1541

CHANG TYPE INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY FINANCIAL STATEMENTS
WITH REPORT OF INDEPENDENT ACCOUNTANTS
FOR THE YEARS ENDED
DECEMBER 31, 2025 AND 2024

Address: No. 41, Nan-tsuen Road, Ho-Li, Taichung City, Taiwan, R.O.C
Telephone: 886-4-25580669

Notice to readers:
The reader is advised that these 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.

Independent Auditors' Report Translated From Chinese

To Chang Type Industrial Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Chang Type Industrial Co., Ltd. (the "Company") as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the parent company only financial statements, including the summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements referred to above present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and 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.

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 Parent Company Only 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 the 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 the parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Inventory valuation

As of December 31, 2025, the net inventories amounted to NT$363,958 thousand, accounting for 12% of the total assets. Because the amount was material to the Company’s financial statements, the sales were affected by the uncertainty due to market demand, and the valuation policy of the inventories involved a high level of management judgment, we determined this to be a key audit matter. Our audit procedures included, but were not limited to: performing simple test to assess the effectiveness of inventory internal control established by management; understanding the accounting policy around obsolete and slow-moving inventories; selecting important storage locations to observe inventory counts; sampling and testing the accuracy of inventory aging intervals to verify whether the aging reports were reasonable; in addition, in order to evaluate the reasonableness of inventories valuation, we also obtained inventory movement report, sampled and tested related certificates of purchases and sales, and verified the unit cost of inventories to access the net realizable value of inventories. We also assessed the adequacy of the disclosures related to inventories in Notes 5 and 6.

Provision for warranties

As of December 31, 2025, the provision for warranties amounted to NT$13,487 thousand. The management determined the estimate of the provision for warranties by the past experience of repairing consumers’ defective products. Because the estimates involved significant management judgment, we determined this to be a key audit matter. Our audit procedures included, but were not limited to: understanding the internal control of provision for warranties established by management; evaluating the reasonableness of accounting policy around provision for warranties and the accuracy of recalculating provision for warranties according to the accounting policy; analyzing the reasonableness of provision for warranties by comparing the amounts year over year. In addition, we obtained details of provision for warranties of the subsequent period to check the actual amounts or reversal of the provision for warranties of the subsequent period. We also assessed the adequacy of disclosures related to provision for warranties in Notes 5 and 6.

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

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

In preparing the parent company only financial statements, management is responsible for assessing the ability 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.

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 parent company only 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:

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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 parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2025 the parent company only financial statements 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/Lo,Wen-Chen

/s/Huang,Yu-Ting

Ernst & Young, Taiwan

March 4, 2026

Notice to Readers:

The accompanying parent company only 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 parent company only financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent company only financial statements and report of independent auditors 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

English Translation of Company Only Financial Statements Originally Issued in Chinese
CHANG TYPE INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

Assets	Notes	As of
		Dec 31, 2025	Dec 31, 2024
Current assets
Cash and cash equivalents	4, 6(1)	$128,489	$8,098
Accounts receivable - net	4, 6(2), 6(12)	1,202,187	747,210
Accounts receivable - related parties, net	4, 6(2), 6(12),7	-	103,002
Other receivables	4, 7	23,626	82,720
Current tax assets	4	1,885	1,915
Inventories, net	4, 6(3)	363,958	432,866
Prepayment	4	11,908	18,384
Other current assets		3,858	10,731
Total current assets		1,735,911	1,404,926
Non-current assets
Investments accounted for using the equity method	4, 6(4)	362,477	560,186
Property, plant and equipment	4, 6(5), 8	428,298	456,478
Right-of-use assets	4, 6(13)	485,819	492,064
Intangible assets	4	3,017	12,224
Deferred tax assets	4, 6(17)	22,235	28,593
Other non-current assets	4, 6(8),8	49,982	52,015
Total non-current assets		1,351,828	1,601,560
Total assets		$3,087,739	$3,006,486

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Company Only Financial Statements Originally Issued in Chinese
CHANG TYPE INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS(Continued)
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity	Notes	As of
		Dec 31, 2025	Dec 31, 2024
Current liabilities
Short-term loans	4, 6(6)	$ -	$16,000
Contract liabilities, current	4, 6(11)	236	238
Notes payable		159,501	184,766
Accounts payable		267,909	278,446
Other payables	6(7)	91,906	108,719
Current tax liabilities	4	39,180	2,701
Provisions, current	4, 6(9)	11,663	11,012
Current lease liabilities	4, 6(13)	10,822	79,652
Other current liabilities		3,161	2,522
Total current liabilities		584,378	684,056
Non-current liabilities
Provision, non-current	4, 5, 6(9)	19,357	22,228
Deferred tax liabilities	4, 6(17)	53,875	68,010
Lease liabilities, non-current	4, 6(13)	315,579	238,563
Other non-current liabilities		30	30
Total non-current liabilities		388,841	328,831
Total liabilities		973,219	1,012,887
Equity attributable to the parent company	4, 6(10)
Capital
Common stock		788,000	788,000
Capital surplus
Additional paid-in capital		1,364	1,364
Retained earnings
Legal reserve		344,055	335,495
Special reserve		-	9,531
Unappropriated retained earnings		978,068	832,523
Total retained earnings		1,322,123	1,177,549
Other interest equity
Exchange differences on translation of foreign operations		3,033	26,686
Total equity		2,114,520	1,993,599
Total liabilities and equity		$3,087,739	$3,006,486

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Company Only Financial Statements Originally Issued in Chinese

CHANG TYPE INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY 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)

	Notes	For the Years Ended December 31,
		2025	2024
Operating revenues	4, 6(11), 7	$3,413,917	$2,345,995
Operating costs	6(3), 6(14)	(2,886,651)	(2,026,154)
Gross profit		527,266	319,841
Unrealized loss from sales		(2,993)	(35,025)
Net gross profit		524,273	284,816
Operating expenses	6(14)
Sales and marketing		(65,300)	(66,760)
General and administrative		(122,927)	(138,459)
Research and development		(21,552)	(27,846)
Total operating expenses		(209,779)	(233,065)
Operating income		314,494	51,751
Non-operating income and expenses
Other revenue	6(15)	23,456	28,019
Other gains and losses	6(15)	(44,332)	75,625
Financial costs	6(15)	(8,442)	(15,420)
Share of profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method	6(4)	(61,240)	(25,505)
Total non-operating income and expenses		(90,558)	62,719
Income before income tax		223,936	114,470
Income tax expense	4, 6(17)	(41,233)	(30,766)
Net income		182,703	83,704
Other comprehensive income (loss)	6(16)
Items that may not to be reclassified subsequently to profit or loss
Remeasurements of defined benefit plans	6(8)	1,589	2,370
Income tax related to items that may not to be reclassified subsequently	6(17)	(318)	(474)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operation	6(4)	(23,653)	36,217
Total other comprehensive (loss)income, net of tax		(22,382)	38,113
Total comprehensive income		$160,321	$121,817
Earnings per share (NTD)	4, 6(18)
Earnings per share-basic		$2.32	$1.06
Earnings per share-diluted		$2.31	$1.06

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Company Only Financial Statements Originally Issued in Chinese

CHANG TYPE INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Item	Common Stock	Additional Paid-in Capital	Retained Earnings			Other interest equity
			Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of Foreign Operations	Total equity
Balance as of January 1, 2024	$788,000	$1,364	$324,128	$9,918	$797,303	$(9,531)	$1,911,182
Appropriations of earnings, 2023:
Legal reserve			11,367		(11,367)		-
Cash dividend					(39,400)		(39,400)
Reversal of special reserve				(387)	387		-
Net income in 2024					83,704		83,704
Other comprehensive income, net of tax in 2024					1,896	36,217	38,113
Total comprehensive income	-	-	-	-	85,600	36,217	121,817
Balance as of December 31, 2024	$788,000	$1,364	$335,495	$9,531	$832,523	$26,686	$1,993,599
Balance as of January 1, 2025	$788,000	$1,364	$335,495	$9,531	$832,523	$26,686	$1,993,599
Appropriations of earnings, 2024:
Legal reserve			8,560		(8,560)		-
Cash dividends					(39,400)		(39,400)
Reversal of special reserve				(9,531)	9,531		-
Net income in 2025					182,703		182,703
Other comprehensive income (loss), net of tax in 2025					1271	(23,653)	(22,382)
Total comprehensive income (loss)	-	-	-	-	183,974	(23,653)	160,321
Balance as of December 31, 2025	$788,000	$1,364	$344,055	$ -	$978,068	$3,033	$2,114,520

