Stock Code: 8215

BenQ Materials Corporation

Individual Financial Statements and Independent Auditors' Report

2025 & 2024

Address: No. 29, Jianguo E. Rd., Guishan Dist., Taoyuan City 333403, Taiwan (R.O.C.)
Tel: (03)3748800

The independent auditors' report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. NOT AUDITED OR REVIEWED BY AUDITORS. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and consolidated financial statements, the Chinese version shall prevail.

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Table of Contents

Items	Pages
1. Front Page	1
2. Table of Contents	2
3. Independent Auditor's Report	3-6
4. Balance Sheet	7-8
5. Statements of Comprehensive Income	9
6. Statements of Changes in Equity	10
7. Statements of Cash Flows	11-12
8. Notes to Parent Company Only Financial Statements
1) Company History	13
2) Date and Procedures of Authorization of Financial Statements	13
3) Application of New, Amended and Revised Accounting Standards and Interpretations	13-15
4) Summary of Material Accounting Policies	15-32
5) The Primary Sources of Uncertainties in Material Accounting Judgments, Estimates, and Assumptions	32-33
6) Descriptions of Material Accounting Items	33-66
7) Related Party Transactions	66-72
8) Pledged Assets	73
9) Material Contingent Liabilities and Unrecognized Contractual Commitments	73
10) Material Loss from Disaster	73
11) Material Subsequent Events	73
12) Others	73-74
13) Supplementary Disclosures
a. Information on significant transactions	75-76
b. Information on reinvestment	77
c. Information on investments in mainland China	77-78
14) Segment Information	78
9. Tables of Significant Accounting Items	79-93

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Independent Auditor's Report

To The Board of Directors of BenQ Materials Corporation,

Opinions on the audit

We have audited the Balance Sheets of BenQ Materials Corporation as of December 31, 2025 and 2024, the Statements of Comprehensive Income, Statements of Changes in Equity, Statements of Cash Flows, and Notes to Parent Company Only Financial Statements (including Summary of Material Accounting Policies) for the annual period from January 1 to December 31, 2025 and 2024.

In our opinion, the aforementioned Parent Company Only Financial Statements present fairly, in all material respects, the individual financial position of BenQ Materials Corporation as of December 31, 2025 and 2024, and its individual financial performance and cash flows for the annual periods ended December 31, 2025 and 2024 in conformity with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers."

Basis of opinions on the audit

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants Engaged and Auditing Standards. Our responsibility under those standards will be further described in the section titled "The Accountants' Responsibilities in Auditing the Individual Financial Statements." We have stayed independent from BenQ Materials Corporation as required by The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled other responsibilities as stipulated by the Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of 2025 Individual Financial Statements of BenQ Materials Corporation and its subsidiaries. These matters were addressed in the context of our audit of the Parent Company Only Financial Statements as a whole and in forming our opinion thereon, we do not provide a separate opinion on these matters individually. The accountant's judgment should communicate the key audit matters on the audit report as follows:

I. Inventory Valuation

For the accounting policies of inventories, please refer to Note 4 (7) of the Parent Company Only Financial Statements; For the accounting estimates of the inventory evaluation and the description of the uncertainty of the assumptions, please refer to Note 5 (1) of the Parent Company Only Financial Statements; For the description of important accounting items in inventories, please refer to Note 6 (6) of the Parent Company Only Financial Statements.

Description of Key Audit Matters:

Inventories of BenQ Materials Corporation are mainly film sheet products. Inventory is measured by the lower of cost and NRV. As BenQ Materials Corporation's inventory is easily affected by the market demand of the products used and the yield rate of the production

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process, resulting in sluggish or falling prices, inventory evaluation is one of the important evaluation items for the accountants to perform the review of Individual Financial Statements.

Our audit procedures performed in respect of the above area included the following:

The accountant's main audit procedures for the above key audit matters include reviewing the inventory age report and analyzing the changes in the inventory age in each period; sampling and testing the inventory age report, reviewing the management and sales meeting to evaluate the situation of inventory depletion; evaluating whether the assessment of inventory has been in accordance with the accounting policies established by BenQ Materials Corporation; performing inventory retrospective testing to verify the rationality of the provision of bad debt losses.

II. Assessment of Impairment of Goodwill Generated by Investment in Subsidiaries

For the accounting policies regarding the impairment of non-financial assets, please refer to Note 4 (13) of the Parent Company Only Financial Statements; For the accounting estimates of the inventory evaluation and the description of the uncertainty of the assumptions, please refer to Note 5 (2) of the Parent Company Only Financial Statements; For the description of the goodwill impairment test, please refer to Note 6 (7) of the Parent Company Only Financial Statements.

Description of Key Audit Matters:

The goodwill arising from BenQ Materials Corporation's acquisition of its subsidiary, Cenefom Corp., is included in the carrying amount of investments accounted for using the equity method in the Parent Company Only Financial Statements. Goodwill is subject to an impairment test annually or whenever there are indications of impairment. Since the assessment of the recoverable amount of the cash-generating unit to which the goodwill belongs involves numerous assumptions and estimates made by management, the evaluation of goodwill impairment is one of the key audit matters in our audit of the Parent Company Only Financial Statements of BenQ Materials Corporation.

Our audit procedures performed in respect of the above area included the following:

The primary audit procedures performed in response to the aforementioned key audit matter include obtaining the goodwill impairment assessment report prepared by management; evaluating the reasonableness of the estimation basis and key assumptions used by management in measuring the recoverable amount, including the discount rate, projected revenue growth rate, and future cash flow forecasts; conducting a sensitivity analysis on the test results; and reviewing whether BenQ Materials Corporation has adequately disclosed relevant information regarding the goodwill impairment assessment.

The Management's Responsibility and Governing Body of the Parent Company Only Financial Statement

It is the management's responsibility to fairly present the Parent Company Only Financial Statements in conformity with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers," and to maintain internal controls which are necessary for the preparation of the Parent Company Only Financial Statements so as to avoid material misstatements due to fraud or errors therein.

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In preparing for the Parent Company Only Financial Statements, responsibilities of the management also included assessment of the capacity to continue operation, disclosure of related matters and the accounting approaches to be adopted when the Company continues to operate unless the management intends to liquidate or suspend the business of BenQ Materials Corporation if there was not any other option except liquidation or suspension of the Company's business.

The governing bodies of BenQ Materials Corporation (including the Audit Committee or the supervisors) have the responsibility to oversee the process by which the financial statements are prepared.

The Accountants' Responsibilities in Auditing the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance on whether the Individual Financial Statements as a whole are free from material misstatement arising from fraud or error, and to issue an independent auditors' report. Reasonable assurance refers to high level of assurance. Nevertheless, our audit, which was carried out in accordance with the auditing standards, does not guarantee that a material misstatement(s) will be detected in the Parent Company Only Financial Statements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Individual Financial Statements.

We have utilized our professional judgment and professional skepticism when performing auditing work in accordance with the auditing standards. We also:

Identified and evaluated the risk of a material misstatement(s) due to fraud or errors in the Individual Financial Statements; designed and carried out appropriate countermeasures for the assessed risks; and obtained sufficient and appropriate evidence as the basis for the audit report. The risk of not detecting a significant misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
Acquired necessary understanding of internal controls pertaining to the audit in order to develop audit procedures appropriate under the circumstances. Nevertheless, the purpose of such understanding is not to provide any opinion on the effectiveness of the internal controls of BenQ Materials Corporation.
Assess the appropriateness of the accounting policies adopted by the management, as well as the reasonableness of their accounting estimates and relevant disclosures.
Concluded, based on the audit evidence acquired, on the appropriateness of the management's use of the going-concern basis of accounting, and determined whether a material uncertainty exists where events or conditions that might cast significant doubt on the ability of BenQ Materials Corporation to continue as going concerns. If we believe there are events or conditions indicating the existence of a material uncertainty, we are required to remind the users of the Individual Financial Statements in our audit report of the relevant disclosures therein, or to amend our audit opinion when any inappropriate disclosure was found. Our conclusion is based on the audit evidence acquired as of the date of the audit report. However, future events or conditions may cause BenQ Materials Corporation to cease to continue as a going concern.

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However, future events or conditions may cause BenQ Materials Corporation to cease to continue as a going concern.

Evaluated the overall presentation, structure, and content of the Parent Company Only Financial Statements (including the related notes), and determined whether the Parent Company Only Financial Statements present related transactions and events fairly.
Acquire sufficient and appropriate audit evidence for the financial information of the investee company that adopts the equity method to express opinions on Individual Financial Statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion on BenQ Materials Corporation.

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

We also provided governing bodies with a declaration that we had complied with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China regarding independence, and communicated with them all relationships and other matters that might possibly be deemed to impair our independence (including relevant preventive measures).

From the matters communicated with those charged with governance, we determined the key audit matters of the Individual Financial Statements of BenQ Materials Corporation of 2025. 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 communications.

KPMG Taiwan

CPA:

Approved audit number : Jin-Guan-Zheng-Shen-Zi No. 1040010193
Jin-Guan-Zheng-Liu-Zi No. 0940100754

Date: February 24, 2026

Notice to Readers

For the convenience of readers, the independent auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and financial statements shall prevail.

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BenQ Materials Corporation

Balance Sheet

December 31, 2025 and 2024

Unit: NT$ thousand

Assets	2025.12.31		2024.12.31
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Note 6 [1])	$ 416,104	2	281,737	2
1110	Financial Assets at Fair Value through Profit or Loss - Current (Note 6 [2])	108,837	1	1,457	-
1120	Financial assets at fair value through other comprehensive income - Current (Note 6 [3])	59,472	-	64,764	-
1170	Notes and accounts receivable, net amount (Notes 6 (4) and (19))	1,522,639	8	1,811,508	9
1180	Notes and accounts receivable - related parties net amount (Notes 6 (4), (19) and 7)	1,301,819	7	1,751,179	9
1200	Other receivables (Note 6 (4), (5), (21) and 7)	91,219	-	203,076	1
1210	Other receivables - related parties (Note 6 (5) and 7)	7,589	-	3,442	-
1310	Inventories, net (Note 6 [6])	3,505,331	17	2,853,875	15
1479	Other current assets	228,433	1	252,420	1
1476	Other financial assets - current (Note 8)	11,369	-	14,736	-
Total current assets		7,252,812	36	7,238,194	37
Non-current assets:
1517	Financial assets at fair value through other comprehensive income - non-current (Note 6 [3])	77,065	-	96,751	-
1550	Investments accounted for using equity method (Note 6 (7))	5,278,510	26	5,235,072	27
1600	Property, plant, and equipment (Notes 6 (9), 7, and 8)	7,151,273	36	6,471,604	33
1755	Right-of-use asset (Note 6 (10))	219,184	1	319,320	2
1780	Intangible assets (Notes 6 (11) and 7)	31,306	-	22,868	-
1840	Deferred tax assets (Note 6 (16))	202,242	1	173,527	1
1920	Guarantee deposits paid	8,789	-	8,424	-
1995	Other non-current assets	20,578	-	17,248	-
Total non-current assets		12,988,947	64	12,344,814	63
Total assets		$ 20,241,759	100	19,583,008	100

(Please refer to the attached notes to the Parent Company Only Financial Statements)

Chairman: Zhien-Chi (Z.C) Chen

General Manager: Ray,Liu

Accounting Manager: James,Wang

BenQ Materials Corporation

Balance Sheet (continued)

December 31, 2025 and 2024

Unit: NT$ thousand

Liabilities and equity	2025.12.31		2024.12.31
		Amount	%	Amount	%
Current liabilities:
2100	Short-term borrowings (Note 6 (12))	$ 3,050,000	15	2,200,000	11
2120	Financial assets at fair value through profit or loss - current (Note 6 (2))	13,888	-	30,226	-
2170	Accounts payable	2,323,705	12	2,663,546	14
2180	Accounts payable - related parties (Note 7)	946,450	5	815,472	4
2200	Other payables (Note 6 (20))	1,152,509	6	1,185,116	6
2220	Other payables - related parties (Note 7)	65,695	-	15,535	-
2320	Long-term borrowings due within one year (Note 6 (13) and 8)	469,192	2	330,693	2
2281	Lease liabilities - current (Note 6 (14))	5,173	-	4,966	-
2282	Lease liabilities - related parties - current (Notes 6 (14) and 7)	96,394	-	94,852	-
2300	Other current liabilities (Note 6 (19))	118,927	1	145,297	1
Total current liabilities		8,241,933	41	7,485,703	38
Non-current liabilities:
2540	Long-term borrowings (Notes 6 (13) and 8)	6,430,028	32	5,850,877	30
2570	Deferred tax liabilities (Note 6 (16))	288,396	1	277,306	2
2581	Lease liabilities - non-current (Note 6 (14))	26,283	-	31,455	-
2582	Lease liabilities - related parties - non-current (Notes 6 (14) and 7)	98,133	1	194,527	1
2600	Other non-current liabilities (Notes 6 (13) and (15))	26,384	-	27,886	-
Total non-current liabilities		6,869,224	34	6,382,051	33
Total liabilities		15,111,157	75	13,867,754	71
Equity (Notes 6 (8) and (17)):
3110	Common stock	3,206,745	16	3,206,745	17
3200	Capital surplus	193,709	1	193,114	1
	Retained earnings
3310	Legal reserve	601,996	3	582,115	3
3320	Special reserve	-	-	92,684	-
3350	Undistributed earnings	1,138,547	5	1,629,020	8
3400	Other equity interest	(10,395)	-	11,576	-
Total equity		5,130,602	25	5,715,254	29
Total liabilities and equity		$ 20,241,759	100	19,583,008	100

(Please refer to the attached notes to the Parent Company Only Financial Statements)

Chairman: Zhien-Chi (Z.C) Chen

General Manager: Ray,Liu

Accounting Manager: James,Wang

BenQ Materials Corporation
Statements of Comprehensive Income
From January 1 to December 31, 2025 and 2024
Unit: NT$ thousand

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue (Notes 6 (19) and 7)	$ 14,516,443	100	15,205,117	100
5000	Operating cost (Notes 6 (6), (9), (10), (11), (14), (15), (20), 7 and 12)	(13,200,015)	(91)	(13,070,754)	(86)
	Gross operating profit	1,316,428	9	2,134,363	14
5910	(Unrealized) realized sales profit and loss	(22,779)	-	16,400	-
	Realized operating profit and loss	1,293,649	9	2,150,763	14
	Operating expenses (Notes 6 (4), (9), (10), (11), (14), (15), (20), 7 and 12)
6100	Selling expenses	(666,881)	(5)	(651,753)	(4)
6200	Administrative expenses	(241,904)	(2)	(229,961)	(1)
6300	Research and development expenses	(1,056,577)	(7)	(1,020,238)	(7)
	Total operating expenses	(1,965,362)	(14)	(1,901,952)	(12)
	Net Operating Income (Loss)	(671,713)	(5)	248,811	2
	Non-operating income and expenses (Notes 6 (7), (13), (14), (21) and 7)
7100	Interest revenue	7,692	-	12,186	-
7010	Other revenue	13,574	-	27,473	-
7020	Other gains and losses	122,169	1	(143,583)	(1)
7050	Financial costs	(163,615)	(1)	(130,846)	(1)
7070	Shares of profits (losses) of subsidiaries and associates accounted under the equity method	314,659	2	213,467	1
		294,479	2	(21,303)	(1)
	Profit (loss) before tax	(377,234)	(3)	227,508	1
7950	Less: income tax benefit expense (Note 6 (16))	12,776	-	(28,302)	-
	Net profit (loss) for the period	(364,458)	(3)	199,206	1
	Other comprehensive income:
8310	Items that will not be reclassified to profit or loss (Notes 6 (7), (15) and (17))
8311	Remeasurement of defined benefit plans	(4,058)	-	3,971	-
8316	Unrealized profit (loss) on investments in equity instruments at fair value through other comprehensive income	(24,978)	-	1,668	-
8330	Share of other comprehensive income of subsidiaries and associates accounted for using the equity method	(4,211)	-	425	-
8349	Income tax related to items that will not be reclassified	-	-	-	-
		(33,247)	-	6,064	-
8360	Items that may be reclassified subsequently to profit or loss (Note 6 (17))
8361	Exchange differences arising on translation of financial statements of foreign operations	11,276	-	98,196	1
8399	Income tax related to items that may be reclassified	-	-	-	-
		11,276	-	98,196	1
	Other comprehensive income (loss) for the year	(21,971)	-	104,260	1
8500	Total comprehensive income for the year	$ (386,429)	(3)	303,466	2
	Earnings (Loss) per share (Unit: NT$, Note 6 (18))
9750	Basic earnings (loss) per share	$ (1.14)		0.62
9850	Diluted earnings (loss) per share	$ (1.14)		0.62

(Please refer to the attached notes to the Parent Company Only Financial Statements)
Chairman: Zhien-Chi (Z.C) Chen
General Manager: Ray,Liu
Accounting Manager: James,Wang

BenQ Materials Corporation

Statements of Changes in Equity

From January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

	Common stock	Capital surplus	Retained earnings				Other equity item				Total equity
			Legal reserve	Special reserve	Undistributed earnings	Total	Exchange differences arising on translation of financial statements of foreign operations	Unrealized profits and losses of financial assets at fair value through other comprehensive income	Remeasurement of defined benefit plans	Total
Balance as of January 1, 2024	$ 3,206,745	192,352	540,821	68,835	1,880,161	2,489,817	(44,495)	(20,011)	(28,178)	(92,684)	5,796,230
Appropriation and distribution of retained earnings:
Account for legal reserve	-	-	41,294	-	(41,294)	-	-	-	-	-	-
Account for special reserve	-	-	-	23,849	(23,849)	-	-	-	-	-	-
Cash dividend of common stock	-	-	-	-	(384,809)	(384,809)	-	-	-	-	(384,809)
Change in capital surplus from investments in associates under equity method	-	762	-	-	-	-	-	-	-	-	762
Difference between prices of shares acquired from subsidiaries and book value	-	-	-	-	(395)	(395)	-	-	-	-	(395)
Net profit for the period	-	-	-	-	199,206	199,206	-	-	-	-	199,206
Other comprehensive income for the period	-	-	-	-	-	-	98,196	1,668	4,396	104,260	104,260
Total comprehensive income for the period	-	-	-	-	199,206	199,206	98,196	1,668	4,396	104,260	303,466
Balance as of December 31, 2024	3,206,745	193,114	582,115	92,684	1,629,020	2,303,819	53,701	(18,343)	(23,782)	11,576	5,715,254
Appropriation and distribution of retained earnings:
Account for legal reserve	-	-	19,881	-	(19,881)	-	-	-	-	-	-
Reversal of special reserve	-	-	-	(92,684)	92,684	-	-	-	-	-	-
Cash dividend of common share	-	-	-	-	(198,818)	(198,818)	-	-	-	-	(198,818)
Change in capital surplus from investments in associates under equity method	-	595	-	-	-	-	-	-	-	-	595
Net loss of the period	-	-	-	-	(364,458)	(364,458)	-	-	-	-	(364,458)
Other comprehensive income for the period	-	-	-	-	-	-	11,276	(29,109)	(4,138)	(21,971)	(21,971)
Total comprehensive income for the period	-	-	-	-	(364,458)	(364,458)	11,276	(29,109)	(4,138)	(21,971)	(386,429)
Balance as of December 31, 2025	$ 3,206,745	193,709	601,996	-	1,138,547	1,740,543	64,977	(47,452)	(27,920)	(10,395)	5,130,602

