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CHELIC AGM Information 2026

Jun 1, 2026

52405_rns_2026-06-01_8d53fec8-a104-4941-bfc0-a501ab0b0db6.pdf

AGM Information

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TAIWAN CHELIC CO., LTD.
Minutes of the 2026 Annual General Meeting

Time: 9:00 a.m., May 29, 2026

Meeting Place: Conference Room of the Company (Room 301); 3F, No. 21, Guifeng Street, Taishan District, New Taipei City

Attendance of shareholders: Total shares represented by shareholders presented in person or proxy are 48,179,521 shares (including 48,179,521 shares which presented through electronic voting). The number of shareholders present at the meeting represented 69.33% of the total number of shares issued, 69,487,653, which was a quorum

Attendance of directors: Ping-Cheng Yu (Chairman of Board of Directors), Po-Hsun Yu(Director), Chih-Feng Chiang(Independent Director and Convener of the Audit Committee), Chen-Hua Tsao(Independent Director), Shah-Rong Lee(Independent Director), and Chun-Kuang Wu (Independent Director).

Attendance: CPA, Mr. Cheng-Chuan Yu, Deloitte & Touche.
Attorneys-at-law, Mr. Jo-Hon Yang, UniversalCodes Law Office.

Chairman: Ping-Cheng Yu
Recorder: Chia-Li YU

The Chairman called the meeting to order

I. Chairman Remarks: (omitted)

II. Reports Items

(1) Business Report for 2025. (Please refer to the attachment I.)
(2) Audit Committee’s Review Report on the 2025 Financial Statements. (Please refer to the attachment II.)
(3) Report on the Distribution of Employee and Director Compensation for 2025. (Please refer to Meeting Agenda P.3)
(4) Report on Directors’ Remuneration for 2025. (Please refer to the attachment III.)
(5) Report on the Issuance of the Company’s Fourth Domestic Secured Convertible Bonds. (Please refer to Meeting Agenda P.4)
(6) Report on Treasury Share Repurchase. (Please refer to Meeting Agenda P.4)
(7) Report on Cash Dividends Distribution from 2025 Earnings. (Please refer to Meeting Agenda P.5)
(8) Report on Cash Distribution from Capital Surplus. (Please refer to


Meeting Agenda P.5)

III. Proposed Items for Ratification

Motion No.1 [Proposed by the Board]

Subject: Adoption of the Business Report and Financial Statements for 2025.

Explanation:

(I) The Company's parent company only and consolidated financial statements for 2025 have been approved by the Board of Directors and audited by independent auditors, Cheng-Chuan Yu and Li-Wei Liu of Deloitte & Touche. An unqualified audit opinion has been issued. The Business Report and the Financial Statements have also been reviewed by the Audit Committee with the issuance of the Audit Committee Review Report.

(II) The independent auditors' report and the aforementioned financial statements are attached as the attachment IV.

(III) Submitted for adoption.

Resolution: Voting result is as follow:

Shares represented at the time of voting: 48,179,521 votes (including electronic voting 48,179,521 votes)

Voting result The percentage of the total represented share present
Votes in favor 46,980,920 votes (including electronic voting 46,980,920 votes) 97.51 %
Votes in against 10,730 votes (including electronic voting 10,730 votes) 0.02 %
Votes invalid 0 votes (including electronic voting 0 votes) 0.00 %
Votes abstained 1,187,871 votes (including electronic voting 1,187,871 votes) 2.47 %

Resolved, that the above proposal was hereby accepted as submitted.

Motion No. 2 [Proposed by the Board]

Subject: Adoption of the Proposal for Distribution of 2025 Earnings.

Explanation:

(I) Pursuant to the Company Act and the Company's Articles of Incorporation, the Company has prepared the earnings distribution statement, as set forth in the attachment V, which has been approved

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by the Audit Committee and the Board of Directors on March 4, 2026.

(II) Submitted for adoption.

Resolution: Voting result is as follow:

Shares represented at the time of voting: 48,179,521 votes (including electronic voting 48,179,521 votes)

Voting result The percentage of the total represented share present
Votes in favor 46,979,920 votes (including electronic voting 46,979,920 votes) 97.51 %
Votes in against 18,730 votes (including electronic voting 18,730 votes) 0.04 %
Votes invalid 0 votes (including electronic voting 0 votes) 0.00 %
Votes abstained 1,180,871 votes (including electronic voting 1,180,871 votes) 2.45 %

Resolved, that the above proposal was hereby accepted as submitted.

