CCW — Annual Report 2025

Apr 21, 2026

1713

CATHAY CHEMICAL WORKS INC. INDIVIDUAL FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS’ REPORT FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

Address : 12 F, No. 320, Sec. 4, Zhongxiao E. Rd., Da’an Dist., Taipei City, Taiwan (R.O.C.) Telephone : 886-2-2781-1161

The reader is advised that these individual financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

1

English translation of individual financial statements originally issued in Chinese CATHAY CHEMICAL WORKS INC.

NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

For the Years Ended December 31, 2025 and 2024

Table of Contents

Item I. Cover Page II. Table of Contents III. Independent Auditors’ Report Translated from Chinese IV. Individual Balance Sheet V. Individual Statements of Comprehensive Income VI. Individual Statements of Changes in Equity VII. Individual Statements of Cash Flows VIII. Notes to the Individual Financial Statements 1. History and Organization 2. Date and Procedures of Authorization of Financial Statements for Issue 3. Newly issued or revised standards and interpretations 4. Summary of Material Accounting Policies 5. Significant Accounting Judgements, Estimates and Assumptions 6. Contents of Significant Accounts 7. Related Party Transactions 8. Assets Pledged as Security 9. Significant Contingencies and Unrecognized Contractual Commitments 10. Losses due to Major Disasters 11. Significant Subsequent Events 12. Others 13. Other Disclosure (1) Information at significant transactions (2) Information on investees (3) Information on investments in mainland China 14. Segment information IX. The content of statements of major accounting items

Pages No.

1 2 3~6 7~8 9 10 11 12 12 12~16 16~35 35~36 37~57 58~59 59 59 60 60 60~67 67~68、70 68、71 68 68~69 72~96

2

Independent Auditors’ Report Translated from Chinese

To CATHAY CHEMICAL WORKS INC. ：

Opinion

We have audited the accompanying individual balance sheets of Cathay Chemical Works Inc. (the “Company”) as of December 31, 2025 and 2024, and the individual statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the individual financial statements (including the summary of material accounting policies).

In our opinion, the individual financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and financial performance and its cash flows for the years ended December 31, 2025 and 2024, in conformity with the Requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Individual Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits, 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. These matters were addressed in the context of our audit of the individual financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

3

Valuation of inventories

As of December 31, 2025, the net inventories of the Company amounted to NTD 195,523 thousand. The price of raw materials is subject to market price fluctuations and the price of the product itself may rise and fall due to market supply and demand, which may cause greater fluctuations in inventory prices, we therefore considered this a key audit matter.

Our audit procedures included but not limited to, understanding the internal controls of inventory valuation process established by management, and evaluating and testing the effectiveness of related controls, including testing the controls regarding purchase costs update and changes of selling prices in the inventory valuation process. In addition, for the substantive procedures at the end of the period, we selected samples of specific raw materials and finished goods, obtained and vouched the supporting documents to verify the replacement cost and selling prices of the selected samples, and recalculated the net realizable value of the inventories to confirm the accuracy.

We also consider the appropriateness of disclosure of inventories. Please refer to Notes 5 and 6 to the Company’s individual financial statements.

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

Management is responsible for the preparation and fair presentation of the individual financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by Financial Supervisory Commission of the Republic of China and for such internal control as management determines is necessary to enable the preparation of individual financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including audit committee or supervisors, are responsible for overseeing the financial reporting process of the Company.

4

Auditors’ Responsibilities for the Audit of the Individual Financial Statements

Our objectives are to obtain reasonable assurance about whether the individual financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and 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.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the individual financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the individual financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the individual financial statements, including the accompanying notes, and whether the individual financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

5

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

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

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

/s/Wang, Hsuan Hsuan

/s/Liu, Hui Yuan

Ernst & Young, Taiwan March 12, 2026

Taipei, Taiwan Republic of China

Notice to Readers

The accompanying individual financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such individual financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying individual financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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English translation of individual financial statements originally issued in Chinese CATHAY CHEMICAL WORKS INC. INDIVIDUAL BALANCE SHEETS

December 31, 2025 and December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

			December 31,2025	December 31,2025	December 31,2025		December 31,2024	December 31,2024	December 31,2024
Accounts	Notes		Amount		%		Amount		%
Current assets Cash and cash equivalents Financial assets at amortized cost, current Notes receivable, net Accounts receivable, net Other receivables Current tax assets Inventories, net Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income, non-current Investments accounted for under the equity method Property, plant and equipment Right-of-use assets Investment property, net Deferred tax assets Other non-current assets-others Net defined benefit assets, non-current Total non-current assets Total assets	4, 6 4, 6 4, 6 4, 6 4, 5 4, 5, 6 4, 6 4, 6 4, 6 4, 6, 7 4, 6 4, 5, 6 7 4, 6		$102,085 230,000 24,877 80,327 535 - 195,523 8,260 641,607 369,907 2,081,255 310,616 783 535,744 27,517 6,918 - 3,332,740 $3,974,347		2 6 1 2 - - 5 - 16 9 52 8 - 14 1 - - 84 100		$143,513 1,221,000 42,374 71,937 1,158 12 206,793 2,699 1,689,486 359,171 1,637,050 312,718 1,958 535,744 27,510 1,487 4,220 2,879,858 $4,569,344		3 27 1 2 - - 4 - 37 8 36 7 - 12 - - - 63 100

(The accompanying notes are an integral part of the individual financial statements.)

7

English translation of individual financial statements originally issued in Chinese

CATHAY CHEMICAL WORKS INC. INDIVIDUAL BALANCE SHEETS

December 31, 2025 and December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity	Liabilities and Equity		December 31,2025	December 31,2025	December 31,2025		December 31,2024	December 31,2024	December 31,2024
Accounts	Notes		Amount		%		Amount		%
Current liabilities Contract liabilities - Current Notes payable Accounts payable Other payables Current tax liabilities Lease liabilities, current Other current liabilities Total current liabilities Non-current liabilities Deferred tax liabilities Lease liabilities, non-current Guarantee deposits Total non-current liabilities Total liabilities Equity Share Capital Ordinary Share Additional paid-in capital Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other components of equity Total equity Total liabilities and equity	4, 6 4, 5 4, 6, 7 4, 5, 6 4, 6, 7 6 6 6 6 6 6		$344 1,777 6,629 56,571 15,110 811 333 81,575 84,079 - - 84,079 165,654 1,509,517 92,930 597,281 211,411 1,213,515 2,022,207 184,039 3,808,693 $3,974,347		- - - 2 - - - 2 2 - - 2 4 38 2 15 5 31 51 5 96 100		$- 2,803 10,614 115,525 7,188 1,164 268 137,562 84,113 811 300 85,224 222,786 1,509,517 92,958 434,731 211,411 1,922,190 2,568,332 175,751 4,346,558 $4,569,344		- - - 3 - - - 3 2 - - 2 5 33 2 9 5 42 56 4 95 100

(The accompanying notes are an integral part of the individual financial statements.)

8

English translation of individual financial statements originally issued in Chinese

CATHAY CHEMICAL WORKS INC.

INDIVIDUAL STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)

Items	Notes	2025	2025	2024	2024
		Amount	%	Amount	%
Operating revenues Operating costs Gross profit Operating expenses Sales and marketing expenses General and administrative expenses Expected credit impairment gains (losses) Total operating expenses Operating loss Non-operating expenses Interest income Other income Other gains and losses, net Finance costs, net Share of profit or loss of associates and joint ventures Total non-operating income and expense Income from continuing operations before income tax Income tax (expense) benefit Net income Other comprehensive income (loss) Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefit pension plans Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss Income tax related to items that will not be reclassified subsequently Items that may be reclassified subsequently to profit or loss Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss Total other comprehensive income Total comprehensive income Earnings per share (in dollars) Basic earnings per share Diluted earnings per share	4, 6, 7 5, 6 6, 7 4, 6 4, 6 6 6, 7 4, 6 4, 5, 6 4, 6 4, 6 4, 6 4, 6 4, 6 6 6	$460,042 (439,194)	100 (95) 5 (4) (18) - (22) (17) 3 7 (3) - 141 148 131 (4) 127 - 2 - - (1) 1 128	$527,973 (463,991)	100 (88) 12 (5) (26) - (31) (19) 1 4 213 - 94 312 293 1 294 1 10 - - 1 12 306
		20,848		63,982
		(19,054) (81,130) 92		(26,163) (136,928) (49)
		(100,092)		(163,140)
		(79,244)		(99,158)
		14,812 29,313 (12,171) (135) 648,342		7,638 20,680 1,125,837 (96) 493,863
		680,161		1,647,922
		600,917 (17,078)		1,548,764 7,217
		583,839		1,555,981
		- 10,736 (980) - (2,448)		7,242 54,214 140 (1,448) 4,946
		7,308		65,094
		$591,147		$1,621,075
		$3.87		$10.31
		$3.85		$10.19

(The accompanying notes are an integral part of the individual financial statements.)

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English translation of individual financial statements originally issued in Chinese CATHAY CHEMICAL WORKS INC.