Chairman: Zhien-Chi (Z.C) Chen

(Please refer to the attached notes to the Parent Company Only Financial Statements)

General Manager: Ray,Liu

Accounting Manager: James,Wang

BenQ Materials Corporation

Statements of Cash Flows

From January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

	2025	2024
Cash flows from operating activities
Profit (Loss) before tax for the period	$ (377,234)	227,508
Adjusted items:
Depreciation expenses	734,608	587,038
Amortization expenses	34,097	30,196
Expected credit losses (reverse benefits)	49	(85)
Valuation loss (profit) on financial liabilities measured at fair value through net profit or loss	(23,930)	89,796
Interest expenses	163,615	130,846
Interest revenue	(7,692)	(12,186)
Dividend revenue	(1,680)	(1,680)
Shares of profits (losses) of subsidiaries and associates accounted under the equity method	(314,659)	(213,467)
Profits from disposal of real estate, plant, and equipment	(5)	(906)
(Realized) unrealized sales profits	22,779	(16,400)
Amortization of deferred expenses transferred to expenses	108,783	94,618
Amortization of syndication fee costs	1,612	1,712
Inventory Disaster Loss	-	110,936
Insurance Claims Income	(100,057)	(124,428)
Total adjustments to reconcile profit (loss)	617,520	675,990
Changes in operating assets/liabilities:
Net changes in assets related to operating activities:
Notes and accounts receivable	293,319	(195,966)
Account receivables - Related parties	434,749	(474,473)
Other receivables	222,026	1,912
Other receivables - related parties	(4,147)	4,106
Inventory	(651,456)	(148,987)
Other current assets	(91,655)	(135,315)
Total net changes in assets related to operating activities	202,836	(948,723)
Net changes in operating liabilities:
Accounts payable	(339,841)	55,059
Accounts payable - related parties	130,978	168,242
Other payables	(18,272)	158,959
Other payables - related parties	50,160	(8,916)
Other current liabilities	(26,370)	(9,520)
Net defined benefit liabilities	(2,282)	(2,058)
Total net changes in related operating liabilities	(205,627)	361,766
Total net changes in assets and liabilities related to operating activities	(2,791)	(586,957)
Total adjustment items	614,729	89,033
Cash inflow generated from operations	237,495	316,541
Interests received	7,692	12,186
Interests paid	(162,577)	(130,535)
Refund (payment) of income tax	12,780	(28,393)
Net cash inflow from operating activities	95,390	169,799

(Continued)

(Please refer to the attached notes to the Parent Company Only Financial Statements)

Chairman: Zhien-Chi (Z.C) Chen

General Manager: Ray,Liu

Accounting Manager: James,Wang

BenQ Materials Corporation

Statements of Cash Flows (continued)

From January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

	2025	2024
Cash flows from investing activities:
Acquisition of financial assets at fair value through profit or loss	(99,788)	-
Acquisition of investment using the equity method	-	(2,600)
Acquisition of property, plant, and equipment	(1,335,057)	(2,192,994)
Disposal of property, plant, and equipment	5	906
Increase in Guarantee Deposits Paid	(365)	(1,022)
Acquisition of intangible assets	(39,902)	(27,961)
Decrease (increase) in other financial assets	3,367	(5,061)
Increase in other non-current assets	(12,802)	(12,287)
Dividends received	257,782	452,481
Net cash outflows from investing activities	(1,226,760)	(1,788,538)
Cash flows from financing activities:
Increase in short-term borrowings	850,000	710,000
Proceeds from long-term borrowings	1,776,400	2,644,900
Repayments of long-term borrowings	(1,061,944)	(1,261,943)
Decrease in guarantee deposits received	(84)	-
Repayments of lease principal	(99,817)	(99,197)
Issuance of cash dividends	(198,818)	(384,809)
Net cash inflows from financing activities	1,265,737	1,608,951
Increase (decrease) in cash and cash equivalents for the year	134,367	(9,788)
Cash and cash equivalents at beginning of year	281,737	291,525
Cash and cash equivalents at end of year	$ 416,104	281,737

(Please refer to the attached notes to the Parent Company Only Financial Statements)

Chairman: Zhien-Chi (Z.C) Chen

General Manager: Ray,Liu

Accounting Manager: James,Wang

BenQ Materials Corporation

Notes to Parent Company Only Financial Statements

2025 & 2024

(Unless otherwise stated, the unit for all amounts is in NT$ thousands.)

Company History

BenQ Materials Corporation (hereinafter referred to as "the Company," formerly known as Daxon Technology Inc. and had renamed in June 2010) was established on July 16, 1998, with the approval of the Ministry of Economic Affairs. The registered address is No. 29, Jianguo E. Rd., Guishan Dist., Taoyuan City 333403, Taiwan (R.O.C.). The main business items of the Company are manufacturing and sales of film sheet products and medical equipment.

Date and Procedures of Authorization of Financial Statements

The Parent Company's Only Financial Statements were published upon approval by the Board of Directors on February 24, 2026.

Application of New, Amended and Revised Accounting Standards and Interpretations

a. The Impact of Adopting Newly Released and Revised Standards and Interpretations Endorsed by the Financial Supervisory Commission (hereinafter referred to as "FSC").

The Company has applied the following newly amended IFRS Accounting Standards since January 1, 2025, will not have a material impact on the Parent Company Only Financial Statements.

Amendments to IAS 21 "Lack of Exchangeability"

b. Impacts of IFRS Accounting Standards endorsed by FSC that are not adopted yet

The Company evaluates that the application of the following newly amended IFRS Accounting Standards since January 1, 2026, will not have a material impact on the Parent Company Only Financial Statements.

Amendments to IFRS 17 "Insurance Contract"
Amendments to IFRS 9 and IFRS 7 "Classification and Measurement of Financial Instruments"
Annual Improvements to IFRS Accounting Standards
Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

~13~

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

c. Newly issued and amended standards and interpretations yet to be endorsed by the FSC

Impact of IFRSs Issued by IASB but not yet endorsed by the FSC on the Company is as follows:

New or amended standards	Major amendments	The effective date of issuance by IASB
IFRS 18 "Presentation and Disclosure in Financial Statements"	The new standard introduces three categories of income and expenses, two subtotals in the statement of profit or loss, and a single note on management's performance measures. These three amendments and enhancements to the guidance on disaggregating information in financial statements lay the foundation for providing users with better and more consistent information and will impact all companies.	January 1, 2027
		Note: The Financial Supervisory Commission (FSC) issued a press release on September 25, 2025, announcing that Taiwan will adopt International Financial Reporting Standard (IFRS) 18 starting from 2028. If a company wishes to early adopt the standard, it may do so upon approval by the FSC.
		International Financial Reporting Standard (IFRS) 18 starting from 2028. If a company wishes to early adopt the standard, it may do so upon approval by the FSC.
	• A more structured statement of profit or loss: Under the current standards, companies use different formats to present their operating results, making it difficult for investors to compare financial performance across different companies. The new standard adopts a more structured statement of profit or loss, introduces a newly defined subtotal for "operating profit", and requires all income and expenses to be classified into three new distinct categories based on the company's main business activities.
• Management Performance Measures (MPMs): The new standard introduces a definition for management performance measures and requires companies to disclose, in a single note to the financial statements, an explanation of why each measure provides useful information, how it is calculated, and how it reconciles to amounts recognized under IFRS Accounting Standards.
• More disaggregated information: The new standard includes guidance on how companies should enhance the grouping of information in financial statements. This guidance covers whether information should be presented in the primary financial statements or further disaggregated in the notes.

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The Company is continuously evaluating the impact of the impacts on the financial status and operating results of the Company, and the relevant impact will be disclosed when the evaluation is completed.

The Company expects that the following other newly issued and revised standards that have not yet been approved by the FSC will not have a significant impact on the Individual Financial Statements.

Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"
IFRS 19 "Subsidiaries without Public Accountability: Disclosures" and amendments to IFRS 19
Amendments to IAS 21 "Translation to a Hyperinflationary Presentation Currency"

4. Summary of Material Accounting Policies

The summary of the significant accounting policies used in this individual financial statement is described below. The following accounting policies have been consistently applied to all periods of the financial statements.

a. Statement of compliance

The Parent Company Only Financial Statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter refer to as the "Regulations").

b. Basis of preparation

1) Basis of measurement

The Parent Company Only Financial Statements have been prepared on a historical cost basis except for the following significant accounts:

a) Financial instruments (including derivative financial instruments) measured at fair value through profit and loss;
b) Financial assets at fair value through other comprehensive income; and
c) Net defined benefit liabilities (or assets) are measured by determining the present value of the benefit obligation, the net amount after deducting the fair value of pension assets, and the upper limit of the number of influences mentioned in Note 4 [17].

2) Functional Currency and Presentation Currency

The Company takes the currency of the primary economic environment in which it operates as the functional currency. The Individual Financial Statements were expressed in New Taiwan Dollars, the Company's functional currency. The unit for all amounts expressed are in thousands of NTD unless otherwise stated.

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

c. Foreign Currency

1) Foreign currency transactions

Transactions in foreign currency are translated into the functional currency at exchange rates prevailing at the transaction dates. On the end of each subsequent reporting period (hereinafter referred to as the reporting day). Monetary items in foreign currencies are converted into functional currencies at the exchange rate of the day. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate prevailing at the date when the fair value was determined. Non-monetary assets and liabilities in a foreign currency that are measured at historical cost are retranslated using the exchange rates prevailing at the transaction dates.

Foreign currency exchange differences arising from conversion are generally recognized in profit or loss, but equity instruments designated as fair value through other comprehensive income are recognized in other comprehensive income.

2) Foreign operating agency

The assets and liabilities of foreign operation, including the business reputation and fair value adjustment are translated into functional currency according to the exchange rate on the reporting date; the income and expense items are converted into the expression currency of this individual financial statement based on the average exchange rate of the current period. And the exchange difference amount will be recognized as other comprehensive incomes.

Upon disposal of a foreign operating organization results in loss of control or significant influence, the accumulated exchange differences related to the foreign operating organization are fully reclassified as profit or loss. When partially disposing of subsidiaries containing foreign operation, the cumulative exchange difference amount will be re-attached to non-controlling equity according to proportion. When partially disposing of affiliated enterprises or joint investments containing foreign operation, the cumulative exchange difference amount will be re-classified into profit or loss according to proportion.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, the related foreign exchange gains and losses are a part of net investment in that foreign operation and thereon are recognized as other comprehensive income.

d. Assets and liabilities classified as current and non-current

The Company shall classify all other assets as non-current. The Company shall classify an asset as current when:

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

1) It is expected to be realized when the Company is operating, or intended to be sold or consumed in the normal operating cycle;
2) Assets are held primarily for trading purposes;
3) It is expected to be realized within twelve months after the reporting period; or
4) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Company shall classify all other liabilities as non-current. The Company shall classify a liability as current when:

1) It is expected to be settled in the normal operating cycle;
2) Liabilities held primarily for trading purposes;
3) The liability is expected to be realized within twelve months after the reporting period; or
4) at the end of the reporting period, the entity does not have the right to defer settlement of the liability for at least twelve months after the reporting period.

e. Cash and Cash Equivalents

Cash includes cash on hand, check deposits and demand deposits. Cash equivalents refer to the short-term and highly liquidity investment that can be converted into quota cash at any time with little risk of value change. Time deposits are classified as cash equivalents only when they satisfy the aforementioned definition, and the purpose of holding is to meet the short-term cash commitments rather than investment or other purposes.

f. Financial Instruments

The accounts receivable and debt securities issued were originally recognized when they were generated. All other financial assets and financial liabilities were recognized when the Company became a party to the financial instrument contract. Financial assets that are not measured at fair value through profit or loss (other than accounts receivable that do not contain a significant financing component) or financial liabilities are originally measured at fair value plus the transaction costs directly attributable to the acquisition or issuance. The accounts receivable that do not contain a significant financing component are measured at transaction prices.

1) Financial assets

At the time of initial recognition, financial assets are classified into: Financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive gains and losses, and financial assets measured at fair value through

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

profit or loss. When purchasing or selling financial assets according to transaction practice, accounting treatment on the transaction date is adopted.

The Company shall reclassify all the affected financial assets from the first day of the next reporting period only when changing the business model for managing financial assets.

a) Financial assets measured at amortized cost

When financial assets meet the following conditions and not designated at fair value through profit or loss, they are measured at amortized cost:

The financial assets are held under the operation mode with the purpose of collecting contract cash flow.
The contract terms of the financial asset generate cash flow on a specific date, which is entirely the interest on the payment of the principal and the amount of principal in circulation.

After the initial recognition of these assets, the effective interest rate method is adopted to measure the amortized cost minus the impairment loss. Interest income, foreign exchange profit or loss, and impairment loss are recognized in profit and loss. When derecognition, gain or loss is recognized in profit and loss.

b) Financial assets at fair value through other comprehensive income

A debt investment is measured at FVTOCI if it meets both of the following conditions and is not designated as at FVTPL:

It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
The contract terms of the financial asset generate cash flow on a specific date, which is entirely the interest on the payment of the principal and the amount of principal in circulation.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment's fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Investors who are debt instruments are subsequently measured at fair value. Interest income, foreign currency exchange gains and losses and impairment losses calculated according to the effective interest method are recognized in profit and loss, and the remaining net gains or losses are recognized as other comprehensive gains and losses. At the time of derecognition, the accumulated other comprehensive income under equity is reclassified to profit or loss.

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Equity instrument investors shall be measured at fair value subsequently. Dividend income (unless it clearly represents the recovery of part of the investment cost) is recognized in profit and loss. The remaining net profits or losses are recognized as other comprehensive income. At the time of derecognition, other comprehensive income accumulated under equity are reclassified to retained earnings instead of to profits or losses.

The dividend income of equity investment shall be recognized on the date when the Company is entitled to receive dividends (usually the ex-dividend date).

c) Financial assets at fair value through profit or loss

Financial assets other than the aforementioned financial assets measured at amortized cost or financial assets at fair value through other comprehensive gains and losses are measured at fair value through profit and loss, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or measured at fair value through other comprehensive income, as at fair value through profit and loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value, and net profits and losses (including dividend and interest incomes) originated from remeasurement are recognized in profit or loss.

d) Evaluate whether the contractual cash flow is entirely the interest of the payment of the principal and the amount of principal in circulation

According to the purpose of the evaluation, the principal is the fair value of the financial asset upon initial recognition and the interest is comprised of the following considerations: time value of money, credit risk associated with outstanding principal amounts in the period, other basic lending risks and costs, and profit margins.

When evaluating whether the contractual cash flows consist entirely of payments of the principal and interest on the principal amount outstanding, the Company considers the contractual terms of financial instruments including evaluations on whether financial assets include a provision in the contract that changes the timing or amount of the contractual cash flows in a way that would cause it not to meet this condition. When evaluating, the Company considers the following:

Any contingency that changes the timing or amount of the contractual cash flows.

~19~

~20~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Terms that may adjust the coupon rate of the contract including the characteristics of floating interest rates.
Attributes of prepayments and deferrals; and
The Company's claim is limited to the terms of the cash flows from specific asset (e.g., non-recourse terms).

e) Impairment of financial assets

The Company recognizes an allowance loss for expected credit losses of financial assets (including cash and cash equivalents, notes and accounts receivable (including related-parties), other receivables (including related-parties), deposits, and other financial assets, etc.) measured at amortized cost.

The loss allowance of the following financial assets is measured based on the expected credit losses amount in 12 months, and the remaining are measured based on the lifetime expected credit loss amount:

The credit risk of bank deposits (that is, the risk of default during the expected lifetime of financial instruments) has not increased significantly since initial recognition.

The allowance loss for accounts receivable is measured by the amount of expected credit loss during the duration.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. The information includes both quantitative and qualitative information and analysis based on the Company's historical experience and credit assessment, as well as forward-looking information.

Lifetime expected credit loss refers to the expected credit loss out of all possible defaults during the expected survival period of financial instruments

Twelve-month expected credit loss refers to the expected credit loss (or a shorter period, if the expected duration of the financial instrument is shorter than twelve months) incurred by a financial instrument that may default within twelve months after the reporting date.

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

Expected credit loss refers to the weighted estimate of credit loss probability during the expected survival period of financial instruments. The credit loss is measured by the present value of all cash shortfall, namely the difference between the cash flow that the Company can collect according to the contract

~21~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

and the expected cash flow that the Company will receive. Expected credit loss is discounted at the effective interest rate of financial assets.

The loss allowance of financial assets measured through amortized cost is deducted from the carrying amount of assets.

When the Company cannot reasonably expect the whole or part of the recovered financial assets, it directly reduces the total carrying amount of its financial assets. The Company analyzes the timing and amount of the write-off individually on the basis of whether it can reasonably be expected to be recovered. The Company expects that the amount written off will not be materially reversed. However, the written-off financial assets can still be enforced to comply with the procedures for the Company to recover the overdue amount. Based on the Company's experience, overdue amount cannot be recovered after passing due 90 days.

f) Derecognition of financial assets

The Company only terminates the contractual rights from the cash flow of the asset, or the financial asset has been transferred and almost all the risks and rewards of the ownership of the asset have been transferred to other companies, or almost no ownership has been transferred or retained. When all risks and rewards are not kept under the control of the financial assets, the financial assets are derecognized.

When the Company signs a transaction to transfer financial assets, if it retains all or almost all risks and rewards of ownership of the transferred assets, it will continue to be recognized on the balance sheet.

2) Financial liabilities and equity instruments

a) Classification of liabilities or equities

Debt and equity instruments issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of contractual arrangements and the definitions of a financial liability and an equity instrument. An equity instrument refers to any contract that recognizes the remaining equity after deducting all liabilities from the assets of the Company. The equity instrument issued by the Company shall be recognized by the payment net of the direct cost of issuance.

b) Financial liabilities

Financial liabilities are classified as amortized costs or the fair value measurement through profit or loss. Financial liabilities, if held for trading, derivatives or designated at the time of initial recognition, are classified as the fair value

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

measurement through profit or loss. Financial liabilities measured at fair value through profit and loss are measured at fair value, and related net profits and losses, including any interest expenses, are recognized in profit and loss.

Financial liabilities measured at amortized cost are subsequently measured at the amortized cost using the effective interest method. Interest income and foreign currency profit or loss are recognized as profit or loss. Any profit or loss at the time of derecognize is also recognized in profit and loss.

c) Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company's obligations are discharged, cancelled or they expire. When the terms of financial liabilities are modified and there is a significant difference in the cash flow of the revised liabilities, the original financial liabilities will be derecognized and new financial liabilities will be recognized at fair value based on the revised terms.

