 1, 2025.

(4) 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 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. Its investment ratio includes the Company (40%), Hanlin Development (10%), Shenyang Construction Co., Ltd. (40%), and Weili International Development Co., Ltd. (10%).

(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 Company's assets are as follows:

Assets	Carrying amount
	December 31, 2025	December 31, 2024	Purpose of guarantee
Inventory - building and land under construction	$ 1,729,535	$ 1,894,075	Short-term borrowings
Other financial assets - current (restricted assets)	94,368	154,730	Trust deposit account
	$ 1,823,903	$ 2,048,805

IX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

As of December 31, 2025, the total cost of construction contracts signed between the Company and non-related parties amounted to NT$978,002, and the amount signed but not yet paid amounted to NT$558,275.

X. Losses from Major Disasters

None.

~57~

~58~

XI. Subsequent Events

Please refer to Note 6(13) for the Company's 2025 earnings distribution proposal approved by the Board of Directors on March 11, 2026.

XII. Others

(I) Capital management

The Company'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 Company 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 FVTOCI
Investment in designated equity instruments	$ 90,557	$ 104,140
Financial assets at amortized cost
Cash and cash equivalents	$ 260,446	$ 257,011
Notes receivable	-	28,983
Accounts receivable	24,308	-
Other receivables	341	8,500
Other financial assets - current	94,368	154,730
Guarantee deposits paid	1,166	1,166
	$ 380,629	$ 450,390
Financial liabilities
Financial liabilities at amortized cost
Short-term borrowings	$ 969,138	$ 1,162,758
Notes payable	12,858	58,732
Accounts payable	82,591	62,704
Other payables	37,976	49,011
Guarantee deposits received	476	440
	$ 1,103,039	$ 1,333,645
Lease liabilities	$ 33,117	$ 36,469

Risk management policies

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

(2) The Company 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 control systems. During the execution of financial management activities, the Company shall faithfully comply with the relevant regulations on financial risk management.

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

Nature and extent of material financial risks

(1) Market risk

Interest rate risk

A. The Company is exposed to the exchange rate risk arising from transactions where the functional currency is different from the Company's functional currency, which is mainly USD. The associated exchange rate risk arises from future commercial trades and recognized assets and liabilities.

B. The management of the Company has formulated the policy to manage the exchange rate risk relative to its functional currency within the Company.

C. C. The business of the Company involves non-functional currency (the functional currency of the Company is NT$); therefore, the impacts of exchange rate fluctuations are insignificant.

D. The Company'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$323 and NT$2,032, respectively.

Price risk

A. The equity instruments of the Company exposed to price risk are financial assets at FVTOCI. In order to manage the price risk of equity instrument investment, the Company manages the price risk of equity securities by diversifying investment and setting limits for single and overall equity

~59~

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 Company mainly invests in equity instruments issued by domestic companies. The prices of these equity instruments will be affected by the uncertainty of the future value of the investment target. If the value of the equity instruments rises or falls by 10%, with all other factors remaining unchanged, the gains or losses on equity investments classified as FVTOCI recognized in other comprehensive income in 2025 and 2024 would increase or decrease by NT$9,056 and NT$10,414, respectively.

Cash flow and fair value interest rate risk

A. The Company's interest rate risk mainly comes from short-term loans issued at floating interest rates, which exposes the Company to cash flow interest rate risk. In 2025 and 2024, the Company's borrowings at 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$7,753 and NT$9,302, respectively, mainly due to the fluctuation in interest expenses caused by variable-rate loans.

(2) Credit risk

A. The credit risk of the Company is the risk of financial loss of the Company 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 Company 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 Company's internal rating standards and other factors.

C. The Company's Finance and Accounting Department manages the credit risks of bank deposits, fixed-income securities and other financial instruments in accordance with the Company's policies. Because the Company's transaction partners are determined by internal control

~60~

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 Company is mainly engaged 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 and the ownership transfer is completed and the actual house is handed over. Hence, the amount 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 Company as of December 31, 2025 and 2024, was insignificant. In addition, for the accounts receivable arising from other transactions, the Company 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.

E. The Company 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. The cash flow forecast is executed and summarized by the Company's Finance Department. The Finance Department of the Company monitors the forecast of the Company's working capital needs to ensure that there are sufficient funds to meet the operating needs, and maintain sufficient undrawn commitments at all times to prevent the Company from breaching the relevant borrowing limits or terms. The forecast takes into account the Company's debt financing plan, compliance with the terms of the debt, and compliance with the financial ratio targets in the internal balance sheet.