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Company Only Financial Statements Originally Issued in Chinese
CHANG TYPE INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

	For the Years Ended December 31,
	2025	2024
Cash flows from operating activities:
Net income before tax	$223,936	$114,470
Adjustments:
Profit or loss not affecting cash flows:
Depreciation	57,066	63,382
Amortization	12,690	13,471
Interest expense	8,442	15,420
Interest income	(459)	(433)
Share of loss of subsidiaries, associates and joint ventures accounted for using equity method	61,240	25,505
Loss on disposal of property and equipment	-	66
Reversal and provision allowance for inventory valuation and obsolescence loss	(2,000)	28,500
Unrealized intercompany loss	2,993	35,025
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(454,977)	478,935
Decrease in accounts receivable - related parties	103,002	34,012
Decrease in other receivables	58,993	193,852
Decrease (increase) in inventories, net	70,908	(33,499)
Decrease in prepayments	8,065	1,390
Decrease (increase) in other current assets	6,873	(7,362)
Increase in other non-current assets	(6,119)	(3,379)
Decrease in contract liabilities	(2)	-
Decrease in notes payable	(24,166)	(96,131)
Decrease in accounts payable	(10,537)	(55,061)
Decrease in other payables	(19,181)	(36,356)
Decrease in provisions	(2,220)	(11,666)
Increase (decrease) in other current liabilities	639	(3,950)
Cash generated from operations	95,186	756,191
Interest received	560	281
Interest paid	(1,338)	(4,131)
Income tax paid	(12,819)	(70,607)
Net cash generated from operating activities	81,589	681,734
Cash flows from investing activities:
Refund of invested company accounted for using the equity method	109,823	-
Acquisition of property, plant and equipment	(3,297)	(8,500)
Decrease refundable deposits	334	665
Acquisition of intangible assets	(887)	(239)
Increase in prepayment for equipment	(700)	(3,969)
Net cash generated from (used in) investing activities	105,273	(12,043)
Cash flows from financing activities:
Increase in short-term loans	770,000	2,162,750
Decrease in short-term loans	(786,000)	(2,716,450)
Increase in short-term bills payable	767,000	32,000
Decrease in short-term bills payable	(767,000)	(32,000)
Cash payments for the principal portion of lease liabilities	(11,071)	(84,805)
Cash dividend	(39,400)	(39,400)
Net cash used in financing activities	(66,471)	(677,905)
Net increase (decrease) in cash and cash equivalents	120,391	(8,214)
Cash and cash equivalents at beginning of period	8,098	16,312
Cash and cash equivalents at end of period	$128,489	$8,098

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.
Notes to Parent Company Only Financial Statements
For the Years Ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

HISTORY AND ORGANIZATION

Chang Type Industrial Co., Ltd. (“the Company”) was incorporated on April 21, 1989 to manufacture, process and sell hand tools, electric machines, motors, power tools, automatic control system, computer machinery, electric test instruments, woodworking machines and metal parts. The Company is also the agent to import and export raw materials for all related products mentioned above and to design various molds and fixtures.

The Company's stocks were approved by the authority to be listed on the OTC on January 14, 2003 by the Securities and Futures Bureau, Ministry of Finance. The Company’s registered office and, main business location, is at No. 41, Nancun Road, Houli District, Taichung, Taiwan (R.O.C.).

DATE AND PROCEDURES OF AUTHORIZATION OF FINANCIAL STATEMENTS FOR ISSUE

The parent company only financial statements of the Company for the years ended December 31, 2025 and 2024 were authorized for issue by the Company’s board of directors on March 4, 2026.

NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

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

The Company applied for the first time 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 financial statements were authorized for issue, are listed below.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
A	IFRS 17 “Insurance Contracts”	January 1, 2023
B	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	January 1, 2026
C	Annual Improvements to IFRS Accounting Standards Volume 11	January 1, 2026
D	Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7	January 1, 2026

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 January 1, 2023 (from the original effective date of January 1, 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 January 1, 2023.

B. Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

The amendments include:

(a) Clarify that a financial liability is derecognized on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.
(b) 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.
(c) Clarify the treatment of non-recourse assets and contractually linked instruments.
(d) Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG linked), and equity instruments classified at fair value through other comprehensive income.

C. Annual Improvements to IFRS Accounting Standards – Volume 11

(a) Amendments to IFRS 1
(b) Amendments to IFRS 7
(c) Amendments to Guidance on implementing IFRS 7
(d) Amendments to IFRS 9
(e) Amendments to IFRS 10
(f) Amendments to IAS 7

D. Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7

The amendments include:

(a) Clarify the application of the ‘own-use’ requirements.
(b) Permit hedge accounting if these contracts are used as hedging instruments.
(c) 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 January 1, 2026 and have no material impact on the Company.

The above-mentioned amendments are applicable for annual periods beginning on or after January 1, 2026 and have no material impact on the Company.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(3) Standards or interpretations issued, revised, or amended, by IASB which have not been endorsed by FSC, and not yet adopted by the Company as at the date when the financial statements were authorized for issue, are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
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”	January 1, 2027 (Note)
C	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	January 1, 2027
D	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	January 1, 2027

Note: On September 25, 2025, the FSC announced in a press release that Taiwan will adopt IFRS 18 in 2028.

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

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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

B. IFRS 18 “Presentation and Disclosure in Financial Statements”

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

(a) 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.

(b) Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of company-specific measures related to the income statement, referred to as management performance measures.

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.

C. Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)

This new standard and its amendment permit 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)

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.
Notes to Parent Company Only Financial Statements(Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The amendments include:

(a) 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.

(b) 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.

(c) 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of Compliance

The parent company only 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”), which is endorsed by the FSC.

(2) Basis of Preparation

The Company prepared parent company only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent company only financial statements are expressed in thousands of New Taiwan Dollars ("NT$") unless otherwise stated.

(3) Foreign Currency Transactions

The parent company only financial statements of the Company are presented in NT$, 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 transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Non-monetary items measured at fair value in foreign currencies 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 foreign currencies 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 instruments.

(c) Exchange differences arising on a monetary item that forms part of a reporting entity's net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

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) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. When the partial disposal involves the loss of control of a subsidiary that includes a foreign operation and when the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation, the partial disposals are accounted for as disposals.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(5) Current and non-current distinction

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 liquidate a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

A liability is classified as current when:

(a) The Company expects to liquidate 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 liquidated 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.

(6) 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.

(7) 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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

(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 notes receivables, accounts receivable, financial assets measured at amortized cost and other receivables etc., on balance sheet as at 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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(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 assets 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 does not reduce the carrying amount in the statement of financial position.

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

reasonable and supportable information that is available without undue cost or effort

C. at the reporting date about past events, current conditions, and forecasts of future economic conditions.

The loss allowance is measured as follows:

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 trade 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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

(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.

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 instruments

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.

Financial liabilities measured 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.

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.

(e) 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.

(8) 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 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.

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.

(9) Inventories

Inventories are valued at lower of cost and 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 under weighted average method.

Finished goods and work in progress – Including cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs under weighted average method.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

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

(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. Joint venture means the Company has rights to the net assets of the joint agreement (with joint controller).

Under the equity method, the investment in the associate or an 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 pro-rata 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 pro rata basis when the Company disposes the associate or joint venture.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

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.

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, 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 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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(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.

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

Items	Useful Lives
Buildings	10 – 50 years
Machinery and equipment	5 – 12 years
Transportation equipment	5 – 7 years
Office equipment	3 – 8 years
Other equipment	2 – 10 years

An item of property, plant and equipment and 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, and are treated as changes in accounting estimates.

(12) Leases

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 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 stand-alone 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, maximizing 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:

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

(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-of-use 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 right-of-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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

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.

Except for those leases that the Company accounted for as short-term leases or leases of low-value 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.

(13) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized.