INDIVIDUAL STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Items	Share Capital	Additional Paid-in Capital		Retained Earnings		Other Components of Equity	Other Components of Equity	Total Equity
			Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of Foreign Operations	Unrealized Gains or Losses on Financial Assets Measured at Fair Value through Other Comprehensive Income
Appropriation and distribution of 2023 retained earnings Legal reserve appropriated Cash dividends of ordinary share Other changes in capital reserve Share of changes in net assets of associates and joint ventures accounted for using the equity method Net income for the year ended December 31, 2024 Balance as of December 31, 2024 Appropriation and distribution of 2024 retained earnings Legal reserve appropriated Cash dividends of ordinary share Other changes in capital reserve Share of changes in net assets of associates and joint ventures accounted for using the equity method Net income for the year ended December 31, 2025 Other comprehensive income (loss) for the year ended December 31, 2025 Balance as of December 31, 2025 Total comprehensive income (loss) Balance as of January 1, 2024 Total comprehensive income (loss) Balance as of January 1, 2025 Other Other comprehensive income (loss) for the year ended December 31, 2024 Reversal of special reserve, which previously set aside for the first-time adoption of IFRSs	$1,509,517 - - - - -	$3,537 - - 89,421 - -	$399,647 35,084 - - - -	$275,001 - - - - -	$543,101 (35,084) (211,332) - 1,555,981 5,934	$(618) - - - - 4,946	$117,209 - - - - 54,214	$2,847,394 - (211,332) 89,421 1,555,981 65,094
	- -	- -	- -	- (63,590)	1,561,915 63,590	4,946 -	54,214 -	1,621,075 -
	$1,509,517	$92,958	$434,731	$211,411	$1,922,190	$4,328	$171,423	$4,346,558
	$1,509,517 - - - - -	$92,958 - - (28) - -	$434,731 162,550 - - - -	$211,411 - - - - -	$1,922,190 (162,550) (1,132,138) - 583,839 (980)	$4,328 - - - - (2,448)	$171,423 - - - - 10,736	$4,346,558 - (1,132,138) (28) 583,839 7,308
	-	-	-	-	582,859	(2,448)	10,736	591,147
	-	-	-	-	3,154	-	-	3,154
	$1,509,517	$92,930	$597,281	$211,411	$1,213,515	$1,880	$182,159	$3,808,693

(The accompanying notes are an integral part of the individual financial statements.)

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English translation of individual financial statements originally issued in Chinese CATHAY CHEMICAL WORKS INC.

INDIVIDUAL STATEMENTS OF CASH FLOWS

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Items	2025	2024
Cash flows from operating activities: Net income before tax Adjustments to reconcile net income before tax to net cash provided by operating activities: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit impairment (gain) loss Interest expense Interest income Dividend income Share of profit of associates and joint ventures Gain on disposal of property, plant and equipment Gain on disposal of non-current assets classified as held for sale Gain on disposal of investments Changes in operating assets and liabilities: Notes receivable Accounts receivable Other receivables Inventories Other current assets Contract liabilities Notes payable Accounts payable Other payables Other current liabilities Net defined benefit assets Cash outflow generated from operations: Interest received Dividend received Income tax paid Net cash flows provided by operating activities Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets measured at amortized cost Proceeds from disposal of financial assets at amortized cost Acquisition of investments accounted for using the equity method Proceeds from disposal of investments accounted for using the equity method Proceeds from disposal of non-current assets classified as held for sale Acquisition of property, plant and equipment Disposal of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Increase in other non-current assets Increase in prepayments for equipment Net cash provided by investing activities Cash flows from financing activities: Increase in short-term loans Decrease in short-term loans Decrease in refundable deposits Payments of lease liabilities Cash dividends paid Interest paid Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	$600,917 16,454 15 (92) 135 (14,812) (7,808) (648,342) (10) - - 17,674 (8,475) 312 11,270 (5,561) 344 (1,026) (3,985) (58,954) 65 4,220 (97,659) 15,123 208,489 (6,031) 119,922 - (230,000) 1,221,000 - - - (13,205) 38 - 9 (35) (5,420) 972,387 30,000 (30,000) (300) (1,242) (1,132,138) (57) (1,133,737) (41,428) 143,513 $102,085	$1,548,764 15,504 15 49 96 (7,638) (5,856) (493,863) - (1,106,879) (28,616) (12,667) 7,731 (3) 1,885 346 (411) (2,864) 4,650 78,577 (18) (804) (2,002) 7,342 184,848 (32,895) 157,293 (7,556) (1,221,000) 50,000 (49,957) 48,645 1,230,016 (6,146) - (207) 198 (1,522) - 42,471 25,000 (25,000) - (1,207) (211,332) - (212,539) (12,775) 156,288 $143,513

(The accompanying notes are an integral part of the individual financial statements.)

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English translation of individual financial statements originally issued in Chinese CATHAY CHEMICAL WORKS INC.

NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

1. History and organization

Cathay Chemical Works Inc. (the “Company”) was established in December 1962. The Company’s primarily business is the manufacture and sale of sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate, zinc dust and so on. The Company’s common shares were listed on the Taiwan Stock Exchange since January 1990. The Company’s registered address and main operating site is at 12F, No.320, Section 4, Zhongxiao East Road, Taipei, Taiwan.

2. Date and procedures of authorization of financial statements for issue

The individual financial statements of the Company for the years ended December 31, 2025 and 2024 were recommended and authorized for issue by the Board of Directors on March 12, 2026.

3. Newly issued or revised standards and interpretations

• (1) Changes in accounting policies resulting from applying for the first-time certain standards and amendments

The Company applied for the first time the International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after January 1, 2025. The adoption of these new standards and amendments had no material impact on the Company.

• (2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which have been endorsed by FSC, and not yet adopted by the Company as at the date when the Company’s financial statements were authorized for issue, are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	IFRS 17 “Insurance Contracts”	1 January2023
b	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	1 January 2026
c	Annual Improvements to IFRS AccountingStandards – Volume 11	1 January2026
d	Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7	1 January 2026

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CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (a) IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after 1 January 2023.

• (b) Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7

The amendments include:

• (1) Clarify that a financial liability is derecognised on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.

• (2) Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.

• (3) Clarify the treatment of non-recourse assets and contractually linked instruments.

• (4) Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESGlinked), and equity instruments classified at fair value through other comprehensive income.

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CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (c) Annual Improvements to IFRS Accounting Standards – Volume 11

• (1) Amendments to IFRS 1

• (2) Amendments to IFRS 7

• (3) Amendments to Guidance on implementing IFRS 7

• (4) Amendments to IFRS 9

• (5) Amendments to IFRS 10

• (6) Amendments to IAS 7

• (d) Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7

The amendments include:

• (1) Clarify the application of the ‘own-use’ requirements.

• (2) Permit hedge accounting if these contracts are used as hedging instruments.

• (3) Add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows.

The abovementioned standards and amendments are applicable for annual periods beginning on or after 1 January 2026 and have no material impact on the Company.

• (3) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 18 “Presentation and Disclosure in Financial Statements”	1 January 2027 (Note)
c	Disclosure Initiative — Subsidiaries without Public Accountability: Disclosures(IFRS 19)	1 January 2027
d	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	1 January 2027

• (a) IFRS 10“Consolidated Financial Statements” and IAS 28“Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

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CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

• (b) IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as below:

• (1) Improved comparability in the statement of profit or loss (income statement) IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

• (2) Enhanced transparency of management-defined performance measures IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

• (3) Useful grouping of information in the financial statements IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

15

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (c) Disclosure Initiative —Subsidiaries without Public Accountability: Disclosures (IFRS 19)

This new standard and its amendments permits subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

• (d) Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)

The amendments include:

• (1) Clarify that when the entity’s functional currency is that of a non-hyperinflationary economy but its presentation currency is the currency of a hyperinflationary economy, the entity shall translate its results and financial position using the closing rate at the date of the most recent statement of financial position.

• (2) In the above circumstances, when the presentation currency ceases to be hyperinflationary economy, the entity shall not retranslate amounts that arose before the beginning of the reporting period.

• (3) When the entity’s functional currency and presentation currency are the currency of a hyperinflationary economy, the entity shall apply the relevant accounting treatment in accordance with paragraph 34 of IAS 29.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the new or amended standards and interpretations listed under (b), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

4. Summary of material accounting policies

(1) Statement of compliance

The individual financial statements of the Company for the years ended December 31, 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by Financial Supervisory Commission of the Republic of China.

16

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Basis of preparation

The individual financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The individual financial statements are expressed in thousands of New Taiwan Dollars (“NTD”) unless otherwise stated.

• (3) Foreign currency transactions

The Company’s individual financial statements are presented in NTD, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company at functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

• A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

• B. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instrument.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

• (4) Current and non-current classification standard for assets and liabilities

An asset is classified as current when:

• A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle.

• B. The Company holds the asset primarily for the purpose of trading.

• C. The Company expects to realize the asset within twelve months after the reporting period.

• D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

17

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

All other assets are classified as non-current.

A liability is classified as current when:

• A. The Company expects to settle the liability in its normal operating cycle.

• B. The Company holds the liability primarily for the purpose of trading.

• C. The liability is due to be settled within twelve months after the reporting period.

• D. The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

• (5) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• (6) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liabilities.

A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

• (a) the Company’s business model for managing the financial assets and

• (b) the contractual cash flow characteristics of the financial asset.

18

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, accounts receivables, financial assets measured at amortized cost and other receivables etc., on balance sheet as of the reporting date:

• (a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

• (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• (a) purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

• (b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

• (a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

• (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

19

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

• (a) A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

• (b) When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

• (c) Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• I. Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

• II. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represents a recovery of part of the cost of investment.

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

20

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

B. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Company measures expected credit losses of a financial instrument in a way that reflects:

• (a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

• (b) the time value of money; and

• (c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follow:

• (a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

• (b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

• (c) For accounts receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

• (d) For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

21

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

• C. Derecognition of financial assets

A financial asset is derecognized when:

• (a) The rights to receive cash flows from the asset have expired.

• (b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred.

• (c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

D. Financial liabilities and equity

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

22

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss.

A financial liability is classified as held for trading if:

• (a) it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;

• (b) on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of shortterm profit-taking; or

• (c) it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

• (a) it eliminates or significantly reduces a measurement or recognition inconsistency; or

• (b) a Company of financial liabilities, financial assets or both is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the Company is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

23

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid or payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

• (7) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• A. In the principal market for the asset or liability, or

• B. In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

24

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

• (8) Inventories

Inventories are valued at lower of cost or net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows.

－ Raw materials Purchase cost on weighted average basis.

－ Finished goods and work in progress Cost of direct materials, labor and manufacturing overheads but excluding borrowing costs. Cost of the fixed manufacturing overheads is based on a normal operating capacity. Cost of the finished goods and work in progress is based on weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Rendering of services is accounted in accordance with IFRS 15 and not within the scope of inventories.