When derecognizing financial liabilities, the difference between the carrying amount of a financial liability and the consideration paid (including all transferred non-cash assets or liabilities) is recognized in non-operating income and expenses.

d) Offsetting of financial assets and financial liabilities

The Company presents financial assets and liabilities on a net basis when the Company has the legally enforceable right to offset and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

3) Derivative financial instruments

The Company holds derivative financial instruments to avoid risks of foreign currency and interest rates. The original recognition of derivatives is measured at fair value, and transaction costs are recognized as profit or loss; subsequent measurement is based on fair value, and the profits or losses arising from remeasurement are directly included in profit or loss. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.

g. Inventory

Inventory is measured by the lower of cost and NRV on an item-by-item basis. Cost includes cost and other costs for acquisition, manufacturing or processing to reach the usable place and status, and is calculated through weighted averaging. Among them, fixed

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

manufacturing expenses are allocated to finished products and work-in-progress according to the normal production capacity or actual output of the production equipment, whichever is higher, and variable manufacturing expenses are allocated based on the actual output. The NRV is the expected selling price in the ordinary course of business, less the estimated cost of construction completion and the estimated costs necessary to make the sale.

h. Investment in the associates

Affiliated companies refer to those for which the Company has material influence upon their financial and operation policies but without controlling or joint controlling.

The Company adopts the equity method for handling the equity of affiliated companies. Under the equity method, the initial acquisition is recognized according to the cost, and the investment cost includes the transaction cost. The carrying amount of invested associates includes the goodwill recognized at the time of initial investment less any accumulative impairment loss. To assess impairment, the Company has to consider the overall carrying amount (including goodwill) of the investment as a single asset to compare the recoverable and carrying amounts. The cost of impairment identified is to be deemed as part of the carrying amount of the investment. Any reversal of impairment loss shall be recognized within the scope of subsequent increase in the recoverable amount of the investment.

From the date of significant impact to the date of losing significant impact, the Company shall, after making adjustments for consistency with the Company's accounting policies, recognizes the amount of profit and loss and other comprehensive income of each investment related company based on the proportion of equity. When the equity of affiliated companies changes, not including profit and loss and other comprehensive income, and do not affect the shareholding ratio of the Company, the Company shall recognize all the equity changes as capital surplus according to the shareholding ratio.

Unrealized profits resulting from the transaction between the Company and the associates shall be recognized in the financial statements only within the scope of the interests of non-related party investors in the associates.

When the loss share of affiliated companies to be recognized by the Company is equal to or over its equity in them, the recognition of the loss is suspended, and only in the case of legal obligations, constructive obligations or within the scope of making payment for the invested company, additional loss or relevant liability will be recognized.

The Company ceases to use the equity method from the date its investment ceases to be an affiliated company and measures the retained interest at fair value. The difference between the fair value of the retained interest and the disposal price and the carrying amount of the investment at the date of cessation of the equity method is recognized in

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~24~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

profit or loss for the current period. All amounts previously recognized in other comprehensive income related to the investment are accounted for on the same basis as that which would be required to be followed if the related assets or liabilities were disposed of directly by the affiliated company, i.e. if a gain or loss previously recognized in other comprehensive income is required to be reclassified to profit or loss (or retained earnings) upon disposal of the related assets or liabilities, the gain or loss is reclassified from equity to profit or loss (or retained earnings) when the company ceases to use the equity method. If the Company's ownership interest in a related party decreases but the equity method continues to apply, the Company reclassifies the gain or loss previously recognized in other comprehensive income related to the decrease in ownership interest in the manner described above in proportion to the decrease.

When an affiliated company issues new shares, if the Company does not subscribe according to the shareholding ratio, which causes the shareholding ratio to change, and thus the net equity value of the investment increases or decreases, the increase or decrease is adjusted to the capital reserve and the investment using the equity method; if this adjustment is to reduce the capital reserve, but the balance of the capital reserve generated by the investment using the equity method is insufficient, the difference will be debited to the retained surplus. However, if the Company does not subscribe in proportion to the shareholding ratio, which reduces its ownership and interest in the affiliated company, the amount previously recognized in other comprehensive income related to the related company is reclassified according to the reduction ratio, and the basis of accounting treatment is the same as the basis that the related company must follow if the related company directly disposes of the related assets or liabilities.

i. Investment in Subsidiaries

The subsidiaries in which the Company holds controlling interest are accounted for under equity method in the Individual Financial Statements. The book value of the investment subsidiary includes the goodwill identified at the time of the original investment, deduct any accumulated impairment losses. Under the equity method, the current profit and loss and other comprehensive income of the Individual Financial Statements are the same as the apportionment of the current profit and loss and other comprehensive income attributable to the owners of the parent company in the financial report prepared on the basis of consolidation, and the owner's equity of the Individual Financial Statements is the same as the owner's equity attributable to the owners of the parent company in the financial report prepared on the basis of consolidation.

Changes in the ownership and equity of the subsidiary by the Company that does not result in the loss of control shall be treated as equity transactions with the owner.

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

j. Property, plant and equipment

1) Recognition and measurement

Real estate, plant, and equipment are measured by cost (including capitalized borrowing costs) less accumulated depreciation and any accumulated impairment.

When the service years of material part of property, plant, and equipment vary, they are deemed as independent items (main components) for treatment.

The gain or loss on disposal of the property, plant, and equipment is recognized in profit and loss.

2) Subsequent costs

Subsequent expenditures are capitalized only when their future economic benefits are likely to flow into the Company

3) Depreciation

The depreciation is calculated by capital cost less scrap value and is recognized in profit or loss based on the estimated service years of each component using the straight-line method. Depreciation is not applicable to land, estimated useful life of the remaining assets are: Machinery and equipment, 3 to 10 years; other equipment, 2 to 10 years; in addition, depreciation of houses and buildings based on the estimated useful life of their major components: main buildings, 20 to 35 years; mechanical and electrical engineering and another engineering, 10 to 20 years.

The depreciation method, useful life, and residual value are reviewed on each reporting day, and adjustments are postponed for the impact of any changes in estimates.

k. Leases

The Company evaluates whether the contract is a lease or contains a lease upon the conclusion of the contract. If the contract transfers control over the use of the identified assets for a period of time in exchange for consideration, the contract is a lease or contains a lease.

1) Lessee

The Company recognizes the right-of-use asset and the lease liability on the inception of the lease. The right-of-use asset is initially measured at cost, which includes the initial measured amount of the lease liability, adjusts any lease benefits paid on or before the inception of the lease, and adds the initial direct cost incurred and the estimated cost of dismantling, removing the underlying asset and restoring its location or underlying asset, and deducting any leasing incentives received.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the Company regularly assesses whether the right-of-use asset is impaired and treats any impairment loss that has occurred, as well as cooperating to adjust the right-of-use asset when the lease liability is remeasured.

The lease liability is measured at the present value of the lease payments that are not paid at the commencement date. If the implicit interest rate of the lease is easy to determine, it is applied as the discount rate. If it is not easy to determine, the incremental borrowing rate of the Company is used. Generally, the Company uses its incremental borrowing rate as the discount rate.

The lease payments comprise as follows:

a) fixed payments, including in-substance fixed lease payments;
b) Variable lease payments dependent upon certain indicators or rates are measured by the indicators or rates used at the inception of the lease;
c) The amount expected to be payable under residual value guarantees; and
d) The exercise price of a purchase option or the penalties payable upon exercising a lease termination option when the exercise of such options is reasonably certain.

The lease liability subsequently accrues interest with the effective interest method, and its amount is measured when the following occurs:

a) changes in future lease payments resulting from changes in an index or a rate used to determine those payments;
b) Changes in the amount expected to be payable under residual value guarantees;
c) Changes in the assessment of the purchase option for the underlying asset;
d) change in the assessment of the lease term resulting from extension or termination of the exercise of the purchase option; or
e) lease modifications of the underlying asset, scope, and other terms and conditions.

When the lease liability is remeasured due to the aforementioned changes in the index or rate used to determine lease payments, changes in the residual value guarantee amount, and changes in the evaluation of purchase, extension or termination options, the carrying amount of the right-of-use asset shall be adjusted accordingly, and when the carrying amount of the right-of-use asset is reduced to zero, the remaining remeasured amount is recognized in profit or loss.

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The changes in (iv) and (v) decreases the scope of a lease. When a lease modification decreases the scope of a lease, the carrying value of the right-of-use asset is decreased to reflect partial of full termination of the lease liability, and any gain or loss resulting from the aforementioned derecognition is immediately recognized in profit or loss.

The Company records right-of-use assets and lease liabilities defined as not investment properties in a single line item in the Individual Balance Sheets.

For short-term leases of office equipment and leases of low-value underlying assets, the Company chooses not to recognize the right-of-use assets and lease liabilities, but to recognize the related lease benefits as expenses on the straight-line basis during the lease term.

2) Lessor

For transactions in which the Company is the lessor, it is to classify the tenancy agreement according to whether it transfers almost all risks and remuneration attached to the ownership of the underlying asset on the lease establishment date. If so, it is classified as a financial lease, otherwise, it is classified as an operating lease. At the time of evaluation, the Company's considerations include relevant specific indicators, such as whether it covers the main component of the economic life of the underlying asset during the lease term.

For operating leases, the Company uses a straight-line basis to recognize the lease payments received as rental income during the lease period.

I. Intangible assets

Intangible assets that are acquired by the Company are measured at cost, less accumulated amortization and any accumulated impairment losses. The amortization amount is calculated based on the following estimated useful life with the straight-line method, and the amortization amount is recognized in the profit and loss: purchased software, 1 to 5 years; other intangible assets, 5 years.

The residual value, amortization period, and amortization method for an intangible asset with a finite useful life shall be adjusted when necessary.

m. Impairments of non-financial assets

The Company assesses on each reporting day whether there is any indication that the carrying amount of non-financial assets (other than inventories and deferred income tax assets) may be impaired. If there is an indication that an asset may be impaired, then the Combined Company estimates the recoverable amount of such asset. Goodwill is subject to impairment tests on a regular basis every year or when there are signs of impairment.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The purpose of the impairment test, a group of assets whose cash inflow is mostly independent of other individual assets or asset groups, is regarded as the smallest identifiable asset group. Goodwill acquired in a business combination is allocated to each cash-generating unit or group of cash-generating units that is expected to benefit from the combined effect of the merger.

The recoverable amount is the higher of the fair value of the individual asset or cash-generating unit minus the cost of disposal and its value in use, whichever is higher. When evaluating the value in use, the estimated future cash flow is converted to the present value at a pre-tax discount rate, which should reflect the current market assessment of the time value of money and the specific risks for the asset or cash-generating unit.

When the recoverable amount of an individual asset or a CGU is less than its carrying amount, an impairment loss is recognized. The impairment loss is recognized immediately in profit or loss, firstly by reducing the carrying amount of any goodwill allocated to the CGU, and then proportionately allocated to the other assets of the CGU on the basis of the carrying amount of each asset in the CGU.

The impairment loss of goodwill will not be reversed. Non-financial assets other than goodwill will only be reversed if they do not exceed the carrying amount (less depreciation or amortization) determined when no impairment loss had been recognized for the asset in the previous year.

n. Liability reserve

The recognition of provisions means a current obligation for past events so that in the future the Company is most likely to outflow resources with economic benefits to settle it, and the amount of the obligation can be reliably estimated.

The reorganization liability provision is recognized when the Company approves the detailed and formal reorganization plan and starts to proceed or publicly announces the reorganization plan. Provisions are not recognized for future operating losses.

o. Revenue recognition

The Company recognizes revenue when control of the products has transferred. The transfer of control over products means that products are delivered to customers with no unfulfilled obligations that may affect customers' acceptance of the products. Delivery occurs when the product is delivered to a specific location, the risk of loss has been transferred to the customer, and the customer has accepted the product in accordance with the sales contract, or the Company has objective evidence that all acceptance conditions have been met.

The Company recognizes revenue on the basis of the contract price minus the estimated quantity discount and discount. The amount of the quantity discount and discount is

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

estimated based on the expected value based on the accumulated experience in the past, and recognizes income within the scope of a major turnaround. As of the reporting date, the amount discounts and discounts expected to be paid to customers for related sales are recognized as refund liabilities (other current liabilities are accounted for).

The Company recognizes accounts receivable upon delivery of goods, because it enjoys the entitlement of collecting consideration unconditionally at this timing.

p. Government subsidies and government assistance

Government subsidies are only recognized when they can be reasonably assured that the Company shall comply with the conditions imposed by government subsidies and that such subsidies can be received. If the government subsidy is used to compensate fees or losses that had occurred, or is given to the Company for the purpose of immediate financial support without related future costs, it can be recognized as income within the collectible period.

For borrowings obtained from financial institutions by means of government credit guarantees, the Company calculates the fair value of the loans based on market interest rates. The difference between it and the amount received is recognized as deferred income. During the borrowing period, the deferred income is recognized as non-operating income - other income on a systematic basis.

q. Employee benefits

1) Defined contribution plans

Assignment obligations that should be contributed to defined contribution retirement benefit plans are recognized as employee benefit expenses under profit and loss when employees have rendered service.

2) Defined benefit plans

The net obligation of the Company to determine the benefit plan is calculated by converting the future benefit amount earned by the employee in the current period or the previous period into the present value for each benefit plan and deducting the amount of the fair value of any plan assets. The discount rate is the yield on government bonds that have maturity dates approximating the terms of the Company's obligations and that are denominated in the same currency in which the benefits are expected to be paid. The net obligation of the defined benefit plan is calculated annually by a qualified actuary using the projected unit credit method.

When the benefit in the plan improves, the relevant expense for the part of incremental benefit for previous services by employees is immediately recognized as profit or loss.

~30~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The number of remeasurement of net defined benefit liabilities (assets) includes (1) actuarial profit or loss; (2) planned asset rewards, excluding the amount contained in net interest of net defined benefit liability (asset); and (3) any change in upper limit influence number of assets, excluding amount contained in net interest of net defined benefit liability (asset). The remeasured amount of net defined benefit liabilities (assets) is recognized in other comprehensive income and recognized in other equity.

The Company recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair value of plan assets, any change in the present value of the defined benefit obligation, and any related actuarial gains or losses and past service cost that had not previously been recognized. The gains or losses on the curtailment or settlement include any change in fair value of planned assets and current value of defined benefit obligations.

3) Short-term employee benefits

The obligation for short-term employee benefits is measured on undiscounted basis, and recognized as expense at the time of provision of relevant services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

r. Income tax

Income taxes include current and deferred income taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes shall be recognized in profit or loss.

The Company has determined that interest or penalties related to income tax (including uncertain tax treatments) do not meet the definition of income tax and are therefore accounted for in accordance with IAS 37.

The Company has determined that the top-up tax payable under the Global Minimum Tax - Pillar Two framework falls within the scope of IAS 12 "Income Taxes" and has applied the temporary mandatory exemption from deferred income tax accounting related to the top-up tax. The actual top-up tax incurred is recognized as current income tax.

The current income tax includes the estimated income tax payable or income tax refund receivable calculated based on the taxable income (loss) of the current year, and any adjustments to the income tax payable or income tax refund receivable in previous year. The amount is the best estimate of the amount expected to be paid or received after reflecting the uncertainty (if any) related to income tax, according to the statutory tax rate on the reporting date or the tax rate of the substantive legislation.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities on the reporting date and their respective tax bases. The temporary difference for the following conditions will not be recognized as deferred income tax:

1) Originally recognized asset or liability not falling to the transaction of corporate consolidation, without (i) influencing accounting profit and levy duty gain (loss) and (ii) generating equivalent taxable and deductible temporary differences at the transaction;

2) Due to temporary differences arising from investment in subsidiaries, affiliates, and joint venture equity, the Company can control the timing of the reversion of the temporary differences and it is very likely that they will not revert in the foreseeable future; and

3) Taxable temporary differences arising from the original recognition of goodwill.

For unused tax losses and unused income tax deduction at the later stage of the transfer and deductible temporary differences, they are recognized as deferred income tax assets to the extent that there is likely to be future taxable income available for use. Such unused tax credits and deductible temporary differences shall also be re-evaluated every year on the financial reporting date, and adjusted based on the probability that future taxable profit will be available against which the unused tax credits and deductible temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates and laws that have been enacted or substantively enacted by the end of the reporting period, and has reflected the uncertainty related to income tax (if any).

The Company only offsets the deferred income tax assets and deferred income tax liabilities when the following conditions are met simultaneously:

1) The entity has the legal right to settle tax assets and liabilities on a net basis; and

2) The amounts of deferred tax assets and liabilities are:

a) Levied by the same taxing authority; or

b) Levied by different entities that intend to realize the asset and settle the liability at the same time.

s. Business mergers

The Company uses the acquisition method to handle business mergers. Goodwill is the fair value of the consideration transferred on the acquisition date, including the amount attributable to any non-controlling interests of the acquiree, deduct the net amount of identifiable assets acquired and liabilities assumed (usually fair value). If the balance after the deduction is negative, the Company will reassess whether all acquired assets and all

~31~

~32~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

liabilities assumed have been correctly identified before recognizing the benefits of cheap purchases in profit or loss.

Except for those related to the issuance of debt or equity instruments, transaction costs related to business combinations should be immediately recognized as expenses of the amalgamating company when incurred.

Among the non-controlling interests of the acquiree, if it is a current ownership interest, and its holder is entitled to a proportional share of the net assets of the enterprise when the liquidation occurs, the Company is measured on a transaction-by-transaction basis based on the fair value at the acquisition date or the proportion of the current ownership instrument to the recognized amount of the acquiree's identifiable net assets. Other non-controlling interests are measured at their fair value on the acquisition date or other basis as required by the IFRS Accounting Standards recognized by the FSC.

If the original accounting treatment of the business combination has not been completed before the reporting date of the merger transaction, the Company recognizes the incomplete accounting treatment items at a tentative amount and makes retrospective adjustments or recognizes additional assets or liabilities during the measurement period to reflect the new information about the facts and circumstances that existed on the acquisition date obtained during the measurement period. The measurement period is no more than one year from the acquisition date.

t. Earnings per Share

The Company presents the basic and diluted earnings per share attributable to the Company's common equity holders. The calculation of basic earnings per share is based on the profit attributable to the ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. The diluted earnings per share is calculated by adjusting the influence of all potential diluted common shares with profit or loss of the Company's common stock holders and weighted average number of common shares outstanding. The potential diluted ordinary shares of the Company are employees' compensation that can choose to use stocks.

u. Segment Information

The Company has disclosed segment information in the Consolidated Financial Statements, so the Parent Company Only Financial Statements do not disclose segment information.

5. The Primary Sources of Uncertainties in Material Accounting Judgments, Estimates, and Assumptions

In preparing the Consolidated Financial Report, management must make judgments and estimates about the future, including climate-related risks and opportunities, which will impact the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

~33~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The management has to continuously check the estimate and basic assumptions, and the accounting estimate is recognized during the period of change and during the future influenced period.

Accounting policies involve significant judgments. Information that has a significant impact on the Individual Financial Statements is as follows:

a. Judgment on whether the invested company has substantial control or significant influence

The Company holds 14.82% of the voting shares of Visco Vision Inc. and is also its single largest shareholder. Although the remaining 85.18% shareholdings of Visco Vision are not held by specific shareholders, the Company is still unable to obtain more than half of the seats of the board of directors of Visco Vision, and has not obtained more than half of the voting rights of shareholders present at the shareholders' meeting, thus only obtained one seat of the board of directors to participate in decision-making of Visco Vision. Therefore, it is considered that the Company has no control over Visco Vision, but only has a significant influence, evaluation will be conducted by using the equity method.

