CHC - Audit Report / Information 2026

CHC Resources Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders CHC Resources Corporation

Opinion

We have audited the accompanying parent company only financial statements of CHC Resources Corporation (the “Corporation”), which comprise the parent company only balance sheets 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 then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Corporation as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with 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 Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 the parent company only financial statements for the year ended December 31, 2025. 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.

Key audit matter of the Corporation’s parent company only financial statements for the year ended December 31, 2025 is stated as follows:

Revenue Recognition

The Corporation mainly engages in the sale of Ground-Granulated Blast-Furnace Slag (GGBFS), accounting for the largest proportion of total sales revenue. Since revenue is a presumed risk in the Statement of Auditing Standards and it is mainly the focus of users of financial statements. Thus, we considered the occurrence of the sales revenue of GGBFS as a key audit matter. For the accounting policy of sales revenue, please refer to Note 4 of the financial statements.

Our audit procedures performed included the following:

We obtained an understanding of and evaluated design and implementation of internal control of sales of GGBFS and tested its operating effectiveness.
We selected samples and verified the occurrence and validity of the sales revenue of GGBFS and confirmed the correctness of the shipping documents and cash collection receipts.

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 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 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 Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Corporation’s financial reporting process.

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 maintain 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 Corporation’s internal control.
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 Corporation’s ability to continue as a going concern. 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
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events or conditions may cause the Corporation to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Corporation to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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 the parent company only financial statements for the year ended December 31, 2025, 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.

The engagement partners on the audits resulting in this independent auditors’ report are Yu-Shiang Liu and Chao-Chun Wang.

Deloitte & Touche Taipei, Taiwan Republic of China

February 25, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance 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 applied in the Republic of China.

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

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash (Note 6) Financial assets at fair value through other comprehensive income - current (Notes 7 and 26) Notes receivable (Note 8) Accounts receivable (Note 8) Accounts receivable - related parties (Notes 8 and 27) Other receivables Other receivables - related parties (Note 27) Inventories (Notes 5 and 9) Prepayments (Note 27) Refundable deposits - current (Note 13) Costs to fulfil a contract (Note 21) Other current assets Total current assets NONCURRENT ASSETS Financial assets at fair value through other comprehensive income - noncurrent (Notes 7 and 26) Investments accounted for using the equity method (Note 11) Property, plant and equipment (Notes 12, 27 and 28) Right-of-use assets (Notes 13 and 27) Investment properties (Note 14) Intangible assets (Note 15) Deferred tax assets (Note 23) Prepayments for equipment Refundable deposits - noncurrent (Note 13) Net defined benefit assets (Note 19) Other financial assets - noncurrent (Notes 10 and 28) Other noncurrent assets Total noncurrent assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 16) Contract liabilities - current (Notes 21 and 27) Notes payable Accounts payable Accounts payable - related parties (Note 27) Payables on equipment Other payables (Notes 17 and 30) Other payables - related parties (Notes 17 and 27) Current tax liabilities (Note 23) Lease liabilities - current (Notes 13 and 27) Guarantee deposits received - current Other current liabilities Total current liabilities NONCURRENT LIABILITIES Long-term borrowings (Note 16) Provisions - noncurrent (Notes 18 and 30) Deferred tax liabilities (Note 23) Lease liabilities - noncurrent (Notes 13 and 27) Net defined benefit liabilities (Note 19) Guarantee deposits received - noncurrent Total noncurrent liabilities Total liabilities EQUITY (Note 20) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		December 31, 2025		December 31, 2024
		Amount % $ 177,163 2 197,634 2 219,712 2 193,364 2 980,646 9 51 - 37,898 - 430,311 4 48,411 - 11,955 - 9,419 - 10,380 - 2,316,944 21 18,303 - 1,337,831 12 3,550,269 33 928,292 9 2,332,558 21 4,341 - 86,007 1 58,842 1 217,061 2 5,532 - 3,850 - 227 - 8,543,113 79 $ 10,860,057 100 $ 223,613 2 45,576 - 3,025 - 157,778 1 101,436 1 18,545 - 687,331 7 237,140 2 133,909 1 355,418 4 21,607 - 6,753 - 1,992,131 18 1,118,020 10 393,760 4 105,323 1 650,179 6 - - 6,437 - 2,273,719 21 4,265,850 39 2,485,404 23 162,398 1 1,776,482 16 104,464 1 2,227,243 21 4,108,189 38 (161,784) (1) 6,594,207 61 $ 10,860,057 100		Amount % $ 222,690 2 204,395 2 302,923 3 115,940 1 893,467 8 167 - 42,111 - 362,413 4 37,869 - 12,550 - 12,324 - 9,867 - 2,216,716 20 17,102 - 1,357,965 12 3,591,747 32 1,190,725 11 2,335,638 21 5,875 - 104,952 1 58,615 1 226,903 2 - - 3,850 - 233 - 8,893,605 80 $ 11,110,321 100 $ 280,625 3 41,091 - 10,521 - 144,556 1 103,807 1 15,820 - 742,669 8 220,879 2 163,960 1 338,338 3 21,526 - 4,622 - 2,088,414 19 1,200,000 11 377,107 3 96,288 1 921,093 8 8,262 - 5,217 - 2,607,967 23 4,696,381 42 2,485,404 22 162,411 1 1,657,720 15 17,532 - 2,195,338 21 3,870,590 36 (104,465) (1) 6,413,940 58 $ 11,110,321 100

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

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 21 and 27) Sales Construction revenue Service revenue Total operating revenue OPERATING COSTS (Notes 9, 22 and 27) Cost of goods sold Construction costs Service costs Total operating costs GROSS PROFIT OPERATING EXPENSES (Notes 22 and 27) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 22 and 27) Interest income Other income Other gains and losses Finance costs Share of profit or loss of subsidiaries and associates accounted for using the equity method Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 23) NET PROFIT FOR THE YEAR		For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 Amount % $ 6,992,619 56 7,889 - 5,540,010 44 12,540,518 100 5,402,794 43 7,514 - 5,233,608 42 10,643,916 85 1,896,602 15 236,232 2 231,443 2 29,118 - 496,793 4 1,399,809 11 1,586 - 42,388 - (10,560) - (42,235) - 138,130 1 129,309 1 1,529,118 12 296,013 2 1,233,105 10		2024
				Amount % $ 6,650,261 56 14,203 - 5,224,913 44 11,889,377 100 5,131,066 43 13,527 - 4,964,574 42 10,109,167 85 1,780,210 15 219,234 2 221,790 2 27,655 - 468,679 4 1,311,531 11 1,651 - 43,312 - (4,485) - (52,022) - 125,585 1 114,041 1 1,425,572 12 266,438 2 1,159,134 10

(Continued)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 19, 20 and 23) Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plans Unrealized loss on investments in equity instruments at fair value through other comprehensive income Gain on hedging instruments Share of the other comprehensive income (loss) of subsidiaries and associates accounted for using the equity method Income tax related to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss Share of the other comprehensive income (loss) of subsidiaries and associates accounted for using the equity method Other comprehensive loss for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 24) Basic Diluted		For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 Amount % $ (5,734) - (5,561) - - - 2,614 - 1,147 - (51,130) - (58,664) - $ 1,174,441 10 $ 4.96 $ 4.94		2024
				Amount % $ 31,504 - (75,853) (1) 42 - (18,452) - (6,301) - 10,741 - (58,319) (1) $ 1,100,815 9 $ 4.66 $ 4.65

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

(Concluded)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	Retained Earnings	Retained Earnings			Other Equity	Other Equity	Total Equity $ 6,058,488
				Exchange Differences on Translation of the Financial F Statements of Foreign Operations $ (36,463) - - - - - - 10,741 10,741 - - (25,722) - - - - - - (51,130) (51,130) - $ (76,852)	Unrealized Valuation Gain (Loss) on inancial Assets at Fair Value Through Other Comprehensive Income $ 18,973 - - - - - - (94,565) (94,565) - (3,151) (78,743) - - - - - - (3,151) (3,151) (3,038) $ (84,932)	Gain (Loss) on Hedging Instruments $ (42) - - - - - - 42 42 - - - - - - - - - - - - $ -
Legal Reserve $ 1,574,514 83,206 - - 83,206 - - - - - - 1,657,720 118,762 - - 118,762 - - - - - $ 1,776,482	Special Reserve $ - - 17,532 - 17,532 - - - - - - 17,532 - 86,932 - 86,932 - - - - - $ 104,464	Unappropriated Earnings $ 1,854,078 (83,206) (17,532) (745,621) (846,359) (129) 1,159,134 25,463 1,184,597 - 3,151 2,195,338 (118,762) (86,932) (994,161) (1,199,855) - 1,233,105 (4,383) 1,228,722 3,038 $ 2,227,243	Total $ 3,428,592 - - (745,621) (745,621) (129) 1,159,134 25,463 1,184,597 - 3,151 3,870,590 - - (994,161) (994,161) - 1,233,105 (4,383) 1,228,722 3,038 $ 4,108,189
							- - (745,621)
							(745,621)
							(116)
							1,159,134 (58,319)
							1,100,815
							374
							-
							6,413,940
							- - (994,161)
							(994,161)
							(13)
							1,233,105 (58,664)
							1,174,441
							-
							$ 6,594,207

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

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expense Amortization expense Net gain on financial assets at fair value through profit or loss Finance costs Interest income Dividend income Share of profit of subsidiaries and associates accounted for using the equity method Gain on disposal of property, plant and equipment Write-down (reversal) of inventories Impairment loss on property, plant and equipment Recognition of provisions Others Changes in operating assets and liabilities Contract assets - current Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Costs to fulfil a contract Contract liabilities - current Notes payable Accounts payable Accounts payable - related parties Other payables Other payables - related parties Provisions Other current liabilities Net defined benefit liabilities Cash generated from operations Income tax paid Net cash generated from operating activities	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 1,529,118 791,306 25,886 (590) 42,235 (1,586) (7,440) (138,130) (15) 16,127 16,292 49,141 (4) - 83,211 (77,424) (87,179) 116 4,213 (84,025) (10,542) (513) 2,905 4,485 (7,496) 13,222 (2,371) (54,949) 16,261 (32,488) 2,131 (19,528) 2,072,369 (296,937) 1,775,432	2024 $ 1,425,572 802,180 26,717 (415) 52,022 (1,651) (7,555) (125,585) (158) (960) 49,541 70,961 (177) 1,485 (42,924) 14,403 (101,942) 83 (17,439) 31,147 (2,434) (7,021) (1,565) 11,289 (1,122) 16,665 2,006 (124,265) 101,180 - (1,233) (15,944) 2,152,861 (291,254) 1,861,607

(Continued)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Proceeds of financial assets for hedging Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Payments for intangible assets Increase in other noncurrent assets Interest received Dividends received from others Dividends received from subsidiaries and associates Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Refund of guarantee deposits received Repayments of principal portion of lease liabilities Dividends paid Interest paid Net cash used in financing activities NET INCREASE (DECREASE) IN CASH CASH AT THE BEGINNING OF THE YEAR CASH AT THE END OF THE YEAR	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ (990,000) 990,590 - (434,386) 15 10,437 (2,410) (21,936) 1,586 7,440 109,733 (328,931) 4,245,526 (4,302,538) 2,118,020 (2,200,000) 1,301 - (314,994) (994,161) (45,182) (1,492,028) (45,527) 222,690 $ 177,163	2024 $ (530,000) 530,415 4,321 (343,117) 381 17,348 (2,880) (22,164) 1,651 7,555 59,090 (277,400) 5,686,940 (5,854,781) 4,680,000 (4,858,833) - (14,191) (312,332) (745,621) (53,174) (1,471,992) 112,215 110,475 $ 222,690

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

(Concluded)

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

CHC RESOURCES CORPORATION

1. GENERAL INFORMATION

CHC Resources Corporation (the “Corporation”) was jointly incorporated by China Steel Corporation (CSC), TCC Group Holdings Co., LTD. (TCC) and other shareholders in May 1991. CSC is the parent company that has substantive control over the Corporation. As of December 31, 2025, CSC and its subsidiaries owned 35.6% of the Corporation’s issued ordinary shares. The Corporation mainly engages in the production, processing and sales of Ground-Granulated Blast-Furnace Slag (GGBFS), Portland Blast-Furnace Slag Cement and reutilization of resources.

The shares of the Corporation have been listed on the Taiwan Stock Exchange since November 1999.