• (9) Non-current assets held for sale and discontinued operations

Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered through a sale transaction that is highly probable within one year from the date of classification and the asset or disposal group is available for immediate sale in its present condition. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

In the individual statement of comprehensive income of the reporting period, and of the comparable period of the previous year, income and expenses from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of profit after taxes. The resulting profit or loss (after taxes) is reported separately in the statement of comprehensive income.

25

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

(10)Investments accounted for using the equity method

The Company’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence.

Under the equity method, the investment in the associate or investment in a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate or joint venture. After the interest in the associate or joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. Unrealized gains and losses resulting from transactions between the Company and the associate or joint venture are eliminated to the extent of the Company’s related interest in the associate or joint venture.

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Company’s percentage of ownership interests in the associate or joint venture, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture on a prorated basis.

When the associate or joint venture issues new stock, and the Company’s interest in an associate or a joint venture is reduced or increased as the Company fails to acquire shares newly issued in the associate or joint venture proportionately to its original ownership interest, the increase or decrease in the interest in the associate or joint venture is recognized in additional paid in capital and investment accounted for using the equity method. When the interest in the associate or joint venture is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a prorate basis when the Company disposes of the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

26

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

• A. Its share of the present value of the estimated future cash flows expected to be generated by the associate or joint venture, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or

• B. The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate or an investment in a joint venture is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate or joint venture, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(11)Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 “Property, plant and equipment”. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

27

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings	6〜61 years
Machinery and equipment	6〜16 years
Other equipment	5〜14 years
Right-of-use assets	2 years

An item of property, plant and equipment or any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(12)Investment property

The Company’s owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations, investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as right-of-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

The Company transfers properties to or from investment properties according to the actual use of the properties.

The Company transfers to or from investment properties when there is a change in use for these assets. Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

28

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(13)Lease

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

• A. the right to obtain substantially all of the economic benefits from use of the identified asset; and

• B. the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate standalone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

29

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• B. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• C. amounts expected to be payable by the lessee under residual value guarantees;

• D. the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and

• E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortized cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

• A. the amount of the initial measurement of the lease liability;

• B. any lease payments made at or before the commencement date, less any lease incentives received;

• C. any initial direct costs incurred by the lessee; and

• D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-ofuse asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the rightof-use asset 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.

The Company applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

30

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Except for those leases that the Company accounted for as short-term leases or leases of lowvalue assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements of comprehensive income.

For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(14)Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cashgenerating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

31

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cashgenerating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(15)Revenue recognition

The Company’s revenue arising from contracts with customers are primarily related to sale of goods. The accounting policies are explained as follow:

Sale of goods

The Company manufactures and sells goods. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers (i.e. when the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from the goods). The main product of the company is Sodium Hydrosulfite, Zinc Oxide, Sodium Formaldehyde Sulfoxylate, Zinc Dust and revenue is recognized based on the consideration stated in the contract. For certain sales of goods transactions, they are usually accompanied by volume discounts (based on the accumulated total sales amount for a specified period). Therefore, revenue from these sales is recognized based on the price specified in the contract, net of the estimated volume discounts. The Company estimates the discounts using the expected value method based on historical experiences. Revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur and when the uncertainty associated with the variable consideration is subsequently resolved. During the period specified in the contract, refund liability is recognized for the expected volume discounts.

The Company provides its customer with a warranty with the purchase of the products. The warranty provides assurance that the product will operate as expected by the customers. And the warranty is accounted in accordance with IAS 37.

32

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The credit period of the Company’s sale of goods is 120 days. For most of the contracts, when the Company transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as trade receivables. The Company usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. For some of the contracts, the Company has transferred the goods to customers but does not have a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. Besides, in accordance with IFRS 9, the Company measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses.

However, for some rendering of services contracts, part of the consideration was received from customers upon signing the contract, and the Company has the obligation to provide the services subsequently; accordingly, these amounts are recognized as contract liabilities.

The period between the transfers of contract liabilities to revenue is usually within one year, thus, no significant financing component is arised.

(16)Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company. Therefore, fund assets are not included in the Company’s individual financial statements.

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Remeasurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

A. the date of the plan amendment or curtailment; and

B. the date that the Company recognizes restructuring-related costs or termination benefits

33

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

For the post-employment benefit plan that is a definite welfare plan, the Company has changed from 12% to 3% of the total salary on a monthly basis with the approval of the Department of Labor, Taipei City Government since February 2021, and the amount raised is recognized as the current expense.

(17)Income tax

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

• A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to taxable and deductible temporary differences.

• B. In respect of taxable temporary differences associated with investments in subsidiaries, and associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

34

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

• A. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to taxable and deductible temporary differences.

• B. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will be reversed in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12), information about deferred tax assets and liabilities related to Pillar Two income tax will neither be recognized nor be disclosed.

5. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s individual financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

35

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that would have a significant risk for a material adjustment to the carrying amounts of assets and liabilities within the next fiscal year are discussed below:

(1) Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective company’s domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

(2) Inventory evaluation

As inventory is measured by the lower cost and net realizable value, the Company assesses the amount of inventory at the end of the reporting period due to normal wear and tear, obsolescence or no market value and reduces the cost of inventory to net realisation value. This inventory evaluation is based on market conditions at the time and may change significantly due to rapid market changes.

36

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

6. Contents of significant accounts

• (1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand Savings accounts Checking accounts Time deposits(Note) Cash equivalents－Commercial paper(Note) Total	As of December 31,
	2025	2024
	$136 66,304 12,645 23,000 -	$138 87,893 17,567 8,000 29,915
	$102,085	$143,513

Note: The contract will expire within three months and it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value.

• (2) Financial assets at fair value through other comprehensive income

Equity instrument investments measured at fair value through other comprehensive income–non-current： Listed stocks Reward Wool Industry Corporation	As of December 31,	As of December 31,
	2025	2024
	$369,907	$359,171

The Company classifies parts of its financial assets as financial assets at fair value through other comprehensive income and were not pledged.

Please refer to Note 12 for more details on credit risk of equity instrument investments measured at fair value through other comprehensive income.

The Company’s dividend income related to equity instrument investments measured at fair value through other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

Related to investments held at the end of the reporting period Dividends recognized during the period	For theyears ended December 31	For theyears ended December 31
	2025	2024
	$7,808	$5,856

37

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (3) Financial assets measured at amortized cost

Financial assets measured at amortized cost - Current Time deposits with original maturities over three months	As of December 31,	As of December 31,
	2025	2024
	$230,000	$1,221,000

The Company classifies certain financial assets as financial assets measured at amortized cost and were not pledged. Please refer to Note 12 for more details on credit risk.

• (4) Notes Receivable

Notes Receivable arising from operating activities Less: loss allowance Total	As of December 31,	As of December 31,
	2025	2024
	$25,128 (251)	$42,802 (428)
	$24,877	$42,374

Notes receivables were not pledged.

The Company follows the requirement of IFRS 9 to assess the impairment. Please refer to Note 6(13) for more details on loss allowance and Note 12 for details on credit risk.

• (5) Accounts receivable and Accounts receivable - related parties, net

Accounts receivable Less: loss allowance Total	As of December 31,	As of December 31,
	2025	2024
	$81,139 (812)	$72,664 (727)
	$80,327	$71,937

Accounts receivables were not pledged.

Accounts receivables are generally on 120 days terms. The total carrying amount as of December 31, 2025 and 2024 are NTD81,139 thousand and NTD72,664 thousand, respectively. Please refer to Note 6(13) for more details on loss allowance of accounts receivable for the years ended December 31, 2025 and 2024. Please refer to Note 12 for more details on credit risk management.

38

CATHAY CHEMICAL WORKS INC.

NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (6) Inventory

Raw materials Supplies Finished goods Total	As of December 31,	As of December 31,
	2025	2024
	$74,610 2,674 118,239	$86,340 2,673 117,780
	$195,523	$206,793

• A. For the years ended December 31, 2025 and 2024, the Company recognized NTD439,194 thousand and NTD463,991 thousand for cost of inventories in expenses, respectively, including inventory write-downs of 136 thousand and the reversal of inventories of NTD1,484 thousand, respectively. For the year ended December 31, 2024, as the product prices rebound resulted in a reduced estimated amount of inventory write-downs to be recognized, gain from inventory price recovery was recorded.

B. The inventories were not pledged.

• (7) Investments accounted for under the equity method

The following table lists the investments accounted for under the equity method of the Company:

Investee companies	As of December 31,	As of December 31,	As of December 31,	As of December 31,
	2025		2024 Carrying amount Percentage of ownership (%) 27.73% $1,637,050 (Note1)
	Carrying amount	Percentage of ownership (%)		Percentage of ownership (%)
Investments in associates Taiwan Puritic Corp.	$2,081,255	27.73%		27.73% (Note1)

• Note 1: The Company sold 300 thousand shares of Taiwan Puritic Corp. in the first quarter of 2024, resulting the shareholding ratio was reduced from 29.93% to 29.44%. A gain on disposal of investment amounting to NTD28,616 thousand was recognized. Please refer to Note 6.16(3) for more details. The Company subscribed for 345 thousand newly issued shares from Taiwan Puritic Corp. capital increase in the fourth quarter of 2024. As the Company did not acquire shares newly issued to its original ownership interest, the Company’s interest was reduced from 29.44% to 27.73%.

39

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• A. Investments in associates

Information on the material associate of the Company:

Company Name: Taiwan Puritic Corp.

Nature of relationship with the associate: The chairman of the Company is the legal representative of the investment in associates.

Principle place of business (country of incorporation): Taiwan

Fair value of the investment in the associate when there is a quoted market price for the investment: Taiwan Puritic Corp. was listed on the Taipei Stock Exchange on June 17, 2021. The fair value of the investment in Taiwan Puritic Corp. was NTD11,811,010thousand and NTD3,037,586 thousand as of December 31, 2025 and 2024, respectively.