The following assumptions and estimated uncertainties have a significant risk of causing significant adjustments to the carrying amount of assets and liabilities in the next financial year are as follows:

a. Inventory valuation:

As inventory shall be measured based on the lower of cost or realizable value, if on the Company's evaluation report date, the inventory is unqualified, outdated, or has no market value, the inventory cost shall be offset to net realizable value. This inventory evaluation is mainly based on the estimated product demand in a specific period in the future but may cause major changes.

b. Assessment of Impairment of Goodwill Generated by Investment in Subsidiaries

The carrying amount of investments in subsidiaries includes the goodwill identified at the time of the initial investment. The assessment of goodwill impairment relies on the Company's subjective judgment, including the identification of CGUs, the allocation of goodwill to the relevant CGUs, and the determination of the recoverable amount of the respective CGUs. Any changes in economic conditions or corporate strategy may result in significant variations in the assessment outcome.

6. Descriptions of Material Accounting Items

a. Cash and Cash Equivalents

	2025.12.31	2024.12.31
Working capital	$ 100	90
Demand deposit and check deposit	416,004	281,647
	$ 416,104	281,737

~34~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

b. Financial assets and liabilities measured at fair value through profit and loss - Current

	2025.12.31	2024.12.31
Mandatory financial assets- measured at fair value through profit and loss - current:
Derivatives not designated as hedging instruments
Foreign exchange forward contracts	$ -	1,457
Exchange contracts	1,010	-
Stocks listed in the emerging stock market in Taiwan	107,827	-
	$ 108,837	1,457
Financial liabilities held for transaction - current
Foreign exchange forward contracts	$ -	(1,570)
Exchange contracts	(13,888)	(28,656)
	$ (13,888)	(30,226)

For the amount remeasured at fair value and recognized in profit or loss, please refer to Note 6 (21).

I) Derivative financial instruments

The Company engages in derivative financial instrument transactions to avoid exchange rate risks exposed by business and financing activities. Because hedging accounting is not applied, the details of the derivative instruments of financial assets and liabilities measured at fair value through profit and loss are as follows:

a) Foreign exchange forward contracts

2024.12.31
Contract amount (in thousand dollars)		Type of currency	Due Date
USD	6,000	Buy JPY Call/USD Put	2025.01.22
USD	$15,000	Buy RMB Call/USD Put	2025.01.22

b) Exchange contracts

2025.12.31
Contract amount (in thousand dollars)		Type of currency	Due Date
USD	117,000	Buy NTD Call/USD Put	2026.01.13~2026.01.28
NTD	163,360	Buy JPY Call/NTD Put	2026.01.16

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

2024.12.31

Contract amount (in thousand dollars)	Type of currency	Due Date
USD 104,000	Buy NTD Call/USD Put	2025.01.13~2025.1.23

c. Financial assets at fair value through other comprehensive income

	2025.12.31	2024.12.31
Equity instruments measured at fair value through other comprehensive gains and losses:
Stocks listed on the Taipei Exchange	$ 59,472	-
Stocks listed in the emerging stock market in Taiwan	-	64,764
Unlisted stocks	77,065	96,751
	$ 136,537	161,515
Current	$ 59,472	64,764
Non-current	77,065	96,751
	$ 136,537	161,515

Stocks of LAGIS ENTERPRISE CO., LTD., an Emerging Stock Board company held by the Company and measured at fair value through other comprehensive income, were listed on the Taipei Exchange on December 14, 2025.

The Company designated the aforementioned investments as financial assets at FVTOCI because these equity instruments are held for long-term strategic purposes and not for trading.

In 2025 and 2024, no disposal of the above strategic investments was conducted and hence no transfer of cumulative profit or loss on equity was recognized.

d. Notes and accounts receivable

	2025.12.31	2024.12.31
Notes receivable	$ 15,416	5,334
Accounts receivable	1,508,668	1,807,684
Deduction: Allowance for impairment loss	(1,445)	(1,510)
	1,522,639	1,811,508
Account receivables - Related parties	1,301,819	1,751,179
	$ 2,824,458	3,562,687

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

1) The Company adopts a simplified approach to estimate expected credit losses for all note and account receivables (including related parties), that is, the expected credit losses during the lifetime are measured, and forward-looking information has been incorporated. The expected credit loss analysis of notes receivable and accounts receivable (including related parties) of the Company as of December 31, 2025 and 2024 was as follows:

	2025.12.31
	Book amount of account receivables and bills	Weighted average loss rate	Loss allowance for lifetime expected credit losses
Not pass due	$ 2,798,930	0.0198%	555
Pass due 1~30 days	23,959	3.2556%	780
Pass due 31~60 days	3,014	3.6496%	110
	$ 2,825,903		1,445
	2024.12.31
---	---	---	---
	Book amount of account receivables and bills	Weighted average loss rate	Loss allowance for lifetime expected credit losses
Not pass due	$ 3,525,867	0.0197%	696
Pass due 1~30 days	35,914	1.7319%	622
Pass due 31~60 days	2,284	2.6270%	60
Past due more than 91 days	132	100%	132
	$ 3,564,197		1,510

2) The table of changes in allowance loss for note receivables and account receivables of the Company is as follows:

	2025	2024
Balance at beginning of year	$ 1,510	1,595
Impairment loss (reversal gain)	49	(85)
Amounts written off as uncollectible for the year	(114)	-
Balance at end of year	$ 1,445	1,510

3) The Company and the financial institution sign a non-recourse agreement for the sale of account receivables. According to the contract, the Company does not have to bear the risk that the account receivables cannot be recovered, but only bears the

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

losses caused by commercial disputes. Since the Company has transferred almost all the risks and rewards of the ownership of the above account receivables and has not continued to participate in it, it has met the conditions for derecognizing financial assets. After derecognizing the claims on accounts receivable, the claims on financial institutions are listed in other receivables. Relevant information about undue factoring accounts receivable on the reporting date was as follows:

2025.12.31
Sale object	Sale amount	Amount still available in advance	Advance amount	Shown as other receivables (Note 6 (5))	Interest rate range	Other important matters
Taipei Fubon Commercial Bank	$ 290,704	-	261,633	29,071	2.21%	Guaranteed promissory note 207,438
E.Sun Bank	188,706	-	160,400	28,306	2.10%	N/A
KGI Bank	166,223	-	149,601	16,622	2.10%	Guaranteed promissory note 94,290
	$ 645,633	-	571,634	73,999		301,728
2024.12.31
---	---	---	---	---	---	---
Sale object	Sale amount	Amount still available in advance	Advance amount	Shown as other receivables (Note 6 (5))	Interest rate range	Other important matters
Taipei Fubon Commercial Bank	$ 488,200	-	439,380	48,820	2.16%	Guaranteed promissory note 216,381
E.Sun Bank	152,333	-	137,100	15,233	2.05%	N/A-
KGI Bank	144,445	-	130,000	14,445	2.29%	Guaranteed promissory note 98,355
	$ 784,978	-	706,480	78,498		314,736

For information related to the transfer of related parties' rights in account receivables that meets the derecognition conditions, please refer to Note 7.

e. Other receivables

	2025.12.31	2024.12.31
Other receivables - insurance claims (Note 6 (21))	$ -	124,428
Other receivables - account receivables sale minus advance price balance (Note 6 [4] and 7)	88,610	78,498
Other receivables - Others	2,609	150
Other receivables - related parties	7,589	3,442
	98,808	206,518
Deduction: Allowance for loss	-	-
	$ 98,808	206,518

The Company's other receivables as of December 31, 2025 and 2024 have no expected credit losses after assessment.

~38~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

f. Inventory

	2025.12.31	2024.12.31
Raw Material	$ 1,598,050	1,344,561
Work in progress	1,254,878	953,113
Finished goods	652,403	556,201
	$ 3,505,331	2,853,875

The details of inventory-related costs and expenses recognized in the cost of goods sold in the current period are as follows:

	2025	2024
Inventory cost has been sold	$ 13,041,479	13,189,639
Reversal of allowance for inventory market price decline	158,536	(118,885)
	$ 13,200,015	13,070,754

The loss of inventory falling price is the loss of inventory falling price recognized as the net realizable value due to inventory write-down. Inventory falling price recovery benefit is due to the increase in the price of some raw materials for which allowance for falling price loss has been provided at the beginning of the period, or the inventory has been sold or used, resulting in a decrease in the amount of allowance for inventory falling price loss to be recognized.

g. Investments accounted for using the equity method

	2025.12.31	2024.12.31
Subsidiaries	$ 4,603,387	4,664,325
Associates	675,123	570,747
	$ 5,278,510	5,235,072

1) Subsidiaries

Please refer to 2025 consolidated financial statements.

2) Goodwill impairment tests

For the cost of the acquisition of long-term equity investments accounted for using the equity method, if it exceeds the net fair value of identifiable assets and liabilities assumed of the investee companies on the acquisition date, the exceeded amount shall be recognized as goodwill, if there is goodwill impairment, it shall be recognized as a decrease in the book value in investment accounted for using the equity method.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

As of December 31, 2025 and 2024, goodwill derived from the merger is taken as cash generating unit under individual subsidiaries and listed as follows:

	2025.12.31	2024.12.31
Cenefom	$ 32,262	32,262
Web-Pro	24,362	24,362
	$ 56,624	56,624

The above-mentioned cash generating units are the smallest units under the return on investment of assets (including goodwill) supervised by the management. Based on the results of the goodwill impairment test conducted by the Company on the aforesaid cash generating units, the recoverable amount of the aforesaid cash generating units as of December 31, 2025 and 2024 is higher than their book value, so there is no need to recognize the impairment loss. The recoverable amount of each of the cash generating units is determined based on the value in use, and the relevant key assumptions are as follows:

The key assumptions used to estimate the value in use are as follows:

	2025.12.31	2024.12.31
Cenefom:
Operating Revenue Growth Rate	12%~82%	20%~56%
Discount rate	21.07%	20.67%
Web-Pro:
Operating Revenue Growth Rate	4.3%~14%	5.4%~24.9%
Discount rate	12.42%	12.20%

a) The estimated future cash flows used are based on the five-year financial budgets projected by management based on future operating plans, with cash flows over five years extrapolated at an annual growth rate of 1%.
b) The discount rate for determining the value in use is based on the weighted average cost of capital.

3) Associates

Name of associates	Nature of Relationship with the Company	Principal business place/country of incorporation	2025.12.31		2024.12.31
			Voting rights%	Book amount	Voting rights%	Book amount
Visco Vision Inc. (Visco Vision)	Its main business is to manufacturer and sell disposable contact lenses, and it is a strategic partner of the Company.	Taiwan	14.82%	670,713	14.82%	566,281
MLK Bioscience Co., Ltd. (MLK)	Its main business is to research, develop	Taiwan	20.00%	-	20.00%	-

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Name of associates	Nature of Relationship with the Company	Principal business place/country of incorporation	2025.12.31		2024.12.31
			Voting rights%	Book amount	Voting rights%	Book amount
Coatmed Incorporation (Coatmed)	its main business is to sell medical devices, and it is a strategic partner of the Company.	Taiwan	5.99%	4,410	7.48%	4,466
				$ 675,123		570,747

Coatmed Incorporation (hereinafter referred to as "Coatmed") made a cash capital increase in October 2025 and November 2024, and the Company did not participate in the capital increase, which reduced the Company's interest in Coatmed respectively to 5.99% and 7.48%. However, the Company still serves as a director of the company and participates in decision-making, so it has not lost significant loss of influence.

Net profit of associates of the Company in 2025 and 2024 was NT$127,654 thousand and NT$95,689 thousand, respectively.

The fair value of listed associates which have materiality to the Company is as follows:

	2025.12.31	2024.12.31
Visco Vision	$ 1,628,743	1,670,745

The summary of financial information of associates that have materiality to the Company are as follows:

a) Aggregated financial information of Visco Vision

	2025.12.31	2024.12.31
Current assets	$ 2,179,046	1,898,817
Non-current assets	3,819,761	3,404,447
Current liabilities	(1,227,506)	(1,076,187)
Non-current liabilities	(330,127)	(510,697)
Net assets	$ 4,441,174	3,716,380
Net assets attributable to non-controlling interests	$ 18,874	19,333
Net assets attributable to owners of the investee company	$ 4,422,300	3,697,047

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

	2025	2024
Operating revenue	$ 4,223,200	3,671,640
Net profit for the period	$ 886,612	638,327
Other comprehensive income (loss)	159,482	246,836
Total comprehensive income	$ 1,046,094	885,163
Total comprehensive profit or loss attributable to non-controlling interests	$ (459)	1,856
Total comprehensive income attributable to owners of the investee company	$ 1,046,553	883,307
	2025	2024
The Company's share of net assets of associates at the beginning of the period	$ 566,281	457,486
Net profits attributable to the Company in the current period	128,305	100,327
Other comprehensive income attributable to the Company in the current period	23,729	30,869
Dividends received from associates in the current period	(47,602)	(22,401)
Book value of the Company's equity in associates at the end of the period	$ 670,713	566,281

b) The aggregated financial information of individual insignificant associates accounted for using the equity method of the Company is as follows, and such financial information is the amount included in Parent Company Only Financial Statements of the Company:

	2025.12.31	2024.12.31
Aggregated book value of equity of individual insignificant associates at the end of the period	$ 4,410	4,466
	2025	2024
Share attributable to the Company:
Net loss of the period	$ (651)	(4,638)
Other comprehensive income (loss)	-	(1)
Total comprehensive income	$ (651)	(4,639)

h. Changes in ownership interest in subsidiaries

In 2024, the Company increased its shareholding in Genejet by NT$2,600 thousand in cash, which increased the equity held by the Company from 75.63% to 79.35%.

~41~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The effects of the above-mentioned changes in the ownership interest of subsidiaries on the Company's equity are as follows:

	2025	2024
Retained earnings - difference between the acquisition price of the subsidiary's equity and the book value	$ -	(395)

i. Property, plant and equipment

	Land	Housing and structures	Machinery equipment	Others	Total
Cost:
Balance as of January 1, 2025	$ 1,344,108	2,722,781	5,998,975	4,908,311	14,974,175
Addition	-	155,675	479,951	681,148	1,316,774
Disposal	-	-	(75,245)	(914)	(76,159)
Reclassification	-	777,444	718,377	(1,498,454)	(2,633)
Balance as of December 31, 2025	$ 1,344,108	3,655,900	7,122,058	4,090,091	16,212,157
Balance as of January 1, 2024	$ 1,344,108	2,573,172	5,421,660	3,429,746	12,768,686
Addition	-	65,851	344,276	1,823,436	2,233,563
Disposal	-	-	(19,909)	(5,490)	(25,399)
Reclassification	-	83,758	252,948	(339,381)	(2,675)
Balance as of December 31, 2024	$ 1,344,108	2,722,781	5,998,975	4,908,311	14,974,175
Accumulated depreciation:
Balance as of January 1, 2025	$ -	1,652,149	4,908,297	1,942,125	8,502,571
Depreciation for the period	-	132,344	319,145	182,983	634,472
Disposal	-	-	(75,245)	(914)	(76,159)
Balance as of December 31, 2025	$ -	1,784,493	5,152,197	2,124,194	9,060,884
Balance as of January 1, 2024	$ -	1,558,183	4,680,130	1,803,863	8,042,176
Depreciation for the period	-	93,966	248,076	143,752	485,794
Disposal	-	-	(19,909)	(5,490)	(25,399)
Balance as of December 31, 2024	$ -	1,652,149	4,908,297	1,942,125	8,502,571
Carrying Value:
December 31, 2025	$ 1,344,108	1,871,407	1,969,861	1,965,897	7,151,273
December 31, 2024	$ 1,344,108	1,070,632	1,090,678	2,966,186	6,471,604

For the details of real estate, plant, and equipment that have been used as guarantees for long-term borrowings and financing lines, please refer to Note 8 for details.

~43~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

j. Right-of-use Assets

	Housing and structures
Right-of-use assets cost:
Balance as of January 1, 2025
(i.e., balance as of December 31, 2025)	$ 528,442
Balance as of January 1, 2024	$ 539,018
Derecognition in the current period	(10,576)
Balance as of December 31, 2024	$ 528,442
Accumulated depreciation of right-of-use assets:
Balance as of January 1, 2025	$ 209,122
Depreciation for the period	100,136
Balance as of December 31, 2025	$ 309,258
Balance as of January 1, 2024	$ 118,454
Depreciation for the period	101,244
Disposition for the period	(10,576)
Balance as of December 31, 2024	$ 209,122
Carrying Value:
December 31, 2025	$ 219,184
December 31, 2024	$ 319,320

k. Intangible assets

	Purchased software	Others	Total
Cost:
Balance as of January 1, 2025	$ 355,072	512	355,584
Separate acquisition	39,902	-	39,902
Decrease in the period	(15,639)	-	(15,639)
Reclassification	2,633	-	2,633
Balance as of December 31, 2025	$ 381,968	512	382,480
Balance as of January 1, 2024	$ 324,436	512	324,948
Separate acquisition	27,961	-	27,961
Reclassification	2,675	-	2,675
Balance as of December 31, 2024	$ 355,072	512	355,584

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

	Purchased software	Others	Total
Accumulated amortization:
Balance as of January 1, 2025	$ 332,204	512	332,716
Amortization for the period	34,097	-	34,097
Decrease in the period	(15,639)	-	(15,639)
Balance as of December 31, 2025	$ 350,662	512	351,174
Balance as of January 1, 2024	$ 302,008	512	302,520
Amortization for the period	30,196	-	30,196
Balance as of December 31, 2024	$ 332,204	512	332,716
Carrying Value:
December 31, 2025	$ 31,306	-	31,306
December 31, 2024	$ 22,868	-	22,868

I. Short-term borrowings

	2025.12.31	2024.12.31
Unsecured bank loans	$ 3,050,000	2,200,000
Unused credit line	$ 7,252,932	7,295,529
Interest rate range	1.85%~1.95%	1.87%~1.99%

m. Long-term borrowings

	2025.12.31	2024.12.31
Unsecured bank loans	$ 6,899,220	4,821,570
Secured bank loans	-	1,360,000
Less: Borrowings due within one year	(469,192)	(330,693)
Total	$ 6,430,028	5,850,877
Unused credit line	$ 2,244,000	4,931,440
Expiration year	2025~2034	2025~2034
Interest rate range	1.88%~2.10%	1.88%~2.38%

1) Collateral for bank loans

Refer to Note 8 for details on assets pledged as collateral for secured bank borrowings.

2) Government low-interest loans

The Company obtained low-interest bank loans in accordance with the "Action Plan for Welcoming Overseas Taiwanese Business to Return to Invest in Taiwan", the actual repayment preferential interest rates as of December 31, 2025 and 2024 were

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

1.38% to 1.73% and 1.38% to 1.73%, respectively. The actual amount of transfer amounted to NT$4,067,483 thousand and NT$3,243,027 thousand, respectively. The fair value of the loan was NT$4,007,791 thousand and NT$3,191,663 thousand based on market interest rates of 1.88% to 2.03% and 1.88% to 2.03%, respectively, and the difference of NT$59,692 thousand and NT$51,364 thousand, respectively, is considered as government subsidies and recognized as deferred income. The deferred revenue balance mentioned above in the year ended December 31, 2025 and 2024 was $18,263 thousand and $21,457 thousand, respectively. In the year ended December 31, 2025 and 2024, the aforementioned deferred revenue was reclassified to "other income" in the amount of $11,523 thousand and $10,945 thousand, respectively.