A summary of the policies applied to the Company's intangible assets is as follows:

Useful lives	Trademark rights	Computer software
Amortization method used	Limited 15 years	Limited 5 years
	Amortized on a straight-line basis over the term of the trademark rights	Amortized on a straight-line basis over the estimated useful life
Internally generated or acquired	Acquired	Acquired

(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 cash-generating 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. 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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

(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 cash-generating unit's recoverable amount. If the recoverable amount increases due to changes in the estimated service potential of the asset, the impairment loss shall be reversed. However, after the reversal, the carrying amount shall not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized.

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

(15) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probably that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The liability to pay a levy is recognized progressively if the obligating event occurs over a period of time.

Provision for decommissioning, restoration and rehabilitation costs

The provision for decommissioning, restoration and rehabilitation costs arose on construction of a property, plant and equipment. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of that particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

Provision for warranties

A provision is recognized for expected warranty claims on products sold, based on past experience, management's judgement, and the optimal estimated number of future economic benefits caused by warranty obligation.

(16) Revenue recognition

The Company's revenue arising from contracts with customers are primarily related to sale of good. The accounting policies are explained as follows:

Sales of goods

The Company manufactures and sells machinery. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers, that is, the customer has the ability to direct use of the goods and obtain substantially all the remaining benefits from them. The main products of the Company are hand tools and power tools, 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. So 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. Please refer to Note 6 for more details.

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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

The credit period of the Company’s sale of goods is from 97 to 150 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 account 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 contact 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.

(17) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(18) 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 consolidated 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. Re-measurements, 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:

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(a) the date of the plan amendment or curtailment, and
(b) the date that the Company recognizes restructuring-related costs or severance pay

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.

(19) Income taxes

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 resolution of 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 equal taxable and deductible temporary differences.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(b) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, 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.

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 equal taxable and deductible temporary differences.

(b) In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse 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 deferred tax 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 deferred tax 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.

Significant accounting judgments, estimates and assumptions

The preparation of the Company’s parent only 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 the asset or liability affected in future periods.

Estimates and assumptions

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

(a) Provisions for liability

i. Provision for decommissioning, restoration and rehabilitation costs

The provision for decommissioning, restoration, and rehabilitation costs arose on construction of a property, plant, and equipment. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of that particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

ii. Provision for warranties

A provision is recognized as a liability, based on the contracts with consumers and the optimal estimate management judges with past experience to determine an outflow of resources embodying economic benefits to settle the obligation in the future. Please refer to Note 4 for more details on the policy of the provision for warranties.

(b) Evaluation of inventories

Estimates of net realizable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices have declined. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Note 6 for more details.

Contents of significant accounts

(1) Cash and cash equivalents

	As of December 31,
	2025	2024
Cash on hand	$90	$90
Bank deposits	128,399	8,008
Total	$128,489	$8,098

(2) Accounts receivables – net (Related parties included)

(a) Details as follows:

	As of December 31,
	2025	2024
Accounts receivables	$1,207,760	$752,783
Less: loss allowance	(5,573)	(5,573)
Subtotal	1,202,187	747,210
Accounts receivable due from related parties	-	103,002
Total	$1,202,187	$850,212

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(b) Trade receivables were not pledged.

(c) Accounts receivables are generally on 97-150 day terms. The total carrying amount for the years ended December 31, 2025 and 2024 were NT$1,207,760 and NT$855,785, respectively. Please refer to Note 6(12) for more details on loss allowance of accounts receivables for the years ended December 31, 2025 and 2024. Please refer to Note 12 for more details on credit risk management.

(3) Inventories

(a) Details as follows:

	As of December 31,
	2025	2024
Raw materials	$174,200	$219,071
Work in progress	62,834	73,712
Manufacturing goods	30,475	27,662
Finished goods	96,449	112,421
Total	$363,958	$432,866

The inventory cost recognized as operating costs for the years ended December 31, 2025 and 2024 were NT$2,886,251 and NT$2,026,154, respectively. The reversal and provision allowance for inventory valuation and obsolescence loss included in the amounts were NT $(2,000) and NT$28,500, respectively.

The inventory valuation and obsolescence reversal gain recognized by the Company for the year 2025 resulted from the realization of inventories previously written down.

No inventories were pledged.

(4) Investments accounted for under the equity method

(a) Details for investments accounted for using the equity method are as follows:

	As of December 31,
	2025		2024
Name of the investee company	Amount	Proportion of holding shares	Amount	Proportion of holding shares
Delta Power Equipment Corporation	$362,477	100%	$560,186	100%

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(b) Investing subsidiaries is represented as “Investments accounted for using equity method” in the parent company only financial statements, and adjusts the evaluation if necessary.

(c) Exchange difference on profits and losses of shares from subsidiaries, associates, and joint adventure and international operating institution’s financial statements are recognized under investments accounted for using the equity method as of the year ended 2025 and 2024, and recognized the same period of statements audited by accountants. Details are as follows:

For the years ended December 31,
	2025		2024
		Exchange difference on the financial statements of foreign operating institutions		Exchange difference on the financial statements of foreign operating institutions
Investee company or investment item	Investment loss		Investment loss
Delta Power Equipment Corporation	$(61,240)	$(23,653)	$(25,505)	$36,217

The investment in related companies mentioned above did not have contingent liabilities or capital commitments as of December 31, 2025 and 2024, and no pledge was provided.

(5) Property, plant, and equipment

	As of December 31,
	2025	2024
Property, plant and equipment for own use	$428,298	$456,478

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(a) Property, plant and equipment for own use

	Land and land Improvements	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Total
Cost:
As of Jan 1, 2025	$134,881	$423,766	$305,870	$5,257	$10,299	$139,419	$1,019,492
Additions	-	-	1,948	481	-	2,145	4,574
Disposals	-	-	(1,302)	(250)	-	-	(1,552)
Transfers	-	-	5,550	-	-	372	5,922
As of Dec 31, 2025	$134,881	$423,766	$312,066	$5,488	$10,299	$141,936	$1,028,436
Depreciation and impairment:
As of Jan 1, 2025	$-	$217,820	$210,249	$5,038	$9,874	$120,033	$563,014
Depreciation	-	9,147	21,934	198	243	7,154	38,676
Disposals	-	-	(1,302)	(250)	-	-	(1,552)
As of Dec 31, 2025	$-	$226,967	$230,881	$4,986	$10,117	$127,187	$600,138
	Land and land Improvements	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Total
Cost:
As of Jan 1, 2024	$134,881	$423,766	$306,115	$5,707	$10,299	$128,870	$1,009,638
Additions	-	-	2,586	100	-	8,699	11,385
Disposals	-	-	(3,144)	(550)	-	(776)	(4,470)
Transfers	-	-	313	-	-	2,626	2,939
As of Dec 31, 2024	$134,881	$423,766	$305,870	$5,257	$10,299	$139,419	$1,019,492
Depreciation and impairment:
As of Jan 1, 2024	$-	$208,664	$189,493	$5,268	$9,434	$114,440	$527,299
Depreciation	-	9,156	23,834	320	440	6,369	40,119
Disposals	-	-	(3,078)	(550)	-	(776)	(4,404)
As of Dec 31, 2024	$-	$217,820	$210,249	$5,038	$9,874	$120,033	$563,014
Net carrying amount as of:
Dec 31, 2025	$134,881	$196,799	$81,185	$502	$182	$14,749	$428,298
Dec 31, 2024	$134,881	$205,946	$95,621	$219	$425	$19,386	$456,478

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(b) The land located in Dunnan section, Houli District in the amount of NT$440 thousand was agriculture land, so its owner was temporarily registered as natural person.

(d) There is no occurrence of capitalization of interest due to purchasing property, plant, and equipment.

(e) The major components of the company’s buildings and structures primarily include the main building, factories, and engineering systems, each of which is depreciated over its respective estimated useful life from 10 to 50 years.

(6) Short-term loans

	As of December 31,
	2025	2024
Unsecured bank loans	$-	$16,000
unused short-term lines of credits	$1,480,000	$2,134,000
	2025	2024
Interest Rates (%)	-%	1.80%~2.18%

Please refer to Note 8 for more details on property, plant, and equipment pledged as security for bank borrowings.

(7) Other payables

	As of December 31,
	2025	2024
Accrued salary and bonus	$27,442	$19,934
Accrued employees’ compensation, and directors’ and supervisors’ remuneration	14,530	9,972
Accrued compensation	11,976	12,838
Accrued Compensation (Note)	-	24,134
Others	37,958	41,841
Total	$91,906	$108,719

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Note: The Company has reached a consensus with Stanley Black & Decker, Inc. ("SBD") on July 10, 2023, based on commercial considerations, to compensate for product design modification rework by paying US$4,650,000. As of December 31, 2025, the full amount had been paid.