Reconciliation of the associate’s summarized financial information presented to the carrying amount of the Company’s interest in the associate:

Current assets Non-current assets Current liabilities Non-current liabilities Equity Proportion of the Company’s ownership Subtotal Other adjustments Carrying amount of the investment Operating revenue Net income from continuing operations Total comprehensive income	As of December 31,	As of December 31,
	2025	2024
	$14,457,298 1,774,754 (8,060,369) (666,255)	$13,272,806 1,457,484 (6,771,647) (2,055,108)
	7,505,428 27.73%	5,903,535 27.73%
	2,081,255 -	1,637,050 -
	$2,081,255	$1,637,050
	2025	2024
	$14,575,443 2,338,054 2,325,693	$10,368,536 1,726,103 1,744,195

B. The associates had no contingent liabilities or capital commitments and was not pledged as of December 31, 2025 and 2024.

40

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(8) Property, plant and equipment

Cost: As of Jan. 1, 2025 Additions Disposals As of Dec. 31, 2025 As of Jan.1, 2024 Additions Disposals Transfers (Note1) As of Dec. 31, 2024 Depreciation and impairment: As of Jan. 1, 2025 Depreciation Disposals As of Dec. 31, 2025 As of Jan.1, 2024 Depreciation Disposals As of Dec. 31, 2024 Net carrying amount: As of Dec. 31, 2025 As of Dec. 31, 2024	Land	Buildings	Machinery and equipment	Other equipment	Total
	$221,310 - -	$216,939 1,125 -	$279,739 9,201 (1,486)	$13,524 2,879 (401)	$731,512 13,205 (1,887)
	$221,310	$218,064	$287,454	$16,002	$742,830
	$221,310 - - -	$216,001 938 - -	$275,347 5,208 (1,137) 321	$13,524 - - -	$726,182 6,146 (1,137) 321
	$221,310	$216,939	$279,739	$13,524	$731,512
	$- - -	$156,156 7,568 -	$250,133 6,978 (1,486)	$12,505 733 (373)	$418,794 15,279 (1,859)
	$-	$163,724	$255,625	$12,865	$432,214
	$- - -	$148,729 7,427 -	$244,775 6,495 (1,137)	$12,035 470 -	$405,539 14,392 (1,137)
	$-	$156,156	$250,133	$12,505	$418,794
	$221,311	$54,340	$31,828	$3,137	$310,616
	$221,310	$60,783	$29,606	$1,019	$312,718

The property, plant and equipment were not pledged.

Note 1: Transferred in from prepayments for equipment.

41

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(9) Investment property

The investment property was the Company self-owned investment properties.

Cost： As of Jan. 1, 2025 Transfer (out) of Non-current assets classified as held for sale As of Dec. 31, 2025 As of Jan.1, 2024 Transfer (out) of Non-current assets classified as held for sale As of Dec. 31, 2024 Depreciation and impairment： As of Jan. 1, 2025 Depreciation As of Dec. 31, 2025 As of Jan.1, 2024 Depreciation As of Dec. 31, 2024 Net carrying amount as at: As of Dec. 31, 2025 As of Dec. 31, 2024	Land
	$535,744 -
	$535,744
	$652,167 (116,423)
	$535,744
	Land
	$- -
	$-
	$- -
	$-
	Land
	$535,744
	$535,744

• (1) The provisional shareholders’ meeting of the Company On December 1, 2023, approved to sell the former site of Kaohsiung. For the parcel of land with lot number 0004-0000 the Company entered into a real estate sale and purchase agreement with the buyer in June 2024. Therefore, part of the investment property was reclassified as Non-current assets classified as held for sale. The transaction was completed in October 2024. Please refer to Note 6(16) for more details.

(2) No investment property was pledged.

• (3) Investment properties held by the Company are not measured at fair value but for which the fair value is disclosed. The fair value measurements of the investment properties are categorized within Level 3. The fair value of investment properties was NTD3,990,803 thousand and NTD4,095,422 thousand as of December 31, 2025 and 2024, respectively. The fair value has been determined based on valuations performed by an independent valuer. The above fair value determination is supported by market evidence, and the land is evaluated using the comparative method and the land development analysis method, and the weighted average method is used to extrapolate the weighted average value, giving a weighting coefficient of 50% for both the comparative price of land and the analytical price of land development.

42

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Comparative method:

refers to the method of estimating the price of the subject of survey based on comparison, analysis and adjustment.

Condition factor adjustments rate Date factor adjustments rate Local factor adjustments rate Land individual factor adjustments rate	As of December 31,	As of December 31,
	2025	2024
	100% 101-106% 93-100% 104-115%	100% 102% 92-95% 103-114%

Land development analysis approach:

refers to the method of estimating the total sales amount after development or construction because of the change in land efficiency caused by development and improvement of land according to the legal use and intensity of use, and calculating the direct and indirect costs, capital interest and profits during the development period to find the predevelopment or pre-construction land price.

Profit margin Comprehensive interest capital rate	As of December 31,	As of December 31,
	2025	2024
	20% 6.98%	20% 5.43%

(10)Post-employment benefits

Defined contribution plan

The Company adopted a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company will make monthly contributions of no less than 6% of the employees’ monthly wages to the employees’ individual pension accounts. The Company has made monthly contributions of 6% of each individual employee’s salaries or wages to employees’ pension accounts.

For the years ended December 31, 2025 and 2024, the expenses related to defined contribution plan amounted to NTD2,430 thousand and NTD2,287 thousand, respectively.

43

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Defined benefit plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 6% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee, and the Company contributes to the pension fund with an amount equivalent to 3% since February 2021. Before the end of each year, the Company assesses the balance in the designated labor pension fund. If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company will make up the difference in one appropriation before the end of March the following year.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandates, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from twoyear time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19.

In the fourth quarter of 2025, the Company settled the defined benefit plan obligations under the old pension method with its employees. In November 2025, the Company obtained approval from the Taipei City Government to suspend the contributions of the labor pension reserve effective November 2025. The related deferred tax assets / liabilities in the amount of NTD3,154 thousand were reclassified to retained earnings. As of December 31, 2025, the Company had not yet settled the remaining balance in the pension reserve account deposited with the Bank of Taiwan.

Expenses under the defined benefit plan for the years ended December 31, 2025 and 2024 were NTD471 thousand and NTD796 thousand, respectively.

44

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(11)Equity

A. Common stock

The Company’s authorized capital and issued capital were both NTD1,509,517 thousand as of December 31, 2025 and 2024, with a par value of NTD10, divided into 150,952 thousand shares. Each share has one voting right and a right to receive dividends.

B. Additional paid-in capital

Share of changes in net assets of associates and joint ventures accounted for under the equity method	As of December 31,	As of December 31,
	2025	2024
	$92,930	$92,958

According to Taiwan Company Act, the additional paid-in capital shall not be used except for making good the deficit of the Company. When a company incurs no loss, it may distribute the additional paid-in capital related to the income derived from the issuance of new shares at a premium or income from endowments received by the Company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Retained earnings and dividend policies

According to the Company’s Articles of Incorporation, current year’s earnings, if any, shall offset prior years’ operation losses (including adjustment of unassigned retained earnings) and set aside 10% of the remaining amount as legal reserve in accordance with law, but there is no requirement to further make such reserve when legal reserve reaches the capital amount. The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders’ meeting.

The policy of dividend distribution reflects factors such as the current and future investment environment, fund requirements, domestic and international competition and capital budgets as well as the interest of the shareholders etc., each year, the total amount of dividends distributed to shareholders shall not be less than 40% of the remaining earnings after payment of all taxes and dues, offset prior years’ operation losses, and legal reserve appropriations. However, if the accumulated distributable earnings are less than 5% of the paid-in capital, dividends may not be distributed. Dividends may be distributed in the form of cash or stock, with cash dividends comprising no less than 50% of the total dividends distributed.

45

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

According to the Company Act, legal reserve shall be set aside until such amount equal total authorized capital. Legal reserve can be used to offset deficits. If the Company does not incur any loss, the portion of legal reserve exceeding 25% of the paid-in capital may be distributed to shareholders by issuing new shares or by cash in proportion to the number of shares held by each shareholder.

When the Company distributing distributable earnings, it shall set aside to special reserve, an amount equal to “other net deductions from shareholders” equity for the current fiscal year, provided that if the Company has already set aside special reserve according to the requirements for the adoption of IFRS, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed from the special reserve.

On March 31, 2021, the FSC issued Order No. Financial-Supervisory-SecuritiesCorporate-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders’ equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. Subsequently, when the Company uses, disposes of, or reclassifies the related assets, it may reverse the previously appropriated special earnings reserve in proportion and distribute it as earnings.

On first-time adoption of the IFRS, the Company’s special reserve amounted to NTD211,411 thousand and NTD275,001 thousand as of years ended January 1, 2025and 2024, respectively. The Company sold the land located at Section 1, Jingmao Road, Qianzhen District, Kaohsiung City (Parcel No. 0004-0000) on June 28, 2024, and completed the title transfer registration on October 17, 2024. As a result, The Company has reversed special reserve of NTD63,590 thousand to retained earnings. Please refer to Note 6(9) for more details. As of December 31, 2025 and December 31, 2024, the amount of special reserve appropriated upon first-time adoption of IFRS was both NTD211,411 thousand.

Details of the 2025 and 2024 earnings distribution and dividends per shares as proposed and approved by the Board of Directors’ meeting and shareholders’ meeting on March 12, 2026 and June 28, 2025, respectively, are as follows:

Legal reserve Common stock-cash dividend Total	Appropriationofearnings	Appropriationofearnings	Dividend pershare (NTD)	Dividend pershare (NTD)
	2025	2024	2025	2024
	$58,601 467,950	$162,550 1,132,138	$3.10	$7.50
	$526,551	$1,294,688

Please refer to Note 6(15) for details on employees’ compensation and remuneration to directors.

46

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(12)Operating revenue

Revenue from customer contracts Sales of goods	For theyears ended December 31,	For theyears ended December 31,
	2025	2024
	$460,042	$527,973

• A. Disaggregation of revenue

The revenue from the Company's contracts with customers is mainly sale of goods and is recognized according to IFRS 15, which is at a point in time.