3) Financial ratio agreement in loan contract

According to the provisions of the joint loan contract with the bank, the Company shall calculate and maintain the agreed current ratio, debt ratio, and minimum tangible net worth, and other financial ratios during the duration of the loan in accordance with the annual consolidated financial statements verified by the accountant. If the aforementioned financial ratios do not meet the agreed standards, the Company may submit an exemption application and improvement plan to the management bank in accordance with the provisions of the joint loan contract. Most syndicated lending banks do not regard it as a breach of contract until they reach a resolution.

The financial ratios of the Company as of December 31, 2025 and 2024 were in compliance with the agreed standards of the joint loan contract.

n. Lease liabilities

The carrying amount of lease liabilities is as follows:

	2025.12.31	2024.12.31
Current:
Stakeholders	$ 96,394	94,852
Non-related parties	$ 5,173	4,966
Non-current:
Stakeholders	$ 98,133	194,527
Non-related parties	$ 26,283	31,455

Please refer to financial risk management of Note 6 (23) for expiry analysis.

The amounts recognized in profit or loss were as follows:

	2025	2024
Short-term lease expense	$ 6,070	4,824
Interest expense – lease obligations payable	$ 5,013	6,790

~46~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The amounts recognized in the statements of cash flows are:

	2025	2024
Total cash flows on lease	$ 110,900	110,811

1) Lease of buildings and constructions

The Company leases houses and buildings as factories and dormitory with the lease term of five to ten years usually. If the lease expires, a new contract and rate must be negotiated, the Company will reassess the relevant right-of-use assets and lease liabilities.

2) Other leases

The lease period for the part of the plants and equipment, that the Company leases is one year. These leases are short-term leases. The Company chooses to apply the exemption requirements and does not recognize its related right-of-use assets and lease liabilities.

o. Employee benefits

1) Defined benefit plans

The reconciliation between the present value of the defined benefit obligations and the fair value of the plan assets of the Company is as follows:

	2025.12.31	2024.12.31
Present value of defined benefit obligations	$ 70,803	62,372
Fair value of plan assets	(62,940)	(56,285)
Net defined benefit liabilities (listed as other non-current liabilities)	$ 7,863	6,087

The Company makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pensions for employees upon retirement. The retirement payment of each employee subject to the Labor Standards Law is calculated based on the base number of years of service and the average salary of the six months before retirement.

a) Composition of plan assets

The retirement fund contributed by the Company in accordance with the Labor Standards Act is managed by the Bureau of Labor Funds Utilization, Ministry of Labor (hereinafter referred to as Bureau of Labor Funds), and utilized according to the provisions of "Regulations on Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund"; with regard to the utilization of the funds, lowest earnings in final settlement shall not be less than the earnings

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

attainable from two- year time deposits with interest rates offered by local banks.

As of December 31, 2025 and 2024, the balances of the Taiwan Bank's special account for labor retirement reserves of the Company were NT$62,940 thousand and NT$56,285 thousand, respectively. For information on the utilization of the labor pension fund assets including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

b) Movements in present value of the defined benefit obligations

	2025	2024
Service cost and interest of the period	$ 62,372	65,565
Current interest cost	1,320	1,225
Remeasurement of net defined benefit liabilities
— Actuarial profits and losses due to experience adjustments	5,702	2,368
— Actuarial profits or losses arising out of changes in financial assumptions	2,037	(2,039)
Benefits that are planned to pay	(628)	(4,747)
Service cost and interest of the end period	$ 70,803	62,372

c) Changes in the fair value of planned assets

	2025	2024
Fair value of plan assets at beginning period	$ 56,285	53,449
Interest revenue	1,214	1,018
Remeasurement of net defined benefit liabilities
— Actuarial loss	3,681	4,300
Funds contributed by the employer	2,388	2,265
Benefits that are planned to pay	(628)	(4,747)
Fair value of plan assets at end period	$ 62,940	56,285

d) Change of asset upper limit impacts

The Company did not determine the impact of the maximum number of assets of the defined benefit plans in 2025 and 2024.

e) Expenses recognized in profit or loss

	2025	2024
Net interest on net defined benefit liability assets	$ 106	207
Operating costs	$ 52	113
Operating expenses	54	94
	$ 106	207

~48~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

f) Remeasurement of the net defined benefit liability recognized as other comprehensive revenue

	2025	2024
Accumulated balance at beginning period	$ (25,874)	(29,845)
Recognition of the period	(4,058)	3,971
Accumulated balance at end of period	$ (29,932)	(25,874)

g) Actuarial assumptions

The significant actuarial assumptions used by the Company to determine the present value of welfare obligations at the financial reporting date are as follows:

	2025.12.31	2024.12.31
Discount rate	1.875%	2.125%
Future salary increases rate	3.00%	3.00%

The Company expects to pay NT$2,427 thousand to the defined benefit plan within one year after the reporting date. The weighted average duration of defined benefit plans is 15.30 years.

h) Sensitivity analysis

	Impact on defined benefit obligations
	Increase by 0.25%	Decrease by 0.25%
December 31, 2025
Discount rate	(2,037)	2,111
Future salary increases rate	2,045	(1,985)
December 31, 2024
Discount rate	(1,955)	2,039
Future salary increases rate	1,983	(1,910)

With other assumptions unchanged, above sensitivity analysis analyzes effects of changes in single assumption. In practice, many changes in assumptions may be linked together. The method used for the sensitivity analysis and calculation of the net defined benefit pension liability is the same. The sensitivity analysis is consistent with the method used to calculate the net pension liabilities of the balance sheet. The method and assumptions used for the preparation of the sensitivity analysis for the current period are the same as those used in the previous period.

2) Defined contribution plans

The definite allocation plan of the Company is in accordance with the provisions of the Labor Pension Regulations, and is allocated to the labor pension individual

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

account of the Labor Insurance Bureau at a rate of 6% of the labor's monthly salary. CMP's contributions to the Bureau of Labor Insurance and Social Security Bureau for the employees' pension benefits require no further payment of additional legal or constructive obligations.

The details of the following methods for determining the appropriation of pensions are as follows:

	2025	2024
Operating costs	$ 44,566	40,860
Operating expenses	31,741	29,517
	$ 76,307	70,377

p. Income tax

1) Income tax fee (benefit)

	2025	2024
Income tax expenses of the period (benefit)
Accrued in current year	$ 4,849	(13,270)
Deferred income tax (benefit) expenses
Occurrence and reversal of temporary differences	(17,625)	41,572
Income tax (benefit) fee	$ (12,776)	28,302

There was no income tax that was directly recognized in equity or other comprehensive income for the Company in 2025 and 2024.

The reconciliation of income tax expenses (benefit) and income before income tax (loss) for 2025 and 2024 were as follows:

	2025	2024
Profit (loss) before tax	$ (377,234)	227,508
Income tax calculated by domestic tax rate of the Company's domicile	$ (75,447)	45,502
Domestic investment gains recognized under equity method	(37,920)	(30,480)
Non-deductible impairment and expenses	58,467	7,974
Gains from tax exemption	(336)	(336)
Unrecognized loss carryforwards changes	12,203	-
5% additional tax on undistributed earnings	3,640	-
Others	26,617	5,642
Income tax (benefit) fee	$ (12,776)	28,302

~50~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

2) Deferred tax assets and liabilities

a) Unrecognized deferred tax assets

Items not recognized as deferred tax assets by the Company are as follows:

	2025.12.31	2024.12.31
Tax loss	$ 12,203	-

Tax losses, as stipulated by the Income Tax Act, refer to losses incurred in the preceding ten years that have been approved by the tax authorities and may be offset against the current year's net income for income tax assessment purposes. These items are not recognized as deferred income tax assets because the Company is not likely to have sufficient taxable income for the temporary differences in the future.

As of December 31, 2025, the tax losses of the Company's unrecognized deferred tax assets, the deduction period is as follows:

Amount of deductible losses	The number of losses that have not been deducted from the deduction of tax	Final year that tax may be deducted
$ 61,015	12,203	2035

b) Recognized deferred tax assets and liabilities

Changes in deferred tax assets and liabilities of 2025 and 2024 are as follows:

Deferred income tax assets:

	Allowance for loss of inventory depreciation	Deductible loss	Fixed asset tax differential	Allowance for sales discount	Others	Total
January 1, 2025	$ 56,962	31,868	29,322	17,871	37,504	173,527
(Debit) credit revenue statement	31,707	(3,394)	415	(1,719)	1,706	28,715
December 31, 2025	$ 88,669	28,474	29,737	16,152	39,210	202,242
January 1, 2024	$ 80,739	-	28,907	15,795	71,937	197,378
(Debit) credit revenue statement	(23,777)	31,868	415	2,076	(34,433)	(23,851)
December 31, 2024	$ 56,962	31,868	29,322	17,871	37,504	173,527

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Deferred tax liabilities:

	Share of profit from subsidiaries accounted under equity method	Others	Total
January 1, 2025	$ 259,528	17,778	277,306
Debit (credit) income statement	25,012	(13,922)	11,090
December 31, 2025	$ 284,540	3,856	288,396
January 1, 2024	$ 247,319	12,266	259,585
Debit (credit) income statement	12,209	5,512	17,721
December 31, 2024	$ 259,528	17,778	277,306

As of December 31, 2025, the loss deduction and tax amount of the Company's unrecognized deferred tax assets, the deduction period is as follows:

Amount of deductible losses	The number of losses that have not been deducted from the deduction of tax	Final year that tax may be deducted
$ 142,370	28,474	2035

c) Income tax approved

The ROC income tax authorities have examined the Company's income tax returns up to 2023.

q. Capital and other equity

1) Common stock

As of December 31, 2025 and 2024, the total value of nominal capital stock amounted to NT$4,800,000 thousand for both years, with a par value of NT$10 per share, consisting of 480,000 thousand shares each year. There were 320,675 thousand of ordinary shares being issued.

2) Capital surplus

The details of capital reserve were as follows:

	2025.12.31	2024.12.31
Changes in net equity of associates accounted under equity method	$ 193,709	193,114

In accordance with the Company Act, the capital surplus generated from the premium of stock issuance and donation may only be used to offset accumulated deficits. The aforementioned realized capital reserve includes capital reserve resulting

~52~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

from premium on issuance of capital stock and earnings from donated assets received. In accordance with the provisions of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the capital surplus may be capitalized, and the combined amount of any portions capitalized may not exceed 10% of the paid-in capital each year.

3) Retained earnings

According to the Company's Articles of Incorporation, if there is a surplus in the annual final accounts, tax should be paid first to make up for previous losses, 10% of the statutory surplus reserve should be raised, and the special surplus reserve should be set aside or converted according to laws and regulations. If there is still surplus and accumulate undistributed surplus, the Board of Directors shall draft a surplus distribution plan and submit it to the shareholders meeting for resolution and distribution.

When the legal reserve and capital surplus are to be distributed in cash, the distribution may be approved by the Board of Directors and reported to the shareholders' meeting.

According to the Company's Articles of Incorporation, the Company is a technology- and capital-intensive industry that is in the midst of a growth period. In order to cooperate with long-term capital planning and meet shareholders' demand for cash flow, the Company's dividend policy adopts a residual dividend policy to improve the Company's growth and sustainable operation. If the Company has a surplus after the annual final accounts, it shall pay taxes in accordance with the regulations to make up for the previous losses. The 10% of the second increase is the statutory surplus reserve, and after the special surplus reserve is drawn or converted in accordance with the law. If there is still a surplus, the dividend distribution shall not be less than 10% of the aforementioned calculated surplus. When dividends are distributed, in order to consider the needs of future expansion of the scale of operations and cash flow, the proportion of annual cash dividends shall not be less than 10% of the combined cash and stock dividends of the current year.

a) Legal reserve

When there is no loss in the Company, the statutory surplus reserve will be used to issue new shares or cash upon resolution by the Shareholders' Meeting, to the limit of the part of the reserve that has exceeded 25% of the paid-in amount.

b) Special reserve

According to regulations of Financial Supervisory Commission, when the Company distributes the distributable surplus, the net deduction of other

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

shareholders' equity in the current year is reported, the net profit for the current period and items other than net profit for the current period are added to the undistributed surplus for the current period, and the special reserve is drawn from it and the undistributed surplus in the previous period. For the deduction of other shareholders' equity accumulated in the previous period, the same amount of special reserve shall not be distributed from the undistributed surplus in the previous period. If other stockholders' equity deductions are reversed afterward, the reversal may be applicable for the appropriation of earnings.

c) Earnings distribution

The 2024 and 2023 distributions of earnings were resolved at the directors' meetings held on February 24, 2025 and February 22, 2024, respectively, the cash dividends distributions are as follows:

	2024		2023
	Earnings Per Share (NT$)	Amount	Earnings Per Share (NT$)	Amount
Dividends to ordinary shareholders:
Cash	$ 0.62	198,818	1.20	384,809

The 2025 distributions of earnings were resolved at the directors' meetings held on February 24, 2026, the cash dividends distributions are as follows:

	2025
	Earnings Per Share (NT$)	Amount
Dividends to ordinary shareholders:
Cash	$ 0.30	96,202

Relevant information can be inquired through channels such as Market Observation Post System.

~54~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

d) Other equity (after tax)

	Exchange differences arising on translation of financial statements of foreign operations	Unrealized profit (loss) on investments in equity instruments at fair value through other comprehensive income	Remeasurement of defined benefit plans	Total
January 1, 2025	$ 53,701	(18,343)	(23,782)	11,576
The exchange differences yielded by net assets of overseas operating institutions:
The Consolidated Company	(16,584)	-	-	(16,584)
Associates	27,860	-	-	27,860
Remeasurement of defined benefit plans	-	-	(4,058)	(4,058)
Share of other comprehensive income of subsidiaries and associates accounted for using the equity method	-	(4,131)	(80)	(4,211)
Unrealized profit (loss) on investments in equity instruments at fair value through other comprehensive income	-	(24,978)	-	(24,978)
Balance as of December 31, 2025	$ 64,977	(47,452)	(27,920)	(10,395)
January 1, 2024	$ (44,495)	(20,011)	(28,178)	(92,684)
The exchange differences yielded by net assets of overseas operating institutions:
The Consolidated Company	67,328	-	-	67,328
Associates	30,868	-	-	30,868
Remeasurement of defined benefit plans	-	-	3,971	3,971
The re-measured share of the defined benefit plans of the subsidiary adopting the equity method	-	-	425	425
Unrealized profit (loss) on investments in equity instruments at fair value through other comprehensive income	-	1,668	-	1,668
Balance as of December 31, 2024	$ 53,701	(18,343)	(23,782)	11,576

r. Earnings (Loss) per share

1) Basic earnings (loss) per share

	2025	2024
Net profit (loss) attributable to holders of common equity of the Company	$ (364,458)	199,206
The weighted average number of shares outstanding (thousand shares)	320,675	320,675
Basic earnings (loss) per share (NT$)	$ (1.14)	0.62

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

2) Diluted earnings (loss) per share

	2025	2024
Net profit (loss) attributable to holders of common equity of the Company	$ (364,458)	199,206
The weighted average number of shares outstanding (thousand shares)	320,675	320,675
Effect of potentially dilutive shares of common stocks (thousand shares):
Impact of employee compensation	-	1,053
The weighted average number of shares outstanding (thousand shares) (After adjusting the number of dilutive potential common shares impact)	320,675	321,728
Diluted earnings (loss) per share (NT$)	$ (1.14)	0.62

As the Company incurred an operating loss in 2025, the potential ordinary shares with dilutive effects were not included in the calculation of loss per share.

s. Revenue from contracts with customers

1) Disaggregation of revenue

	2025
	Film sheet segment	Medical segment	Total
Primary geographical markets:
China	$ 7,836,274	715,142	8,551,416
Taiwan	3,999,179	873,437	4,872,616
Others	475,777	616,634	1,092,411
	$ 12,311,230	2,205,213	14,516,443
Main products/services:
Functional sheet	$ 12,311,230	-	12,311,230
Medical Products	-	2,205,213	2,205,213
	$ 12,311,230	2,205,213	14,516,443
	2024
	Film sheet segment	Medical segment	Total
Primary geographical markets:
China	$ 8,347,196	640,479	8,987,675
Taiwan	4,409,202	924,734	5,333,936
Others	264,895	618,611	883,506
	$ 13,021,293	2,183,824	15,205,117
Main products/services:
Functional sheet	$ 13,021,293	-	13,021,293
Medical Products	-	2,183,824	2,183,824
	$ 13,021,293	2,183,824	15,205,117

~56~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

2) Contract balances

	2025.12.31	2024.12.31	2024.1.1
Notes receivables and accounts receivables (including related parties)	$ 2,825,903	3,564,197	2,897,145
Deduction: Allowance for loss	(1,445)	(1,510)	(1,595)
Total	$ 2,824,458	3,562,687	2,895,550
	2025.12.31	2024.12.31	2024.1.1
Contract liabilities (accounted under other current liabilities)	$ 10,349	23,235	43,675

Please refer to Note 6 (4) for details on accounts receivable and related loss allowance.

Amount of contract liabilities for the period starting from January 1, 2025 and 2024, recognized as income in 2025 and 2024, were NT$21,356 thousand and NT$32,765 thousand, respectively.

t. Employee and directors' compensation

On May 28, 2025, the shareholders' meeting resolved to amend the Company's Articles of Incorporation. According to the amended Articles, if there are profits in a given year, the Company shall allocate 5% to 20% of such profits as employee compensation (of which the compensation for grassroots employees shall not be less than 10%) and no more than 1% as directors' remuneration. When there are accumulated losses, the Company shall offset the appropriate amounts before remuneration. The employee compensation in the preceding paragraph may include employees of affiliated companies who meet certain conditions for the payment of stocks or cash. According to the pre-amended articles of association, if the Company has earnings, it shall set aside 5-20% of the balance as remuneration to the employees and no greater than 1% of the balance as remuneration to directors. When there are accumulated losses, the Company shall offset the appropriate amounts before remuneration. The employee compensation in the preceding paragraph may include employees of affiliated companies who meet certain conditions for the payment of stocks or cash.