(8) Post-employment benefit

Defined contribution plan

The Company adopts 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	2024
Defined contribution plan	$6,704	$6,279

Defined benefits 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 contribute an amount equivalent to 2% 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. Before the end of each year, the Company and its domestic subsidiaries assess 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 in the following year.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

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 discretionary accounts, 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 overexposure 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 two-year 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. The Company expects to contribute NT$264 thousand to its defined benefit plan during the 12 months beginning after December 31, 2025.

As of December 31, 2025, the Company's defined benefit plan is expected to expire in 2029.

Pension costs recognized in profit or loss are as follows:

	For the years ended December 31,
	2025	2024
Net interest on the net defined benefit asset	$(287)	$(187)

Reconciliations of liabilities (assets) of the defined benefit obligation and plan assets at fair value are as follows:

	As of
	Dec 31,2025	Dec 31, 2024	Jan 1, 2024
Defined benefit obligation	$14,697	$13,905	$13,619
Plan assets at fair value	(34,471)	(31,538)	(28,445)
Other non-current assets - defined benefit obligation	$(19,774)	$(17,633)	$(14,826)

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Reconciliation of liability (asset) of the defined benefit plan is as follows:

	Defined benefit obligation	Fair value of plan assets	Benefit liability (asset)
As of January 1, 2024	$13,619	$(28,445)	$(14,826)
Interest expense (income)	171	(358)	(187)
Subtotal	13,790	(28,803)	(15,013)
Remeasurements of the defined benefit liabilities /assets:
Actuarial gains and losses arising from Changes in financial assumptions	(663)	-	(663)
Experience adjustments	778	-	778
Remeasurements of the defined benefit assets	-	(2,485)	(2,485)
Subtotal	115	(2,485)	(2,370)
Contributions by employer	-	(250)	(250)
As of December 31, 2024	13,905	(31,538)	(17,633)
Interest expense (income)	227	(514)	(287)
Subtotal	14,132	(32,052)	(17,920)
Remeasurements of the defined benefit liabilities /assets:
Actuarial gains and losses arising from changes in financial assumptions	369	-	369
Experience adjustments	196	-	196
Remeasurements of the defined benefit assets	-	(2,154)	(2,154)
Subtotal	565	(2,154)	(1,589)
Contributions by employer	-	(264)	(264)
As of December 31, 2025	$14,697	$(34,471)	$(19,774)

The following significant actuarial assumptions are used to determine the present value of the defined benefit obligation:

	As of December 31,
	2025	2024
Discount rate	1.41%	1.63%
Expected rate of salary increases	2.00%	2.00%

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Sensitivity analysis for significant assumption are shown below:

	For the years ended December 31,
	2025		2024
	Increase defined benefit obligation	Decrease defined benefit obligation	Increase defined benefit obligation	Decrease defined benefit obligation
Discount rate increase by 0.5%	$-	$482	$-	$195
Discount rate decrease by 0.5%	915	-	910	-
Future salary increase by 0.5%	905	-	902	-
Future salary decrease by 0.5%	-	482	-	195

The sensitivity analyses above are based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analyses compared to the previous period.

(9) Provisions for liability

	Warranty	Decommissioning, restoration and rehabilitation costs	Total
Jan 1, 2025	$15,904	$17,336	$33,240
Arising during the period	461	197	658
Utilized	(2,878)	-	(2,878)
Dec 31, 2025	$13,487	$17,533	$31,020
Current – Dec 31, 2025	$11,663	$-	$11,663
Non-current – Dec 31, 2025	1,824	17,533	19,357
Dec 31, 2025	$13,487	$17,533	$31,020

	Warranty	Decommissioning, restoration and rehabilitation costs	Total
Jan 1, 2024	$27,743	$17,163	$44,906
Arising during the period	1,496	173	1,669
Utilized	(13,335)	-	(13,335)
Dec 31, 2024	$15,904	$17,336	$33,240
Current—Dec 31, 2024	$11,012	$-	$11,012
Non-current—Dec 31, 2024	4,892	17,336	22,228
Dec 31, 2024	$15,904	$17,336	$33,240

Warranty

A provision is used to estimate the possibility of repairing the defective products in the future, based on historical experience, management’s judgement and other known factors. Please refer to Note 4 (15) for more details on the policy of the provision for warranties.

Decommissioning, restoration and rehabilitation costs

Decommissioning costs associated with owned factories are recognized as provision. After the plants are decommissioned, the Company will restore the locations.

(10) Equity

(a) Common stock

The Company’s authorized capital was NT$1,180,000 thousand as of December 31, 2025 and 2024 divided into 118,000,000 shares issued with par value of NT$10 each. The paid-in capital amounted to NT$788,000 thousand divided into 78,800,000 shares. Each share is entitled to one vote and rights to receive dividends.

(b) Capital surplus

	As of December 31,
	2025	2024
Additional paid-in capital	$1,364	$1,364

According to the Company Act, the capital reserve shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital reserves 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.

According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

A. Payment of all taxes and dues.
B. Offset operation losses in prior years.
C. Set aside 10% of the remaining amount as legal reserve.
D. Set aside or reverse special reserve in accordance with law and regulations.
E. The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders' meeting.

The Company's policy on dividend distribution must be based on the factors, such as the Company's current and future investment environment, needs of capital, domestic and foreign competitive conditions, and capital budget, taking into account the interests of shareholders, and balancing dividends and the Company's long-term financial planning, etc. The board of directors shall plan the distribution each year according to law and report to the shareholders resolution meeting. When the Company distributes the dividends in the preceding paragraph, the annual cash dividends to shareholders shall not be less than 5% of the total amount of cash and stock dividends distributed in the current year.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total paid-in capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

Details of the 2024 and 2023 earnings distribution and dividends per share as approved and resolved by the shareholders' meeting on March 6, 2025 and June 21, 2024, respectively, are as follows:

	Appropriation of earnings		Dividend per share (NT$)
	2024	2023	2024	2023
Legal reserve	$8,560	$11,367
Special reserve	(9,531)	(387)
Common stock - cash dividend	39,400	39,400	$0.50	$0.50

Please refer to Note 6(14) for more details on board of directors compensation and remuneration to directors and supervisors.

(11) Net sales

	For the years ended December 31,
	2025	2024
Revenue from contracts with customers
Sale of goods	$3,413,917	$2,345,995

Analysis of revenue from contracts with customers during the years ended December 31, 2025 and 2024 are as follows:

(a) Disaggregation of revenue

	For the years ended December 31,
	2025	2024
Sale of goods	$3,413,917	$2,345,995

The Company recognizes revenue when transferring the goods to customers, so the contract performance obligation is satisfied at a point in time.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(b) Contract balances

Contract liabilities - current

	As of December 31,		As of January 1,
	2025	2024	2024
Sale of goods	$236	$238	$238

The significant changes in the Company's balances of contract liabilities for the years ended December 31, 2025 and 2024 are as follows:

	For the years ended December 31,
	2025	2024
The opening balance transferred to revenue	$(238)	$-
Increase in receipts in advance during the period (excluding the amount incurred and transferred to revenue during the period)	236	-

(d) Assets recognized from costs to fulfil a contract : None.

(12) Expected credit losses

No expected credit impairment losses of the Company for the years ended December 31, 2025 and 2024.

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

The Company measures the loss allowance of its accounts receivable at an amount equal to lifetime expected credit losses. The assessment of the Company's loss allowance as of December 31, 2025 and 2024 is as follows:

As of December 31,2025		Overdue			Total
	Not yet due	<30days	31-60days	61-90days
Gross carrying amount	$1,068,780	$138,980	$-	$-	$1,207,760
Lifetime expected credit losses	-	(5,573)	-	-	(5,573)
Carrying amount	$1,068,780	$133,407	$-	$-	$1,202,187
As of December 31,2024		Overdue			Total
	Not yet due	<30days	31-60days	61-90days
Gross carrying amount	$784,209	$71,576	$-	$-	$855,785
Lifetime expected credit losses	-	(5,573)	-	-	(5,573)
Carrying amount	$784,209	$66,003	$-	$-	$850,212

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

	Accounts receivable
Beginning balance at January 1, 2025	$5,573
Addition for the current period	-
Ending balance at December 31, 2025	$5,573
Beginning balance at January 1, 2024	$5,573
Addition for the current period	-
Ending balance at December 31, 2024	$5,573

(13) Leases

(a) Company as a lessee

The Company leases various properties, including land and transportation equipment. The lease terms range from 2 to 20 years.