• B. Contract balances

• (a) Contract assets – current

None.

• (b) Contract liabilities – current

Sales revenue received in advance	For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,
	2025	2024	2023
	$344	$-	$411

Details of Significant Changes of Contract Liabilities Balance for the Company for the years ended December 31, 2025 and 2024:

Beginning balance transferred to current period revenue Increase in sales revenue received in advance for the period (deduct amount incurred and transferred within the period)	For theyears ended December 31,	For theyears ended December 31,
	2025	2024
	$- 344	$411 -

• C. Transaction price allocated to unsatisfied performance obligations

None.

• D. Assets recognized from costs to fulfil a contract

None.

47

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(13)Expected credit losses/(gains)

Operating expenses – Expected credit losses/(gains) Notes receivable Accounts receivable Subtotal	For theyears ended December 31,	For theyears ended December 31,
	2025	2024
	$(177) 85	$126 (77)
	$(92)	$49

Please refer to Note 12 for more details on credit risk.

The credit risk for the Company’s financial assets measured at amortized cost is assessed as low (the same as the assessment result in the beginning of the period). Therefore, the loss allowance is measured at an amount equal to 12-month expected credit losses (loss rates 0%).

The Company measures the loss allowance of its trade receivable (including notes receivable and accounts receivable) at an amount equal to lifetime expected credit losses.

The Company considers the historical credit loss experience for contract assets shows that different customer segments do not have significantly different loss patterns. Therefore, the loss allowance of contract assets is measured at an amount equal to lifetime expected credit losses and with no distinction between groups, details are as follow:

2025.12.31

2025.12.31
Gross carrying amount Loss rate Lifetime expected credit losses Total 2024.12.31 Gross carrying amount Loss rate Lifetime expected credit losses Total	Not yet due (Note)			Overdue
		1-120 days	121-180 days	181-365 days	>=366 days	Total
	$101,742 1%	$4,525 1%	$- -	$- -	$- -	$106,267 1,063
	1,018	45	-	-	-
	$100,724	$4,480	$-	$-	$-	$105,204
	Not yet due (Note)			Overdue
		1-120 days	121-180 days	181-365 days	>=366 days	Total
	$113,251 1%	$2,215 1%	$- -	$- -	$- -	$115,466 1,155
	1,133	22	-	-	-
	$112,118	$2,193	$-	$-	$-	$114,311

Note: The Company’s notes receivable is not overdue.

48

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The movement in the provision for impairment of notes receivable and accounts receivable during the years ended December 31, 2025 and 2024 is as follows:

As of January 1, 2025 Addition/(reversal) for the current periods Write off As of December 31, 2025 As of January 1, 2024 Addition/(reversal) for the current periods Write off As of December 31, 2024	Notes receivable	Accounts receivable
	$428 (177) -	$727 85 -
	$251	$812
	$302 126 -	$804 (77) -
	$428	$727

• (14)Leases

• A. Company as a lessee

The assets leased by the Company are factory buildings and its lease term is 2 years. There are no restrictions placed upon the Company by entering into these leases.

The Company’s leases effect on the financial position, financial performance and cash flows are as follow:

• (a) Amounts recognized in the balance sheet

• I. Right-of-use assets

The carrying amount of right-of-use assets

The carrying amount of right-of-use assets
Buildings	As of December 31,
	2025	2024
	$783	$1,958

During the year ended December 31, 2025 and 2024, the Company’s additions to right-of-use assets amounted to NTD0 thousand and NTD2,350 thousand, respectively.

II. Lease liabilities

Lease liabilities
Current Non-current Total	As of December 31,
	2025	2024
	$811 -	$1,164 811
	$811	$1,975

49

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Please refer to Note 6.16(4) for the interest on lease liabilities recognized during the year ended December 31, 2025 and 2024 and refer to Note 12(5) Liquidity Risk Management for the maturity analysis for lease liabilities as of December 31, 2025 and 2024.

• (b) Amounts recognized in the statement of profit or loss

Depreciation charge for right-of-use assets

Depreciation charge for right-of-use assets
Buildings	For theyears ended December 31,
	2025	2024
	$1,175	$1,112

(c) Income and costs relating to leasing activities

ncome and costs relating to leasing activities
The expenses relating to short-term leases	For theyears ended December 31,
	2025	2024
	$3	$3

• (d) Cash outflow relating to leasing activities

During the year ended December 31, 2025 and 2024, the Company’s total cash outflows for leases amounting to NTD1,245 thousand and NTD1,210 thousand, respectively.

B. Company as a lessor

Lease income for operating leases Income relating to fixed lease payments	For theyears ended December 31,	For theyears ended December 31,
	2025	2024
	$952	$939

For operating leases entered by the Company, the undiscounted lease payments to be received and a total of the amounts for the remaining years ended December 31, 2025 and 2024 are as follow:

Not later than one year Later than four years but not later than five years Total	As of December 31,	As of December 31,
	2025	2024
	$759 2,010	$782 1,831
	$2,769	$2,613

50

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (15)Summary statement of employee benefits, depreciation and amortization expenses by function was as follow:

By function By feature		For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,
		2025			2024
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Wages and salaries	$57,241	$61,721	$118,962	$58,570	$107,367	$165,937
Labor and health insurance	7,124	1,833	8,957	6,056	1,465	7,521
Pension	2,389	512	2,901	2,497	586	3,083
Remuneration to directors	-	10,426	10,426	-	20,330	20,330
Other employee benefits expense	2,427	536	2,963	2,581	582	3,163
Depreciation	14,571	1,883	16,454	13,854	1,650	15,504
Amortization	-	15	15	-	15	15

• A. The numbers of employee of the Company as of December 31, 2025 and 2024, were 89 and 92, including 4 non-employee directors in both years.

• B. The Company’s average employee benefits expense for the years ended December 31, 2025 and 2024 were NTD1,574thousand and NTD2,042 thousand, respectively.

• C. The Company’s average salaries expense for the years ended December 31, 2025 and 2024 were NTD1,400 thousand and NTD1,886 thousand, respectively. The Company’s average salary expense adjustment for the years ended December 31, 2025 decrease by 25.77 %.

The policy on remuneration of directors and managers of the Company is approved by the Remuneration Committee and submitted to the Board for resolution in accordance with the "Measures for the Establishment and Exercise of Powers of the Remuneration Committee of Companies Listed on Stocks or Traded at the Business Premises of Securities Dealers" and the "Payroll Management Rules" of the Company. The policy of directors' remuneration shall be handled in accordance with the provisions of the articles of association, and the carriage fee shall be paid according to the actual attendance at the board of directors. The Manager's Remuneration Policy is determined by taking into account personal experience, performance, contribution to the Company, future potential and the Company's operating performance. The employee remuneration policy includes salary, various allowances, job additions, overtime pay and various bonuses, etc., which are determined according to the responsibilities of employees at all levels and the degree of contribution to the company's operations, and with reference to the salary level in the interbank market.

51

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

According to the Articles of Incorporation, at least 5% of profit of the current year is distributable as employees’ compensation and no higher than 1% of profit of the current year is distributable as remuneration to directors and supervisors. No less than 1% of the aforementioned employees’ compensation shall be allocated to entry-level employees. However, the Company’s accumulated losses shall have been covered. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by twothirds of the total number of directors, have the profit distributable as employees’ compensation in the form of shares or in cash; and in addition, thereto a report of such distribution is submitted to the shareholders’ meeting. Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors can be obtained from the “Market Observation Post System” on the website of the TWSE.

Based on the profit of the year ended December 31, 2025, the Company estimated the amounts of the employees’ compensation and remuneration to directors and supervisors for the year ended December 31, 2025 to be 5% of profit of the current year and 1% of profit of the current year, respectively, recognized as employee benefits expense. A resolution was passed at a Board of Directors’ meeting held on March 12, 2026 to distribute NTD31,964 thousand and NTD6,392 thousand in cash as employees’ compensation and remuneration to directors of 2025, respectively. No material differences exist between the estimated amount and the distribution of the employee compensation and remuneration to directors approved by the board of directors for the year ended December 31, 2025.

A resolution was passed at a Board of Directors’ meeting held on March 14, 2025 to distribute NTD82,381 thousand and NTD16,476 thousand in cash as employees’ compensation and remuneration to directors of 2024, respectively. No material differences exist between the estimated amount and the distribution of the employee compensation and remuneration to directors approved by the board of directors for the year ended December 31, 2024.

(16)Non-operating income and expenses

A. Interest income

Interest income
Interest income Interest on borrowings from bank Financial assets measured at amortized cost Others Total	For theyears ended December 31,
	2025	2024
	$4,493 10,054 265	$2,882 4,436 320
	$14,812	$7,638

52

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

B. Other income

Other income
Rental income Dividend income Other income-others Total	For theyears ended December 31,
	2025	2024
	$952 7,808 20,553	$939 5,856 13,885
	$29,313	$20,680

C. Other gains and losses Gain on disposal of property,plant and equipment Gain on disposal of non-current assets classified as held for sale(Note) Gain on disposal of investments Foreign exchange gains, net Others Total	For theyears ended December 31,	For theyears ended December 31,
	2025	2024
	$10 - - (1,423) (10,758)	$- 1,106,879 28,616 5,673 (15,331)
	$(12,171)	$1,125,837

Note: The Company’s board of directors approved the disposal of the Xinwu factory and land in December 2022, and the transaction was completed in April 2024. The disposal price amounted to NTD188,570 thousand, and gain on disposal of noncurrent assets held for sale was recognized in the amount of NTD183,754 thousand. In addition, the Company entered into a sale agreement in June 2024 for land located at Parcel No. 0004-0000, Subsection 1, Jingmao Road, Qianzhen District, Kaohsiung City, and completed the transaction in October 2024. The disposal price amounted to NTD1,041,446 thousand, and gain on disposal of non-current assets held for sale was recognized in the amount of NTD923,125 thousand.