In 2024, the Company's employee bonus was set aside for NT$25,491 thousand, and the director's bonus was set aside for NT$1,912 thousand, which are estimated on the basis of the Company's pre-tax net profit before deducting the bonus of employees and directors in the period multiplied by the distribution percentage of the bonus of employees and directors stipulated in the Articles of Incorporation of the Company, and reported as the operating cost or expenses of 2024. As the Company incurred an operating loss in 2025, no employee compensation or directors' remuneration was

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

estimated. Upon any variance between the distribution of next year and the estimated amount, a change of accounting estimate shall follow and recognize in the profit or loss of next year. The compensation for employees and directors of the Company decided by the Board of Directors is not different from the estimated amount in the Company's Individual Financial Statements for the year of 2024, and it is issued in cash. For the relevant information, please refer to the Market Observation Post System Inquire.

u. Non-operating profit and loss

1) Interest revenue

	2025	2024
Interests on bank deposits	$ 7,692	12,186

2) Other revenue

	2025	2024
Dividend revenue	$ 1,680	1,680
Government subsidy revenue	11,894	25,793
	$ 13,574	27,473

3) Other gains and losses

	2025	2024
Profits from disposal of real estate, plant, and equipment	$ 5	906
Net gain (loss) on foreign currency exchange	(34,377)	244,916
Net losses from financial assets (liabilities) at fair value through profit or loss	25,594	(422,466)
Earthquake Disaster Loss	(2,991)	(124,428)
Insurance Claims Income	100,057	124,428
Others	33,881	33,061
	$ 122,169	(143,583)

Due to the earthquake that occurred in the Taiwan region on April 3, 2024, the Company has experienced damage to certain plants, equipment, and inventory. The total amount of losses before insurance compensation as of December 31, 2025 was 127,419 thousand (including inventory losses of 110,936 thousand and equipment repair losses of 16,483 thousand). Of this amount, 124,428 thousand had been recognized in 2024, and an additional equipment repair loss of 2,991 thousand was recognized in 2025. The losses incurred in the current period were recorded under other gains and losses. However, the Company has purchased property insurance and business interruption insurance. According to the terms of the property insurance

~57~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

contract, the Company is entitled to receive compensation for the aforementioned earthquake losses. Therefore, the Company recognized insurance compensation income related to property insurance, up to the amount of the recognized losses. As of December 31, 2024, the insurance compensation receivable was recognized under "Other Receivables". Additionally, as of December 31, 2025, the Company had received insurance claim proceeds totaling NT$224,485 thousand from the insurance company, and the insurance claims relating to the aforementioned earthquake disaster have been fully settled.

4) Financial costs

	2025	2024
Interest expenses of bank loans	$ (158,602)	(124,056)
Lease liabilities	(5,013)	(6,790)
	$ (163,615)	(130,846)

v. Types of financial instruments and fair value

1) Types of financial instruments

a) Financial assets

	2025.12.31	2024.12.31
Financial assets at fair value through profit or loss:
Foreign exchange forward contracts	$ -	1,457
Exchange contracts	1,010	-
Stocks listed in the emerging stock market in Taiwan	107,827	-
Subtotal	108,837	1,457
Financial assets at fair value through other comprehensive income	136,537	161,515
Financial assets at amortized cost:
Cash and Cash Equivalents	416,104	281,737
Notes receivable, accounts receivables, and other receivables (including related parties)	2,923,266	3,769,205
Other financial assets - current	11,369	14,736
Guarantee deposits paid	8,789	8,424
Subtotal	3,359,528	4,074,102
Total	$ 3,604,902	4,237,074

~58~

~59~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

b) Financial liabilities

	2025.12.31	2024.12.31
Financial liabilities at fair value through profit and loss:
Foreign exchange forward contracts	$ -	1,570
Exchange contracts	13,888	28,656
Subtotal	13,888	30,226
Financial liabilities measured at amortized cost:
Short-term borrowings	3,050,000	2,200,000
Account payables and other receivables (including related parties)	4,485,449	4,679,669
Long-term borrowings (including loans due within one year)	6,899,220	6,181,570
Lease liabilities - current and non-current (including related parties)	225,983	325,800
Guarantee deposits received	258	342
Subtotal	14,660,910	13,387,381
Total	$ 14,674,798	13,417,607

2) Information of fair value

a) Financial instruments that is not measured at fair value

The management of the Company believes that the financial assets and financial liabilities of the Company classified as amortized cost is close to their fair value in the Parent Company Only Financial Statements.

b) Financial instruments measured at fair value

The following financial instruments are measured at fair value on the basis of repeatability. The table below provides an analysis of financial instruments measured subsequent to initial recognition at fair value, which are grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Each level of the fair value hierarchy is defined as follows:

i. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

ii. Level 2: Level 2 inputs are inputs other than quoted market prices included within Level I that are observable for the asset or liability, either directly (i.e., price) or indirectly (i.e., derived from prices).

iii. Level 3: Level 3 inputs are inputs for the asset or liability that are not based on observable market data (unobservable parameters).

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

	2025.12.31
	Book amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss:
Exchange contracts	1,010	-	1,010	-	1,010
Stocks listed in the emerging stock market in Taiwan	107,827	-	107,827	-	107,827
Subtotal	$ 108,837	-	108,837	-	108,837
Financial assets at fair value through other comprehensive income:
Stocks listed on the Taipei Exchange	59,472	59,472	-	-	59,472
Non-listed Stocks	77,065	-	-	77,065	77,065
Subtotal	$ 136,537	59,472	-	77,065	136,537
Financial liabilities at fair value through profit and loss:
Exchange contracts	$ 13,888	-	13,888	-	13,888
	2024.12.31
---	---	---	---	---	---
	Book amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss:
Foreign exchange forward contracts	$ 1,457	-	1,457	-	1,457
Financial assets at fair value through other comprehensive income:
Stocks listed in the emerging stock market in Taiwan	$ 64,764	-	64,764	-	64,764
Non-listed Stocks	96,751	-	-	96,751	96,751
Subtotal	$ 161,515	-	64,764	96,751	161,515
Financial liabilities at fair value through profit and loss:
Foreign exchange forward contracts	$ 1,570	-	1,570	-	1,570
Exchange contracts	28,656	-	28,656	-	28,656
Subtotal	$ 30,226	-	30,226	-	30,226

3) The assessment methods and assumptions followed for assessing fair value

a) Non-derivative financial instruments

If there is open quotation to financial instruments at active market, then the open quotation will be taken as fair value.

If the public quotation of a financial instrument can be obtained from an exchange, broker, underwriter, industry association, pricing service agency or competent authority in a timely and frequent manner, and the price represents the actual and regular fair market transactions, then the financial instrument has an active market quotation. If the aforesaid conditions fail, the market is not deemed as active.

Stocks of OTC companies are traded in an active market with standard terms and conditions, and their fair values are determined based on market quotations.

~61~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

The fair value of the domestic stocks held by the Company is estimated based on the average transaction price of the stock market on the day.

The fair value of the Company's unlisted stocks without an active market is primarily estimated using the market approach, with reference to valuations of comparable companies, the investees' net worth, and their operating conditions. In addition, the significant unobservable inputs mainly comprise liquidity discount, in which the possible changes would not result in a potentially material financial effect. Therefore, the Company does not disclose the quantitative information.

b) Derivative financial instruments

It is evaluated with evaluation model widely accepted by market users. Forward exchange contracts and exchange contracts are usually valued based on current forward exchange rates.

4) Fair value level and transfer

The shares of LAGIS ENTERPRISE CO., originally classified under Level 2 financial assets measured at fair value through other comprehensive income, were transferred from Level 2 to Level 1 in 2025 because Chang Guang was listed on the Taipei Exchange on December 10, 2025.

The Company did not have any financial assets and liabilities transferred in the fair value hierarchy in 2024.

5) Statement of changes in Level 3 fair value hierarchy:

Financial assets at fair value through other comprehensive income:

	2025	2024
Balance at beginning of year	$ 96,751	96,007
Changes in other comprehensive income recognized
in the current period	(19,686)	744
Balance at end of year	$ 77,065	96,751

w. Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk, and equity instrument price risk) due to its business activities. This note demonstrates the risk information of the aforementioned various risks of the Company, and the Company's policies and procedures for measuring and managing these risks, and quantitative disclosure.

The Board of Directors of the Company is responsible for developing and controlling the risk management policy of the Company. The establishment of the risk management policy is to identify and analyze the risks faced by the Company, set appropriate risk limits and

~62~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

controls, and supervise the compliance of risks and risk limits. Risk management policies and systems are reviewed regularly to reflect changes market conditions and the Company's activities.

The Company's management supervises and reviews financial activities in accordance with relevant regulations and the internal control system. Internal auditors perform a supervisory role and regularly report the results of their reviews to the Board of Directors.

1) Credit risk

Credit risk refers to the risk of the financial loss of the Company due to the failure of the counterparty to perform the contractual obligations. As of the financial report date, the main potential credit risk of the Company comes from financial assets such as bank deposits and accounts receivable from customers. The book value of the Company's financial assets represents the maximum credit risk amount.

The deposits and derivative financial products of the Company are traded in banks with good credit, and no significant credit risk will arise.

Due to the characteristics of the industry, the film sheet products of the Company are concentrated in a small number of customers, which makes the Company have a significant concentration of credit risk. As of December 31, 2025 and 2024, the ratio of the top five customers in the balance of accounts receivable (including related parties) was 46% and 53%, respectively. The Company has established a credit policy, according to which each customer's credit status is analyzed individually to determine its credit limit, and the customer's financial status is continuously evaluated on a regular basis and insurance is used to reduce risks.

2) Liquidity Risks

Liquidity risk refers to the risk that the Company fails to deliver cash or other financial assets to pay off financial liabilities and fails to fulfill relevant obligations. The Company regularly monitors current and expected medium and long-term funding needs, and manages liquidity risks by maintaining sufficient cash and cash equivalents and bank financing lines, and ensuring compliance with the terms of the loan contract.

The unused loan amounts of the Company as of December 31, 2025 and 2024 amounted to NT$9,496,932 thousand and NT$12,226,969 thousand, respectively.

The following table illustrates the analysis of the remaining contractual maturity of financial liabilities during the agreed repayment period of the Company, including interest payable, which is based on the earliest date on which the Company may be required to repay and is compiled with undiscounted cash flows.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

	Contract cash flow	Within 6 months	6-12 months	1-5 years	More than 5 years
December 31, 2025
Non-derivative financial liabilities
Short-term borrowings	$ 3,061,163	2,558,742	502,421	-	-
Accounts payable (including related parties)	3,270,155	3,270,155	-	-	-
Other payables (including related parties)	1,215,294	1,215,294	-	-	-
Long-term borrowings (Floating rate)	7,280,415	212,658	392,379	5,513,636	1,161,742
Lease liabilities (including related parties)	231,282	52,352	52,429	122,630	3,871
Guarantee deposits received	258	-	-	-	258
	$15,058,567	7,309,201	947,229	5,636,266	1,165,871
Exchange contracts - Net delivery	$ 13,888	13,888	-	-	-
December 31, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 2,210,766	1,706,868	503,898	-	-
Accounts payable (including related parties)	3,479,018	3,479,018	-	-	-
Other payables (including related parties)	1,200,651	1,200,651	-	-	-
Long-term borrowings (Floating rate)	6,592,981	225,609	232,097	5,115,286	1,019,989
Lease liabilities (including related parties)	336,113	52,499	52,332	221,525	9,757
Guarantee deposits received	342	-	-	-	342
	$13,819,871	6,664,645	788,327	5,336,811	1,030,088
Forward foreign exchange contracts - Total delivery:
Inflows	$ (491,637)	(491,637)	-	-	-
Outflows	493,207	493,207	-	-	-
Exchange contracts - Net delivery	28,656	28,656	-	-	-
	$ 30,226	30,226	-	-	-

The Company does not expect a significant difference in the cash flows timing or the actual amount from the maturity analysis.

3) Market risk

Market risk refers to the risk that changes in market prices, such as exchange rate, interest rate, and equity instrument price will affect the earnings of the Company or the value of the financial instruments it holds. Financial risk management aims to manage the level of exposure to market risk within an acceptable range and maximize return on investment.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

In order to manage market risks, the Company engages in derivative transactions, and its use is regulated by the policies adopted by the Board of Directors. Generally, the Company adopts hedging operations to manage profit and loss fluctuations.

a) Exchange Rate Risk

The Company is exposed to exchange rate risk arising out of sales, procurement, and loan transactions through the functional currency valuation of the Group's enterprises. The functional currency of the Company is NTD. These non-functional currency transactions are mainly denominated in USD and JPY.

The hedging strategy of the Company is to sign forward foreign exchange contracts and exchange contracts to manage the exchange rate risk of the net foreign currency positions generated by the sales and purchase transactions that have occurred.

i. Risk and sensitivity analysis of exchange rate risk

The exchange rate risk of the Company mainly comes from foreign currency denominated cash and cash equivalents, accounts receivable (payment) (including related parties), other receivables (payments) (including related parties), bank loans, etc. Foreign currency exchange gains and losses occur at the time of conversion. The book value of major monetary assets and liabilities of the Company that are not denominated in functional currencies at the reporting date are as follows:

2025.12.31
	Foreign Currency	Exchange rate	New Taiwan Dollar	Exchange rate changes	Profit and loss impact
Financial assets
USD	$ 90,838	31.430	2,855,038	1%	28,550
JPY	32,085	0.2007	6,439	1%	64
Financial liabilities
USD	45,517	31.430	1,430,599	1%	14,306
JPY	7,176,891	0.2007	1,440,402	1%	14,404
2024.12.31
	Foreign Currency	Exchange rate	New Taiwan Dollar	Exchange rate changes	Profit and loss impact
Financial assets
USD	$ 104,023	32.785	3,410,394	1%	34,104
JPY	22,517	0.2099	4,726	1%	47
Financial liabilities
USD	44,209	32.785	1,449,392	1%	14,494
JPY	8,065,856	0.2099	1,693,023	1%	16,930

~64~

~65~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

As the Company deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. For the details of the foreign exchange gains (losses) (including both realized and unrealized amount) for the years ended December 31, 2025 and 2024, please refer to Note 6 (21).

b) Interest rate risk

The Company's bank borrowings are all based on floating interest rates. In response to the risk of interest rate changes, the Company mainly adopts regular assessments of bank and currency borrowing rates, and maintains good relationships with financial institutions to obtain lower financing costs. Simultaneously, it cooperates with methods such as strengthening working capital management to reduce the degree of dependence on bank loans and diversify the risk of interest rate changes.

The sensitivity analysis below is determined based on the interest rate risk of non-derivative instruments on the reporting date. For floating-rate liabilities, the analysis method is based on the assumption that the amount of liabilities out of circulation at the reporting date will be out of circulation throughout the year. If the interest rate increases or decreases by 1%, and all other variables remain unchanged, the Company's net profit before tax for 2025 and 2024 will increase or decrease by NT$99,492 thousand and NT$83,816 thousand, respectively, which was due to the floating interest rate borrowings of the Company.

c) Equity instrument price risk

The stocks of domestic listed companies, emerging stock companies, and non-listed companies held by the Company are subject to the risk of price changes in the equity securities market. The Company manages and monitors investment performance based on fair value.

The sensitivity analysis of the stock price risk of holding the aforementioned domestic listed companies, emerging stock companies, and non-listed companies is based on the fair value changes on the reporting date. If the price of equity instruments had increased/decreased by 5%, other comprehensive income for 2025 and 2024 would have increased/decreased by NT$6,827 thousand and NT$8,076 thousand. Net gains on financial assets at fair value through profit or loss for 2025 and 2024 would have increased/decreased by NT$5,391 thousand and NT$0 thousand, respectively.

x. Capital management

The Company plans the capital management of the Company based on the characteristics of the current operating industry and the future development of the Company, as well as

~66~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

factors such as changes in the external environment, to ensure that the Company has the necessary financial resources and operating plans to meet the future needs of working capital, capital expenditures, research and development expenses, debt repayment and dividend expenditures.

y. Non-cash investing and financing activities

1) The adjustment of liabilities from financing activities is as follows:

	2025.1.1	Cash flow	Valuation adjustments arising from non-cash changes	2025.12.31
Short-term borrowings	$ 2,200,000	850,000	-	3,050,000
Long-term borrowings (including loans due within one year)	6,181,570	714,456	3,194	6,899,220
Guarantee deposits received	342	(84)	-	258
Lease liabilities (including related parties)	325,800	(99,817)	-	225,983
Total liabilities from financing activities and capitalization	$ 8,707,712	1,464,555	3,194	10,175,461
	2024.1.1	Cash flow	Valuation adjustments arising from non-cash changes	2024.12.31
---	---	---	---	---
Short-term borrowings	$ 1,490,000	710,000	-	2,200,000
Long-term borrowings (including loans due within one year)	4,798,841	1,382,957	(228)	6,181,570
Guarantee deposits received	342	-	-	342
Lease liabilities (including related parties)	424,997	(99,197)	-	325,800
Total liabilities from financing activities and capitalization	$ 6,714,180	1,993,760	(228)	8,707,712

Related Party Transactions

a. The parent company and the ultimate controlling party

Qisda Corporation (Qisda) is the ultimate controller of the Company and its subsidiaries, and holds 43.56% of the Company's outstanding common stocks. Qisda Corporation has prepared a consolidated financial statement for public use.

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Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

b. The names and relationships of related parties

Name of related parties	Relationship with the Company
Qisda Corporation (Qisda)	Parent company of the Company
BenQ Materials (L) Co.(BMLB)	Subsidiary of the Company
BenQ Materials Co., Ltd. (BMS)	Subsidiary of the Company
Daxon Biomedical (Suzhou) Co., Ltd. (DTB)	Subsidiary of the Company
BenQ Materials (Wuhu) Corp. (BMW)	Subsidiary of the Company
BenQ Aesthetic Medicine Material (Wuhu) Corp. (BME)	Subsidiary of the Company
BenQ Materials Medical (Suzhou) Co., Ltd. (BMM)	Subsidiary of the Company
Sigma Medical Supplies Corp.(Sigma-Medical)	Subsidiary of the Company
Suzhou Sigma-Medical Co., Ltd. (Suzhou Sigma-Medical)	Subsidiary of the Company (Note I)
Cenefom Corp. (Cenefom)	Subsidiary of the Company
Genejet Biotech Co., Ltd. (Genejet)	Subsidiary of the Company
Web-Pro Materials Corporation (Web-Pro)	Subsidiary of the Company
Beyond Top Pte Ltd (WPSG)	Subsidiary of the Company
Web-Pro (Vietnam) Co., Ltd (WPVN)	Subsidiary of the Company
Visco Vision Inc. (Visco Vision)	Associates of the Company
Visco Technology Sdn. Bhd.(VVM)	A subsidiary of Visco Vision
Other related parties:
BenQ Foundation	The actual related parties of Qisda
Darfon Electronics Corp. (Darfon)	Associates of Qisda
AU Optronics Corporation (AUO)	Corporate director of Qisda
AU Optronics (Suzhou) Corporation (AUS)	Subsidiary of AUO
AU Optronics (Kunshan) Corporation	Subsidiary of AUO
AU Optronics (Xiamen) Corporation (AUX)	Subsidiary of AUO
Darwin Precisions Corp.	Subsidiary of AUO
AUO Display Plus Corp.	Subsidiary of AUO
Jector Digital Corporation	Subsidiary of AUO
DFI Inc.	Subsidiary of Qisda
BenQ Asia Pacific Corporation	Subsidiary of Qisda
BenQ Singapore Pte Ltd.	Subsidiary of Qisda
ACE Energy Co., Ltd	Subsidiary of Qisda
Metaguru Corporation	Subsidiary of Qisda
BenQ Corp. (New BenQ)	Subsidiary of Qisda
Eastech Co., Ltd	Subsidiary of Qisda
Concord Medical Co., Ltd	Subsidiary of Qisda
Partner Tech Corp.	Subsidiary of Qisda

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Name of related parties	Relationship with the Company
BenQ Medical Technology Corporation	Subsidiary of Qisda
BenQ AB DentCare Corporation	Subsidiary of Qisda
BenQ Dialysis Technology Corporation	Subsidiary of Qisda
BenQ Healthcare Corporation	Subsidiary of Qisda
Standard Technology Corp.	Subsidiary of Qisda
Lily-Medical Corporation	Subsidiary of Qisda
Qisda Electronics(Suzhou) Co. Ltd.	Subsidiary of Qisda
MetaAge Corporation	Subsidiary of Qisda
Ace Pillar Co., Ltd.	Subsidiary of Qisda
Data Image Corporation	Subsidiary of Qisda
Aewin Technologies Co., Ltd.	Subsidiary of Qisda
AdvancedTEK International Corp.	Subsidiary of Qisda
Global Intelligence Network Co., Ltd.	Subsidiary of Qisda
Simula Technology Inc.	Subsidiary of Qisda
Alpha Networks Inc.	Subsidiary of Qisda
Epic Cloud Co., Ltd.	Subsidiary of Qisda
DSIGroup Co., Ltd.	Subsidiary of Qisda
Action Star Technology Co., Ltd.	Subsidiary of Qisda
Diva Laboratories, Ltd	Subsidiary of Qisda
Transnet Corporation	Subsidiary of Qisda
Bigmin Bio-Tech Company Ltd.	Subsidiary of Qisda
E-strong Medical Technology Co., Ltd.	Subsidiary of Qisda
Concord HealthCare Co., Ltd.	Subsidiary of Qisda
Norbel Baby Co., Ltd.	Subsidiary of Qisda
Golden Spirit Co., Ltd.	Subsidiary of Qisda
Transpak Equipment Corporation	Subsidiary of Qisda
Chan Guare Industry Co., Ltd.	Subsidiary of Qisda

Note I: Suzhou Sigma-Medical completed its deregistration on June 30, 2025.

c. Significant transactions with related parties

I) Sales revenue

	2025	2024
Subsidiaries:
BMM	$ 627,692	574,396
Sigma-Medical	231,557	297,855
BMW	64,035	54,330
DTB	2,865	2,948
Other subsidiaries	6	1,464

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

	2025	2024
Other related parties:
AUO	3,433,243	3,927,823
AUS	926,098	868,678
AUX	406,132	545,489
Others	54,725	46,194
Associate - VVM	207,510	205,090
Other associates	321	428
Parent Company	1	-
	$ 5,954,185	6,524,695

The transaction price sold to related parties is not significantly different from the general sales price, except that there is no general transaction price to compare due to the different specifications of some commodities. The collection period is 60 to 180 days, which has no significant difference from ordinary transactions.