B. The Company 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 liquidity levels.

~61~

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

	December 31, 2025	December 31, 2024
Floating interest rate
Due within one year	$ 425,530	$ -
Overdue in more than one year	901,312	1,015,100
	$ 1,326,842	1,015,100

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 Company's non-derivative financial liabilities according to the relevant maturity date, and carries out analysis 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:

Non-derivative financial liabilities:
December 31, 2025	Within 1 year	1-2 years	2-3 years	3 years or above
Accounts payable	$ 47,490	$ -	$ 35,101	$ -
Short-term borrowings	36,602	305,817	129,567	570,994
Lease liabilities	4,395	4,505	4,527	24,073
Guarantee deposits received	182	294	-	-
Non-derivative financial liabilities:
December 31, 2024	Within 1 year	1-2 years	2-3 years	3 years or above
Accounts payable	$ 48,644	$ 14,049	$ -	$ 11
Short-term borrowings	31,298	340,195	302,614	586,438
Lease liabilities	4,424	4,395	4,505	28,600
Guarantee deposits received	440	-	-	-

E. The Company does not expect the cash flow in the due date analysis to occur significantly earlier, nor the actual amount to 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 Company 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.

For information on the fair value of investment real estate at cost, please refer to Note 6(8).
Financial instruments not measured by fair value

The carrying amount of the Company's cash and cash equivalents, notes receivable, accounts receivable, other receivables, guarantee deposits paid, short-term borrowings, notes payable, accounts payable, other payables, and guarantee deposits received are reasonable approximations of fair values.

Financial and non-financial instruments measured by fair value are classified by the Company 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 Company 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 FVTOCI
Equity securities	$ 90,557	$ -	$ -	$ 90,557

December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value
Financial assets at FVTOCI
Equity securities	$ 104,140	$ -	$ -	$ 104,140

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

The Company adopts the market quotation as the input value of fair value (i.e. Level 1), and the characteristics of the instruments are as follows:

Market quotation

Listed (OTC) stock Closing price

The Company did not have any transfers between Level 1 and Level 2 in 2025 and 2024.
There was no inward or outward transfer into or from Level 3 in 2025 and 2024.
The Company 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 back testing, 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.

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

December 31, 2025	Carrying amount	Within 12 months	Over 12 months
Assets
Cash and cash equivalents	$ 260,446	$ 260,446	$ -
Notes receivable, net	-	-	-
Accounts receivable, net	24,308	-	24,308
Other receivables	341	-	341
Current income tax assets	293	293	-
Inventory	1,897,230	485,180	1,412,050
Prepayments	12,295	12,295	-
Other financial assets - current	94,368	94,368	-
Other current assets - others	57,801	31,614	26,187
Liabilities
Short-term borrowings	$ 969,138	$ 10,500	$ 958,638
Contract liabilities - current	409,237	278,518	130,719
Notes payable	12,858	12,858	-
Accounts payable	82,591	47,490	35,101
Other payables	37,976	37,976	-
Current income tax liabilities	7,113	7,113	-
Lease liabilities - current	3,428	3,428	-
Other current liabilities - others	2,865	865	2,000

December 31, 2024	Carrying amount	Within 12 months	Over 12 months
Assets
Cash and cash equivalents	$ 257,011	$ 257,011	$ -
Notes receivable, net	28,983	28,983	-
Accounts receivable, net	-	-	-
Other receivables	8,500	-	8,500
Current income tax assets	293	293	-
Inventory	1,916,395	556,344	1,360,051
Prepayments	7,196	7,196	-
Other financial assets - current	154,730	154,730	-
Other current assets - others	55,551	8,071	47,480
December 31, 2024	Carrying amount	Within 12 months	Over 12 months
Liabilities
Short-term borrowings	$ 1,162,758	$ 317,448	$ 845,310
Contract liabilities - current	324,026	49,053	274,973
Notes payable	58,732	58,732	-
Accounts payable	62,704	48,644	14,060
Other payables	49,011	49,011	-
Current income tax liabilities	14,586	14,586	-
Lease liabilities - current	3,352	3,352	-
Other current liabilities - others	5,353	2,266	3,087

XIII. Other Disclosures

(I) Information about important transactions

Loans to others: None.
Endorsements/guarantees provided for others: Please refer to Table 1.
Material marketable securities held at the end of the period (excluding investments in subsidiaries, affiliates, and joint venture interests): Please refer to 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
1. Basic information: None.
2. Significant transactions with investee companies in Mainland China directly or indirectly through businesses in a third region: None.