IV. Election Matters

[Proposed by the Board]

Proposal for the Election of Directors and Independent Directors

Explanation:

(I) The term of office of the current directors will expire on June 20, 2026. A full re-election will be conducted in accordance with applicable laws and regulations.

(II) Pursuant to Article 13 of the Company's Articles of Incorporation, seven directors (including four independent directors) shall be elected at this shareholders' meeting. The candidate nomination system will be adopted. The term of office for the newly elected directors shall be three years, from May 29, 2026 to May 28, 2029.

(III) The list of candidates, comprising seven nominees (including four independent directors), has been reviewed and approved by the Board of Directors. Relevant information is set forth below:


List of Director Candidates

Name Education and Experience Shareholdings
PING-CHENG YU Education: EMBA, Master’s Degree in Technology Management, Fu Jen Catholic University
Experience: Director, USUN Technology Co., Ltd., Chairman, Taiwan Fluid Power Association
Convener and Review Committee Member for multiple industrial development and advisory projects of the Industrial Development Bureau, Ministry of Economic Affairs 6,609,500
YU, PO-HSUN Education: Bachelor’s Degree in Economics, Ming Chuan University
Experience: Executive Vice President, Taiwan Chelic Co., Ltd.
Director, Taiwan Fluid Power Association 2,948,500
Cheng Hsiung
Investment Co., Ltd. None 10,508,000

4


List of Independent Director Candidates

Name Education and Experience Shareholdings
LEE, SHAH-RONG Education: Ph.D. in Mechanical Engineering, State University of New York Experience: Professor, Taipei City University of Science and Technology Vice President, R&D Division, Taiwan Chelic Co., Ltd. Independent Director, Hsin Ya Construction Development Co., Ltd. 0
TSAO, CHEN-HUA Education: Master's Degree in Business Administration, University of Illinois Experience: Chairman, Jiawei Innovative Technology Co., Ltd. Partner, Wister Capital Management Corporation Vice President of Investment, Industry-Academia Collaboration Center Senior Vice President, Fubon Securities Co., Ltd. Vice President, Fubon Venture Capital Co., Ltd. 0
WU, CHUN-KUANG Education: Ph.D. in Economics, Institute of Economics, Russian Academy of Sciences Experience: Consultant, Economic Affairs Division, National Policy Foundation Professor, Department of Finance and International Business, Fu Jen Catholic University Director, Master's Program in Technology Management, Fu Jen Catholic University Independent Director, FineTek Co., Ltd. Independent Director, Para Light Electronics Co., Ltd. 0
TSAI,LI-JU Education: Ph.D. in Economics, National Chengchi University Experience: Full-time Professor, Department of Finance and International Business, Fu Jen Catholic University Independent Director, FineTek Co., Ltd. 0

(IV) Voting for the Election Matters


Election Results: The elected list is as follows

Title Name Election votes
Director YU ,PING-CHENG 53,230,853 votes
(including electronic voting 53,230,853 votes)
Director YU, PO-HSUN 52,151,832 votes
(including electronic voting 52,151,832 votes)
Director Cheng Hsiung
Investment Co., Ltd. 49,725,857 votes
(including electronic voting 49,725,857 votes)
Independent Director TSAO, CHEN-HUA 43,858,082 votes
(including electronic voting 43,858,082 votes)
Independent Director LEE, SHAH-RONG 46,787,832 votes
(including electronic voting 46,787,832 votes)
Independent Director WU, CHUN-KUANG 41,597,554 votes
(including electronic voting 41,597,554 votes)
Independent Director TSAI,LI-JU 40,406,381 votes
(including electronic voting 40,406,381 votes)

V. Other Matters

Motion No. 1 [Proposed by the Board]

Subject: Proposal for the Release of Non-Compete Restrictions for Newly Elected Directors.

Explanation:

(I) Explanation: Pursuant to Article 209, paragraph 1 of the Company Act: "A director who engages, either for himself/herself or on behalf of another person, in any business within the scope of the Company's operations shall explain to the shareholders' meeting the essential contents of such conduct and obtain its approval."

(II) In order to leverage the expertise and experience of the Company's directors, it is proposed to approve the release of non-compete restrictions for the newly elected directors of the Company.

(III) Details of the release of non-compete restrictions are set forth in Appendix 6 (Please refer to the attachment VI.).