The parent company only financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the Corporation’s board of directors and authorized for issue on February 25, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Corporation’s accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” Annual Improvements to IFRS Accounting Standards - Volume 11 IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	Effective Date Announced by IASB (International Accounting Standards Board)
	January 1, 2026 January 1, 2026 January 1, 2026 January 1, 2023

New, Amended and Revised Standards and Interpretations
Amendments to IFRS 9 and IFRS 7 “Amendments to the
Classification and Measurement of Financial Instruments”

Amendments to IFRS 9 and IFRS 7 “Contracts Referencing
Nature-dependent Electricity”

Annual Improvements to IFRS Accounting Standards - Volume 11

IFRS 17 “Insurance Contracts” (including the 2020 and 2021
amendments to IFRS 17)

Effective Date
Announced by IASB
(International Accounting
Standards Board)

January 1, 2026
January 1, 2026
January 1, 2026
January 1, 2023

As of the date the parent company only financial statements were authorized for issue, the Corporation is continuously assessing the possible impact of the application of the amendments on the Corporation’s

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financial position and financial performance and will disclose the relevant impact when the assessment is completed.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB (Note 1)

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note 2) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” January 1, 2027 (including the 2025 amendments to IFRS 19) Amendments to IAS 21 “Translation to a Hyperinflationary January 1, 2027 Presentation Currency”

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Corporation shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Corporation shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Corporation shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Corporation labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Corporation as a whole, the Corporation shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

The Corporation shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
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Interest and dividends received by the Corporation shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Corporation has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the parent company only financial statements were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations on the Corporation’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

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

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments, and net defined benefit assets or liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

When preparing these parent company only financial statements, the Corporation used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Corporation in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these parent company only financial statements.

c. Classification of current and noncurrent assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
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3) Cash unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the parent company only financial statements are authorized for issue; and
3) Liabilities for which the Corporation does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as noncurrent.

d. Foreign currencies

In preparing the Corporation’s parent company only financial statements, transactions in currencies other than the Corporation’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the year.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

e. Inventories

Inventories consist of raw materials, supplies, finished goods and merchandise and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

f. Investments in subsidiaries

The Corporation uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Corporation.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation’s share of equity of subsidiaries attributable to the Corporation.

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Changes in the Corporation’s ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Corporation.

g. Investment in associates

An associate is an entity over which the Corporation has significant influence and which is not a subsidiary.

The Corporation uses the equity method to account for its investments in associates. Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the associate. The Corporation also recognizes the changes in the Corporation’s share of the equity of associates attributable to the Corporation.

Any excess of the cost of acquisition over the Corporation’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Corporation subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Corporation’s proportionate interest in the associate. The Corporation records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Corporation’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Corporation discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on the associate. The Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

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h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are initially measured at cost. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, and some equipment of Blast-Furnace Slag Cement Division which are recognized using the depreciation method of working hours, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation. Investment properties include properties under construction that meet the definition of investment properties. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the end of owner-occupation.

j. Intangible assets
1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

k. Assets related to contract costs

The expenditures that relate directly to a contract and that generate or enhance resources to be used in satisfying performance obligations are recognized as assets (costs to fulfil a contract) to the extent of

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the expected recoverable costs and are amortized on a straight-line basis over the contract term.

l. Impairment of property, plant and equipment, right-of-use assets, investment properties, intangible assets and assets related to contract fulfilment costs

At the end of each reporting period, the Corporation reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties, intangible assets and assets related to contract fulfilment costs to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units or the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

Before the Corporation recognizes an impairment loss from assets related to contract fulfilment costs, any impairment loss on inventories related to the contract shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to contract fulfilment costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Corporation expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to contract fulfilment costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract fulfilment costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset, cash-generating unit or assets related to contract fulfilment costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

m. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

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i Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified as at FVTPL. Financial assets at FVTPL are subsequently measured at fair value, and the remeasurement gains or losses (excluding any dividends or interest earned on such financial assets) on such financial assets are recognized in gains or losses.

ii Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash, notes receivable, accounts receivable, other receivables, other financial assets and refundable deposits at amortized cost, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred: significant financial difficulty of the issuer or the borrower; breach of contract, such as a default; it is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or the disappearance of an active market for that financial asset because of financial difficulties.

iii Investments in equity instruments at FVTOCI

On initial recognition, the Corporation may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

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Dividends on these investments in equity instruments are recognized in profit or loss when the Corporation’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets and contract assets

The Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including notes receivable and accounts receivable), as well as contract assets.

The Corporation always recognizes lifetime expected credit losses (ECLs) for notes receivable, accounts receivable and contract assets. For all other financial instruments, the Corporation recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Corporation measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Corporation considers the following situations as indication that a financial asset is in default (without taking into account any collateral held by the Corporation):

i Internal or external information shows that the debtor is unlikely to pay its creditors.
ii. Financial asset is more than 180 days past due unless the Corporation has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets and contract assets

The Corporation derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

Equity instruments issued by the Corporation is recognized at the proceeds received, net of direct issue costs.

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3) Financial liabilities
a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

n. Hedge accounting

The Corporation designates certain hedging instruments (non-derivatives in respect of foreign currency risk) as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

Cash flow hedges

The effective portion of gains and losses on derivatives that are designated and qualified as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.

The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as reclassification adjustments in the line items relating to the hedged item in the same period in which the hedged item affects profit or loss. If a hedge of a forecasted transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the non-financial asset or non-financial liability.

The Corporation discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. The cumulative gain or loss on the hedging instrument that was previously recognized in other comprehensive income from the period in which the hedge was effective remains separately in equity until the forecasted transaction occurs. When a forecasted transaction is no longer expected to occur, the gains or losses accumulated in equity are recognized immediately in profit or loss.

o. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

p. Carbon fee provision

In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year.

q. Revenue recognition

The Corporation identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

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1) Merchandise sales revenue

Merchandise sales revenue comes from the sale of products such as GGBFS. According to the contract, when GGBFS and other products are delivered to the customer, the customer has set the price and the right to use the product, bears the responsibility for resale, obsolescence of the product risks, the Corporation recognizes revenue and accounts receivable at that point in time, and prepayments are recognized as contract liabilities.

2) Service revenue

Service revenue comes from services such as slag processing. For services such as processing, the customer obtains and consumes the performance benefits at the same time. The revenue is recognized when the service is provided by the Corporation. Specifically, the actual calculation is performed and the advance payment for the service is recognized as a contract liability.

3) Construction revenue

Contracts such as land and water remediation that are under the control of the customer during the implementation process, the Corporation gradually recognizes income over time. Since the cost of implementation is directly related to the degree of completion of the performance obligation, the Corporation measures the progress of completion based on the actual input cost as a percentage of the expected total cost. The Corporation gradually recognizes contract assets during the implementation process and converts them to accounts receivable when billing. If the received construction payment exceeds the amount of recognized revenue, the difference is recognized as a contract liability.

r. Leases

At the inception of a contract, the Corporation assesses whether the contract is, or contains, a lease.

For a contract that contains a lease component and non-lease components, the Corporation allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

1) The Corporation as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

When a lease includes both land and building elements, the Corporation assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated to the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of the contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably to the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

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2) The Corporation as lessee

The Corporation recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date. Right-of-use assets are subsequently measured at cost less accumulated depreciation and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the parent company only balance sheet.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, and variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Corporation remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Corporation accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; making a corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the parent company only balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the year in which they are incurred.

s. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale, all other borrowing costs are recognized in profit or loss in the year in which they are incurred.

t. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

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Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Current service cost and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Corporation’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Corporation can no longer withdraw the offer of the termination benefit, and when the Corporation recognizes any related restructuring costs.

u. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable is based on taxable profit for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current period’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the parent company only financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Corporation is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Corporation expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

Where current tax or deferred tax arises from the initial accounting for a business combination or the acquisition of a subsidiary, the tax effect is included in the accounting for the business combination or investments in a subsidiary.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Corporation’s accounting policies, management is required to make judgments, estimations, and assumptions that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Corporation considers the possible impact of volatility in markets on the relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Key sources of estimation uncertainty - write-down of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

6. CASH

Checking accounts and demand deposits		December 31	December 31
		2025 $ 177,163	2024 $ 222,690

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7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Domestic investments (investments in equity instruments) Listed shares Unlisted shares Current Noncurrent		December 31	December 31
		2025 $ 197,634 18,303 $ 215,937 $ 197,634 18,303 $ 215,937	2024 $ 204,395 17,102 $ 221,497 $ 204,395 17,102 $ 221,497

These investments in equity instruments are held for medium - to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at fair value through other comprehensive income as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Corporation’s strategy of holding these investments for long-term purposes.

Dividends income of NT$7,440 thousand and NT$7,555 thousand were recognized for the years ended December 31, 2025 and 2024, respectively.

8 . NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

Notes receivable At amortized cost Operating Accounts receivable (including related parties) At amortized cost Gross carrying amount Less: Allowance for impairment loss		December 31	December 31
		2025 $ 219,712 $ 1,174,010 - $ 1,174,010	2024 $ 302,923 $ 1,009,407 - $ 1,009,407

The Corporation makes prudent assessment of their customers. The counterparties are creditworthy companies; as a result, the significant credit risk is unexpected. The Corporation continues to manage the financial condition and entire credit risk of their customers and obtains sufficient collateral if needed to mitigate the risk of financial loss from late payment.

The expected credit losses on notes receivable and accounts receivable are estimated by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date.

The Corporation continues to monitor the collection of receivables to ensure that proper actions are made to collect past due receivables. Additionally, the Corporation reviews the recoverable amount of receivables

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one by one on the balance sheet date to ensure that proper allowances are recognized for unrecoverable receivables.

The Corporation writes off receivables when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For receivables that have been written off, the Corporation continues attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable and accounts receivable based on the Corporation’s provision matrix.

December 31, 2025

Not Past Due 1 to 30 Days 31 to 60 Days 61 to 365 Days Gross carrying amount $ 1,388,672 $ 5,050 $ - $ - Loss allowance (Lifetime ECLs) - - - - Amortized cost $ 1,388,672 $ 5,050 $ - $ - December 31, 2024 Not Past Due 1 to 30 Days 31 to 60 Days 61 to 365 Days Gross carrying amount $ 1,175,787 $ 136,543 $ - $ - Loss allowance (Lifetime ECLs) - - - - Amortized cost $ 1,175,787 $ 136,543 $ - $ -	Total $ 1,393,722 -
	$ 1,393,722
	Total $ 1,312,330 -
	$ 1,312,330

There was no change to the loss allowance of notes receivable and accounts receivable in 2025 and 2024.

9. INVENTORIES

Raw materials Supplies Finished goods Merchandise Materials and supplies in transit		December 31	December 31
		2025 $ 119,879 198,487 109,935 2,010 - $ 430,311	2024 $ 104,330 191,511 62,688 2,039 1,845 $ 362,413

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 was NT$5,402,794 thousand and NT$5,131,066 thousand, respectively, which included loss on inventories NT$16,127 thousand and reversal of loss on inventories of NT$960 thousand, respectively. The reversal of loss on inventory was mainly due to the continuous consumption of inventory.

10. OTHER FINANCIAL ASSETS - NONCURRENT

Pledged time deposits - performance bond (Note 28)		December	31
		2025 $ 3,850	2024 $ 3,850

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11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries Investments in associates		December 31	December 31
		2025 $ 1,050,606 287,225 $ 1,337,831	2024 $ 1,078,383 279,582 $ 1,357,965

a. Investments in subsidiaries

Name of subsidiaries CHC Resources Vietnam Co., Ltd. Yu Cheng Lime Corporation Union Steel Development Corporation Pao Good Industrial Co., Ltd.		December	December	31 2024 Amount % of Owner - ship Note $ 735,053 85 141,956 90 108,949 93 92,425 51 $ 1,078,383
		2025 Amount % of Owner - ship $ 723,779 85 142,193 90 96,912 93 87,722 51 $ 1,050,606

b. Investments in associates

Associates that are not individually material The Corporation’s share of Net profit for the year Other comprehensive income (loss) Total comprehensive income (loss)		December 31	December 31
	2025 $ 287,225 For the Year Ended		2024 $ 279,582 December 31
		2025 $ 18,425 2,077 $ 20,502	2024 $ 9,797 (16,799) $ (7,002)

The Corporation held more than 20% of the shares of CSC and fellow subsidiaries; thus, the subsidiaries were accounted for using the equity method.

12. PROPERTY, PLANT AND EQUIPMENT

Refer to Table 5 for the movements in property, plant and equipment for the year ended December 31, 2025 and 2024.

The property, plant and equipment of the Corporation are depreciated on a straight-line basis over their estimated useful lives as follows:

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Land improvements Drainage system 30 years Others 2-15 years Buildings Main buildings 5-55 years Rain shelters and container houses 3-35 years Pipelines and other facilities 2-20 years Machinery and equipment 2-28 years Transportation equipment 5-10 years Office equipment 3-10 years Leasehold improvement 2-35 years

The carrying amounts of property, plant and equipment that were pledged by the Corporation for bank financing credit line are set out in Note 28.