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

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

A. Amounts recognized in the balance sheet

(a) Right-of-use asset

The carrying amount of right-of-use assets

	As of December 31,
	2025	2024
Land	$485,819	$491,819
Transportation equipment	-	245
Total	$485,819	$492,064

During the years ended December 31, 2025 and 2024, the Company's additions to right-of-use assets amounted to NT$12,145 thousand and NT$14,526 thousand, respectively.

(b) Lease liabilities

	As of December 31,
	2025	2024
Lease liabilities	$326,401	$318,215
Current	$10,822	$79,652
Non-Current	$315,579	$238,563

Please refer to Note 6(15)(3) for the interest on lease liabilities recognized during the years ended December 31, 2025 and 2024. 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

	For the years ended December 31,
	2025	2024
Land	$18,145	$22,529
Transportation equipment	245	734
Total	$18,390	$23,263

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

C. Income and costs relating to leasing activities

	For the years ended December 31,
	2025	2024
The expenses relating to short-term leases	$1,036	$1,388

D. Cash outflows related to lessee and lease activity

During the years ended December 31, 2025 and 2024, the Company's total cash outflows for leases amounted to NT$19,541 thousand and NT$97,803 thousand, respectively.

(14) Summary statement of employee benefits, depreciation and amortization expenses by function for the years ended December 31, 2025 and 2024 are as follows:

	For the years ended December 31,
	2025			2024
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expense
Salaries	$164,185	$59,809	$223,994	$135,491	$41,788	$177,279
Labor and health insurance	17,066	4,646	21,712	15,238	4,257	19,495
Pension	4,708	1,709	6,417	4,331	1,761	6,092
Renumeration of directors	-	7,470	7,470	-	5,916	5,916
Other employee benefits expense	14,505	3,536	18,041	11,038	3,151	14,189
Depreciation	35,367	21,699	57,066	37,075	26,307	63,382
Amortization	693	11,997	12,690	831	12,640	13,471

(a) The employees number of this year and last year were 387 and 379 people, respectively; the number of directors who were not concurrent employees were 5 respectively.

(b) The average employee benefit expense for the years ended December 31, 2025 and 2024 of the company are NT$707 thousand and NT$580 thousand, respectively.

(c) The average employee salary expense for the years ended December 31, 2025 and 2024 of the company are NT$586 and NT$474, respectively, with an increase of 23.63% on average employee salary expense in 2025 as compared to the previous year.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(d) The company has established an Audit Committee to replace supervisors; therefore, no remuneration was paid to supervisors in 2025 and 2024.

(e) The Company’s policy for compensation of directors, managers and employees is as follows:

For directors, according to the Articles of Incorporation – Article 30, if the company has made a profit in the year, no more than 5% of profit of the current year is distributable as directors’ compensation. The remuneration is paid according to the level in the same industry. The relevant matters regarding the reasonability of salaries are reported to the Remuneration Committee and the Board of Directors for approval. The remuneration system is reviewed at any time according to the actual operating conditions and relevant laws and regulations to seek a balance between the company's sustainable operation and risk control.

For managers and employees, according to the Articles of Incorporation - Rule 30, if the company has made a profit in the year, at least 1% of profit of the current year shall be distributed as employees’ compensation. In addition to consider the normal level of payment in the industry, personal performance and contribution, and the rationality of the company's performance, remuneration is also distributed based on the results of the annual performance evaluation.

According to the Articles of Incorporation, if the company has made a profit in the year, no more than 1% and no more than 5% shall be distributed as employees and directors’ remuneration. However, if there are accumulated losses, the company shall reserve a certain amount in advance. Of the aforementioned employee compensation, no less than 0.5% shall be allocated to frontline employees. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees’ compensation in the form of shares or in cash; besides, there to 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.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Based on the profit for the years ended December 31, 2025 and 2024, the Company estimated the amounts of the employees' compensation and remuneration to directors to be 2.5% and 2% of profit, respectively, recognized as employee benefits expense.

	For the years ended December 31,
	2025	2024
Employee compensation	$5,859	$2,997
Director Remuneration	4,687	2,397

A resolution was passed at the board meeting held on March 4, 2026 to distribute NT$5,859 thousand and NT $4,687 thousand in cash as 2025 employees' compensation and remuneration to directors, respectively. There was the same as the estimated amount recognized in the 2025 financial statements.

No material differences existed between the estimated amount and the actual distribution of the employee compensation and remuneration to directors and supervisors for the year ended December 31, 2024.

(15) Non-operating income and expenses

(a) Other income

	For the years ended December 31,
	2025	2024
Interest income
Financial assets measured at amortized cost	$459	$433
Rental income	492	492
Others	22,505	27,094
Total	$23,456	$28,019

(b) Other gains and losses

	For the years ended December 31,
	2025	2024
Foreign exchange (losses) gains, net	$(22,758)	$75,701
Loss on disposal of property, plant and equipment	-	(66)
Others	(21,574)	(10)
Total	$(44,332)	$75,625

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

	For the years ended December 31,
	2025	2024
Interest on lease liabilities	$7,112	$11,610
Interest on loans from bank	1,133	3,637
Interest on derecognized liabilities	197	173
Total	$8,442	$15,420

(16) Components of other comprehensive income

For the year ended December 31, 2025:

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	$1,589	$-	$1,589	$(318)	$1,271
To be reclassified to profit or loss in subsequent periods:
Exchange differences resulting from translating the financial statements of a foreign operation	(23,653)	-	(23,653)	-	(23,653)
Total	$(22,064)	$-	$(22,064)	$(318)	$(22,382)

For the year ended December 31, 2024:

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	$2,370	$-	$2,370	$(474)	$1,896
To be reclassified to profit or loss in subsequent periods:
Exchange differences Resulting from translating the financial statements of a foreign operation	36,217	-	36,217	-	36,217
Total	$38,587	$-	$38,587	$(474)	$38,113

(17) Income tax expense

The major components of income tax expense for the years ended December 31, 2025 and 2024 are as follows:

A. Income tax expense recognized in profit or loss

	For the years ended December 31,
	2025	2024
Current income tax expense:
Current income tax charge	$47,335	$20,319
Adjustments in respect of current income tax of prior periods	1	579
Undistributed surplus for income tax	1,992	2,479
Deferred tax income:
Deferred tax (income) expense relating to origination and reversal of temporary differences	(8,095)	7,389
Total income tax expense	$41,233	$30,766

B. Income tax relating to components of other comprehensive income

	For the years ended December 31,
	2025	2024
Deferred tax expense :
Remeasurements of defined benefit plans	$318	$474

C. A 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	$223,936	$114,470
Tax at the domestic tax rates applicable to country incomes	$44,787	$22,894
Tax effect of Tax-Exempt Income	599	7,005
Undistributed surplus for income tax	1,992	2,479
Adjustments in respect of current income tax of prior periods	1	579
Tax effect of expenses not deductible for tax purposes	70	1,094
Tax effect of other adjustments according to the tax law	(6,216)	(3,285)
Total income tax expense recognized in profit or loss	$41,233	$30,766

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

D. Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2025:

	Balance as of January 1	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in other comprehensive income	Balance as of December 31
Temporary differences
Unrealized provision on after-sale services and warranties	$2,879	$(298)	$-	$2,581
Unrealized foreign exchange gains or losses	(2,887)	(3,924)	-	(6,811)
Allowance to reduce inventories to market value	13,621	(400)	-	13,221
Allowance for Prepayments to suppliers	464	-	-	464
Decommissioning costs	1,583	102	-	1,685
Gains on investments accounted for using the equity method	(62,958)	18,435	-	(44,523)
Compensation for unused leave	688	(42)	-	646
Compensation loss	6,000	(4,837)	-	1,163
Unrealized sales revenue	3,358	(883)	-	2,475
Actuarial gains and losses of defined benefit plans	(2,165)	(58)	(318)	(2,541)
Deferred tax income/ (expense)		$8,095	$(318)
Net deferred tax assets/ (liabilities)	$(39,417)			$(31,640)
Reflected in balance sheet as follows:
Deferred tax assets	$28,593			$22,235
Deferred tax liabilities	$(68,010)			$(53,875)