XIV. Information on Operating Segment
Not applicable.

~67~

Ascent Development Co., Ltd.
Making endorsements/guarantees for others
January 1 to December 31, 2025

Table 1
Expressed in thousands of NT$ (unless otherwise stated)

No. (Note 1)	Name of endorsing/guaranteeing company	Company name	Relationship (Note 2)	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
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%	$ 2,764,269	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/guarantee 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

Ascent Development Co., Ltd.
Marketable securities held at the end of the period (excluding investments in subsidiaries, affiliates, and jointly controlled companies)
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

Page 1 of Table 2

Ascent Development Co., Ltd.

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

January 1 to 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	231,000	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

Page 1 Schedule 1

Ascent Development Co., Ltd.

Statement of Cash and Cash Equivalents

December 31, 2025

Schedule 1

Expressed in thousands of NT$

Items	Summary	Amount
Working capital		$ 50
Bank deposits
Demand deposits		200,395
Foreign currency demand deposits	US$24.07, exchange rate 31.430	1
Cash equivalents
Time deposit in NT$	The time deposit entered into bears a three-month interest rate of 1.69%, and the maturity date is February 2026.	60,000
		$ 260,446

Ascent Development Co., Ltd.
Inventory statement
December 31, 2025

Schedule 2
Expressed in thousands of NT$

Items	Amount
	Costs	Market price (Note)
Premises for sale
Project Kuo Yang Intercontinental	$ 180,288	$ 223,483
Building and land under construction
Project Kuo Yang Innovation	304,891	304,891
Ascent Development Original Project	751,556	751,556
Project Kuo Yang Digital	657,654	657,654
	1,714,101	1,714,101
Others
Capacity	2,841	2,841

Note: Due to the characteristics of construction companies, the market price of land and buildings under construction is stated at the lower cost or net realizable value.

Page 1 Schedule 2

Page 1 Schedule 3

Ascent Development Co., Ltd.

Statement of Changes in Land and Construction in Progress

January 1 to December 31, 2025

Schedule 3

Expressed in thousands of NT$

Project name	Balance at the beginning of period	Increase in the current period		Amount transferred in the current period		Balance at the end of period	Note
		Input cost	Capitalized interest	Transferred in from land to be built	Transfer-out upon completion
Project Kuo Yang Innovation	$ 263,641	$ 37,172	$ 4,078	$ -	$ -	$ 304,891	Provided as collateral for borrowings
Project Kuo Yang Digital Ascent Development	535,974	113,751	7,929	-	-	657,654	"
Project Kuo Yang Digital Project	557,595	181,261	12,700	-	-	751,556	"
	$ 1,357,210	$ 332,184	$ 24,707	$ -	$ -	$ 1,714,101

Ascent Development Co., Ltd.

Statement of Changes in Investment Using the Equity Method

January 1 to December 31, 2025

Schedule 4
Expressed in thousands of NT$

Name	Balance at the beginning of period		Increase in the current period (Note 1)		Decrease in the current period (Note 2)		Balance at the end of period		Market price or equity net value
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Number of shares	Ownership held by the Company	Amount	Unit price	Total price
HCW INVESTMENT CO., LTD.	20,000,000	$ 297,120	-	$ 23,699	-	($ 5,148)	20,000,000	100.00%	$ 315,671	$ 15.78	$ 315,671
Hanlin Development Co., Ltd.	35,700,000	422,750	-	47,176	-	( 3,087)	35,700,000	51.00%	466,839	19.39	447,841
Chun Feng Development Co., Ltd.	-	-	6,000,000	60,000	-	( 53)	6,000,000	60.00%	59,947	9.99	59,947
Hanshin Shopping Plaza Co., Ltd.	8,000,000	1,080,646	-	158,951	-	( 158,881)	8,000,000	16.00%	1,080,716	114.69	917,520
Jollify Creative, Ltd.	3,746,163	78,402	-	3,335	-	( 4,713)	3,746,163	25.84%	77,024	20.56	77,024
Jollify4ever Ltd.	4,782,877	-	-	-	( 2,934,281)	-	1,848,596	18.49%	-	-	-
		$ 1,878,918		$ 293,161		($ 171,882)			$ 2,000,197		$1,818,003

Note 1: The increase in the current period includes additional investment of NT$60,000, capital surplus change of NT$889, investment gain recognized of NT$232,088 and other equity of NT$184.
Note 2: The decrease in the current period includes cash dividends received of NT$96,937, recognition of investment losses of NT$3,140 and other equity of NT$71,805.