Due to the expansion of the Taichung grinding Plant, the equipment at the Nanti Plant will be relocated in the near future, and certain facilities of the plant will subsequently be demolished. The Corporation assessed that the facilities and equipment scheduled for disposal will not generate probable future economic benefits. The Corporation carried out a review of the carrying amount that exceeded the recoverable amount and recognized an impairment loss of NT$16,292 thousand for the year ended December 31, 2025 as operating costs.

Due to the replacement of the plant’s coal-fired equipment with natural gas equipment and buildings, the Corporation assessed that the coal-fired equipment will not generate probable future economic benefits. The Corporation carried out a review of the carrying amount that exceeded the recoverable amount and recognized an impairment loss of NT$49,541 thousand for the year ended December 31, 2024 as operating costs.

In February 2025, the Corporation received a ruling from the Kaohsiung District Court for a criminal provisional attachment, ordering the seizure of the Corporation's land located at Lot No. 1310, Erqiao Section, Xiaogang District, Kaohsiung City, up to an amount of NT$128,104 thousand. For further details, please refer to Note 30.

For the years ended December 31, 2025 and 2024, the Corporation entered into the following non-cash investing activities which were not reflected in the statements of cash flows:

Affect both cash and non-cash items from investing activities Increase in property, plant and equipment Increase in prepayments for equipment Decrease (increase) in payables on equipment Capitalized interest Paid in cash	For the Year Ended	For the Year Ended	December 31
		2025 $ 439,443 227 (2,725) (2,559) $ 434,386	2024 $ 254,777 58,615 31,133 (1,408) $ 343,117

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13. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Machinery and equipment Transportation equipment		December 31	December 31	December 31
	2025 2024 $ 665,782 $ 923,729 251,345 252,926 11,165 14,070 $ 928,292 $ 1,190,725 For the Year Ended December 31
			2025 $ 45,846 $ 273,390 43,803 - 6,404 $ 323,597	2024 $ 45,742 $ 284,808 43,108 30 6,620 $ 334,566

Except for the addition and recognition of depreciation expenses listed above, the Corporation did not have significant sublease or impairment of right-of-use assets during the years ended December 31, 2025 and 2024.

b. Lease liabilities

Carrying amount Current Noncurrent		December 31	December 31
		2025 $ 355,418 $ 650,179	2024 $ 338,338 $ 921,093

Range of discount rates (%) for lease liabilities was as follows:

Land Buildings Transportation equipment	December 31
	2025 2024 0.59-2.05 0.59-1.97 1.67-3.45 1.67-3.45 0.59-1.92 0.59-1.91

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c. Material leasing activities and terms
1) Blast-Furnace Slag Cement and resource reutilization business of Taichung Factory

In order to expand business in Taichung, the Corporation signed the investment permission “The Contract Investment, Construction and Operating of Slag Grinding and Processing Plant in the Special Zone for Industry (IV) of Taichung Port” (the “Taichung Factory”) with Port of Taichung Taiwan International Ports Corporation, Ltd (the “Ports Corporation”) in December 2006. The Corporation entered operation in the 2nd quarter of 2009 and 1st quarter of 2016.

For one year beginning from operation date of the first period, the Corporation has committed that the quantities of import and export goods at Taichung Port should be at least the minimum of annual guaranteed traffic volume, which is settled once a year. If the traffic volume is not reached, the Corporation should pay punitive damage to the Ports Corporation for unreached quantities according to the agreed calculation method. As of December 31, 2025, the Corporation had no punitive damages payable.

The Taichung Factory investment permission described above is for a period of 50 years, commencing from January 1, 2007 to December 31, 2056. Additionally, the lease term of land associated with the Taichung Factory investment permission is for a period of 20 years, commencing from January 1, 2007 to December 31, 2026. The lease cost of land includes rent, fixed operating royalty and variable operating royalty. The Corporation could apply for renewal before the contract expires. The period is limited to 20 years each time, until the permission period expires. The terms of renewal are to be arranged.

The rents for land of the Taichung Factory and the fixed operating royalty described above are paid every three months; the variable operating royalty paid is according to operating gross profit of the Taichung Factory audited by accountant every year multiplies by the agreed contribution rate.

In addition, for the expansion of stacking volume of slag and the Corporation’s long-term policy regarding the land in Taichung Factory, the Corporation has continued to rent land in the Special Zone for industry of Taichung Port from the Ports Corporation. The lease will expire in 2036 and the Corporation could apply for renewal before the contract expires. The terms of renewal are to be arranged.

The Corporation had provided performance bond amounted to NT$3,040 thousand, and classified it as noncurrent refundable deposits, according to its liquidity. The bank also provided performance bond amounted to NT$49,940 thousand.

2) Blast-Furnace Slag Cement business in Taipei Port

The Corporation signed an agreement with Chia Hsin Cement Corp. in 2010 to acquire the exclusive right of GGBFS storage facility in Taipei Port. The period is up to 31 years from the beginning operation date of the storage facility (from May 2014 to May 2045). As of December 31, 2025, the Corporation had paid performance bonds amounted to NT$196,000 thousand, and classified it as current and noncurrent refundable deposits according to its liquidity.

The Corporation is committed to pay Chia Hsin Cement Corp. for storage and delivery expenses from the beginning operation date of the storage facility to the date of termination of the contract (from January 2015 to May 2045) on the basis of the agreed rates and minimum capacity agreed with Chia Hsin Cement Corp.

Additionally, the Corporation has to pay NT$13,834 thousand for site management expenses arising from storage and delivery every year from May 2014 to May 2045, and the amount is paid on a pro-rata basis if the operating period is less than one year.

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3) Other resource reutilization business

The Corporation leases land and plants from non-related parties as a premise for resource reutilization business. The leases will successively expire through February 2036.

d. Other lease information

Expenses relating to short-term leases and low-value asset leases Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2025 $ 6,540 $ 344,738	2024 $ 6,239 $ 344,002

The Corporation has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities as short-term and low-value asset leases.

14. INVESTMENT PROPERTIES

For the year ended December 31, 2025

Cost Balance at January 1, 2025 and December 31, 2025 Accumulated depreciation and impairment Balance at January 1, 2025 Depreciation expenses Balance at December 31, 2025 Carrying amount at December 31, 2025 For the year ended December 31, 2024 Cost Balance at January 1, 2024 and December 31, 2024 Accumulated depreciation and impairment Balance at January 1, 2024 Depreciation expenses Balance at December 31, 2024 Carrying amount at December 31, 2024	Land $ 2,323,140 $ 6,370 - $ 6,370 $ 2,316,770 Land $ 2,323,140 $ 6,370 - $ 6,370 $ 2,316,770	Buildings $ 57,959 $ 39,091 3,080 $ 42,171 $ 15,788 Buildings $ 57,959 $ 36,010 3,081 $ 39,091 $ 18,868	Total $ 2,381,099 $ 45,461 3,080 $ 48,541 $ 2,332,558 Total $ 2,381,099 $ 42,380 3,081 $ 45,461 $ 2,335,638

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The maturity analysis of lease receivables under operating leases of investment properties was as follows:

Year 1 Year 2 Year 3 Year 4	December 31
	2025 2024 $ 30,196 $ 29,572 22,613 29,572 7,778 22,089 - 7,571

Buildings are depreciated over 3 to 55 years on a straight-line basis.

As of December 31, 2025 and 2024, the fair values of investment properties were NT$2,508,804 thousand and NT$2,499,578 thousand, respectively. Part of the land fair values were measured using Level 3 inputs based on appraisals by real estate professionals. These appraisals were based on the actual transaction prices of comparable land in the same area with significant unobservable inputs including the related expense ratio. Other properties were not evaluated by independent qualified professional valuers. The management of the Corporation applied valuation models commonly used by market participants, and the fair values were determined using Level 3 inputs.

All investment properties of the Corporation are from self-owned equity.

15. INTANGIBLE ASSETS

For the year ended December 31, 2025

Cost Balance at January 1, 2025 Additions Derecognition Balance at December 31, 2025 Accumulated amortization Balance at January 1, 2025 Amortization expenses Derecognition Balance at December 31, 2025 Carrying amount at December 31, 2025 For the year ended December 31, 2024 Cost Balance at January 1, 2024 Additions	Computer Software $ 14,333 2,410 (6,048) 10,695 8,458 3,944 (6,048) 6,354 $ 4,341 Computer Software $ 14,682 2,880 (Continued)

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Derecognition Balance at December 31, 2024 Accumulated amortization Balance at January 1, 2024 Amortization expenses Derecognition Balance at December 31, 2024 Carrying amount at December 31, 2024	Computer Software $ (3,229) 14,333 7,184 4,503 (3,229) 8,458 $ 5,875 (Concluded)

Intangible assets are computer software, which are amortized over 3 years on a straight-line basis.

16. BORROWINGS

a. Short-term borrowings

	December 31	December 31
	2025 2024 $ 200,000 $ 250,000 23,613 30,625 $ 223,613 $ 280,625 December 31
2025 2024 $ 1,118,020 $ 1,200,000 December 31

	2025 $ 259,681 178,370 159,516 63,307 46,964 216,633 $ 924,471	2024 $ 272,235 174,490 163,720 57,356 47,282 248,465 $ 963,548

17. OTHER PAYABLES (INCLUDING RELATED PARTIES)

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In October 2020, the Environmental Protection Bureau of Kaohsiung City issued a letter requesting the Corporation and other jointly liable parties to submit a cleanup plan for the Basic Oxygen Furnace Slag Aggregate backfilled on certain land parcels in the Dalin Section, Qishan District. In response to this letter, the Corporation submitted a cleanup plan, and the estimated expenses were NT$235,036 thousand and NT$318,886 thousand, as of December 31, 2025 and 2024, respectively. The amounts were recognized as other payables-others and provisions.

18. PROVISIONS - NONCURRENT

Cost of resource reutilization Balance, beginning of the year Recognized Provisions used during the year Balance, end of the year		December 31	December 31
		2025 2024 $ 393,760 $ 377,107 For the Ended December 31
		2025 $ 377,107 49,141 (32,488) $ 393,760	2024 $ 306,146 70,961 - $ 377,107

The provision for resource reutilization represents the amount of the best estimate for product promotion based on recent experience because the Corporation is required to settle obligations on the balance sheet date, which would be adjusted in accordance with relevant laws and regulations.

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Corporation makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plans adopted by the Corporation in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation contributes amounts equal to certain percentage of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Corporation has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Corporation’s defined benefit plans are as follows:

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Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities (assets) Movements in net defined benefit liabilities (assets) were as follows:		December 31	December 31
		2025 $ 390,515 (396,047) $ (5,532)	2024 $ 369,663 (361,401) $ 8,262

	Present Value
	of the Defined		Net Defined
	Benefit	Fair Value of		Benefit
	Obligation	the Plan Assets	Liabilities
Balance at January 1, 2024	$ 378,195	$ (328,786)	$	49,409
Service cost
Current service cost	4,713	-		4,713
Interest expense (income)	4,674	(4,147)		527
Recognized in profit or loss	9,387	(4,147)		5,240
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(28,826)		(28,826)
Actuarial gain - changes in financial
assumptions	(7,505)	-		(7,505)
Actuarial loss - experience adjustments	4,827	-		4,827
Recognized in other comprehensive income
(loss)	(2,678)	(28,826)		(31,504)
Contributions from the employer	-	(14,842)		(14,842)
Benefits paid	(15,241)	15,200		(41)
Balance at December 31, 2024	369,663	(361,401)		8,262
Service cost
Current service cost	2,971	-		2,971
Interest expense (income)	5,496	(5,493)		3
Recognized in profit or loss	8,467	(5,493)		2,974
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(25,747)		(25,747)
Actuarial loss - changes in financial
assumptions	7,420	-		7,420
Actuarial loss - experience adjustments	24,061	-		24,061
Recognized in other comprehensive income
(loss)	31,481	(25,747)		5,734
Contributions from the employer	-	(14,728)		(14,728)
Benefits paid	(19,096)	11,322		(7,774)
Balance at December 31, 2025	$ 390,515	$ (396,047)	$	(5,532)

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Through the defined benefit plans under the Labor Standards Act, the Corporation is exposed to the following risks:

1) Investment risk

The plan assets are invested in domestic and foreign equity, debt securities, and bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposits with local banks.