For the year ended December 31, 2024

	Balance as of January 1	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in other comprehensive income	Balance as of December 31
Temporary differences
Unrealized provision on after- sale services and warranties	$5,251	$(2,372)	$-	$2,879
Unrealized foreign exchange gains or losses	9,471	(12,358)	-	(2,887)
Allowance to reduce inventories to market value	7,920	5,701	-	13,621
Allowance for Prepayments to suppliers	464	-	-	464
Decommissioning costs	1,485	98	-	1,583
Gains on investments accounted for using the equity method	(71,345)	8,387	-	(62,958)
Compensation for unused leave	702	(14)	-	688
Compensation loss	13,521	(7,521)	-	6,000
Unrealized sales revenue	2,630	728	-	3,358
Gains and losses of defined benefit plans	(1,653)	(38)	(474)	(2,165)
Deferred tax expense		$(7,389)	$(474)
Net deferred tax assets/ (liabilities)	$(31,554)			$(39,417)
Reflected in balance sheet as follows:
Deferred tax assets	$41,444			$28,593
Deferred tax liabilities	$(72,998)			$(68,010)

E. Unrecognized deferred tax assets

None.

F. The assessment of income tax returns

As of 31 December 2025, the Company's income tax returns through 2023 have been assessed and approved by the tax authority.

(18) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent entity 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 parent entity (after adjusting for interest on the convertible preference shares) 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.

	For the years ended December 31,
	2025	2024
(a) Basic earnings per share
Profit attributable to ordinary equity holders of the Company (in thousand NT$)	$182,703	$83,704
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	78,800	78,800
Basic earnings per share (NT$)	$2.32	$1.06
(b) Diluted earnings per share
Profit attributable to ordinary equity holders of the Company (in thousands of NT$)	$182,703	$83,704
Profit attributable to ordinary equity holders of the Company after dilution (in thousand NT$)	$182,703	$83,704
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	78,800	78,800
Effect of dilution:
Employee stock options (in thousands)	265	109
Weighted average number of ordinary shares outstanding after dilution (in thousands)	79,065	78,909
Diluted earnings per share (NT$)	$2.31	$1.06

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date the financial statements were authorized for issue.

7. RELATED PARTY TRANSACTIONS

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 related parties	Nature of relationship of the related parties
DELTA POWER EQUIPMENT CORPORATION (“Delta”)	Direct holding subsidiary

Significant transactions with related parties

(1) Sales

Parties	Types	For the years ended December 31,
		2025	2024
Delta	Sale of goods	$28,650	$111,235

The sales price of the Company sold to related parties varies depending on product differences and market acceptance.

(2) Accounts receivable, net – related parties

	As of December 31,
	2025	2024
Delta	$-	$103,002

The Company's sales to subsidiaries are subject to a 120 day monthly liquidation, similar to the regular payment terms of customers.

(3) Other receivables – related parties

	As of December 31,
	2025	2024
Delta	$-	$68,090

The funds of the Company are lent to related parties. Please refer to Note 13 for details.

(4) Key management personnel compensation

	For the years ended December 31,
	2025	2024
Short-term employee benefits	$13,313	$11,871

8. ASSETS PLEDGED AS SECURITY

The following assets of the Company have been provided to banks as collateral for borrowing or financing line application, and the leased land in Taiwan Sugar Land has been set up as security deposit:

	Carrying amount as of December 31,
	2025	2024	Secured liabilities
Land	$131,694	$131,694	Short-term borrowings
Buildings	57,594	59,650	Short-term borrowings
Other non-current assets - term deposits	10,529	7,810	Lease land deposit
Total	$199,817	$199,154

9. Significant contingencies and unrecognized contractual commitments

The major lease contracts that the Company has signed are as follows:

Contract	Items	Term	Annual rent payment/Amortization fee	Security deposit
Taiwan Sugar Co.	Land	October 2024~October 2044	$2,098	$8,342
Taiwan Sugar Co.	Land	January 2024 ~October 2044	632	-
Taiwan Sugar Co.	Land	October 2023~October 2043	2,146	12,500

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS

None.

12. OTHERS

(1) Categories of financial instruments

Financial assets

	As of December 31,
	2025	2024
Financial assets measured at amortized cost
Cash and cash equivalents (exclude cash on hand)	$128,399	$8,008
Trade and accounts receivables	1,202,187	850,212
Other receivables	23,626	82,720
Financial liabilities
	As of December 31,
	2025	2024
Financial liabilities at amortized cost:
Short-term loans	$-	$16,000
Notes payable	159,501	184,766
Accounts payable	267,909	278,446
Lease liability (Current and non-current)	326,401	318,215
Other payables	91,906	108,719

(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.

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 or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk and 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 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 the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense are denominated in a different currency from the Company's functional currency) and the Company's net investments in foreign subsidiaries.

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Company also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Hedge accounting is not applied as they did not qualify for hedge accounting criteria. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company's profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period.

When NTD strengthens/weaken against USD by 1%:

| | Increase
(decrease) in equity | Profit(loss) |
| --- | --- | --- |
| For the year ended December 31, 2025
decrease/increase | $- | $11,686 |
| For the year ended December 31, 2024
decrease/increase | $- | $8,046 |

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's bank borrowings with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2025 and 2024 to decrease/increase by NT$- thousand and NT$16 thousand, respectively.

(4) Credit risk management

Credit risk is the risk that 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 and note 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, ratings from credit rating agencies, historical experiences, prevailing economic conditions and the Company's internal rating criteria, etc. Certain customer's credit risks will also be managed by taking credit enhancing procedures, such as requesting for prepayment and insurance.

As of December 31, 2025, and 2024, accounts receivable from top ten customers represented 99% and 89% of the total accounts receivable of the Company respectively.

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, companies and government entities with good credit rating. Consequently, there is no significant credit risk for these counter parties.

(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, bank loans, and lease. 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 at the end of the reporting period.

Non-derivative financial liabilities

	Less than 1year	2 to 3 years	4 to 5 years	> 5 years	Total
As of December 31, 2025
Notes payable	$159,501	$-	$-	$-	$159,501
Accounts payable	267,909	-	-	-	267,909
Lease liability	10,822	15,523	8,502	455,963	490,810
As of December 31, 2024
Short-term borrowings	$16,008	$-	$-	$-	$16,008
Notes payable	184,766	-	-	-	184,766
Accounts payable	278,446	-	-	-	278,446
Lease liability	5,544	12,043	8,502	410,558	436,647

(6) Reconciliation of liabilities arising from financing activities:

Reconciliation of liabilities for the year ended December 31, 2025

	Short-term borrowings	Lease liability	Total amount of liabilities from financing activities
As of January 1, 2025	$16,000	$318,215	$334,215
Cash flows	16,000	(11,071)	(27,071)
Non-cash changes	-	19,257	19,257
As of December 31, 2025	$-	$326,401	$326,401

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Reconciliation of liabilities for the year ended 31 December 2024:

	Short-term borrowings	Lease liability	Total amount of liabilities from financing activities
As of January 1, 2024	$569,700	$376,884	$946,584
Cash flows	(553,700)	(84,805)	(638,505)
Non-cash changes	-	26,136	26,136
As of December 31, 2024	$16,000	$318,215	$334,215

(7) Fair values 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:

The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their fair value due to their short maturities.

(b) Fair value of financial instruments measured at amortized cost

The carrying amounts of the Company's financial assets and liabilities measured at amortized cost approximate their fair value.

(c) The Company does not hold the financial instruments measured at fair value after initial recognition, so the balance sheets of the Republic of China as of December 31, 2025 and 2024 did not have transactions measured at fair value.

(8) The Company does not hold any derivative financial instruments for the years ended December 31, 2025 and 2024.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(9) Significant assets and liabilities denominated in foreign currencies

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

	As of December 31, 2025			As of December 31, 2024
	Foreign currencies	Foreign exchange rate	NTD	Foreign currencies	Foreign exchange rate	NTD
Financial assets
Monetary items:
USD	$39,692	31.42	$1,247,123	$27,308	32.79	$895,429
Financial liabilities
Monetary items:
USD	$2,499	31.42	$78,519	$2,771	32.79	$90,861

(a) Since the major functional currency of the Company is the US dollar, the information on the exchange profits and losses of monetary financial assets and financial liabilities has been disclosed according to the foreign currency of each significant influence. The foreign currency exchange (losses) gains of the Company in 2025 and 2024 were NT$(22,578) thousand and NT$75,701 thousand, respectively.