D. Finance costs

For the years ended December 31,

Interest on lease liabilities Interest on borrowings from bank Total	2025	2024
	$78 57	$54 42
	$135	$96

53

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(17)Components of other comprehensive income

For the year ended December 31, 2025

Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income Share of other comprehensive income of associates and joint ventures accounted for using the equity method To be reclassified to profit or loss in subsequent periods: Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method Total of other comprehensive income	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax benefit (expense) relating to components of other comprehensive income	Other comprehensive income, net of tax
	$- 10,736 (980) (2,448)	$- - - -	$- 10,736 (980) (2,448)	$- - - -	$- 10,736 (980) (2,448)
	$7,308	$-	$7,308	$-	$7,308

For the year ended December 31, 2024

Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income Share of other comprehensive income of associates and joint ventures accounted for using the equity method To be reclassified to profit or loss in subsequent periods: Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method Total of other comprehensive income	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax benefit (expense) relating to components of other comprehensive income	Other comprehensive income, net of tax
	$7,242 54,214 140 4,946	$- - - -	$7,242 54,214 140 4,946	$(1,448) - - -	$5,794 54,214 140 4,946
	$66,542	$-	$66,542	$(1,448)	$65,094

54

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(18)Income tax

The major components of income tax expense (income) are as follows:

Income tax expense (income) recognized in profit or loss

Forthe years endedDecember31, 2025 2024 Current income tax expense (income): Current income tax charge $16,541 $7,735 Adjustments in respect of current income tax of prior periods (2,576) - Land value increment tax - 27,513 Deferred tax expense (income): Deferred tax expense (income) relating to origination and reversal of temporary differences 3,113 (42,465) Total income tax (income) expense $17,078 $(7,217) Income tax relating to components of other comprehensive income For the years ended December 31, 2025 2024 Deferred tax expense (income): Remeasurement of defined benefit plans $- $1,448 Income tax relating to components of other comprehensive income $- $1,448 Reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows: For the years ended December 31, 2025 2024 Accounting profit before tax from continuing operations $600,917 $1,548,764 Tax at the domestic rates applicable to profits in the country concerned $120,183 $309,753 Tax effect of revenues exempt from taxation (131,224) (327,180) Tax effect of expenses not deductible for tax purposes 14 40 Land value increment tax - 27,513 Tax effect of deferred tax assets/liabilities 14,140 (25,287) Corporate income surtax on undistributed retained earnings (2025 & 2024: 5%) 16,541 5,221 Adjustments in respect of current income tax of prior periods (2,576) - Others - 2,723 Total income tax (income) expense recognized in profit or loss $17,078 $(7,217)	Forthe years endedDecember31,	Forthe years endedDecember31,
	2025	2024
	$16,541 (2,576) - 3,113	$7,735 - 27,513 (42,465)
	$17,078	$(7,217)
	2025	2024
	$600,917	$1,548,764
	$120,183 (131,224) 14 - 14,140 16,541 (2,576) -	$309,753 (327,180) 40 27,513 (25,287) 5,221 - 2,723
	$17,078	$(7,217)

55

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2025

Temporary differences Unrealized loss due to market price decline of inventories Unrealized loss (gain) on foreign exchange Reserve for land value increment tax Net defined benefits assets - Non-current Tax losses carryforward Deferred tax income/(expense) Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance as of January 1, 2025	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in equity	Ending balance as of December 31, 2025
	$50 (42) (84,070) (154) 27,613	$27 33 - (176) (2,997)	$- - - 3,154 -	$77 (9) (84,070) 2,824 24,616
	$(56,603)	$(3,113)	$3,154	$(56,562)
	$27,510			$27,517
	$84,113			$84,079

For the year ended December 31, 2024

Temporary differences Unrealized loss due to market price decline of inventories Unrealized loss (gain) on foreign exchange Reserve for land value increment tax Net defined benefits liabilities - Non-current Net defined benefits assets - Non-current Tax losses carryforward Deferred tax income/(expense) Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance as of January 1, 2024	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in other comprehensive income	Ending balance as of December 31, 2024
	$347 (669) (109,357) 1,455 - 10,604	$(297) 627 25,287 (1,455) 1,294 17,009	$- - - - (1,448) -	$50 (42) (84,070) - (154) 27,613
	$(97,620)	$42,465	$(1,448)	$(56,603)
	$11,737			$27,510
	$109,357			$84,113

Unrecognized deferred tax assets

As of December 31, 2025 and 2024, the Company's unrecognized deferred tax assets amounted to NT$D11,142 thousand and NTD0 thousand, respectively.

56

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The assessment of income tax returns

As of December 31, 2025, the assessment of the income tax returns of the Company was assessed and approved up to 2023.

(19)Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

A. Basic earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NTD) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Basic earnings per share (NTD) B. Diluted earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NTD) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Effect of dilution: Employee compensation－stock (in thousands) Weighted average number of ordinary shares outstanding after dilution (in thousands) Diluted earnings per share (NTD)	For theyears ended December 31,	For theyears ended December 31,
	2025	2024
	$583,839	$1,555,981
	150,952	150,952
	$3.87	$10.31
	2025	2024
	$583,839	$1,555,981
	150,952 706	150,952 1,799
	151,658	152,751
	$3.85	$10.19

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of the financial statements.

57

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

7. Related party transactions

• (1) Information of the related parties that had transactions with the Company during the financial reporting period is as follows:

Name and nature of relationship of the related parties

Name of the relatedparties	Nature of relationshipof the relatedparties
Reward Wool Industry Corporation	The major shareholder of the Company is the major
	corporate shareholders of the Company
Significant transactions with related parties
A. Sales

B.	Reward Wool Industry Corporation Lease-related parties Right-of-use assets Reward Wool Industry Corporation Lease liabilities	For theyears ended December 31,	For theyears ended December 31,
		2025	2024
		$-	$37
		2025	2024
		$783	$1,958

Reward Wool Industry Corporation Interest expenses Reward Wool Industry Corporation	As of December 31,	As of December 31,
	2025	2024
	$811	$1,975
	2025	2024
	$78	$54

58

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The method of determining the rent of the premises and the rent collection leased from the related party is not materially different from that of ordinary tenants, and is based on local conditions and the consideration of the price agreed by both parties according to the location, floor and area of the lease.

• C. Refundable deposits

Reward Wool Industry Corporation Note: Under other non-current assets.	As of December 31,	As of December 31,
	2025	2024
	$207	$207

D. Others

• (a) For the years ended December 31, 2025 and 2024, the Company paid to Reward Wool Industry Corporation information usage fees were NTD1,834 thousand and NTD1,841 thousand, respectively.

• (b) For the years ended December 31, 2025 and 2024, the Company paid the management fees for the Xinwu warehouse to Reward Wool Industry Corporation both amounted to NTD48 thousand.

(2) Key management personnel compensation

Short-term employee benefits post-employment benefits Total	For theyears ended December 31,	For theyears ended December 31,
	2025	2024
	$24,654 274	$12,460 268
	$24,928	$12,728

8. Assets pledged as security

None.

9. Significant contingencies and unrecognized contractual commitments

As of December 31, 2025, the Company’s commitments and contingencies not disclosed in the financial statements are as follows:

The Company applied for financial institution commitments in order to provide a guarantee for the import duty in the amount of NTD5,000 thousand.

59

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

10. Losses due to major disasters

None.

11. Significant subsequent events

None.

12. Others

• (1) Categories of financial instruments

Financial assets

Financial assets
Financial assets at fair value through other comprehensive income Financial asset amortized at cost: Cash and cash equivalents (exclude cash on hand and petty cash) Financial asset amortized at cost Notes receivables Accounts receivables (including related parties) Other receivables (including related parties) Other non-current assets-Refundable deposits Total	As of December 31,
	2025	2024
	$369,907 101,949 230,000 24,877 80,327 535 1,207	$359,171 143,375 1,221,000 42,374 71,937 1,158 1,216
	$808,802	$1,840,231

Financial liabilities

Financial liabilities
Financial liabilities at amortized cost: Payables Lease liabilities (including the current portion) Guarantee deposits received Total	As of December 31,
	2025	2024
	$64,977 811 -	$128,942 1,975 300
	$65,788	$131,217

• (2) Financial risk management objectives and policies

The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies measures and manages the aforementioned risks based on the Company’s policy and risk appetite.

60

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

• (3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there is usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company’s exposure to foreign currency risk relates primarily to the Company’s operating activities (when revenue or expense are denominated in a different currency from the Company’s functional currency).

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit/loss and equity is performed on significant monetary items denominated in foreign currencies as of the reporting period-end. The Company’s foreign currency risk is mainly related to volatility in the exchange rates of USD dollars. The information of the sensitivity analyses is as follows:

When NTD strengthens/weakens against foreign currency USD by 1%, the profit for the years ended December 31, 2025 and 2024 is decreased/increased by NTD140 thousand and NTD259 thousand, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's commercial notes, time deposits and non-active market bond investments are fixed interest rate claims, therefore, there is no cash flow risk of interest rate changes.

61

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Equity price risk

The fair value of the Company’s listed equity securities is susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s listed equity securities is classified under financial assets measured at fair value through other comprehensive income. The Company manages the equity price risk through placing limits on individual equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.

For the years ended December 31, 2025 and 2024, a change of 5% in the price of the listed companies’ stocks classified as equity instruments investments measured at fair value through other comprehensive income could have an impact of NTD18,495 thousand and NTD17,959 thousand on the equity attributable to the Company, respectively.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts receivable and notes receivable) and from its financing activities, including bank deposits and other financial instruments.

Credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to credit risk management. Credit limits are established for all counter parties based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company’s internal rating criteria etc. Certain counter parties’ credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment.

As of December 31, 2025, and 2024, accounts receivables from top ten customers represent 69.91% and 69.82% of the total accounts receivables of the Company, respectively. The credit concentration risk of other accounts receivables is insignificant.

Credit risk from balances with banks, fixed income securities and other financial instruments is managed by the Company’s treasury in accordance with the Company’s policy. The Company only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, and companies with good credit rating and with no significant default risk. Consequently, there is no significant credit risk for these counter parties.