2) Interest risk

A decrease in the government and corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

3) Salary risk

The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligations were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations are as follows:

Discount rate (%) Expected rate of salary increase (%)	December 31
	2025 2024 1.25 1.38-1.50 2.5 2.5

If possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease		December	31
		2025 $ (7,518) $ 7,717 $ 7,498 $ (7,343)	2024 $ (7,361) $ 7,565 $ 7,363 $ (7,202)

The sensitivity analysis may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

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Expected contributions to the plan for the next year Average duration of the defined benefit obligation Managers Employees		December	31
		2025 $ 14,500 7.0 years 7.8 years	2024 $ 14,640 5.1 years 8.2 years

20. EQUITY

a. Ordinary shares

Number of shares authorized (in thousands of shares) Shares authorized Number of shares issued and fully paid (in thousands of shares) Shares issued		December 31	December 31
		2025 300,000 $ 3,000,000 248,540 $ 2,485,404	2024 300,000 $ 3,000,000 248,540 $ 2,485,404

Issued ordinary shares with a par value of NT$10, carry one vote per share and the right to dividends.

b. Capital surplus

May be used to offset deficits, distribute as cash dividends, or transfer to share capital (Note 1) Additional paid-in capital Consolidation excess Donations May only be used to offset deficits Changes in ownership interests in subsidiaries (Note 2) Changes in capital surplus from investments in associates accounted for using the equity method		December 31	December 31
		2025 $ 4,419 157,497 108 374 - $ 162,398	2024 $ 4,419 157,497 108 374 13 $ 162,411

Note 1: Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).
Note 2: Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions or from changes in capital surplus of subsidiaries accounted for using the equity method.
36 -

c. Retained earnings and dividend policy

Under the dividend policy, where the Corporation made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonuses to shareholders.

The Corporation is currently in a growing industry environment and the Corporation intends to take advantage of the economic environment to seek for a sustainable operation. The Corporation’s dividend policy is to focus on dividend stability and growth by referring to future operating conditions; also, the Corporation should distribute not less than 50% of distributable earnings, and cash dividend may not be less than 50% of the amount distributed.

Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficit. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2024 and 2023, which were approved in the shareholders’ meeting in June 2025 and 2024, respectively, were as follows:

Legal reserve Special reserve Cash dividends Cash dividends per share (NT$)	For the Year Ended December 31
	2024 2023 $ 118,762 $ 83,206 86,932 17,532 994,161 745,621 4.0 3.0

The appropriations of earnings for 2025 were proposed by the Corporation’s board of directors in February 2026 as follows:

	For the Year
	Ended
	December 31,
	2025
Legal reserve	$ 123,176
Special reserve	57,319
Cash dividends	994,161
Cash dividend per share (NT$)	4.0

The appropriations of earnings for 2025 will be resolved by the shareholders in their meeting to be held in May 2026.

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d. Other equity items

1) Exchange differences on translation of the financial statements of foreign operations

Balance, beginning of the year Recognized for the year Share from subsidiaries and associates accounted for using the equity method Balance, end of the year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ (25,722) (51,130) $ (76,852)	2024 $ (36,463) 10,741 $ (25,722)

2) Unrealized valuation gains and losses on financial assets at fair value through other comprehensive income

Balance, beginning of the year Recognized for the year Unrealized loss - equity instruments Share from subsidiaries and associates accounted for using the equity method Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal Balance, end of the year Gain (loss) on Hedging Instruments Cash flow hedges	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ (78,743) (5,561) 2,410 (3,038) $ (84,932)	2024 $ 18,973 (75,853) (18,712) (3,151) $ (78,743)

3) Gain (loss) on Hedging Instruments

Balance, beginning of the year Recognized for the year Changes in fair value of hedging instruments - other comprehensive income Foreign currency risk - foreign currency deposits Balance, end of the year	For	the Year Ended December 31	the Year Ended December 31
		2025 $ - - $ -	2024 $ (42) 42 $ -

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21. REVENUE

a. Contract balances

December 31, 2025 December 31, 2024 Notes receivable and accounts receivable (Note 8) $ 1,393,722 $ 1,312,330 Contract assets - current Construction contracts $ - $ - Less: Allowance for impairment loss - - $ - $ - Contract liabilities - current Sale received in advance $ 43,966 $ 38,913 Services received in advance 1,610 2,178 Construction contracts - - $ 45,576 $ 41,091	January 1, 2024 $ 1,181,867
	$ 1,485 -
	$ 1,485
	$ 28,847 478 477
	$ 29,802

The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Corporation’s performance and the respective customer’s payment. There was no significant change in the balance of contract assets and contract liabilities of the Corporation for the years ended December 31, 2025 and 2024.

Revenue in the current year that was recognized from the contract liability balance at the beginning of the year and from the performance obligations satisfied in the previous period was NT$41,091 thousand and NT$29,802 thousand, respectively.

b. Assets related to contract costs

Current	Resource Reutilization Division $ 458,820 5,272,024 - $ 5,730,844		December	December	31
			2025 $ 9,419 Others $ - - 7,889 $ 7,889	2024 $ 12,324 Total $ 6,992,619 5,540,010 7,889 $ 12,540,518
Cost to fulfil a contract Executing cost Disaggregation of revenue For the year ended December 31, 2025 Blast-Furnace Slag Cement Division Type ofgoods orservices Sales $ 6,533,799 Services revenue 267,986 Construction revenue - $ 6,801,785

c. Disaggregation of revenue
39 -

For the year ended December 31, 2024

Blast-Furnace Slag Cement Division Type of goods or services Sales $ 6,108,317 Services revenue 228,314 Construction revenue - $ 6,336,631	Resource Reutilization Division $ 541,944 4,996,599 - $ 5,538,543	Others $ - - 14,203 $ 14,203	Total $ 6,650,261 5,224,913 14,203 $ 11,889,377

22. PROFIT BEFORE INCOME TAX

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2025 2024 $ 30,805 $ 30,638 7,440 7,555 4,143 5,119 $ 42,388 $ 43,312 For the Year Ended December 31
2025 2024 $ 590 $ 415 15 158 (338) (66) (3,080) (3,081) (7,747) (1,911) $ (10,560) $ (4,485) For the Year Ended December 31
	2025 $ 21,590 23,204 44,794 2,559 $ 42,235	2024 $ 27,999 25,431 53,430 1,408 $ 52,022

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Information on capitalized interest was as follows:

For the Year Ended	For the Year Ended	December 31
2025 $ 2,559 1.78-1.81 For the Year Ended		2024 $ 1,408 1.55-1.81 December 31
2025 $ 464,629 323,597 3,080 3,944 21,942 $ 817,192 $ 746,455 41,771 3,080 $ 791,306 $ 22,090 3,796 $ 25,886 For the Year Ended		2024 $ 464,533 334,566 3,081 4,503 22,214 $ 828,897 $ 762,822 36,277 3,081 $ 802,180 $ 22,304 4,413 $ 26,717 December 31
	2025 $ 494,809 29,175 32,424 556,408 7,523 2,974 10,497 11 $ 566,916	2024 $ 471,424 27,955 29,558 528,937 7,289 5,240 12,529 25 $ 541,491

(Continued)

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Analysis of employee benefits expense by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2025 $ 317,796 249,120 $ 566,916	2024 $ 305,576 235,915 $ 541,491 (Concluded)

f. Compensation of employees and remuneration of directors

The Corporation accrues compensation of employees and remuneration of directors at rates of no less than 0.1% and no higher than 1%, respectively, of net profit before income tax, compensation of employees and remuneration of directors.

In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Corporation had resolved the amendments to the Corporation’s Articles at their 2025 regular meeting, stipulating that no less than 30% of the total employee compensation shall be distributed to non-executive employees.

The compensation of employees and remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Corporation’s board of directors in February 2026 and 2025, respectively, are as follows:

Compensation of employees Remuneration of directors	For the Year Ended December 31
	2025 2024 $ 52,630 $ 47,672 10,526 9,534

If there is a change in the amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in accounting estimate in the next year.

There is no difference between the amount recognized and approved in the parent company only financial statements for the year ended December 31, 2024 and 2023.

Information on the compensation of employees and remuneration of directors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

23. INCOME TAX

a. Income tax recognized in profit or loss

Major components of income tax expense were as follows:

Current tax In respect of the current year Adjustment for prior year	For the Year Ended December 31
	2025 2024 $ 266,455 $ 264,863 431 (5,549) (Continued)

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For the Year Ended December 31 2025 2024 Deferred tax $ 29,127 $ 7,124 $ 296,013 $ 266,438 (Concluded) A reconciliation of accounting profit and income tax expense was as follows: For the Year Ended December 31 2025 2024 Profit before income tax $ 1,529,118 $ 1,425,572 Income tax expense calculated at the statutory rate $ 305,824 $ 285,114 Tax-exempt income and deductible income tax difference (10,242) (13,127) Adjustments for prior year 431 (5,549) $ 296,013 $ 266,438	For the Year Ended	For the Year Ended	For the Year Ended	December 31
				2024 $ 7,124 $ 266,438 (Concluded) December 31
		2025 $ 1,529,118 $ 305,824 (10,242) 431 $ 296,013	2024 $ 1,425,572 $ 285,114 (13,127) (5,549) $ 266,438

b. Income tax benefit (expense) recognized in other comprehensive income

Deferred tax Remeasurement of defined benefit plans Current income tax liabilities Income tax payable	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 1,147 December	2024 $ (6,301) 31
		2025 $ 133,909	2024 $ 163,960

c. Current income tax liabilities

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

				Recognized in	Recognized in
	Balance,				Other
	Beginning of		Recognized in	Comprehensive		Balance,
		Year	Profit or Loss	Income (Loss)		End of Year
Deferred tax assets
Temporary differences
Defined benefit liabilities	$	1,652	$ (2,799)	$	1,147	$	-
Cleanup costs		18,188	(18,188)		-		-
						(Continued)

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						Recognized in	Recognized in	Recognized in
	Balance,						Other
	Beginning of		Recognized in			Comprehensive			Balance,
		Year	Profit or Loss			Income (Loss)			End of Year
Provision	$	75,422	$		3,330	$		-	$	78,752
Others		9,690			(2,435)			-		7,255
	$	104,952	$	(20,092)		$	1,147		$	86,007
Deferred tax liabilities
Temporary differences
Defined benefit assets	$	-	$		1,106	$		-	$	1,106
Land value increment tax		74,463			-			-		74,463
Investment income		21,825			7,927			-		29,752
Others		-			2			-		2
	$	96,288	$		9,035	$		-	$	105,323
									(Concluded)
For the year ended December 31, 2024
						Recognized in
	Balance,						Other
	Beginning of		Recognized in			Comprehensive			Balance,
		Year	Profit or Loss			Income (Loss)			End of Year
Deferred tax assets
Temporary differences
Defined benefit liabilities	$	9,882	$		(1,929)	$	(6,301)		$	1,652
Cleanup costs		32,399		(14,211)				-		18,188
Provision		61,229		14,193				-		75,422
Others		1,416			8,274			-		9,690
	$	104,926	$		6,327	$	(6,301)		$	104,952
Deferred tax liabilities
Temporary differences
Land value increment tax	$	74,463	$		-	$		-	$	74,463
Investment income		8,374		13,451				-		21,825
	$	82,837	$	13,451		$		-	$	96,288

e. Income tax assessments

The Corporation’s income tax returns through 2023 have been assessed by the tax authorities.

44 -

24. EARNINGS PER SHARE

The net profit and weighted average number of ordinary shares outstanding in the computation of earnings per share were as follows:

Net profit for the year Number of ordinary shares (in thousands of shares) Weighted average number of ordinary shares used in computation of basic earnings per share Effect of potential dilutive ordinary shares: Compensation of employees Weighted average number of ordinary shares used in computation of diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2025 2024 $ 1,233,105 $ 1,159,134 For the Year Ended December 31
		2025 248,540 853 249,393	2024 248,540 808 249,348

The Corporation may settle the compensation of employees in cash or shares; therefore, the Corporation assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

25. CAPITAL MANAGEMENT

The Corporation manages its capital to ensure that entities in the Corporation will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Corporation consists of net debt (borrowings offset by cash) and equity of the Corporation (comprising issued capital, reserves, retained earnings, other equity).

The Corporation is not subject to any externally imposed capital requirements.

26. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

The management considers the carrying amounts of financial instruments that are not measured at fair value approximate their fair value.

45 -
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

December31,2025 Financial assets at fair value through other comprehensive income Equity instruments Domestic listed shares Domestic unlisted shares December31,2024 Financial assets at fair value through other comprehensive income Equity instruments Domestic listed shares Domestic unlisted shares	Level 1 $ 197,634 - $ 197,634 $ 204,395 - $ 204,395	Level 2 $ - - $ - $ - - $ -	Level 3 $ - 18,303 $ 18,303 $ - 17,102 $ 17,102	Total $ 197,634 18,303 $ 215,937 $ 204,395 17,102 $ 221,497

There was no transfer between Level 1 and Level 2 for the years ended December 31, 2025 and 2024.

2) Reconciliation of Level 3 fair value measurements of financial assets

Financial assets at fair value through other comprehensiveincome (equityinstruments) Balance, beginning of the year Recognized in other comprehensive income Balance, end of the year	For the Year Ended	For the Year Ended	December 31
		2025 $ 17,102 1,201 $ 18,303	2024 $ 16,501 601 $ 17,102

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair value of unlisted equity securities were determined based on industry types, valuations of similar companies and operations.