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

(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 payments to shareholders, return capital to shareholders or issue new shares.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

Other disclosure

Related information of significant transaction item, re-invest business and investment on China for the year ended December 31, 2025 of the Company and subsidiaries are as follows:

(1) Information at significant transactions

(a) Financing provided to others for the year ended December 31, 2025 :

No	Lender	Counterparty	Transaction item	Related Party	Maximum balance for the period	Ending balance	Amount drawn	Interest rate	Nature of financing (Note 3)	Number of sales to (purchases from) counterparty	Reason for financing	Allowance for doubtful accounts	Collateral		Limit of financing amount for individual counterparty (note 1)	Limit of total financing amount (note 2)
													Item	Value
0	CHANG TYPE INDUSTRIAL CO., LTD.	Delta Power Equipment Corporation	Other receivables-related parties	Yes	$68,090	$-	$-	-	1	$111,235	-	$-	-	$-	$111,235	$2,114,520

Note1 : The limit amount of financing to individual counterparty:
(1) The amount of funds loaned to the company or bank with which the Company has business dealings shall not exceed the business transaction amount between the two parties, and shall not exceed 100% of net equity of the Company.
(2) The financing amount to the individual counterparty due to necessary short-term financing shall not exceed 40% of net equity of the Company.

Note2 : The total amount of funds loaned by the Company to others shall not exceed 100% of net equity of the Company.

(1) The total amount of funds loaned to the company or bank with which the Company has business dealings shall not exceed 100% of net equity of the Company.
(2) The total financing amount to the individual counterparty due to necessary short-term financing shall not exceed 40% of net equity of the Company.

Note3 : The method of filling in the loan and nature of funds is as follows:

(1) code 1 represents an intercompany transaction call for a loan arrangement.
(2) code 2 represents short-term financing.

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(b) Endorsement to others:

No	Endorser/Guarantor	Counterparty		Guarantee Limited Amount for each Counterparty (Note1)	Maximum balance for the period	Guarantee Amount as of December 31, 2025 (Note 3)	Amount drawn	Value of Collateral Properties secured by the endorsement	Ratio of Accumulated Amount of Guarantee Provided to Net Equity of the Latest Financial Statements	Guarantee Limited Amount (Note2)	Guarantee from the parent to subsidiary	Guarantee from the subsidiary to parent	Guarantee from the Mainland China
		Company Name	Relationship
0	CHANG TYPE INDUSTRIAL CO., LTD.	Delta Power Equipment Corporation	Subsidiaries	$2,114,520	$398,280	$377,040	$-	$-	17.83%	$4,229,040	Y	N	N

Note 1: 100% of the financial statement net amount of guarantees/endorsements.
Note 2: 200% of the net amount of financial statement of guarantees/endorsements.
Note 3: Should list the amount that approved by the board of directors. However, the board of directors shall, in accordance with Article 12 - Paragraph 8 of the "Public Issuance Company's Fund Loan and Endorsement Guarantee Handling Guidelines", to authorize the chairman to make decisions, this refers to the amount finalized by the board of director.

(c) Significant marketable securities held as of December 31, 2025 (excluding subsidiaries, associates, and joint venture): None.

(d) Related party transactions for purchases and sales exceeding NT$100 million or 20 percent of the paid-in capital for the year ended December 31, 2025: None.

(e) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of December 31, 2025: None.

(f) The business relationship, significant transactions and amounts between parent company and subsidiaries, and among subsidiaries (with amounts exceeding the lower of NT$100 million or 20 percent of the paid-in capital): None

English Translation of Company Only Financial Statements Originally Issued in Chinese Chang Type Industrial Co., Ltd.

Notes to Parent Company Only Financial Statements(Continued)

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

(2) Information on investees:

(a) Names, locations, main businesses and products, original investment amount, investment as of December 31, 2025, net income (loss) of investee company and investment income (loss) recognized for the year ended December 31, 2025:

Investor Company	Investee Company	Address	Main operating item	Initial Investment Amount		Investment as of December 31, 2025			Net loss of investee company	Current investment loss recognized	Note
				The ending of this period	The end of last year	Number of shares	Ratio	Note
CHANG TYPE INDUSTRIAL CO., LTD	Delta Power Equipment Corporation	America	Manufacturing and trading of hand tools, electrical machinery...etc.	$204,272 (USD 6,510,000)	$314,095 (USD 10,010,000)	6,510,000	100%	$362,477	$(61,868) (USD 1,983,000)	$(61,240)	Note 1,2

Note 1: Current investment income from investees recognized by the Company included investment gain/loss recognized by these investees from upstream/downstream transactions.
Note 2: To adjust the financial structure and improve the efficiency of capital utilization, Delta Power Equipment Corporation passed a resolution at the board meeting held on March 6, 2025, to reduce the capital and refund the share price of USD 3,500 thousand.

(3) Information on investments in the Mainland China: None

Chang Type Industrial Co., Ltd

Details of significant accounting items

For the year ended December 31, 2025

Details of Items	Number/ note
Statement of cash and cash equivalents	1
Statement of accounts receivable	2
Statement of inventories	3
Statement of changes in investment accounted for using equity method	4
Statement of changes in property, plant, and equipment	Note 6 (5)
Statement of changes in accumulated depreciation of property, plant and equipment	Note 6 (5)
Statement of changes in right-of-use assets	5
Statement of changes in accumulated depreciation of right-of-use assets	6
Statement of short-term loans	7
Statement of notes payable	8
Statement of accounts payable	9
Statement of lease liabilities	10
Statement of net operating income	11
Statement of operating costs	12
Statement of manufacturing overheads	13
Statement of operating expenses	14
Statement of non-operating income and expenses	Note 6 (15)
Summary statement of employee benefits, depreciation and amortization expenses by function	Note 6 (14)

Chang Type Industrial Co., Ltd
1、Statement of Cash and cash equivalents
As of December 31, 2025

Unit: NT$ thousands

Item	Abstract	Amount
Cash on hand		$90
Bank deposits
Demand deposits—New Taiwan dollars		119,921
Demand deposits—foreign currency	Main foreign currency: USD 8,440 thousand	8,478
Total		$128,489

Chang Type Industrial Co., Ltd
2、Statement of accounts receivable
As of December 31, 2025

Unit: NT$ thousands

Client name	Abstract	Amount	Note
Company A		$1,207,760
Less: loss to allowance		(5,573)
Accounts receivable - net		$1,202,187

Chang Type Industrial Co., Ltd
3 - Statement of inventories
As of December 31, 2025
Unit: NT$ thousands

Item	Costs	Market price	Note
Raw materials	$228,748	$175,080	Please refer to Note 4(9) for more information on market price.
Work in Process	35,493	30,612
Manufacturing goods	68,123	63,096
Finished goods	97,697	96,825
Total	430,061	$365,613
Less: loss of allowance	(66,103)
Net amount	$363,958

Chang Type Industrial Co., Ltd

4、Statement of changes in investment accounted for

using equity method

For the year ended December 31, 2025

Unit: NT$ thousands

Name of invested company and target	Balance of the beginning period		Current period		Decreases in the current period		Investment losses recognized in the current period	Cumulative translation adjustment	Realized gross profit between affiliates	Balance of the ending period			Share rights (net)	Foundation of evaluation	Guaranteed or pledge conditions
	Shares	Amount	Shares	Amount	Shares	Amount				Shares	Proportion of share holdings	Amount
Delta Power Equipment Corporation	10,010 (thousand shres)	$560,186	-	$-	(3,500)	$(109,823)	$(61,240)	$(23,653)	$(2,993)	6,510 (thousand shares)	100%	$362,477	$362,477	Equity method	None

Chang Type Industrial Co., Ltd

5、Statement of changes on right-of-use assets

For the year ended December 31, 2025

Unit: NT$ thousands

Item	Beginning balance	Increase in the current period	Decrease in the current period	Ending balance	Note
Land	$559,745	$12,145	$-	$571,890	None
Transportation equipment	8,323	-	-	8,323	None
Total	$568,068	$12,145	$-	$580,213