2) Purchases

	2025	2024
Subsidiary - BMS	$ 959,232	918,260
Subsidiary - BMW	153,140	150,866
Subsidiary - BMM	1,169	3,796
Other subsidiaries	5,524	1,342
Associate - Visco Vision	433,996	440,584
	$ 1,553,061	1,514,848

The Company's purchase price from related parties is incomparable with the general transaction price due to different product specifications. It is processed in accordance with the agreed purchase price and conditions.

3) Property transaction

The details of assets acquired from related parties by the Company are as follows. As of December 31, 2025, and December 31, 2024, the unpaid amounts were recorded under "Other payables - related parties".

Related parties category	Account item	2025	2024
Parent Company	Intangible assets	150	150
Other related parties	Intangible assets	9,705	9,694
Other related parties	Property, plant and equipment	8,717	2,339
		18,572	12,183

~70~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

4) Leases

The Company leases factories and offices from AUO, and the rent is paid on a monthly basis with reference to the rent prices in the neighboring areas. The recognized interest expenses related to lease liabilities were in 2025 and 2024 were NT$4,402 thousand and NT$6,086 thousand respectively. The balance of lease liabilities as of December 31, 2025 and 2024 was NT$ 194,527 thousand and NT$289,379 thousand, respectively.

5) Donation

The Company has contributed donation to BenQ Foundation for Culture and Education in 2025, with the amount of NT$2,500 thousand.

6) Operating costs and expenses

The detailed breakdown of operating costs and expenses incurred by the Company for services such as technical consulting, marketing promotion, and advances made by related parties is as follows:

Account item	Related parties category	2025	2024
Operating costs	Subsidiaries	$ 116	369
	Parent Company	-	377
	Other related parties	4,266	2,511
Operating expenses	Subsidiaries	797	1,819
	Parent Company	6,283	6,916
	Other related parties	9,890	9,771
	Associates	-	4
		$ 21,352	21,767

7) Manpower support

The Company provides manpower support services to a subsidiary, Sigma-Medical. The receivable amounts for 2025 and 2024 were both NT$5,247 thousand and recorded under other gains and losses, and relevant receivables that have not been received are categorized under other receivables - related parties.

The Company provides manpower support services to a subsidiary, Genejet. The receivable amounts for 2025 and 2024 were NT$7,004 thousand and NT$4,708 thousand, respectively, and recorded under other gains and losses and deduction of operating expenses. Relevant receivables that have not received are categorized under other receivables - related parties.

The Company provides manpower support services to a subsidiary, DTB. The receivable amounts for 2025 and 2024 were NT$2,430 thousand and NT$1,337 thousand, respectively, and recorded under other gains and losses and deduction of

~71~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

operating expenses. Relevant receivables that have not received are categorized under other receivables - related parties.

The Company provides manpower support services to a subsidiary, BMM. The receivable amounts for 2025 and 2024 were NT$2,633 thousand and NT$1,574 thousand, respectively, and recorded under other gains and losses. Relevant receivables that have not received are categorized under other receivables - related parties.

8) Amounts receivable from related parties

In summary, the details of the accounts receivable from related parties of the Company are as follows:

Account item	Related parties category	2025.12.31	2024.12.31
Accounts receivable - related parties, net	Subsidiary - BMM	$ 115,435	184,164
	Subsidiary - BMW	25,901	34,946
	Subsidiary - Sigma-Medical	27,873	17,739
	Subsidiary - DTB	1,399	1,998
	Other subsidiaries	483	33
	Other related parties - AUO	841,821	1,010,257
	Other related parties - AUS	112,010	283,434
	Other related parties - AUX	122,500	153,949
	Other related parties - others	21,672	28,024
	Associate - VVM	32,725	36,411
	Affiliated company - others	-	224
		1,301,819	1,751,179
Other receivables - related parties	Subsidiaries	7,589	3,442
		$ 1,309,408	1,754,621

The Company sells the account receivables from related parties to the financial institution in a non-recourse manner in accordance with the agreement of the account receivables sale contract signed with the financial institution. The relevant

~72~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

information related to the transfer of creditor's rights in account receivables that meets the derecognition conditions is as follows:

Underwriter	Sale amount	2025.12.31
		Amount still available in advance	Advance amount	Shown as other receivables (Note 6 (5))	Interest rate range	Other important matters
CTBC Bank Co., Ltd.	$ 146,111	-	131,500	14,611	2.24%	N/A

9) Payables to related parties

In summary, the details of the amounts due to related parties by the Company are as follows:

Account item	Related parties category	2025.12.31	2024.12.31
Accounts payable - related parties	Subsidiary - BMS	$ 786,263	672,700
	Subsidiary - BMW	76,092	75,213
	Other subsidiaries	2,522	2,582
	Associate - Visco
	Vision	81,573	64,977
		946,450	815,472
Other payables - related parties	Parent Company	1,475	1,250
	Subsidiaries	39,117	638
	Other related parties	25,103	13,647
		65,695	15,535
		$ 1,012,145	831,007

d. Compensation of major managerial personnel

	2025	2024
Short-term employee benefits and compensation	$ 44,898	51,597
Retirement benefits	225	324
	$ 45,123	51,921

~73~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

8. Pledged Assets

The details of the asset carrying value pledged as collateral by the Company are as follows:

Asset name	Purpose of Pledge	2025.12.31	2024.12.31
Land, buildings and structures	Pledges of long-term borrowings	$ 581,529	593,547
Other financial assets - current	Customs deposits	11,369	14,736
		$ 592,898	608,283

9. Material Contingent Liabilities and Unrecognized Contractual Commitments

a. Significant unrecognized contract commitment:

	2025.12.31	2024.12.31
Signed and unpaid major engineering and equipment payments	$ 684,109	1,262,315
Unused letters of credit issued	629,692	741,016

10. Significant Loss from Disaster: None.

11. Significant Subsequent Events: None.

12. Others

The functions of employee benefits, depreciation, and amortization expenses are summarized as follows:

| Function
Nature | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating costs | Operating expenses | Total | Operating costs | Operating expenses | Total |
| Employee benefits expenses | | | | | | |
| Salary expenses | 1,146,718 | 761,509 | 1,908,227 | 1,106,164 | 749,816 | 1,855,980 |
| Labor insurance and national health insurance | 112,948 | 56,606 | 169,554 | 101,408 | 51,990 | 153,398 |
| Pension expenses | 44,618 | 31,795 | 76,413 | 40,973 | 29,611 | 70,584 |
| Remuneration Paid to Directors | - | 13,263 | 13,263 | 682 | 14,080 | 14,762 |
| Other employee benefits expenses | 79,326 | 31,424 | 110,750 | 74,885 | 29,240 | 104,125 |
| Depreciation expenses | 582,129 | 152,479 | 734,608 | 436,423 | 150,615 | 587,038 |
| Amortization expenses | 16,661 | 17,436 | 34,097 | 10,181 | 20,015 | 30,196 |

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

	2025	2024
Number of Staff	1,955	1,825
Number of directors who do not serve as employees	7	7
Average benefits expenses	$ 1,163	1,201
Average salary expenses	$ 980	1,021
Average salary adjustment	(4.02)%	6.02%
Supervisor’s remuneration	$ -	-

The compensation and remuneration policy (including directors, managers, and employees) of the Company are as follows:

The remuneration of directors of the Company is issued by the Board of Directors in accordance with the authorization of the Company's Articles of Association. According to the degree of directors' participation in the Company's operation and contribution value, and with reference to the "Remuneration Measures for Directors and Functional Committee Members" set by domestic and foreign peers In addition, if the Company has surplus, the Board of Directors shall resolve the amount of directors' remuneration in accordance with the Articles of Incorporation of the Company.

The appointment, dismissal, and remuneration of the general manager and deputy general managers of the Company shall be performed in accordance with company regulations. The remuneration standard is based on the remuneration policies and principles of the Company's remuneration committee and the Board of Directors, and the remuneration is issued with reference to the usual industry standards, company operating income, profitability, and individual performance of managers.

The main remuneration principle of the Company's employees is to connect responsibilities and performance results and provide market-competitive remuneration to attract, retain and cultivate talents for a long time, reflecting the Company's business risks and corporate governance structure instead of using short-term profit as the only indicator of salary and performance evaluation, and connect the long-term value of shareholders.

~74~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

13. Supplementary Disclosures

a. Information on significant transactions

In accordance with the requirements of the regulations in 2025, the Company shall re-disclose the relevant information of significant transactions as follows:

1) Loaning funds to others:

Unit: NTD Thousands

No.	Lending Company	Lending subject	Contact accounts	Whether he/she is related party	Highest endorsement or guarantee amount for current period	Balance at end of year	Actual amount expenditure	Interest rate range	Nature of financing (Note 4)	Transaction amount	Reason for financing	Allowance for allowance for loss amount	Collateral		Limit on loans granted to a single party	Fund loan and total limit	Note
													Name	Value
1	BMS	BenQ Materials (Wahu) Corporation	Other -receivables - related parties	Yes	1,213,356 (RMB 265,000)	1,191,228 (RMB 265,000)	675,629 (RMB 150,300)	1.30%	2	-	Operating turnover	-	-	-	2,008,447	2,008,447	(Note 1)
2	BMS	BenQ Medical Technology (Sathou) Co., Ltd.	Other -receivables - related parties	Yes	457,870 (RMB 100,000)	449,520 (RMB 100,000)	187,450 (RMB 41,700)	1.30%	2	-	Operating turnover	-	-	-	2,008,447	2,008,447	(Note 1)
3	BMS	BenQ Medical Aesthetic Materials Technology (Wahu) Co., Ltd.	Other -receivables - related parties	Yes	22,476 (RMB 5,000)	22,476 (RMB 5,000)	8,990 (RMB 2,000)	1.30%	2	-	Operating turnover	-	-	-	2,008,447	2,008,447	(Note 1)
4	Web-Pro	Web-pro (Vietnam) Co., Ltd.	Other -receivables - related parties	Yes	388,310 (USD 13,000)	188,580 (USD 6,000)	157,150 (USD 5,000)	1.85%	2	-	Operating turnover	-	-	-	436,281	872,562	(Note 2)
5	DTB	BenQ Medical Technology (Sathou) Co., Ltd.	Other -receivables - related parties	Yes	40,453 (RMB 9,000)	40,453 (RMB 9,000)	40,457 (RMB 9,000)	1.30%	2	-	Operating turnover	-	-	-	46,132	46,132	(Note 3)

Note 1: The total amount of the BMS fund loan and the 100%-owned subsidiary of the ultimate parent company and the fund loan and limit for individual objects are the net value of the latest financial statement of BMS with the certificate of accountant.
Note 2: The maximum limit for the total amount of the Web-Pro fund loan is set at 40% of the net value of the latest audited financial statements, certified by the accountant. Individual loan amounts shall not exceed 20% of the net value of the latest audited financial statements, certified by the accountant.
Note 3: The total amount of the DTB fund loan and the 100%-owned subsidiary of the ultimate parent company and the fund loan and limit for individual objects are the net value of the latest financial statement of DTB with the certificate of accountant.
Note 4: Those who have business dealings with the nature of capital loans are 1, and 2 for those who require short-term financing.

2) Endorsements/guarantees provided for others: None.

3) Material marketable securities held at the end of the period (excluding investment in subsidiaries, associates, and joint equity):

Name of Company Held	Type and Name of Marketable Securities	Relationship with the securities issuer	Listed accounts	Ending Balance				Note
				Shares	Book amount	%	Fair value
The Company	Shares of Biodenta Corporation	-	Financial assets at fair value through profit or loss	23	(Note)	2.50%	-	-
The Company	Shares of Suregiant Technology Co., Ltd.	-	Financial assets at fair value through profit or loss	249	107,827	1.13%	107,827	-
The Company	Shares of Lagis Corporation	-	Financial assets at fair value through other comprehensive income	1,680	59,472	4.63%	59,472	-
The Company	Shares of Summed Corporation	-	Financial assets at fair value through other comprehensive income	300	1,760	2.73%	1,760	-
The Company	Shares of Cuumed Catheter Medical Co., Ltd.	-	Financial assets at fair value through other comprehensive income	3,429	75,305	8.76%	75,305	-

(Note): It was all recognized as impairment losses.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

4) Those who purchase or sell with a related party in the amount of NT$100 million or more than 20% of the paid-in capital:

Vendor/ Customer	Counter-party	Relationship	Transaction details				Unusual Transaction Terms and Reasons		Notes and accounts receivable (payable)		Note
			Purchase (sale) goods	Amount	Ratio to total purchase (sell)	Credit period	Price	Credit period	Balance	Ratio to total notes or accounts receivable (payable)
The Company	AUO	Other related parties	Sale	3,433,243	24%	OA90	(Note 1)	(Note 3)	841,821	30%
The Company	AUS	Other related parties	Sale	926,098	6%	OA90	(Note 1)	(Note 3)	112,010	4%
The Company	BMM	Parent company and subsidiaries	Sale	627,692	4%	OA180	(Note 1)	(Note 3)	115,435	4%	Note (4)
The Company	AUX	Other related parties	Sale	406,132	3%	OA90	(Note 1)	(Note 3)	122,500	4%
The Company	Sigma-Medical	Parent company and subsidiaries	Sale	231,557	2%	OA180	(Note 1)	(Note 3)	27,873	1%	Note (4)
The Company	VVM	Affiliates	Sale	207,510	1%	OA90	(Note 1)	(Note 3)	32,725	1%
The Company	BMS	Parent company and subsidiaries	Purchases	(959,232)	9%	OA180	(Note 2)	(Note 3)	(786,263)	24%	Note (4)
The Company	Visco Vision	Associates	Purchases	(433,996)	4%	OA60	(Note 2)	(Note 3)	(81,573)	2%
The Company	BMW	Parent company and subsidiaries	Purchases	(153,140)	1%	OA180	(Note 2)	(Note 3)	(76,092)	2%	Note (4)

Note 1: The price of the Company's sales to related parties is not significantly different from the general sales except that there is no general transaction price to compare due to the different specifications of some products.
Note 2: The Company's purchase price from related parties is incomparable with the general transaction price due to different product specifications. It is processed in accordance with the agreed purchase price and conditions.
Note 3: There is no significant difference between the transaction price and general transaction.
Note 4: For purchases and sales with subsidiaries, only the amount of the parent company will be disclosed, and the amount of its subsidiary will not be restated.

5) Receivables from related parties amounting to NT$100 million or 20% of the paid-in capital or more:

The companies that record such transactions as receivables	Counter-party	Relationship	Balance Dues from Related Parties	Turnover rate (Note 1)	Overdue accounts receivables from related parties		Subsequently Recovered Amount from Related Party	Allowance for allowance for loss amount
					Amount	Way of disposal
The Company	AUO	Other related parties	841,821	3.71	-	-	234,503	-
The Company	AUX	Other related parties	122,500	2.94	-	-	29,631	-
The Company	AUS	Other related parties	112,010	3.42	-	-	-	-
The Company	BMM	Parent company and subsidiaries	115,435	4.19	-	-	-	-
BMS	The Company	Parent company and subsidiaries	786,263	1.31	212,695	-	40,656	-

Note 1: The turnover rate is calculated by adding back the amount of account receivables sold to financial institutions.