46 -
c. Categories of financial instruments

Financial assets Financial assets at fair value through other comprehensive income - equity instruments Financial assets at amortized cost (Note 1) Financial liabilities Financial liabilities at amortized cost (Note 2)	December 31
	2025 2024 $ 215,937 $ 221,497 1,841,700 1,820,601 2,577,303 2,745,765

Note 1: The balances included financial assets at amortized cost, which comprise cash, notes and accounts receivable (including related parties), other receivables (including related parties), other financial assets and refundable deposits.
Note 2: The balances included financial liabilities at amortized cost, which comprise short-term borrowings, notes and accounts payable (including related parties), payables on equipment, other payables (including related parties), guarantee deposits received, refund liabilities (under other current liabilities) and long-term borrowings.
d. Financial risk management objectives and policies

The Corporation places great emphasis on financial risk management. By tracking and managing the market risk, credit risk, and liquidity risk efficiently, the management ensured that the Corporation was equipped with sufficient and cost - efficient working capital, which reduced financial uncertainty that may have adverse effects on the operations.

The significant financial activities of the Corporation are reviewed by the board of directors in accordance with relevant regulations and internal controls. The finance department follows the accountability and related financial risk control procedures required by the Corporation for executing financial projects. Compliance with policies and exposure limits is continually reviewed by the internal auditors. The Corporation did not enter into or trade financial instruments for speculative purposes.

1) Market risk

The Corporation activities exposed it primarily to financial risks as follows:

a) Foreign currency risk

The Corporation had sales in foreign currencies, which were exposed to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing were mitigated by future receivables and payables denominated in the same foreign currency.

The carrying amounts of the Corporation’s foreign currency-denominated monetary assets and monetary liabilities at the end of the year are set out in Note 31.

Sensitivity analysis

The Corporation is mainly exposed to the USD.

The 1% sensitivity rate is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included bank deposits, accounts

47 -

receivable, other receivables, accounts payables and other payables. If the foreign exchange rates of the New Taiwan dollar against the relevant currency had been 1% higher/lower, the amount of profit before income tax for the years ended December 31, 2025 and 2024, would have decreased by NT$8 thousand and increased by NT$34 thousand, respectively.

b) Interest rate risk

The carrying amounts of the Corporation financial assets and financial liabilities with exposure to interest rates at the balance sheet date were as follows:

Fair value interest rate risk Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2025 2024 $ 1,005,597 $ 1,259,431 126,713 185,835 1,341,633 1,480,625

The sensitivity analysis below was determined based on the Corporation’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher/lower and all other variables were held constant, the Corporation’s cash flows for the years ended December 31, 2025 and 2024 would have increased/decreased by NT$13,416 thousand and NT$14,806 thousand, respectively, which were mainly a result of variable-rate borrowings.

c) Other price risk

The Corporation were exposed to equity price risk through its investments in both listed and unlisted equity securities, which are held for strategic rather than trading purposes, the Corporation does not actively trade these investments. The Corporation’s equity price risk is mainly concentrated in equity instruments of listed companies in the steel industry and unlisted companies in the cement industry.

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower, the pre-tax other comprehensive income for the years ended December 31, 2025 and 2024 would have increased/decreased by NT$2,159 thousand and NT$2,215 thousand, respectively, as a result of the changes in fair value of financial assets at fair value through other comprehensive income.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Corporation. At the end of the reporting period, the Corporation maximum exposure to credit risk, which would cause a financial loss to the Corporation due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Corporation, could be equal mainly to the carrying amount of the respective recognized financial assets as stated in the parent company only balance sheets.

48 -

The adopted policies are only for transactions with creditworthy counterparty to obtain sufficient guarantees to mitigate the risk of financial losses arising from defaults. The Corporation uses other publicly available financial information and mutual transaction records to evaluate major customers, and also continuously monitor credit risk and credit rating of counterparties, and distribute the total transaction amount to qualified customers. The Corporation also control credit risk insurance by credit limit every year.

The Corporation’s concentrations of credit risk in the industries were as follows:

Cement industry Steel industry		December 31	December 31
		2025 $ 409,682 635,256 $ 1,044,938	2024 $ 308,475 556,149 $ 864,624

3) Liquidity risk

The management of the Corporation continuously monitor the movement of cash flows, net cash position, significant capital expenditures and the utilization of bank loan commitments to ensure compliance with loan covenants.

The Corporation relies on bank borrowings as a significant source of liquidity. As of the balance sheet date, the Corporation had available unutilized short-term and long-term bank loan facilities as set out in (b) below.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Corporation’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Corporation can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates of other non-derivative financial liabilities were based on the agreed upon repayment dates.

To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

December31,2025 Non-interest bearing liabilities Variable interest rate instruments Lease liabilities	Less Than 1 Year $ 1,229,233 223,895 373,642 $ 1,826,770	Over 1 Years $ 6,437 1,158,332 737,976 $ 1,902,745	Total $ 1,235,670 1,382,227 1,111,618
			$ 3,729,515

49 -

Additional information on the maturity analysis was as follows:

Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 373,642 $ 474,280 $ 263,696 Variable interest rate instruments 223,895 1,158,332 - $ 597,537 $1,632,612 $ 263,696 Less Than 1 Year Over 1 Years Total December31,2024 Non-interest bearing liabilities $ 1,259,923 $ 5,217 $ 1,265,140 Variable interest rate instruments 285,124 1,238,700 1,523,824 Lease liabilities 360,201 1,025,038 1,385,239 $ 1,905,248 $ 2,268,955 $ 4,174,203 Additional information on the maturity analysis was as follows: Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 360,201 $ 739,040 $ 285,998 Variable interest rate instruments 285,124 1,238,700 - $ 645,325 $1,977,740 $ 285,998 The amount included above for variable interest rate instruments for non-derivative financial liabilities is subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period. Financing facilities December 31 2025 2024 Unsecured bank facilities Amount used $ 1,979,472 $ 1,941,356 Amount unused 6,259,328 6,038,644 $ 8,238,800 $ 7,980,000 Secured bank facilities Amount used $ - $ - Amount unused 20,000 20,000 $ 20,000 $ 20,000	Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 373,642 $ 474,280 $ 263,696 Variable interest rate instruments 223,895 1,158,332 - $ 597,537 $1,632,612 $ 263,696 Less Than 1 Year Over 1 Years Total December31,2024 Non-interest bearing liabilities $ 1,259,923 $ 5,217 $ 1,265,140 Variable interest rate instruments 285,124 1,238,700 1,523,824 Lease liabilities 360,201 1,025,038 1,385,239 $ 1,905,248 $ 2,268,955 $ 4,174,203 Additional information on the maturity analysis was as follows: Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 360,201 $ 739,040 $ 285,998 Variable interest rate instruments 285,124 1,238,700 - $ 645,325 $1,977,740 $ 285,998 The amount included above for variable interest rate instruments for non-derivative financial liabilities is subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period. Financing facilities December 31 2025 2024 Unsecured bank facilities Amount used $ 1,979,472 $ 1,941,356 Amount unused 6,259,328 6,038,644 $ 8,238,800 $ 7,980,000 Secured bank facilities Amount used $ - $ - Amount unused 20,000 20,000 $ 20,000 $ 20,000	Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 373,642 $ 474,280 $ 263,696 Variable interest rate instruments 223,895 1,158,332 - $ 597,537 $1,632,612 $ 263,696 Less Than 1 Year Over 1 Years Total December31,2024 Non-interest bearing liabilities $ 1,259,923 $ 5,217 $ 1,265,140 Variable interest rate instruments 285,124 1,238,700 1,523,824 Lease liabilities 360,201 1,025,038 1,385,239 $ 1,905,248 $ 2,268,955 $ 4,174,203 Additional information on the maturity analysis was as follows: Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 360,201 $ 739,040 $ 285,998 Variable interest rate instruments 285,124 1,238,700 - $ 645,325 $1,977,740 $ 285,998 The amount included above for variable interest rate instruments for non-derivative financial liabilities is subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period. Financing facilities December 31 2025 2024 Unsecured bank facilities Amount used $ 1,979,472 $ 1,941,356 Amount unused 6,259,328 6,038,644 $ 8,238,800 $ 7,980,000 Secured bank facilities Amount used $ - $ - Amount unused 20,000 20,000 $ 20,000 $ 20,000	Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 373,642 $ 474,280 $ 263,696 Variable interest rate instruments 223,895 1,158,332 - $ 597,537 $1,632,612 $ 263,696 Less Than 1 Year Over 1 Years Total December31,2024 Non-interest bearing liabilities $ 1,259,923 $ 5,217 $ 1,265,140 Variable interest rate instruments 285,124 1,238,700 1,523,824 Lease liabilities 360,201 1,025,038 1,385,239 $ 1,905,248 $ 2,268,955 $ 4,174,203 Additional information on the maturity analysis was as follows: Less Than 1 Year 1-5 Years Over 5 Years Lease liabilities $ 360,201 $ 739,040 $ 285,998 Variable interest rate instruments 285,124 1,238,700 - $ 645,325 $1,977,740 $ 285,998 The amount included above for variable interest rate instruments for non-derivative financial liabilities is subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period. Financing facilities December 31 2025 2024 Unsecured bank facilities Amount used $ 1,979,472 $ 1,941,356 Amount unused 6,259,328 6,038,644 $ 8,238,800 $ 7,980,000 Secured bank facilities Amount used $ - $ - Amount unused 20,000 20,000 $ 20,000 $ 20,000
		2025 $ 1,979,472 6,259,328 $ 8,238,800 $ - 20,000 $ 20,000	2024 $ 1,941,356 6,038,644 $ 7,980,000 $ - 20,000 $ 20,000

b) Financing facilities

50 -

4) Cash flow hedges

December 31, 2024

Line Items on the Balance Carrying Amount Hedging Instrument Currency Amount Sheet Asset Liability Cash flow hedges hedging deposits JPY $ - Financial assets for hedging $ - $ - Change in Fair Value of Hedged Items Used for Calculating Balance inOther Equity Hedge Continuing Discontinuing Hedged Item Ineffectiveness Hedges Hedges Cash flow hedges Forecast purchases for equipment $ 42 $ - $ - For the year ended December 31, 2024	Line Items on the Balance Carrying Amount Hedging Instrument Currency Amount Sheet Asset Liability Cash flow hedges hedging deposits JPY $ - Financial assets for hedging $ - $ - Change in Fair Value of Hedged Items Used for Calculating Balance inOther Equity Hedge Continuing Discontinuing Hedged Item Ineffectiveness Hedges Hedges Cash flow hedges Forecast purchases for equipment $ 42 $ - $ - For the year ended December 31, 2024		Carrying Amount
	Continuing Discontinuing Hedges Hedges $ - $ -

Effect on Comprehensive Income Hedging Gains Recognized in OCI Amount of Hedge Ineffectiveness Recognized in P/L Line Item in Which Hedge Ineffectiveness is Included Cash flow hedges - hedging deposits $ 42 $ - -		Amount Reclassified to P/L and the Adjusted Line Item	Amount Reclassified to P/L and the Adjusted Line Item
		Due to Hedged Item Affecting P/L $ -	Due to Hedged Future Cash Flows No Longer Expected to Occur $ -

27. TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Corporation and other related parties were disclosed as follows:

a. Related party name and category

Related Party Name Related Party Category China Steel Corporation (CSC) Parent of the Corporation Union Steel Development Corporation (USDC) Subsidiary Yu Cheng Lime Corporation Subsidiary Pao Good Industrial Co., Ltd. Subsidiary CHC Resources Vietnam Co., Ltd Subsidiary Chung Hung Steel Corporation (CHSC) Fellow subsidiary Dragon Steel Corporation (DSC) Fellow subsidiary United Steel Engineering & Construction Corporation Fellow subsidiary (USECC) China Steel Resources Corporation (CSRC) Fellow subsidiary China Steel Security Corporation (CSSC) Fellow subsidiary

(Continued)

51 -

Related Party Category

Related Party Name

China Steel Express Corporation (CSEC) Fellow subsidiary Universal Exchange Inc. Fellow subsidiary Steel Castle Technology Corporation Fellow subsidiary China Steel Chemical Corporation Fellow subsidiary China Ecotek Corporation Fellow subsidiary InfoChamp Systems Corporation Fellow subsidiary China Steel Structure Co., Ltd. Fellow subsidiary C.S.Aluminium Corporation Fellow subsidiary CSC Solar Corporation (CSC SOLAR) Fellow subsidiary China Steel Global Trading Corporation Fellow subsidiary Thintech Materials Technology Co., Ltd. Fellow subsidiary TCC Group Holdings Co., Ltd. (TCC) Director of the Corporation Asia Cement Corporation (ACC) Director of the Corporation Universal Cement Corporation Director of the Corporation Southeast Cement Corporation Director of the Corporation Taiwan Transport & Storage Corporation (TTSC) Subsidiary of director of the Corporation Nan-Hwa Cement Corporation (NHCC) Subsidiary of director of the Corporation Ta-Ho Maritime Corporation Subsidiary of director of the Corporation Ya Tung Ready Mixed Concrete Co., Ltd. Subsidiary of director of the Corporation Universal Cement Concrete Corporation Subsidiary of director of the Corporation Ya Li Transportation Corporation (YL) Subsidiary of director of the Corporation Ya Sing Ready - Mixed Concrete Corp. Subsidiary of director of the Corporation Southeast Topgood Resources Recycling Co., Ltd. Subsidiary of director of the Corporation (Concluded)

b. Operating revenue

Related Party Account Items Category/Name Sales Parent entity - CSC Subsidiaries Fellow subsidiaries Directors and its subsidiaries TCC Others		For the Year Ended December 31	For the Year Ended December 31
		2025 $ 30,457 24,120 136,160 867,410 929,647 $ 1,987,794	2024 $ 95,216 23,834 8,190 886,005 964,632 $ 1,977,877