Page 1 Schedule 4

Page 1 Schedule 5

Ascent Development Co., Ltd.

Statement of Short-term Borrowings

December 31, 2025

Schedule 5

Type of loan	Explanation	Balance at the end of period	Duration of contract	Interest rate range	Financing limit	Mortgage or guarantee
Secured loans	Chang Hwa Commercial Bank Co., Ltd.	$ -	2022/07/08 - 2025/12/31	2.775%	$ 25,530	Building and land under construction
Mega International Commercial Bank	145,920	2024/04/12 - 2029/04/12	2.530%	145,920	Building and land under construction
Mega International Commercial Bank	13,330	2024/04/12 - 2029/04/12	2.580%	42,030	Building and land under construction
Mega International Commercial Bank	-	Not yet utilized	0.000%	30,000	Building and land under construction
Mega International Commercial Bank	-	Not yet utilized	0.000%	300,000	Building and land under construction
First Commercial Bank Co., Ltd.	225,000	2023/06/01 - 2027/06/01	2.725%	225,000	Building and land under construction
First Commercial Bank Co., Ltd.	42,900	2023/06/01 - 2027/06/01	2.725%	42,900	Building and land under construction
First Commercial Bank Co., Ltd.	16,500	2023/05/24 - 2027/06/01	2.825%	202,500	Building and land under construction
Jin Xie Xing Construction Co., Ltd.	4,500	2025/02/25 - 2026/02/25	3.000%	4,500	Promissory note
Jin Xie Xing Construction Co., Ltd.	6,000	2025/09/25 - 2026/09/25	3.000%	6,000	Promissory note
First Commercial Bank Co., Ltd.	401,200	2022/11/09 - 2029/11/09	2.725%	401,200	Building and land under construction
First Commercial Bank Co., Ltd.	113,788	2025/01/20 - 2028/04/01	2.825%	470,400	Building and land under construction
Bank of Taiwan Co., Ltd.	-	2025/10/07 - 2026/10/07	0.000%	100,000	Building and land under construction
Credit loans	Hanshin Asset Management Co., Ltd.	$ 969,138	2025/09/30 - 2026/09/30	3.000%	$ 300,000	None

Expressed in thousands of NT$

Page 1 Schedule 5

Page 1 Schedule 6

Ascent Development Co., Ltd.

Statement of Operating Income

January 1 to December 31, 2025

Schedule 6
Expressed in thousands of NT$

Items	Summary	Amount
Service income		$ 18,521
Revenue from construction projects		499,436
Lease revenue		2,466
		$ 520,423

Ascent Development Co., Ltd.
Statement of Operating Costs
January 1 to December 31, 2025

Schedule 7
Expressed in thousands of NT$

Items	Amount
	Subtotal	Total
Inventory at beginning of period
Premises for sale	$ 556,344
Building and land under construction	1,096,569
Advance payment for land and capacity	2,841
Construction in progress	167,920
Expenses invested in construction	92,721	$ 1,916,395
Add: Current purchases		274
Investment in building and land under construction in the current period		32,840
Expenses invested in construction in the current period		299,344
Capitalization of interest		24,707
Lease cost		216
Construction costs - others		10,341
Less: Inventory at end of period
Premises for sale	( 180,288)
Building and land under construction	( 1,129,409)
Advance payment for land and capacity	( 2,841)
Construction in progress	( 457,147)
Expenses invested in construction	( 127,545)	( 1,897,230)
Operating Costs		$ 386,887

Page 1 Schedule 7

Page 1 Schedule 8

Ascent Development Co., Ltd.

Statement of Sales and Marketing Expenses

January 1 to December 31, 2025

Schedule 8

Expressed in thousands of NT$

Items	Summary	Amount	Note
Commission expenses		$	16,048
Other expenses	The balance of other items did not exceed 5% of the balance of this item.	$	745
		$	16,793

Page 1 Schedule 9

Ascent Development Co., Ltd.