62

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments, bank borrowings and finance leases. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

Non-derivative financial liabilities

As of December 31, 2025 Payables Lease liabilities As of December 31, 2024 Payables Lease liabilities Guarantee deposits received	Less Than 1 Year $64,977 828 $128,942 1,242 -	2-3 Years	4-5 Years	More than 5 Years	Total
		$- - $- 828 -	$- - $- - -	$- - $- - 300	$64,977 828 $128,942 2,070 300

• (6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the year ended December 31, 2025:

As of January 1, 2025 Cash flows Non-cash changes As of December 31, 2025	Leases liabilities Guarantee deposits received Total liabilities from financing activities
	$1,975 $300 $2,275 (1,242) (300) (1,542) 78 - 78
	$811 $- $811

Reconciliation of liabilities for the year ended December 31, 2024:

As of January 1, 2024 Cash flows Non-cash changes As of December 31, 2024	Leases liabilities Guarantee deposits received Total liabilities from financing activities
	$778 $300 $1,078 (1,207) - (1,207) 2,404 - 2,404
	$1,975 $300 $2,275

63

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (7) Fair value of financial instruments

• A. The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

• (a) The carrying amount of cash and cash equivalents, receivables, payables and other current liabilities approximate their fair value due to their short maturities.

• (b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities and bonds etc.) at the reporting date.

• (c) Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).

• (d) Fair value of debt instruments without market quotations, bank loans and other noncurrent liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the GreTai Securities Market, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)

• B. Fair value of financial instruments measured at amortized cost

The carrying amounts of the Company’s financial assets (including the investment of debt instruments without market quotations) and liabilities measured at amortized cost approximated their fair value.

• C. Fair value measurement hierarchy for financial instruments

Please refer to Note 12(8) for fair value measurement hierarchy for financial instruments of the Company.

64

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• (8) Fair value measurement hierarchy

• A. Fair value measurement hierarchy

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

• Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

• B. Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis is as follows:

As of December 31, 2025 Financial assets: Financial assets at fair value through other comprehensive income Stocks As of December 31, 2024 Financial assets: Financial assets at fair value through other comprehensive income Stocks	Level 1	Level 2	Level 3	Total
	$369,907 Level 1	$- Level 2	$- Level 3	$369,907 Total
	$359,171	$-	$-	$359,171

65

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Transfers between Level 1 and Level 2 during the period

During the years ended December 31, 2025 and 2024, there were no transfers between Level 1 and Level 2 fair value measurements.

• C. Fair value measurement hierarchy of the Company’s assets and liabilities not measured at fair value but for which the fair value is disclosed

As of December 31, 2025:

Level 1 Level 2 Level 3 Total Financial assets not measured at fair value but for which the fair value is disclosed: Investments property (Please refer to Note 6 (9)) $- $- $3,990,803 $3,990,803 As of December 31, 2024:

Level 1 Level 2 Level 3 Total Financial assets not measured at fair value but for which the fair value is disclosed: Investments property (Please refer to Note 6 (9)) $- $- $4,095,422 $4,095,422

• (9) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

Financial Assets Monetary items: USD JPY	As of December 31,2025	As of December 31,2025	As of December 31,2025
	Foreign currencies $447 3	Foreign exchange rate 31.3800 0.1988	NTD (thousands)
			$14,027 1

66

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial Assets Monetary items: USD JPY	As of December 31,2024	As of December 31,2024	As of December 31,2024
	Foreign currencies $792 3	Foreign exchange rate 32.7350 0.2079	NTD (thousands)
			$25,925 1

The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency).

Since there were various functional currencies used within the Company, the Company was unable to disclose foreign exchange gains (losses) towards each foreign currency with significant impact. The realized and unrealized foreign exchange gain was NTD(1,423) thousand and NTD5,673 thousand for the years ended December 31, 2025 and 2024, respectively.

(10)Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

13. Other disclosure

• (1) Information at significant transactions:

• A. Financing provided to others: None.

• B. Endorsement/Guarantee provided to others: None.

• C. Significant securities held as of December 31, 2025: Please refer to attachment 1.

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CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• D. Related party transactions for purchases and sales amounts exceeding the lower of NTD100 million or 20 percent of the capital stock for the year ended December 31, 2025: None.

• E. Receivables from related parties with amounts exceeding the lower of NTD100 million or 20 percent of capital stock for the year ended December 31, 2025: None.

• (2) Information on investees:

• A. Of the investee company excluding investees in Mainland China directly or indirectly has a significant influence, control or joint venture control over, their investee companies’ information: Please refer to attachment 2.

• B. The Company has direct or indirect control over the investee company, and the information on the major transactions of the investee company: None.

• (3) Information on investments in mainland China: None.

14. Segment information

• (1) General information

The Company mainly manufactures and sells sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate and other chemical products. The Company's operational decision maker is responsible to review the Company’s overall operating results for the purpose of making decisions about resource allocation and performance assessment, therefore it is the sole operating department.

• (2) Geographical information

Revenues from external customers:

Region	For theyear ended December 31,	For theyear ended December 31,
	2025	2024
Taiwan Asia America Europe New Zealand and Australia Total	$261,802 194,693 1,726 1,821 -	$311,594 214,152 1,713 259 255
	$460,042	$527,973

68

CATHAY CHEMICAL WORKS INC. NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

• A. Revenue is categorized based on the countries where customers were located.

• B. The amount of non-current assets (excluding financial instruments, investments accounted for under the equity method and deferred tax assets) of the Company as of December 31, 2025 and 2024, was NTD854,061 thousand and NTD856,127 thousand, respectively, all of which were in Taiwan.

• (3) Significant customers information

Sales revenue Customer A	For theyear ended December 31,	For theyear ended December 31,
	2025	2024
	$68,402	$65,691

69

Cathay Chemical Works Inc. - Notes to the individual Financial Statements (continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Attachment 1:Significant securities held for the year ended December 31, 2025 (excluding investments in associates and joint ventures)

Held Company Name	Marketable Securities Type and Name (Note1)	Relationship with the Company (Note2)	Financial Statement Account		As of December 31, 2025	As of December 31, 2025		Remark (Note4)
				Shares / Units	Carrying Value (Note3)	Percentage of ownership(%)	Fair Value
Cathay Chemical Works Inc.	Stock－Reward Wool Industry Corporation	The major shareholder of the the Company is the major corporate shareholders of the Company	Financial assets at fair value through other comprehensive income, non-current	9,760 (in thousands)	$369,907	9.79%	$369,907

Note1 ： The securities herein shall refer to stocks, bonds, beneficiary certificates and other marketable securities derived from the above items in the scope of IFRS 9-Financial Instruments. Note2 ： Securities issued by non-related parties are not required to fill in this column.

Note3 ： For items measured at fair value, the carrying value is the balance of the book value adjusted by fair value valuation deducting accumulated impairment. For items not measured at fair value, the carrying value is the book value balance of the historical cost or amortized cost after deducting accumulated impairment.

Note4 ： Securities with restrictions because of being provided for security, as pledge or under other covenants should state the number of shares or dollar amount provided for security or pledge and the restriction terms.

70

Cathay Chemical Works Inc. - Notes to the individual Financial Statements (continued)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Attachment 2: : Names, locations and related information of investee companies (Not including investment in Mainland China) for the year ended December 31, 2025

Investor Company	Investee Company (Note1,2)	Address	Main Businesses and Products	Initial Investment Amount	Initial Investment Amount	Investment as of December 31, 2025	Investment as of December 31, 2025	Investment as of December 31, 2025	Net Income (Loss) of Investee Company (Note2(2))	Investment Income (Loss) Recognized (Note2(3))	Remark
				Ending Balance	Beginning Balance	Number of Shares	Percentage of Ownership	Book Value
Cathay Chemical Works Inc.	Taiwan Puritic Corp.	No. 33, Guangfu S. Rd., Hukou Township, Hsinchu County	Integrated circuit semiconductors, electronics, computer instruments and equipment, chemicals, gas filter purifiers and their spare material parts.	$369,746	$369,746	23,717 (in thousands)	27.73%	$2,081,255	$2,338,054	$648,342

Note1 ： Securities issued by non-related parties are not required to fill in this column.

invested company may only disclose the relevant information of the holding company.

Note 2: For cases other than those described in Note 1, fill in the following provisions:

• (1) The columns of "name of the invested company", "region", "main business items", "original investment amount" and "shareholding at the end of the period" should be filled in in the order according to the situation of

• the reinvestmentof the (public offering) company and the reinvestment situation of each investee company directly or indirectly controlled, and indicate the relationship between each investee company and the (publicly offered) company (if it is a subsidiary or grandchild) in the remarks column.

• (2) In column B of "Profit and Loss of the Invested Company", the amount of the current profit and loss of each invested company should be filled in.

• (3) In column B of "Investment Profit and Loss Recognized in the Current Period", only the profit and loss amount of each subsidiary of the (publicly offered) company recognized for direct investment and each invested company evaluated by the equity method must be filled in. When filling in the "Recognition of the current profit or loss amount of each subsidiary of direct reinvestment", it should be confirmed that the current profit and loss amount of each subsidiary already includes the investment profit or loss that should be recognized according to the regulations for its reinvestment.

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CATHAY CHEMICAL WORKS INC.

1. Statement of Cash and Cash Equivalents

As of December 31, 2025

As of December 31, 2025	As of December 31, 2025	As of December 31, 2025	As of December 31, 2025	As of December 31, 2025	As of December 31, 2025
(In Thousands of New Taiwan Dollars)
Item	Exchange Rate	Original Currency		Amount	Note
Cash on hand Petty cash Cash in banks Savings accounts Checking accounts Foreign savings accounts-USD Foreign savings accounts-JPY Time deposits Subtotal Total	31.3800 0.1988	144,077.41 2,536.00		$83 53 61,782 12,645 4,521 1 23,000 101,949 $102,085

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CATHAY CHEMICAL WORKS INC.