(Continued)

52 -

Related Party Account Items Category/Name Service revenue Parent entity - CSC Subsidiaries Fellow subsidiaries DSC CSRC Others Directors and its subsidiaries Construction revenue Fellow subsidiaries - CSRC		For the Year Ended December 31	For the Year Ended December 31
		2025 $ 3,012,593 19,369 1,469,394 712,808 620 161,060 $ 5,375,844 $ 7,889	2024 $ 2,701,367 18,002 1,532,707 701,306 210 157,249 $ 5,110,841 $ 14,203

(Concluded)

The prices at which the Corporation sells goods, provides services, and performs engineering work to related parties are generally not comparable to those with non-related parties due to the lack of similar transactions. However, the sales prices of GGBFS to directors and their subsidiaries did not differ materially from those with non-related parties. The collection terms for both related and non-related parties are mutually agreed upon by the Corporation.

c. Purchase of goods

Related Party Category/Name Parent entity - CSC Subsidiaries Fellow subsidiaries DSC Others Directors and its subsidiaries	For the Year Ended December 31 2025 2024 $ 804,436 $ 830,780 68,032 204,170 354,311 397,195 539,431 542,927 536,407 445,540 $ 2,302,617 $ 2,420,612	For the Year Ended December 31 2025 2024 $ 804,436 $ 830,780 68,032 204,170 354,311 397,195 539,431 542,927 536,407 445,540 $ 2,302,617 $ 2,420,612	For the Year Ended December 31 2025 2024 $ 804,436 $ 830,780 68,032 204,170 354,311 397,195 539,431 542,927 536,407 445,540 $ 2,302,617 $ 2,420,612
		2025 $ 804,436 68,032 354,311 539,431 536,407 $ 2,302,617	2024 $ 830,780 204,170 397,195 542,927 445,540 $ 2,420,612

Purchases of cement from directors and their subsidiaries were made at arm’s length and were consistent with similar market transactions. Other transactions did not involve non-related parties for comparison. The payment terms for both related and non-related parties are mutually agreed upon by the Corporation.

d. Contract liabilities - current

Related Party Category Subsidiaries Directors and its subsidiaries		December	31
		2025 $ 93 796 $ 889	2024 $ 966 1,255 $ 2,221

53 -

e. Other material transactions with related parties

1) Operating lease
Rental income
Parent entity - CSC

2) Security expense
Fellow subsidiary - CSSC
3) Outsourced service expense
Subsidiary - USDC
4) Outsourced manufacturing expense
Subsidiary - USDC
Subsidiary of director - NHCC
5) Charges for handling service and freight
Subsidiaries - USDC
Fellow subsidiary
CSEC
USECC
Subsidiary of director
YL
TTSC
6) Other professional service expense
Director - ACC
7) Renewable energy expense
Fellow subsidiary - CSC SOLAR

For the Year Ended December 31

2025
2024
$ 29,002
$ 28,994
48,999
47,088
149,309
154,963
100,627
137,349
135,894
111,161
4,941
14,732
742,134
638,057
40,409
53,076
231,818
225,005
27,280
43,970
113,405
118,617
14,185
14,191

The above transaction prices, collection and payment term are agreed upon by both parties.

f. Accounts receivable - related parties

Related Party Category/Name Parent entity - CSC Subsidiaries Fellow subsidiaries DSC Others Directors and its subsidiaries TCC Others		December 31	December 31
		2025 $ 487,124 8,516 118,129 79,118 187,707 100,052 $ 980,646	2024 $ 339,651 7,700 205,359 67,578 190,025 83,154 $ 893,467

The outstanding receivables from related parties are unsecured. For the years ended December 31, 2025 and 2024, no impairment losses were recognized for trade receivables from related parties.

54 -

g. Other receivables - related parties

Related Party Category/Name Parent entity - CSC Subsidiaries Fellow subsidiaries Accounts payable - related parties Related Party Category/Name Parent entity - CSC Subsidiaries Fellow subsidiaries Directors and its subsidiaries		December	31
		2025 $ 34,086 3,812 - $ 37,898 December	2024 $ 38,053 4,057 1 $ 42,111 31
		2025 $ 23,301 652 33,436 44,047 $ 101,436	2024 $ 12,803 648 39,367 50,989 $ 103,807

h. Accounts payable - related parties

The outstanding accounts payable to related parties are unsecured.

i. Other payables - related parties

Related Party Category/Name Parent entity - CSC Subsidiaries Fellow subsidiaries Directors and its subsidiaries Prepayment Related Party Category/Name Parent entity - CSC Fellow subsidiaries - CSGT		December	31
		2025 $ 5,515 46,896 119,638 65,091 $ 237,140 December	2024 $ 3,338 43,059 107,168 67,314 $ 220,879 31
		2025 $ 1,971 10,854 $ 12,825	2024 $ 1,328 - $ 1,328

j. Prepayment
k. Acquisition of property, plant and equipment

Related Party Category/Name Parent entity - CSC Fellow subsidiaries	Purchase Price	Purchase Price	Purchase Price
	For the Year Ended December 31
		2025 $ 250 - $ 250	2024 $ 2,982 258 $ 3,240

55 -

l. Lease arrangements

Related Party Account Item Category/Name Lease liabilities Parent entity - CSC Subsidiaries Related Party Category/Name Interest expense Parent entity - CSC Subsidiaries Lease expense Parent entity - CSC Fellow subsidiaries		December	31
	2025 2024 $ 17,044 $ 33,971 9,573 19,085 $ 26,617 $ 53,056 For the Year Ended December 31
		2025 $ 422 87 $ 509 $ 2,610 - $ 2,610	2024 $ 687 146 $ 833 $ 1,593 15 $ 1,608

m. Remuneration of key management personnel

The remuneration of directors and other members of key management personnel was as follows:

Short-term employee benefits (including salaries, remuneration, and bonus) Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 39,136 264 $ 39,400	2024 $ 37,965 646 $ 38,611

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for performance guarantees, and bank overdrafts as follows:

Pledged time deposits (under other financial assets - noncurrent) Property, plant and equipment Land Buildings		December	31
		2025 $ 3,850 40,172 1,749 $ 45,771	2024 $ 3,850 40,172 1,963 $ 45,985

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29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant contingencies of the Corporation as of December 31, 2025 were as follows:

a. Unused letters of credit for importation of materials amounted to NT$572,299 thousand.
b. The Corporation provided performance bond of NT$65,540 thousand guaranteed by financial institutions
c. To expand the production line, the Corporation entered into the construction contracts amounted to NT$540,946 thousand, which have not been recorded yet.

30. Others

In February 2025, the Corporation received an indictment from the Kaohsiung District Prosecutors Office, accusing that relevant personnel of the Corporation’s Transportation Department breached the Water Pollution Control Act and others, enabling the Corporation to obtain benefits such as underpayment of sewage treatment fees amounting to approximately NT$116 million. The Kaohsiung District Prosecutors Office filed a public prosecution, and the case is currently being tried by the Kaohsiung District Court. The Corporation has doubts about the alleged amount of underpayment of sewage treatment fees and has filed an appeal.

Regarding the aforementioned case, the Kaohsiung District Court ordered a provisional attachment on the Corporation’s land located at No. 1310, Erciao Section, Xiaogang District, Kaohsiung City, within the value of approximately NT$128 million. The Corporation filed an appeal against the attachment order, which was dismissed by the court in March 2025.

The Corporation assesses that the above matters have no significant impact on its operations and finances.

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Corporation’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Corporation and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

					Carrying
					Amount
		Foreign		(In Thousands
		Currency		of	New Taiwan
	(In Thousands)		Exchange Rate		Dollars)
December 31, 2025
Monetary financial assets
USD	$	130	31.43	$	4,091
Monetary financial liabilities
USD		106	31.43		3,320
Non-monetary financial assets
Investments accounted for using the equity
method
VND		615,982,128	0.001175		723,779
					(Continued)

57 -

					Carrying
					Amount
		Foreign		(In Thousands
		Currency		of	New Taiwan
	(In Thousands)		Exchange Rate		Dollars)
December 31, 2024
Monetary financial assets
USD	$	118	32.785	$	3,877
JPY		22,244	0.2099		4,669
Monetary financial liabilities
USD		221	32.785		7,240
Non-monetary financial assets
Investments accounted for using the equity
method
VND		581,069,565	0.001265		735,053
					(Concluded)

32. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:
1) Financing provided to others: None
2) Endorsements/guarantees provided: None
3) Significant marketable securities held (excluding investments in subsidiaries and associates): Table 1
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 2
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 3
b. Information on investees: Table 4
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income (loss) of the investees, investment gain (loss), carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China areas: None
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices and payment terms, and unrealized gains or losses:
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: None
58 -
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: None
c) The amount of property transactions and the amount of the resultant gains or losses: None
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None
e) The highest balance, the end of period balance and the interest rate range with respect to financing of funds: None
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services: None
59 -

TABLE 1

CHC RESOURCES CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name	of Marketable Securities	Relationship with The Holding Company	Financial Statement Account		DECEMBER	DECEMBER	31, 2025		Note
					Shares/Units	Carrying Value		Percentage of Ownership (%)	Fair Value
CHC Resources Corporation CHC Resources Corporation Union Steel Development Corporation Union Steel Development Corporation	Ordinary shares Ordinary shares Ordinary shares Ordinary shares	China Steel Corporation Feng Sheng Enterprise Corporation China Steel Corporation Shanghai Bao Shun Steel Corporation	Parent company No relationship Ultimate parent company The holding company as its director	Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - noncurrent	10,401,806 932,053 423,849 Certificate of rights		$ 197,634 $ 18,303 $ 8,053 $ 18,619	- 2 - 19	$ 197,634 $ 18,303 $ 8,053 $ 18,619

60 -

TABLE 2

CHC RESOURCES CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Buyer	Related Party	Relationship		Relationship	Relationship		Abnormal	Transaction	Notes/Accounts Receiv	able (Payable)	Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation Union Steel Development Corporation CHC Resources Vietnam Co., Ltd. CHC Resources Vietnam Co., Ltd.	TCC Group Holdings Co., Ltd. Ya Tung Ready Mixed Concrete Co., Ltd. Universal Cement Corporation C.S.Aluminium Corporation China Steel Corporation Dragon Steel Corporation China Steel Resources Corporation TCC Group Holdings Co., Ltd. China Steel Corporation Dragon Steel Corporation Asia Cement Corporation Chung Hung Steel Corporation TCC Group Holdings Co., Ltd. China Steel Express Corporation China Steel Global Trading Corporation CHC Resources Corporation Formosa Ha Tinh Steel Corporation Formosa Ha Tinh Steel Corporation	Director of the Corporation Subsidiary of director of the Corporation Director of the Corporation Fellow subsidiary Parent company Fellow subsidiary Fellow subsidiary Director of the Corporation Parent company Fellow subsidiary Director of the Corporation Fellow subsidiary Director of the Corporation Fellow subsidiary Fellow subsidiary Parent company Other related party Other related party	Sales Sales Sales Sales Service revenue Service revenue Service revenue Service revenue Purchases Purchases Purchases Purchases Purchases Purchases Purchases Service revenue Service revenue Purchases	$ (867,410 ) (571,399 ) (251,004 ) (126,807 ) (3,012,593 ) (1,469,394 ) (712,808 ) (136,544 ) 804,436 354,311 201,149 177,488 143,871 138,415 131,631 (260,421 ) (193,243 ) 379,277	(7) (5) (2) (1) (24) (12) (6) (1) 21 9 5 5 4 4 3 (65) (15) 89	Open account 60 days Open account 60 days Open account 60 days Open account 30 days Payment after final acceptance Payment after final acceptance Payment after final acceptance Open account 60 days Letter of credit Letter of credit Net 45 days from B/L Letter of credit Net 45 days from B/L According to the shipping date, pay after shipment Prepaid before shipping According to the contract Net 10 days from invoice date Prepaid before shipping	Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note	Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note	$ 187,707 76,655 14,974 17,586 487,124 118,129 61,480 187,707 (23,301 ) (10,308 ) (14,060 ) (12,945 ) (17,340 ) - - 46,804 22,052 -	13 6 1 1 35 8 4 13 (9) (4) (5) (5) (7) - - 80 34 -

Note: Refer to Note 27.