Statement of Administrative Expenses

January 1 to December 31, 2025

Schedule 9

Expressed in thousands of NT$

Items	Summary	Amount
Salary expenses		$ 28,336
Director Compensation		6,928
Depreciation		4,641
Labor service expense		2,514
Other expenses	The balance of other items did not exceed 5% of the balance of this item.	8,097
		$ 50,516

Ascent Development Co., Ltd.
Summary table of employee benefits, depreciation, depletion, and amortization expenses incurred in the current period by function
January 1 to December 31, 2025

Schedule 10
Expressed in thousands of NT$

| By nature
By function | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Attributable to operating costs | Attributable to operating expenses | Total | Attributable to operating costs | Attributable to operating expenses | Total |
| Employee welfare expenses | | | | | | |
| Salary expenses | $ - | $ 22,256 | $ 22,256 | $ - | $ 18,504 | $ 18,504 |
| Labor and health insurance premiums | - | 1,541 | 1,541 | - | 1,677 | 1,677 |
| Pension expense | - | 2,064 | 2,064 | - | 901 | 901 |
| Director Compensation | - | 6,928 | 6,928 | - | 8,724 | 8,724 |
| Other employee benefit expenses | - | 2,475 | 2,475 | - | 463 | 463 |
| Subtotal | - | 35,264 | 35,264 | - | 30,269 | 30,269 |
| Depreciation expense | 216 | 4,641 | 4,857 | 507 | 792 | 1,299 |
| Amortization expense | - | 1,417 | 1,417 | - | 477 | 477 |

Note 1: As of December 31, 2025 and 2024, the Company had 25 and 26 employees, respectively, of whom 6 were directors who did not serve concurrently as employees.
Note 2: The Company's average employee benefit expenses for 2025 and 2024 were NT$1,491 and NT$1,134, respectively; the average employee salary expenses for 2025 and 2024 were NT$1,171 and NT$974, respectively; the adjusted change in average employee salary expenses for 2025 was 20.23%.
Note 3: The remuneration of directors is authorized at board meetings based on their level of participation in and contribution to the Company's operations. The remuneration follows the standards of industry peers. The amount of remuneration given to the managerial officers of the Company is based on their performance, contributions, the Company's annual operating performance, and the Company's operation risks, which shall be reviewed by the Remuneration Committee and submitted to the Board of Directors for resolution. The amount of remuneration given to employees is mainly based on their personal performance, the Company's performance, the industry standards, and the Company's operation risks, which shall be reviewed regularly every year, and year-end bonuses are given to employees based on the current year's profit status.

Page 1 Schedule 10

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ASCENT — Audit Report / Information 2025

51802_rns_2026-04-30_7dfd1eff-3ef9-49fe-8bf1-f436ef49d485.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

Responsibilities of Management Level and Governance Units for the Parent Company Only Financial Statements

Responsibilities of Auditor to Audit Parent Company Only Financial Statements

Ascent Development Co., Ltd.

IV. Summary of Significant Accounting Policies

(I) Compliance statement

(II) Compilation basis

(III) Foreign currency conversion

Foreign currency transactions and balances

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

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

VI. Explanation of Important Accounting Items

(VIII) Investment property

3. Contract assets and liabilities

(4) Ascent Development Original Project

(III) Remuneration of key management personnel

VIII. Assets Collateralized (Pledged)

IX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

X. Losses from Major Disasters

Cash flow and fair value interest rate risk

(2) Credit risk

XIII. Other Disclosures

(I) Information about important transactions

Ascent Development Co., Ltd.

Statement of Cash and Cash Equivalents

December 31, 2025

Ascent Development Co., Ltd.

Statement of Changes in Land and Construction in Progress

January 1 to December 31, 2025

Ascent Development Co., Ltd.

Statement of Changes in Investment Using the Equity Method

January 1 to December 31, 2025

Ascent Development Co., Ltd.

Statement of Short-term Borrowings

December 31, 2025

Ascent Development Co., Ltd.

Statement of Operating Income

January 1 to December 31, 2025

Ascent Development Co., Ltd.

Statement of Sales and Marketing Expenses

January 1 to December 31, 2025

Ascent Development Co., Ltd.

Statement of Administrative Expenses

January 1 to December 31, 2025

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ASCENT Audit Report / Information 2025