Chang Type Industrial Co., Ltd

6 - Statement of changes in accumulated depreciation of right-of-use assets

For the year ended December 31, 2025

Unit: NT$ thousands

Item	Beginning balance	Increase in the current period	Decrease in the current period	Ending balance	Note
Land	$67,926	$18,145	$-	$86,071	None
Transportation equipment	8,078	245	-	8,323	None
Total	$76,004	$18,390	$-	$94,394

Chang Type Industrial Co., Ltd

7 - Statement of short-term loans

As of December 31, 2025

Unit: NT$ thousands

Rights holder	Borrowing types	Interest rate	Amount	Borrowing limit	Pledge
Mega International commercial bank	Pledge		$-	$250,000	Land and construction from Houli
China CITIC bank International	Credit loan		-	200,000	None
Yuanta Commercial bank	Credit loan		-	150,000	None
Mega International commercial bank	Credit loan		-	350,000	None
Fuban Commercial bank Co., Ltd.	Credit loan	Note	-	130,000	None
Cathay United Bank	Credit loan		-	100,000	None
Taishin Commercial bank	Credit loan		-	100,000	None
E.Sun Commercial bank, Ltd	Credit loan		-	200,000	None
Total			$-	$1,480,000

Note: Interest rate of short-term borrowings ranges from 1.83% to 2.22%.

Chang Type Industrial Co., Ltd

8 $\cdot$ Statement of notes payable

As of December 31, 2025

Unit: NT$ thousands

Client name	Amount	Note
Company A	$11,835
Company B	11,424
Company C	9,802
Company D	9,403
Company E	9,104
Company F	8,950
Company G	8,540
Company H	8,492
Others	81,951	(Note)
Total	$159,501

Note: Supplier balance below 5% of the subject amount is listed as a consolidation.

Chang Type Industrial Co., Ltd.

9 $\cdot$ Statement of accounts payable

As of December 31, 2025

Unit: NT$ thousands

Client name	Amount	Note
Company A	$19,618
Company B	16,093
Others	232,198	(Note)
Total	$267,909

Note: Balance of suppliers below 5% of the subject amount is listed as a consolidation.

Chang Type Industrial Co., Ltd.
10 - Statement of lease liabilities
As of December 31, 2025

Unit: NT$ thousands

Item	Abstract	Leasing period	Discount rate	Ending balance
Land	Taiwan Sugar Corporation	18/10/2023~17/10/2043	2.65%	$208,655
Land	Houli factory No.2	06/10/2004~06/10/2053	1.40%	105,706
Land	Fengyuan factory No.1	01/01/2025~31/12/2027	0.12%	9,436
Land	Houli parking lot No.1	01/01/2023~31/12/2027	0.40%	2,604
Total				$326,401

Chang Type Industrial Co., Ltd.
11 - Statement of net operating income
For the year ended December 31, 2025

Unit: NT$ thousands

Item	Numbers	Amount	Note
Electronic machine tools	591,561 machines	$3,381,916	Rotor set, motor, and components
Others		32,001
Total		$3,413,917

Chang Type Industrial Co., Ltd.
12 - Statement of operating costs
For the year ended December 31, 2025
Unit: NT$ thousands

Item	Amount
A. Cost of goods sold - homemade
Direct materials :
Beginning Inventory	$276,833
Add : Material purchase (current period)	1,934,819
Returns of WIP	1,236,618
Less : Ending inventory	(228,748)
Material sold	(12,190)
Materials borrowed	(499)
Inventory loss	(1,480)
Transition expense	(453)
Loss on material restore	(8,736)
Reclassified as miscellaneous expenses	(3,544)
Current materials consumption	3,192,620
Work in Process (WIP) :
WIP in the beginning	33,129
Add : Material purchase (current period)	56,126
Returns of WIP	2,569,644
WIP borrowed	9
Less: Ending inventory	(35,493)
WIP sold	(14,367)
Inventory loss	(182)
Transition expense	(342)
Loss on material restore	245
Reclassified as miscellaneous expenses	(73)
Current Work in Process consumption	2,608,696
Direct labor	140,771
Manufacturing expense (Details 13)	705,601
Production cost	6,647,688
Manufacturing goods :
Beginning Manufacturing goods	78,366
Less: Ending manufacturing goods	(68,123)
Current production cost	6,657,931
Materials transition	(1,236,618)
Transition of manufacturing goods	(2,569,644)
Costs of finished goods	2,851,669
Finished goods :
Add : Beginning finished goods	112,641
Less : Ending finished goods	(97,697)
Transition expense	(3,461)
Cost of goods sold - homemade	$2,863,152

Chang Type Industrial Co., Ltd.
12 - Statement of operating costs (continued)

For the year ended December 31, 2025

Unit: NT$ thousands

Item	Amount
B. Cost of goods sold – purchased goods
Beginning goods	-
Add: Current inventory	1,895
Less: Ending inventory	-
Cost of goods sold	1,895
Sales of parts available-for-sale	12,190
Sales of Work-in-Process available-for-sale	14,367
Costs of selling materials, Work in Process, Cost of goods sold available-for-sale	28,452
C. Other operating costs
The reversal of write-down of inventories	(2,000)
Revenue from sales of scraps	(13,231)
Inventory loss	1,662
Others	8,616
Subtotal	(4,953)
Operating costs	$2,886,651

Chang Type Industrial Co., Ltd.
13 - Statement of manufacturing overheads

For the year ended December 31, 2025

Unit: NT$ thousands

Item	Amount	Note
Manufacturing cost	$458,762
Indirect labor	57,885	(Including pensions)
Expendable cost	35,367
Other expenses	153,587	(Note)
Total	$705,601

Note: Amount below 5% of subject amount is listed as consolidation.

Chang Type Industrial Co., Ltd.
14 - Statement of operating expenses
For the year ended December 31, 2025

Unit: NT$ thousands

Item	Marketing expense	Management and administration expenses	Research and development expense	Total	Note
Wage expense	$11,281	$36,717	$12,820	$60,818	Including pensions
Import/ export expense	33,629	-	-	33,629
Depreciation expense	206	18,795	2,698	21,699
Amortizations	8,724	3,273	-	11,997
Labor expense	-	50,798	755	51,553
Insurance	2,211	2,797	973	5,981
Sample fee	2,180	-	2,762	4,942
Other expense	7,069	10,547	1,544	19,160	(Note)
Total	$65,300	$122,927	$21,552	$209,779

Note: Amount below 5% of subject amount is listed as consolidation.

AI assistant

Chang Type Audit Report / Information 2025

51863_rns_2026-05-28_0762b711-0572-4fcd-baef-573845edb145.pdf

Inventory valuation

Provision for warranties

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

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Financial liabilities

Financial liabilities measured at amortized cost

Derecognition of financial liabilities

(e) Offsetting of financial instruments

Company as a lessor

(13) Intangible assets

Provision for warranties

(16) Revenue recognition

Sales of goods

Warranty

Decommissioning, restoration and rehabilitation costs

(10) Equity

(a) Common stock

7. RELATED PARTY TRANSACTIONS

Significant transactions with related parties

8. ASSETS PLEDGED AS SECURITY

9. Significant contingencies and unrecognized contractual commitments

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS

12. OTHERS

(1) Categories of financial instruments

Financial assets

(2) Financial risk management objectives and policies

Interest rate risk

(4) Credit risk management

AI assistant

Chang Type — Audit Report / Information 2025

51863_rns_2026-05-28_0762b711-0572-4fcd-baef-573845edb145.pdf

Inventory valuation

Provision for warranties

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

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Financial liabilities

Financial liabilities measured at amortized cost

Derecognition of financial liabilities

(e) Offsetting of financial instruments

Company as a lessor

(13) Intangible assets

Provision for warranties

(16) Revenue recognition

Sales of goods

Warranty

Decommissioning, restoration and rehabilitation costs

(10) Equity

(a) Common stock

7. RELATED PARTY TRANSACTIONS

Significant transactions with related parties

8. ASSETS PLEDGED AS SECURITY

9. Significant contingencies and unrecognized contractual commitments

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS

12. OTHERS

(1) Categories of financial instruments

Financial assets

(2) Financial risk management objectives and policies

Interest rate risk

(4) Credit risk management

More from Chang Type

Chang Type Audit Report / Information 2025