61 -

TABLE 3

CHC RESOURCES CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overd	ue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation	China Steel Corporation Dragon Steel Corporation TCC Group Holdings Co., Ltd.	Parent company Fellow subsidiary Director of the Corporation	$ 487,124 118,129 187,707	7 9 5	$ - - 4,205	Expected to be received before the end of February	$ 320,221 70,630 4,199	$ - - -

62 -

TABLE 4

CHC RESOURCES CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Inves	tment Amount	A	s of Decembe	r 31, 2025	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
						Number of Shares	%	Carrying Amount
				December 31, 2025	December 31, 2024
CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation CHC Resources Corporation	CHC Resources Vietnam Co., Ltd Yu Cheng Lime Corporation Union Steel Development Corporation Pao Good Industrial Co., Ltd. Hsin Hsin Cement Enterprise Corporation Pro-Ascentek Investment Corporation Eminent III Venture Capital Corporation Gau Ruei Investment Corporation Ding Da Investment Corporation Sheng Lih Dar Investment Corporation Shin Mau Investment Corporation Jiing-Cherng-Fa Investment Corporation HIMAG Magnetic Corporation	Vietnam Republic of China Republic of China Republic of China Republic of China Republic of China Republic of China Republic of China Republic of China Republic of China Republic of China Republic of China Republic of China	Manufacture and sales of GGBFS, sales of Granulated Blast-Furnace Slag Real estate leasing, management of raw materials Manufacture and sales of iron powder, OEM and sales of refractory, trading, labor dispatch Sales of fly ash, manufacture and sales of dry-mix mortar, trading Cement manufacturing, nonmetallic mining, cement and concrete mixing manufacturing General investment General investment General investment General investment General investment General investment General investment Production and sale of industrial magnetic, chemical, and iron oxides	$ 647,338 126,010 53,345 50,937 73,269 30,000 30,000 12,306 12,516 9,600 10,316 9,200 10,970	$ 647,338 126,010 53,345 50,937 73,269 30,000 30,000 12,306 12,516 9,600 10,316 9,200 10,970	- 108,000 4,668,333 5,408,550 9,298,583 3,000,000 3,000,000 1,046,500 1,196,000 960,000 897,000 920,000 716,938	85 90 93 51 10 3 2 35 40 40 30 40 2	$ 723,779 142,193 96,912 87,722 133,196 33,086 22,789 21,289 18,808 17,445 16,234 14,900 9,478	$ 107,376 3,089 21,802 8,504 130,861 22,315 (62,293 ) 113 1,872 3,079 4,232 1,703 16,916	$ 92,281 2,722 20,365 4,337 14,624 558 (1,032 ) 40 749 1,232 1,270 681 303	Subsidiary Subsidiary Subsidiary Subsidiary Note

Note: The share of profit included amortization of the difference between the equity and carrying amounts of the investment.

63 -

TABLE 5

CHC RESOURCES CORPORATION

STATEMENT OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

For the year ended December 31, 2025

Cost Balance at January 1, 2025 Additions Disposals Reclassification Balance at December 31, 2025 Accumulated depreciationandimpairment Balance at January 1, 2025 Depreciation expense Disposals Impairment loss Reclassification Balance at December 31, 2025 Carrying amount at December 31, 2025 For the year ended December 31, 2024 Cost Balance at January 1, 2024 Additions Disposals Balance at December 31, 2024	Land $ 909,403 - - - $ 909,403 $ - - - - - $ - $ 909,403 Land $ 909,403 - - $ 909,403	Land Improvement $ 150,688 1,682 - - $ 152,370 $ 109,040 9,477 - - - $ 118,517 $ 33,853 Land Improvement $ 145,662 5,026 - $ 150,688	Building Machinery and Equipment Transportation Equipment $ 2,576,943 $ 5,816,334 $ 15,594 34,072 238,019 910 (28,692) (91,855) (505) (138) 138 - $ 2,582,185 $ 5,962,636 $ 15,999 $ 1,251,265 $ 5,014,256 $ 15,406 88,646 223,271 355 (28,692) (91,855) (505) 15,634 658 - (101) 101 - $ 1,326,752 $ 5,146,431 $ 15,256 $ 1,255,433 $ 816,205 $ 743 Building Machinery and Equipment Transportation Equipment $ 2,538,178 $ 5,709,566 $ 15,594 38,765 130,241 - - (23,473) - $ 2,576,943 $ 5,816,334 $ 15,594	Office Equipment $ 61,668 2,314 (460) - $ 63,522 $ 43,148 6,516 (460) - - $ 49,204 $ 14,318 Office Equipment $ 59,672 1,996 - $ 61,668	Leasehold Improvement Property under Construction and Equipment under Acceptance $ 1,152,924 $ 113,342 11,716 150,730 - - - - $ 1,164,640 $ 264,072 $ 772,034 $ - 136,364 - - - - - - - $ 908,398 $ - $ 256,242 $ 264,072 Leasehold Improvement Property under Construction and Equipment under Acceptance $ 1,126,553 $ 64,269 29,676 49,073 (3,305) - $ 1,152,924 $ 113,342	Total $ 10,796,896 439,443 (121,512) - $ 11,114,827 $ 7,205,149 464,629 (121,512) 16,292 - $ 7,564,558 $ 3,550,269 Total $ 10,568,897 254,777 (26,778) $ 10,796,896

(Continued)

64 -

Accumulated depreciation and impairment Balance at January 1, 2024 Depreciation expense Disposals Impairment loss Balance at December 31, 2024 Carrying amount at December 31, 2024	Land $ - - - - $ - $ 909,403	Land Improvement $ 98,584 10,456 - - $ 109,040 $ 41,648	Building Machinery and Equipment Transportation Equipment $ 1,144,921 $ 4,781,193 $ 15,006 85,614 227,502 400 - (23,250) - 20,730 28,811 - $ 1,251,265 $ 5,014,256 $ 15,406 $ 1,325,678 $ 802,078 $ 188	Office Equipment $ 35,591 7,557 - - $ 43,148 $ 18,520	Leasehold Improvement Property under Construction and Equipment under Acceptance $ 642,335 $ - 133,004 - (3,305) - - - $ 772,034 $ - $ 380,890 $ 113,342	Total $ 6,717,630 464,533 (26,555) 49,541 $ 7,205,149 $ 3,591,747 (Concluded)

65 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM
MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND
EQUITY
STATEMENT OF CASH
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE
THROUGH OTHER COMPREHENSIVE INCOME -
CURRENT
STATEMENT OF NOTES RECEIVABLE
STATEMENT OF ACCOUNTS RECEIVABLE
STATEMENT OF INVENTORIES
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE
THROUGH OTHER COMPREHENSIVE INCOME -
NONCURRENT
STATEMENT OF CHANGES IN INVESTMENTS
ACCOUNTED FOR USING THE EQUITY METHOD
STATEMENT OF CHANGES IN PROPERTY, PLANT AND
EQUIPMENT
STATEMENT OF CHANGES IN ACCUMULATED
DEPRECIATION OF PROPERTY, PLANT AND
EQUIPMENT
STATEMENT OF CHANGES IN ACCUMULATED
IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS
STATEMENT OF CHANGES IN ACCUMULATED
DEPRECIATION OF RIGHT-OF-USE ASSETS
STATEMENT OF CHANGES IN INVESTMENT PROPERTIES
STATEMENT OF CHANGES IN ACCUMULATED
DPRECIATION OF INVESTMENT PROPERTIES
STATEMENT OF CHANGES IN ACCUMULATED
IMPAIRMENT OF INVESTMENT PROPERTIES
STATEMENT OF DEFERRED TAX ASSETS
STATEMENT OF SHORT-TERM BORROWINGS
STATEMENT OF NOTES PAYABLE
STATEMENT OF ACCOUNTS PAYABLE
STATEMENT OF OTHER PAYABLES
STATEMENT OF LONG-TERM BORROWINGS
STATEMENT OF PROVISIONS- NONCURRENT
STATEMENT OF LEASE LIABILITIES
STATEMENT OF NET DEFINED BENEFIT LIABILITIES
STATEMENT OF DEFERRED TAX LIABILITIES
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF OPERATING REVENUE
STATEMENT OF OPERATING COSTS
STATEMENT OF SELLING AND MARKETING EXPENSES
STATEMENT OF GENERAL AND ADMINISTRATIVE
EXPENSES
STATEMENT OF RESEARCH AND DEVELOPMENT
EXPENSES
STATEMENT OF OTHER GAINS AND LOSSES
STATEMENT OF FINANCE COSTS
STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION
AND AMORTIZATION

STATEMENT INDEX

1
2
3
4
5
6
7
Table 6
Table 6
Table 6
8
8
Note 14
Note 14
Note 14
Note 23
9
10
11
Note 17
12
Note 18
13
Note 19
Note 23
14
15
16
16
16
Note 22
Note 22
17

66 -

STATEMENT 1

CHC RESOURCES CORPORATION

STATEMENT OF CASH DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Checking accounts Demand deposits Foreign currency deposits - including US$12,965.02 (Note)	Amount $ 54,300 122,456 407 $ 177,163

Note: US$1=NT$31.43

67 -

STATEMENT 2

CHC RESOURCES CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - CURRENT FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Name Shares Ordinary shares China Steel Corporation 10,401,806	Par Value $ 10	Amount $ 104,018	Cost $ 333,029		FairValue
					Unit Price Amount $ 19.00 $ 197,634

68 -

STATEMENT 3

CHC RESOURCES CORPORATION

STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Customer Name Description Non-related parties Fu Tsu Construction Co., Ltd. Sales Guang Hui Building Materials Co., Ltd. Sales Li Tai Constructional Co., Ltd. Sales Others (Note)	Amount $ 27,977 24,116 14,860 152,759
	$ 219,712

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

69 -

STATEMENT 4

CHC RESOURCES CORPORATION

STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Customer Name
Description
Non-related parties
Goldsun Building Materials Co., Ltd.
Sales
Fu Tsu Construction Co., Ltd.
Sales
Guang Hui Building Materials Co.,
Ltd.
Sales
Wei Sheng Steel Co., Ltd.
Sales
TASA Construction Corporation
Sales
Others (Note)
Related parties
China Steel Corporation
Sales and service
TCC Group Holdings Co., Ltd.
Sales
Dragon Steel Corporation
Sales and service
Ya Tung Ready Mixed Concrete Co.,
Ltd.
Sales and service
China Steel Resources Corporation
Construction and
service
Others (Note)

Amount
$ 43,513
23,278
10,906
10,207
9,732

95,728

193,364
487,124
187,707
118,129
76,655
61,480

49,551

980,646
$ 1,174,010

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

70 -

STATEMENT 5

CHC RESOURCES CORPORATION

STATEMENT OF INVENTORIES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Raw materials Supplies Finished goods Merchandise		Amount
		Net Realizable Cost Value (Note) $ 119,879 $ 181,041 198,487 222,694 109,935 134,390 2,010 2,449 $ 430,311 $ 540,574

Note: Refer to Note 4 for details.

71 -

STATEMENT 6

CHC RESOURCES CORPORATION

STATEMENT OF CHANGES FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPERHENSIVE INCOME - NONCURRENT FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investees Ordinary shares Feng Sheng Enterprise Corporation	Balance, January 1, 2025 Shares Carrying Value 932,053 $ 17,102	Additions	Amount $ 1,201	Decrease	Amount $ -	Balance, December 31, 2025 Shares Carrying Value Collateral 932,053 $ 18,303 None
		Shares -		Shares -

72 -

STATEMENT 7

CHC RESOURCES CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investees Unlisted companies Yu Chen Lime Corporation (Investment in subsidiary) CHC Resources Vietnam Co., Ltd. (Investment in subsidiary) Union Steel Development Corporation (Investment in subsidiary) Pao Good Industrial Co., Ltd. (Investment in subsidiary) Hsin Hsin Cement Enterprise Corp. (Investment in associate) Gau Ruei Investment Corporation (Investment in associate) Ding Da Investment Corporation (Investment in associate) Sheng Lih Dar Investment Corporation (Investment in associate) Jiing-Cherng-Fa Investment Corporation (Investment in associate) Shin Mao Investment Corporation (Investment in associate) Eminent Ⅲ Venture Capital Corporation (Investment in associate) Pro-Ascentek Investment Corporation (Investment in associate) HIMAG Magnetic Corporation (Investment in associate)	Balance,	January 1, 2025 Amount $ 141,956 735,053 108,949 92,425 123,747 22,030 19,622 17,729 15,289 16,399 19,531 36,059 9,176 $ 1,357,965	Additio	ns Amount(Note1) $ 2,722 92,281 20,525 4,492 15,428 40 749 1,232 681 1,270 4,290 2,417 306 $ 146,433	Decrea	se Amount(Note1) $ 2,485 103,555 32,562 9,195 5,979 781 1,563 1,516 1,070 1,435 1,032 5,390 4 $ 166,567	Balance, December 31, 20	25 Amount $ 142,193 723,779 96,912 87,722 133,196 21,289 18,808 17,445 14,900 16,234 22,789 33,086 9,478 $ 1,337,831	Market Value or Net Assets Value (Note 2) Collateral $ 124,960 None 723,779 None 96,884 None 87,722 None 140,957 None 21,289 None 18,808 None 17,445 None 14,900 None 16,234 None 22,789 None 33,086 None 9,478 None $ 1,328,331
	Shares 108,000 - 4,668,333 5,408,550 9,298,583 1,046,500 1,196,000 960,000 920,000 897,000 3,000,000 3,000,000 716,938		Shares - - - - - - - - - - - - -		Shares - - - - - - - - - - - - -		Shares % of Ownership 108,000 90 - 85 4,668,333 93 5,408,550 51 9,298,583 10 1,046,500 35 1,196,000 40 960,000 40 920,000 40 897,000 30 3,000,000 2 3,000,000 3 716,938 2

Note 1: The change in the current year was mainly due to gain or loss, adjustments recognized in equity and received cash and stock dividends.