Resolution: Voting result is as follow:

Shares represented at the time of voting: 48,179,521 votes (including electronic voting 48,179,521 votes)

Voting result The percentage of the total represented share present
Votes in favor 46,928,454 votes (including electronic voting 46,928,454 votes) 97.40 %
Votes in against 37,681 votes (including electronic voting 37,681 votes) 0.08 %
Votes invalid 0 votes (including electronic voting 0 votes) 0.00 %
Votes abstained 1,213,386 votes (including electronic voting 1,213,386 votes) 2.52 %

Resolved, that the above proposal was hereby accepted as submitted.

VI. Extemporary Motion: None. (There was no shareholder put question at the annual shareholders' meeting)

VII. Meeting adjourned


Attachment I

TAIWAN CHELIC CO., LTD.

Business Report for 2025

I. Operating Results for 2025

  1. Achievement of Business Plan

Unit: NT$1,000

Item 2025 2024 Change in amount Change in percentage
Consolidated Revenue 1,602,951 1,491,488 111,463 7.47%
Consolidated Gross Profit 495,361 388,691 106,670 27.44%
Consolidated Operating Income 49,215 (41,072) 90,287 219.83%
Earnings (losses) before Taxation 36,795 (37,298) 74,093 198.65%
Net income (loss) of current period 28,818 (50,743) 79,561 156.79%
Net income (loss) attributable to shareholders of parent company 13,563 (59,908) 73,471 122.64%
Earnings (losses) per share after taxation (NTD) 0.19 (0.86) 1.05 122.09%
  1. Budget Execution: The Company did not publicly disclose financial forecasts for 2025.

  2. Analysis of financial position and profitability:

Unit: %, NT$

Item 2025 2024 2023
Analysis of financial structure Liabilities to assets ratio 34.54 33.73 34.66
Long-term capital to fixed asset ratio 198.78 161.47 186.45
Analysis of debt service coverage ratio Current ratio 382.95 184.87 375.70
Quick ratio 222.69 106.27 198.59
Analysis of profitability Return on Assets (ROA) 1.19 -0.61 -0.25
Return on Equity (ROE) 0.98 -1.75 -1.14
Ratio to paid-in capital Operating income 7.03 -5.90 -3.07
Earnings betaxation 5.26 -5.36 -3.76
Net profit margin 1.80 -3.40 -2.44
Earnings per share (NTD) 0.19 -0.86 -0.64

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II. Business Plan Summary for 2026

(I) Operating Objectives: Despite the significant fluctuations in the New Taiwan dollar exchange rate and the impact of U.S. tariffs in 2025, overall revenue increased by 8% compared to the previous year, driven by rising demand for automation equipment fueled by AI and cost reductions resulting from optimized product design. Looking ahead to 2026, although global trade barriers are expected to continue posing challenges, the Company anticipates steady growth in its pneumatic components business through ongoing strategies of design optimization and centralized production to reduce costs. Meanwhile, new products such as sensors and dexterous robotic hands are gradually entering customer validation stages, which are expected to support expansion into industries such as semiconductors and automated facility systems. In addition, the precision metal manufacturing business is further expanding into sectors including automation equipment. With these developments, the Company remains confident in achieving continued growth in 2026.

(II) (2) R&D Objectives: In response to AI-driven demand across industries such as semiconductors, thermal management, and robotics, the Company will actively develop products including ultrasonic flow sensors, smart energy management systems, and dexterous robotic hands. In addition, efforts will be made to accelerate the sales of electrically controlled products such as electric cylinders and electric grippers to meet the growing demand for high-efficiency automated production.

(III) (3) Production Objectives: The Company will continue to optimize product design and adjust plant production layouts to further centralize production, thereby reducing product costs through economies of scale in procurement and manufacturing. In addition, the Company will strengthen the adoption of automation equipment to reduce reliance on manual labor, stabilize product quality, and enhance both production efficiency and overall quality.

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10

III. Impact of External Competitive Environment, Regulatory Environment, and Overall Economic Conditions

Amid ongoing uncertainty in the global tariff environment and the continued U.S.-China trade tensions, AI-driven industrial transformation is expanding beyond the semiconductor industry for advanced chips to related sectors such as liquid cooling, silicon photonics, and robotics. This trend is expected to accelerate the shift toward intelligent automation across the manufacturing industry. The Company's new product development initiatives are well aligned with these market trends. Accordingly, Taiwan Chelic is expected to maintain a steady growth trajectory in 2026.