2.Statement of Current Financial Assets at Amortised Cost

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Name of the Financial Asset	Description	Units	Par value	Amount	Interest rate	Book value	Accumulated Impairment	Note
Current financial assets at amortised cost Mega Bank - Zhongxiao Feng Branch E.SUN Bank - Fuxing Branch Total	Time deposits with original maturities over 3 months "	10 13	$- -	$100,000 130,000 $230,000	1.555%~1.700% 0.610%~1.750%	$100,000 130,000 $230,000	$- - $-	2025.02.03~2026.11.29 2025.11.04~2026.06.27

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CATHAY CHEMICAL WORKS INC.

3.Statement of Notes Receivable

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Client Name	Description		Amount	Note
Company **DEST Company 2CK121 Company 1CG188 Others (Note) Subtotal Less: Loss allowance Net	Payment " "		$16,571 2,593 1,204 4,760 25,128 (251) $24,877

Note: The amount of individual item in others does not exceed 5% of the account balance.

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CATHAY CHEMICAL WORKS INC.

4.Statement of Accounts Receivable

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Client Name	Description		Amounts	Note
Company **DEST Company 1ZG141/1ZG990 Company 1ZB021 Company 1CE494 Company 1CG188 Others (Note) Subtotal Less: Loss allowance Net	Payment " " " "		$12,902 11,060 9,457 6,283 3,750 37,687 81,139 (812) $80,327

Note: The amount of individual item in others does not exceed 5% of the account balance.

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CATHAY CHEMICAL WORKS INC.

5.Statement of Other Receivables

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Interest receivable Tax refund receivable Total	Interest on time deposits		$405 130 $535

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CATHAY CHEMICAL WORKS INC.

6.Statement of Inventories

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Amount	Note
		Costs	Net realizable value
Raw materials Supplies Finished good Subtotal Less: Allowance for inventory valuation losses Net		$74,797 2,674 118,435 195,906 (383) $195,523	$77,489 2,674 139,619 $219,782	Inventories were not pledged.

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CATHAY CHEMICAL WORKS INC.

7.Statement of Other Current Assets

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Prepayment for purchases Other prepaid expense Temporary payments Other Total			$2,332 800 28 5,100 $8,260

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CATHAY CHEMICAL WORKS INC.

8.Statement of Non-Current Financial Assets at Fair Value through Other Comprehensive Income

For the Year Ended December 31, 2025

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025
	(In Thousands of New Taiwan Dollars)
Name	Beginning Balance		Increase during the period		Decrease during the period		Ending Balance		Accumulated Impairment	Assets Pledged or Collateral	Note
	Shares/units	Fair value	Shares/units	Amount	Shares/units	Amount	Shares/units	Fair value
Listed stocks : Reward Wool Industry Corporation	9,760 (in thousands)	$359,171	- (in thousands)	$10,736 (Note)	- (in thousands)	$-	9,760 (in thousands)	$369,907	Not applicable	None

Note ： The increase in the period represents the net change in unrealized gains and losses arising from its evaluation of $10,736 thousand.

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CATHAY CHEMICAL WORKS INC.

9.Statement of Change in Investments Accounted for Under the Equity Method

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Beginning balance	Beginning balance	Increase during the period	Increase during the period	Decrease during the period	Decrease during the period	Ending Balance	Ending Balance		Market price/ Net equity	Assets were pledged as	Note
	Shares/units	Amount	Shares/units	Amount	Shares/units	Amount	Shares/units	Percentage of	Amount
Taiwan Puritic Corp.	18,244 (in thousands)	$1,637,050	5,473 (in thousands)	$648,842 (Note1)	- (in thousands)	$(204,137) (Note2)	23,717 (in thousands)	27.73%	$2,081,255	$11,811,010	None

Note1 ： The increase in the current period is the share of related enterprises and joint venture profits and losses recognized by the equity method of $648,342 thousand.

Note2 ：[The decrease in the current period resulted from the $200,681 thousand cash dividends received from investee companies, changes in net value of investee in the amount of $28 thousand was not recognized] in proportion to its ownership interest, the exchange difference calculated from the financial statements of foreign operating institutions in the amount of $2,448 thousand, and the recognition of defined benefit actuarial gains and losses in the amount of $980 thousand.

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CATHAY CHEMICAL WORKS INC.

10.Statement of Property, Plant and Equipment

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Beginning Balance		Additions		Decrease		Reclassify		Ending Balance	Assets were Pledged as	Note
Cost Land Buildings Machinery and equipment Other equipment Total		$221,310 216,939 279,739 13,524 $731,512		$- 1,125 9,201 2,879 $13,205		$- - (1,486) (401) $(1,887)		$- - - - $-		$221,310 218,064 287,454 16,002 $742,830	None ″ ″ ″

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CATHAY CHEMICAL WORKS INC.

11.Statement of Property, Plant and Equipment that Changes in Accumulated Depreciation

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Beginning Balance		Additions		Decrease		Reclassify		Ending Balance	Note
Cost Buildings Machinery and equipment Other equipment Total		$156,156 250,133 12,505 $418,794		$7,568 6,978 733 $15,279		$- (1,486) (373) $(1,859)		$- - - $-		$163,724 255,625 12,865 $432,214

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CATHAY CHEMICAL WORKS INC.

12.Statement of Right-Of-Use Asset

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Beginning Balance		Additions		Decrease		Reclassify		Ending Balance	Assets were Pledged as	Note
Cost Buildings Total		$4,511 $4,511		$- $-		$- $-		$- $-		$4,511 $4,511	″

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CATHAY CHEMICAL WORKS INC.

13.Statement of Right-Of-Use Asset that Changes in Accumulated Depreciation

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Beginning Balance		Additions		Decrease		Reclassify		Ending Balance	Note
Cost Buildings Total		$2,553 $2,553		$1,175 $1,175		$- $-		$- $-		$3,728 $3,728

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CATHAY CHEMICAL WORKS INC.

14.Statement of Investment Property

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Beginning Balance		Additions		Decrease		Reclassify		Ending Balance	Assets were Pledged as	Note
Cost Land Revaluation of value added Land Total		$152,708 383,036 $535,744		$- - $-		$- - $-		$- - $-		$152,708 383,036 $535,744	None ″

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CATHAY CHEMICAL WORKS INC.

15.Statement of Other Non-Current Assets

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Other deferred expense Prepayment for equipment Guarantee deposits paid Total	Amortization expense of parking spaces		$291 5,420 1,207 $6,918

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CATHAY CHEMICAL WORKS INC.

16. Statement of Notes Payable

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Company Y104 Total	Payment		$1,777 $1,777

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CATHAY CHEMICAL WORKS INC.

17.Statement of Accounts Payable

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Clients Name	Description		Amount	Note
Company Y105 Company Y101 Company Y104 Others (Note) Total	Payment " "		$1,977 1,607 1,376 1,669 $6,629

Note: The amount of individual item in others does not exceed 5% of the account balance.

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CATHAY CHEMICAL WORKS INC.

18.Statement of Other Payables

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Wages and salaries payable Employees' compensation payable Compensation payable to directors Others (Note) Total			$9,961 31,964 6,392 8,254 $56,571

Note: The amount of individual item in others does not exceed 5% of the account balance.

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CATHAY CHEMICAL WORKS INC.

19.Statement of Lease Liabilities

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description	Lease Term	Discount Rate		Ending Balance	Note
Buildings Subtotal Less: the portion that expires within one year Net	Plant leasing	2024.09.01~2026.08.31			$811 811 (811) $-

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CATHAY CHEMICAL WORKS INC.

20.Statement of Other Current Liabilities

As of December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Receipts under custody Other advanced receipts Total	Collection of labor insurance, etc Rent collected in advance		$305 28 $333

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CATHAY CHEMICAL WORKS INC.

21.Statement of Net Operating Revenue

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Quantity		Amount	Note
Zinc oxide powder Sodium formaldehyde Sulfoxylate Sodium metabisulfite Sodium dithionite Zinc powder Total	2,125 metric ton 1,634 metric ton 4,544 metric ton 1,234 metric ton 19 metric ton		$190,958 132,835 90,561 42,815 2,873 $460,042

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CATHAY CHEMICAL WORKS INC.

22.Statement of Operating Costs

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Amounts	Note
Beginning raw materials Add: Raw materials purchased Finished goods transferred in Less: Ending raw materials Transferred to other accounts Direct material Direct labor Manufacting overhead Manufacting costs Add: Beginning finished good Less: Ending finished goods Transferred to raw materials Transferred to other accounts Loss on valuation of inventories Cost of goods sold Other operation costs Total operationg costs		$89,104 312,644 174,985 (77,471) (2,489) 496,773 33,639 82,358 612,770 117,936 (118,435) (174,985) (2,624) 136 434,798 4,396 $439,194

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CATHAY CHEMICAL WORKS INC.

23.Statement of Manufacturing Overhead

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Wages and salaries Stationery supplies Travelling Repairs and maintenance expense Advertisement expense Utilities expense Insurance expense Entertainment expense Taxes Donation expense Depreciation Meal Expense Employee benefits/welfare Consumption expense Others Total Postage expenses			$21,595 82 3,568 104 4,513 8 3,451 8,242 151 797 - 14,571 1,833 595 12,163 10,685 $82,358

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CATHAY CHEMICAL WORKS INC.

24.Statement of Sales and Marketing Expenses

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Wages and salaries Rent Travelling Freight Entertainment expense Depreciation Commissions expense Export expense Other expenses Total			$3,439 3 396 9,825 302 1,175 1,536 1,738 640 $19,054

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CATHAY CHEMICAL WORKS INC.

25.Statement of General and Administrative Expenses

For the Year Ended December 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Wages and salaries Stationery supplies Postage expenses Repairs and maintenance expense Utilities expense Insurance expense Taxes Depreciation Amortizations Meal expense Employee benefits/welfare Magazine Share expense Information expense Interconnection Center Service expense Education Training Others Total			$69,281 97 303 76 6 2,302 398 708 15 441 95 18 961 1,490 1,087 2,198 34 1,620 $81,130

96