Note 2: Net asset value of unlisted companies is calculated based on the investees’ financial statements and the Corporation’s ownership percentage.

73 -

STATEMENT 8

CHC RESOURCES CORPORATION

STATEMENT OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Cost Balance at January 1, 2025 Additions Revision and termination Balance at December 31, 2025 Accumulated depreciation Balance at January 1, 2025 Depreciation expense Revision and termination Balance at December 31, 2025 Carrying amount at December 31, 2025	Land $ 2,194,165 - 15,443 2,209,608 1,270,436 273,390 - 1,543,826 $ 665,782	Building Transportation Equipment $ 413,900 $ 26,550 42,347 3,499 (56,183) (3,579) 400,064 26,470 160,974 12,480 43,803 6,404 (56,058) (3,579) 148,719 15,305 $ 251,345 $ 11,165	Total $ 2,634,615 45,846 (44,319) 2,636,142 1,443,890 323,597 (59,637) 1,707,850 $ 928,292

74 -

STATEMENT 9

CHC RESOURCES CORPORATION

STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

		Balance,		Range of
	Type	End of The Year	Contract Period	Interest Rates (%)	Loan Commitments	Collateral
Unsecured loans
Hua Nan Bank		$ 200,000	2025.11.22 - 2026.11.22	1.75	$ 500,000	None
Letters of credit
Bank of Taiwan		23,613	2025.01.10 - 2026.01.10	1.84	280,000	None
		$ 223,613

75 -

STATEMENT 10

CHC RESOURCES CORPORATION

STATEMENT OF NOTES PAYABLE DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Supplier Name Description Non-related parties Hurwil Trading Corp. supplies Minyu Machinery Corp. supplies Accuro lab Co., Ltd. inspection Quality Machinery Co., Ltd. supplies Fenn-May International Co., Ltd. supplies Jian Bo Co., Ltd. supplies Jin Yu Engineering Firm equipment operation Others (Note)	Amount $ 584 470 280 252 202 191 158 888 $ 3,025

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

76 -

STATEMENT 11

CHC RESOURCES CORPORATION

STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Vendor Name Non-related parties Goldsun Building Materials Co., Ltd. Da Bond Transportation Co., Ltd. Tai Ming Transportation Co., Ltd. Others (Note) Related parties China Steel Corporation TCC Group Holdings Co., Ltd. Asia Cement Corporation Chung Hung Steel Corporation Dragon Steel Corporation C.S.Aluminium Corporation Southeast Cement Corporation Others (Note)	Amount $ 44,649 19,318 15,209 78,602 157,778 23,301 17,340 14,060 12,945 10,308 10,182 8,854 4,446 101,436 $ 259,214

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

77 -

STATEMENT 12

CHC RESOURCES CORPORATION

STATEMENT OF LONG-TERM BANK BORROWINGS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

		Balance,	Amount, Contract
	December 31,		Period and Repayment	Interest Rates
Bank Name		2025	Method	(%)	Collateral
Unsecured Loans
Bank of Taiwan	$	200,000	2024.01.05-2027.01.05	1.75	None
Hua Nan Bank		300,000	2025.11.22-2027.11.22	1.75	None
Taipei Fubon Bank		118,020	2025.05.08-2030.05.08	1.72	None
Yuanta Bank		500,000	2025.08.11-2028.08.10	1.75-1.80	None

$ 1,118,020

78 -

STATEMENT 13

CHC RESOURCES CORPORATION

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Period Discount Rates (%) Land 2007.01.01-2036.01.31 0.59-2.05 Buildings 2014.12.01-2045.06.30 1.67-3.45 Transportation equipment 2021.12.15-2029.11.24 0.59-1.92 Current Noncurrent	Amount $ 700,167 293,219 12,211 $ 1,005,597 $ 355,418 650,179 $ 1,005,597

79 -

STATEMENT 14

CHC RESOURCES CORPORATION

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Quantities (Metric Tons) Sale of goods GGBFS 3,172,274 Blast-Furnace Slag Cement 116,835 Special-Purpose Materials 456,224 Scrap recycling 20,285 Others (Note) Construction revenue Service revenue Process revenue Transportation revenue Others (Note)	Amount $ 4,978,674 318,988 1,151,349 191,110 352,498 6,992,619 7,889 5,267,321 245,019 27,670 5,540,010 $ 12,540,518

Note: The amount of each item included in others does not exceed 10% of the account balance.

80 -

STATEMENT 15

CHC RESOURCES CORPORATION

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item
Cost of goods sold
1. Cost of finished goods sold
Direct materials
Raw materials, beginning of the year

Raw material purchased
Add: Others
Less: Raw materials, end of the year

Supplies
Supplies, beginning of the year (Note)
Supplies purchased
Less: Others
Less: Supplies, end of the year

Direct labor
Manufacturing overhead

Manufacturing cost
Add: Finished goods, beginning of the year
Finished goods purchased
Less: Finished goods, end of the year
Others

Cost of finished goods
Non-allocation of fixed manufacturing costs
Impairment loss on property, plant and equipment
Others
Less: Offset against the production and marketing costs

2. Cost of merchandise sold
Merchandise, beginning of the year
Merchandise purchased
Less: Others
Less: Merchandise, end of the year

Construction cost

Service cost
Process cost
Transportation

Amount
$ 104,330
3,236,546
716,746
119,879
3,937,743
193,356
151,409
1,113
198,487
145,165
130,961
1,465,436
5,679,305
62,688
446,085
109,935
675,477
5,402,666
3,779
16,292
14,624
45,499
5,391,862
2,039
11,028
125
2,010
10,932
5,402,794
7,514
5,017,441
216,167
5,233,608
$ 10,643,916

Note: Including supplies in transit.

81 -

STATEMENT 16

CHC RESOURCES CORPORATION

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Payroll expense (including remuneration of directors) Outsourced service Depreciation Other professional service Employee benefits Freight Repair and maintenance Others Total	Selling Expenses General and Administrative Expenses Research and Development Expenses $ 62,342 $ 126,754 $ 14,472 45,402 10,665 1,831 28,121 9,504 4,146 33,059 8,270 4,735 158 30,552 32 13,500 29 122 18,396 635 963 35,254 45,034 2,817 $ 236,232 $ 231,443 $ 29,118	Total $ 203,568 57,898 41,771 46,064 30,742 13,651 19,994 83,105 $ 496,793

82 -

STATEMENT 17

CHC RESOURCES CORPORATION

STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

Employee benefits Salaries Labor and health insurance Post-employment benefits Remuneration of directors Termination benefits Others Depreciation Amortization	Year Ended December 31, 2025		Total $ 477,842 29,175 10,497 16,967 11 32,424 $ 566,916 $ 791,306 25,886	Year Ended December 31, 2024
	Classified as Operating Costs Classified as Operating Expenses Classified as Others $ 291,241 $ 186,601 $ - 18,432 10,743 - 6,616 3,881 - - 16,967 - 11 - - 1,496 30,928 - $ 317,796 $ 249,120 $ - $ 746,455 $ 41,771 $ 3,080 22,090 3,796 -			Classified as Operating Costs Classified as Operating Expenses Classified as Others $ 279,136 $ 178,735 $ - 17,658 10,297 - 7,561 4,968 - - 13,553 - 15 10 - 1,206 28,352 - $ 305,576 $ 235,915 $ - $ 762,822 $ 36,277 $ 3,081 22,304 4,413 -	Total $ 457,871 27,955 12,529 13,553 25 29,558 $ 541,491 $ 802,180 26,717

Note 1: As of December 31, 2025 and 2024, the Corporation both had 295 and 294 employees, respectively. Among them, 13 directors did not serve concurrently as employees in 2025 and 2024, respectively.

Note 2: Additional disclosures are as follows:
1) Average employee benefit for the year ended December 31, 2025 was NT$1,950 thousand (amounts of employee benefits for the year ended December 31, 2025 less amounts of remuneration of directors for the year ended December 31, 2025 divided by number of employees for the year ended December 31, 2025 less number of directors not serving concurrently as employees for the year ended December 31, 2025)
Average employee benefit for the year ended December 31, 2024 was NT$1,879 thousand (amounts of employee benefits for the year ended December 31, 2024 less amounts of remuneration of directors for the year ended December 31, 2024 divided by number of employees for the year ended December 31, 2024 less number of directors not serving concurrently as employees for the year ended December 31, 2024)
2) Average salary for the year ended December 31, 2025 was NT$1,694 thousand (amounts of salaries for the year ended December 31, 2025 divided by number of employees for the year ended December 31, 2025 less number of directors not serving concurrently as employees for the year ended December 31, 2025)
Average salary for the year ended December 31, 2024 was NT$1,629 thousand (amounts of salaries for the year ended December 31, 2024 divided by number of employees for the year ended December 31, 2024 less number of directors not serving concurrently as employees for the year ended December 31, 2024)
3) Change of adjustments of average salaries was 4.0% (average salaries for the year ended December 31, 2025 less average salaries for the year ended December 31, 2024 divided by average salaries for the year ended December 31, 2024)
4) The Corporation does not have any supervisor.
Note 3: The Corporation’s salary is based on a salary scale system. It adopts a position and responsibility system and refers to the salary market and the Corporation’s financial status. Each position is arranged according to the complexity of work, the degree of responsibility, and the position and relationship in the organization. The salary standards for employees have been set and implemented after being reported to the board of directors for approval. The employees all work hard together, so when the Corporation has a surplus, the bonus is calculated based on the amount of surplus. The principle is that when the Corporation makes more, it shares more, and when the Corporation makes less, it shares less, which also combined the results of personal performance. Relevant measures have been established as the basis for bonus distribution.
83 -

Carrying amount Land Buildings Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Machinery and equipment Transportation equipment		December 31	December 31	December 31
	2025 2024 $ 665,782 $ 923,729 251,345 252,926 11,165 14,070 $ 928,292 $ 1,190,725 For the Year Ended December 31
			2025 $ 45,846 $ 273,390 43,803 - 6,404 $ 323,597	2024 $ 45,742 $ 284,808 43,108 30 6,620 $ 334,566

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CHC — Audit Report / Information 2026

52793_rns_2026-04-28_b387e644-db76-467b-b54a-99a55972e10c.pdf

CHC Resources Corporation

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition

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

Notice to Readers

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CHC RESOURCES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CHC RESOURCES CORPORATION

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

g. Investment in associates

m. Financial instruments

1) Financial assets

Cash flow hedges

p. Carbon fee provision

q. Revenue recognition

1) Merchandise sales revenue

2) Service revenue

r. Leases

1) The Corporation as lessor

2) The Corporation as lessee

t. Employee benefits

3) Current and deferred taxes

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

8 . NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

9. INVENTORIES

10. OTHER FINANCIAL ASSETS - NONCURRENT

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

b. Investments in associates

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

3) Other resource reutilization business

d. Other lease information

14. INVESTMENT PROPERTIES

15. INTANGIBLE ASSETS

16. BORROWINGS

17. OTHER PAYABLES (INCLUDING RELATED PARTIES)

18. PROVISIONS - NONCURRENT

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

1) Investment risk

2) Interest risk

3) Salary risk

20. EQUITY

a. Ordinary shares

b. Capital surplus

c. Retained earnings and dividend policy

d. Other equity items

21. REVENUE

a. Contract balances

b. Assets related to contract costs

22. PROFIT BEFORE INCOME TAX

23. INCOME TAX

a. Income tax recognized in profit or loss

24. EARNINGS PER SHARE

25. CAPITAL MANAGEMENT

CHC Audit Report / Information 2026