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

b. Information on reinvestment:

The information on the reinvestment business of the Company in 2025 is as follows (excluding the mainland invested company):

Investment company name	Investee companies	Location	Major business items	Original investment amount		Hold at the end of the period			Profit or Loss of Invested Company in the Current Period	Investment Profit/Loss Recognized in the Current Period
				End of this period	End of last year	Shares	Ratio (%)	Book amount
The Company	BMLB	Malaysia	Holding company	499,790	499,790	14,082	100.00%	1,930,227	125,058	125,058
The Company	Sigma-Medical	Taiwan	Sales of medical equipment	231,727	231,727	2,000	100.00%	60,187	42,645	42,645
The Company	Visco Vision	Taiwan	Manufacturing and sales of contact lenses	168,771	168,771	9,334	14.82%	670,713	868,795	128,305
The Company	Cenefom	Taiwan	Development, manufacturing, and sales of medical equipment	272,968	272,968	11,646	50.98%	186,412	(24,470)	(15,308)
The Company	Genejet	Taiwan	Development, manufacturing, and sales of medical equipment	50,460	50,460	4,270	79.35%	42,979	(1,238)	(2,708)
The Company	Web-Pro	Taiwan	Development, manufacturing, and sales of healthcare materials and equipment	3,161,999	3,161,999	35,700	51.00%	2,383,582	101,431	37,318
The Company	Buticon International Corporation	Taiwan	Sales and development of medical equipment	6,000	6,000	217	20.00%	-	(528)	-
The Company	Coatmed	Taiwan	Sales of medical equipment	5,980	5,980	598	5.99%	4,410	(5,792)	(651)
Web-Pro	WPSG	Singapore	Holding company	895,139	895,139	30,000	100.00%	650,399	(16,371)	-
WPSG	WPVN	Vietnam	Manufacturing and sales of healthcare materials and equipment	926,053	926,053	-	100.00%	644,976	(15,454)	-

c. Information on investments in mainland China:

I) Information on reinvestments in mainland China:

Investee companies in mainland	Major business items	Paid-in Capital	Way of investments (Note 1)	Cumulative Investment Amount Remitted from Taiwan - Beginning of the Period	Investment amount remitted or received for the period		Cumulative investment amount remitted from Taiwan - End of the period	Profit or Loss of Invested Company in the Current Period	Percentage of ownership through the Company's direct or indirect investment	Investment profits (losses) recognized for the period	Carrying Amount as of December 31, 2019	Investment profits repatriated by the end of the current period
					Remit	Receive
BenQ Materials Co., Ltd. (BMS)	Processing of film sheet products	251,440 (USD 8,000)	(3)	251,440 (USD 8,000)	-	-	251,440 (USD 8,000)	30,372 (USD 8,000)	100.00%	30,372 (Note 2)	2,008,447	-
Doxon Biomedical (Suzhou) Co., Ltd. (DTB)	Provision of services and sales of related products such as medical equipment	49,447 (RMB 11,000)	(2)	-	-	-	-	2,159	100.00%	2,159 (Note 2)	46,132	-
BenQ Materials (Wuhu) Corp. (BMW)	Manufacture and sales of film sheet and cosmetic-related products	359,616 (RMB 80,000)	(3)	179,808 (RMB 40,000)	-	-	179,808 (RMB 40,000) (Note 3)	98,158	100.00%	98,109 (Note 2)	(141,233)	-
BenQ Materials Medical (Suzhou) Co., Ltd. (BPM)	Sales and manufacturing of medical equipment	67,428 (RMB 15,000)	(2)	-	-	-	-	631	100.00%	631 (Note 2)	56,104	-
BenQ Aesthetic Medicine Material (Wuhu) Corp. (BME)	Manufacture and sales of cosmetic-related products	22,476 (RMB 5,000)	(2)	-	-	-	-	(2,614)	100.00%	(2,614) (Note 2)	18,901	-
Suzhou Sigma-Medical Co., Ltd. (Suzhou Sigma-Medical)	Sales of medical equipment	-	(1)	22,692 (USD 722)	-	1,000 (USD 34)	-	(5)	(Note 4)	(5) (Note 2)	-	-

Note 1: Ways of investments are as follows:
(1) Direct investment in mainland companies.
(2) Reinvestment the surplus of BMLB to China.
(3) Investing in mainland companies through the establishment of companies in the third region.

Note 2: The investment profits and losses are recognized based on the financial statements checked by the Taiwanese parent company certified accountant.

Note 3: Excluding the reinvestment of RMB$10,950 thousand reinvested by BMLB.

Note 4: Suzhou Sigma-Medical completed its company deregistration on June 30, 2025, and completed the liquidation of the company and remitted the remaining assets on July 25, 2025.

~78~

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

2) Limits on investments in mainland China:

Unit: NTD Thousands

Company name	Cumulative investment amount remitted from Taiwan to the mainland at the end of the period	Amount of Investment Approved by the Ministry of Economic Affairs Investment Committee	Upper Limit on Investment Authorized by MOEAIC
The Company	431,248 (CNY 40,000 and USD 8,000)	570,374 (CNY 70,950 and USD 8,000)	(Note)

It is converted according to the exchange rate of USD to NTD of 31.430 and RMB to NTD of 4.4952 at the end of the period.

(Note) The Company has already acquired the certificate of corporate operation headquarters, so there is no limit on investment in mainland China.

3) Material transactions with investee companies in Mainland China:

Please refer to the "Information on significant transactions" section for direct or indirect major transactions between the Company and investees in mainland China for 2025.

14. Segment Information

Please refer to 2025 consolidated financial statements.

~79~

BenQ Materials Corporation

Statements of Cash and Cash Equivalents

December 31, 2025
Unit: NT$ thousand

Items	Summary	Amount
Working capital		$ 100
Demand deposit and check deposit		90,185
Foreign currency deposit (Note)	USD: 9,667 thousand	303,820
	RMB: 1,895 thousand	8,519
	EUR: 208 thousand	7,676
	JPY: 24,679 thousand	4,953
	KRW: 24,150 thousand	526
	GBP: 4 thousand	156
	SGD: 6 thousand	142
	CHF: 1 thousand	22
	AUD	5
		$ 416,104

(Note): Foreign currency deposits are converted according to the following spot exchange rate of December 31, 2025

Type of currency	Exchange rate to NTD
USD	31.430
RMB	4.4952
EUR	36.8960
JPY	0.2007
KRW	0.022
GBP	42.317
SGD	24.446
CHF	39.6340
AUD	21.0170

~80~

BenQ Materials Corporation

Statements of Notes and Accounts Receivable

December 31, 2025
Unit: NT$ thousand

Customer name	Amount
Customer A	$ 145,369
Customer B	128,481
Customer C	95,953
Customer D	88,882
Customer E	81,186
Customer F	78,046
Others (all less than 5%)	906,167
Subtotal	1,524,084
Less: allowance of doubtful debts	(1,445)
	$ 1,522,639

~81~

BenQ Materials Corporation

Statement of Inventories

December 31, 2025
Unit: NT$ thousand

Items	Amount
	Book value (Note)	Net realizable value
Raw Material	$ 1,598,050	1,598,050
Work in progress	1,254,878	1,339,652
Finished goods	652,403	772,371
	$ 3,505,331	3,710,073

(Note): Net amount after deducting loss on allowance for inventory valuation and bad debt losses.

List of Other Current Assets

Items	Amount
Operation tax refundable	$ 88,134
Deferred expenses	43,065
Prepaid materials expenses	26,741
Prepayments for insurance	13,286
Others (all less than 5%)	57,207
	$ 228,433

~82~

BenQ Materials Corporation

Financial assets at fair value through other comprehensive income - Current list

January 1 to December 31, 2025

Unit: NT$

thousand/thousand shares

Name	Beginning Balance		Increase in the period		Decrease in the period		Changes in unrealized profits and losses on financial assets at fair value through other comprehensive income	Ending Balance		Note
	Shares (thousand shares)	Amount	Shares (thousand shares)	Amount	Shares (thousand shares)	Amount		Shares (thousand shares)	Amount
OTC company stock - Lagis Enterprise Co., Ltd.	1,680	$ 64,764	-	-	-	-	(5,292)	1,680	59,472

Statement of Financial Assets at Fair Value Through Other Comprehensive Income - Non-Current Changes

Name	Beginning Balance		Increase in the period		Decrease in the period		Changes in unrealized profits and losses on financial assets at fair value through other comprehensive income	Ending Balance
	Shares (thousand shares)	Amount	Shares (thousand shares)	Amount	Shares (thousand shares)	Amount		Shares (thousand shares)	Amount
Unlisted company shares - CuuMed Catheter Medical Co., Ltd	3,429	$ 94,650	-	-	-	-	(19,345)	3,429	75,305
Unlisted company shares - Summed Corporation	300	2,101	-	-	-	-	(341)	300	1,760
		$ 96,751		-		-	(19,686)		77,065

~83~

BenQ Materials Corporation

Statement of Other Financial Assets - Current

December 31, 2025
Unit: NT$ thousand

Items	Summary	Amount
Tariff deposit		$ 11,369

BenQ Materials Corporation

Statement of Investment Changes Accounted Under the Equity Method

January 1 to December 31, 2025

Unit: NT$ thousand/thousand shares

Name	Balance at beginning of year		Increase in the period		Reduction of the period (Note 1)		Investment income (loss)	Equity method adjustment (Note)	Unrealized gross profit	Balance at end of year			Net Equity (Market price)		Guarantee or pledge
	Shares	Amount	Shares	Amount	Shares	Amount				Shares	%	Amount	Price	Total price
Web-Pro	35,700	$ 2,549,897	-	-	-	(178,500)	37,318	(25,133)	-	35,700	51.00%	2,383,582	31.16	1,112,518	↑
BMLB	14,082	1,821,997	-	-	-	-	125,058	5,951	(22,779)	14,082	100.00%	1,930,227	137.07	1,930,227	↑
Visco Vision	9,334	566,281	-	-	-	(47,602)	128,305	23,729	-	9,334	14.82%	670,713	174.50	1,628,743	↑
Cenefom	11,646	201,720	-	-	-	-	(15,308)	-	-	11,646	50.98%	186,412	11.72	136,512	↑
Sigma-Medical	2,000	45,024	-	-	-	(30,000)	42,645	2,518	-	2,000	100.00%	60,187	30.09	60,187	↑
Genejet	4,270	45,687	-	-	-	-	(2,708)	-	-	4,270	79.35%	42,979	9.61	41,023	↑
Buticon International Corporation	217	-	-	-	-	-	-	-	-	217	20.00%	-	(3.07)	(665)	↑
Coatmed	598	4,466	-	-	-	-	(651)	595	-	598	5.99%	4,410	5.96	3,564	↑
Total	$5,235,072			-		(256,102)	314,659	7,660	(22,779)			5,278,510

(Note) The equity method is adjusted as follows:

Exchange differences arising on translation of financial statements of foreign operations $ 11,276

Remeasurement of defined benefit plans (80)

Change in capital surplus from investments in associates under equity method (capital reserve) 595

Unrealized profit (loss) on investments in equity instruments at fair value through other comprehensive income (4,131)

$ 7,660

Note I: This represents cash dividends distributed by investee companies and is recorded as a reduction of investments accounted for using the equity method.

~85~

BenQ Materials Corporation

Statement of Other Non-Current Assets

December 31, 2025
Unit: NT$ thousand

Items	Summary	Amount
Deferred expenses		$ 20,578

Statement of Short-term Loans

Type of loan	Explanation	Balance at end of year	Contract period	Interest rate range	Financing amount	Pledge or guarantee
Unsecured loans	The Export-Import Bank of the Republic of China	$ 500,000	2025.09~2026.09	1.90%	$ 500,000	N/A
Unsecured loans	Cathay United Bank	500,000	2025.12~2026.03	1.90%	600,000	N/A
Unsecured loans	Taishin International Bank	500,000	2025.12~2026.01	1.85%	500,000	N/A
Unsecured loans	First Bank	400,000	2025.12~2026.01	1.90%	600,000	N/A
Unsecured loans	Yuanta Bank	350,000	2025.12~2026.01	1.88%	500,000	N/A
Unsecured loans	Bank of Taiwan	300,000	2025.11~2026.02	1.88%	300,000	N/A
Unsecured loans	Far Eastern International Bank	200,000	2025.11~2026.01	1.93%	400,000	N/A
Unsecured loans	Land Bank of Taiwan	200,000	2025.11~2026.01	1.90%	200,000	N/A
Unsecured loans	Bank of Kaohsiung	100,000	2025.12~2026.01	1.95%	150,000	N/A

$3,050,000

~86~

BenQ Materials Corporation

Statement of accounts payable

December 31, 2025
Unit: NT$ thousand

Vendor Names	Amount
Vendor A	$ 559,789
Vendor B	485,705
Vendor C	203,297
Vendor D	125,746
Others (all less than 5%)	949,168
	$ 2,323,705

Statement of Accounts Payable - Related Parties

Vendor Names	Summary	Amount
BMS		$ 786,263
Visco Vision		81,573
BMW		76,092
Others (all less than 5% of the subject amount)		2,522
		$ 946,450

~87~

BenQ Materials Corporation

Statement of Other Payables

December 31, 2025
Unit: NT$ thousand

Items	Amount
Payable bonus	$ 226,718
Payable for engineering equipment	200,106
Employee salaries payable	115,108
Payable bonuses for non-leaving pay	71,372
Payable advertising expenses	52,470
Payable repair expenses	49,758
Others (all less than 5%)	436,977
	$ 1,152,509

Other Payables - List of Related Parties

Name	Summary	Amount
Sigma-Medical		$ 36,912
AUO		20,303
Others (all less than 5% of the subject amount)		8,480
		$ 65,695

~88~

BenQ Materials Corporation

Statements of Other Current Liabilities

December 31, 2025
Unit: NT$ thousand

Items	Summary	Amount
Refund liabilities		$ 80,761
Contract liabilities		10,349
Collection of social welfare insurance		10,043
Return for repair and exchange		8,581
Others		9,193
		$ 118,927

Statement of Long-Term Borrowings

Creditor	Summary	Borrowing amount	Contract period	Interest rate %	Mortgage or pledge
Syndication and Structured Finance, including E.Sun Bank	5-year mid-long-term syndicated loan	$ 2,850,000	2022~2027	2.10%	Please refer to Note 8 for details
Hua Nan Bank	Taiwanese businessmen return to Taiwan project loan	1,492,638	2023~2033	2.03%	-
Bank of Taiwan	Taiwanese businessmen return to Taiwan project loan	1,210,631	2020~2034	1.93%	-
First Bank	Taiwanese businessmen return to Taiwan project loan	896,745	2023~2034	2.03%	-
Chang Hwa Bank	Taiwanese businessmen return to Taiwan project loan	449,206	2020~2030	1.88%	-
Less: long-term borrowings due within one year		(469,192)
		$ 6,430,028

~89~

BenQ Materials Corporation

Statement of lease liabilities (current and non-current)

December 31, 2025
Unit: NT$ thousand

Items	Lease period	Discount rate	Balance at end of year
Housing and structures	2021.04~2031.09	1.79%	$ 225,983
Current:
Related party - AUO			$ 96,394
Non-related parties			$ 5,173
Non-current:
Related party - AUO			$ 98,133
Non-related parties			$ 26,283

List of Other Non-current Liabilities

Items	Summary	Amount
Deferred government subsidy income		$ 18,263
Liabilities of defined benefit plans		7,863
Guarantee deposits received		258
		$ 26,384

~90~

BenQ Materials Corporation
Statement of Operating Revenue
January 1 to December 31, 2025

Items	Amount
Film sheet products	$ 12,311,230
Medical Products	2,205,213
	$ 14,516,443

~91~

BenQ Materials Corporation

Statement of Operating Costs

January 1 to December 31, 2025
Unit: NT$ thousand

Items	Amount
Raw Material
Raw materials of beginning period (including inventory in transit)	$ 1,435,983
Add: Input amount, net	9,002,973
Less: Raw materials at the end of the period (including inventory in transit)	(1,908,066)
Relisted expenses of current period	(327,819)
Raw materials on sale	(230,942)
Raw materials consumed of period	7,972,129
Direct labor	953,734
Manufacturing expenses	2,348,804
Manufacturing cost	11,274,667
Add: Products in progress at the beginning of the period (including inventory in transit)	1,063,058
Work in process purchased	55,910
Less: Products in progress at the end of the period (including inventory in transit)	(1,273,084)
Relisted expenses of current period	(18,835)
Sell semi-finished products	(1,242,516)
Cost of finished goods	9,859,200
Add: Finished products at the beginning of the period (including inventory in transit)	639,644
Purchase finished products	1,864,176
Less: Finished products at the end of the period (including inventory in transit)	(767,528)
Relisted expenses of current period	(27,471)
Sale cost	11,568,021
Loss of inventory fall	158,536
Raw materials on sale	230,942
Sell semi-finished products	1,242,516
Operating costs	$ 13,200,015

~92~

BenQ Materials Corporation

Statement of Sales and Marketing Expenses

January 1 to December 31, 2025
Unit: NT$ thousand

Items	Amount
Compensation expenditure	$ 238,148
Advertising expenses	149,757
Shipping expenses	75,210
Commission expenses	31,176
Other expenses (all less than 5%)	172,590
	$ 666,881

Statement of Management Expenses

Items	Amount
Compensation expenditure	$ 135,771
Service expenses	18,287
Directors’ remuneration	13,263
Insurance expenses	13,159
Other expenses (all less than 5%)	61,424
	$ 241,904

~93~

BenQ Materials Corporation

Statement of Research and Development

Expenses

January 1 to December 31, 2025
Unit: NT$ thousand

Items	Amount
Compensation expenditure	$ 387,590
Indirect materials	300,054
Depreciation	139,812
Others (all less than 5%)	229,121
	$ 1,056,577

Please refer to Note 6 (2) of the Parent Company Only Financial Statements for the Statement of Financial Assets at Fair Value through Profit or Loss - Current

Please refer to Note 6 (5) of the Parent Company Only Financial Statements for the Statement of Other Receivables

Please refer to Note 6 (9) of the Parent Company Only Financial Statements for the Statement of Changes in Property, Plant and Equipment

Please refer to Note 6 (9) of the Parent Company Only Financial Statements for the Statement of Changes in Accumulated Depreciation of Property, Plant and Equipment

Please refer to Note 6 (10) of the Parent Company Only Financial Statements for the Statement of Changes in Right-of-use Assets

Please refer to Note 6 (11) of the Parent Company Only Financial Statements for the Statement of Changes in Intangible Assets

Please refer to Note 6 (16) of the Parent Company Only Financial Statements for the Statement of Deferred Income Tax Assets

Please refer to Note 6 (2) of the Parent Company Only Financial Statements for the Statement of Financial Liabilities at Fair Value through Profit or Loss - Current

Please refer to Note 6 (16) of the Parent Company Only Financial Statements for the Statement of Deferred Income Tax Liabilities

Please refer to Note 6 (21) of the Parent Company Only Financial Statements for the Statement of Other Income

Please refer to Note 6 (21) of the Parent Company Only Financial Statements for the Statement of Other Net Profits and Losses

Please refer to Note 6 (21) of the Parent Company Only Financial Statements for the Statement of Financial Costs

Please refer to Note 7 of the Parent Company Only Financial Statements for the Statement of Accounts Receivable - Related Parties

Other receivables - Please refer to Note 7 of the Individual Financial Statements for the list of related parties

AI assistant

BMC — Audit Report / Information 2025

52730_rns_2026-04-27_33f84b69-639c-4f88-bd8a-bfd9175e9e66.pdf

BenQ Materials Corporation

Individual Financial Statements and Independent Auditors' Report

Opinions on the audit

Basis of opinions on the audit

Key Audit Matters

II. Assessment of Impairment of Goodwill Generated by Investment in Subsidiaries

Description of Key Audit Matters:

The Management's Responsibility and Governing Body of the Parent Company Only Financial Statement

The Accountants' Responsibilities in Auditing the Parent Company Only Financial Statements

Notice to Readers

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

4. Summary of Material Accounting Policies

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

n. Liability reserve

o. Revenue recognition

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

3) Short-term employee benefits

r. Income tax

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

s. Business mergers

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

t. Earnings per Share

u. Segment Information

5. The Primary Sources of Uncertainties in Material Accounting Judgments, Estimates, and Assumptions

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

6. Descriptions of Material Accounting Items

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

3) Financial ratio agreement in loan contract

n. Lease liabilities

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

3) Retained earnings

a) Legal reserve

b) Special reserve

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

c) Earnings distribution

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

2) Contract balances

t. Employee and directors' compensation

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

4) Financial costs

v. Types of financial instruments and fair value

1) Types of financial instruments

a) Financial assets

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

Notes to Parent Company Only Financial Statements of BenQ Materials Corporation (continued)

BMC Audit Report / Information 2025