Ladies and gentlemen, dear shareholders, thank you for your time to attend this regular session of the Shareholder's meeting. Your continued support and encouragement will be deeply appreciated.

With best wishes for your health and success.

Chairman: PING-CHENG YU
President: PING-CHENG YU
Chief Accounting Officer: CHIH-AN SU


Attachment II

TAIWAN CHELIC CO., LTD.
Audit Committee's Review Report

The Board of Directors has prepared and submitted the Company's Business Report, financial statements, and proposal for the distribution of earnings for 2025. The financial statements have been audited by independent auditors, Cheng-Chuan Yu and Li-Wei Liu of Deloitte & Touche, and an audit report has been issued. We have reviewed the aforementioned Business Report, Financial Statements, and Proposal for the Profit and Deficit Statement, and confirmed that they are properly prepared and fairly presented. We hereby present the aforementioned reports and documents for your review pursuant to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

To:
The 2026 Annual General Meeting of Taiwan Chelic Co., Ltd.

TAIWAN CHELIC CO., LTD.

Convenor of the Audit Committee:

沈志輝

March 4, 2026

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Attachment III

Remuneration Paid to Directors for 2025

As of December 31, 2025 Unit: NTS thousands; %

Title Name Remuneration to Directors Total of Items A, B, C and D, and as a Percentage of Net Income After Tax Related payment for acting in the capacity as employees The sum of A, B, C, D, E, F, and G in proportion to net income Remuneration received from investee companies beyond subsidiaries or parent company.
Remuneration (A) Pension (B) Director fee (C) Fee for service rendered (D) Salaries, bonus, and special expense account (E) Pension (F) Employee Compensation (G) (Note 1)
The Company All companies included in the financial statements. The Company All companies included in the financial statements. The Company All companies included in the financial statements. The Company All companies included in the financial statements. Pension All companies included in the financial statements. Pension All companies included in the financial statements. Pension All companies included in the financial statements. Amount of cash Stock Amount Amount of cash Stock Amount Pension All companies included in the financial statements.
Chairman PING-CHENG YU 0 0 0 0 200 200 42 98 242 1.78% 299 1.03% 3,193 3,596 0 0 0 0 0 0 3,435 25.33% 3,894 13.51% None
Director Cheng Hsiung Investment Co., Ltd. 0 0 0 0 200 200 0 0 200 1.47% 200 0.69% 0 0 0 0 0 0 0 0 200 1.47% 200 0.69% None
Representative of Cheng Hsiung Investment Co., Ltd.: CHEN, WEN-TUNG 0 0 0 0 0 0 42 86 42 0.31% 87 0.30% 1,127 3,360 58 58 0 0 0 0 1,227 8.17% 3,505 12.16% None
Director YU, PO-HSUN 0 0 0 0 200 200 42 112 242 1.78% 314 1.09% 1,754 1,754 94 94 0 0 0 0 2,090 15.41% 2,162 7.50% None
Independent Director TSAO, CHEN-HUA 540 540 0 0 0 0 42 42 582 4.29% 582 2.02% 0 0 0 0 0 0 0 0 582 4.29% 582 2.02% None
Independent Director CHIANG, CHIH-FENG 540 540 0 0 0 0 42 42 582 4.29% 582 2.02% 0 0 0 0 0 0 0 0 582 4.29% 582 2.02% None
Independent Director LEE, SHAH-RONG 540 540 0 0 0 0 42 42 582 4.29% 582 2.02% 0 0 0 0 0 0 0 0 582 4.29% 582 2.02% None
Independent Director WU, CHUN-KUANG 540 540 0 0 0 0 42 42 582 4.29% 582 2.02% 0 0 0 0 0 0 0 0 582 4.29% 582 2.02% None

Note 1: The Company's parent company only and consolidated net income after tax for 2025 amounted to NTS13,563 thousand and NTS28,818 thousand, respectively.


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Attachment IV

Independent Auditors' Review Report

To TAIWAN CHELIC CO., LTD.:

Audit Opinion

We have audited the accompanying consolidated balance sheets of TAIWAN CHELIC CO., LTD. and its subsidiaries (collectively, the "Chelic Group") as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, of changes in equity, and of cash flows for the years from January 1 to December 31, 2025 and 2024, and the related notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Chelic Group as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years from January 1 to December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), Interpretations, and Interpretations of IFRSs as endorsed and issued into effect by the Financial Supervisory Commission.

Basis for Audit Opinion

We conducted our audits in accordance with the CPA Auditing Certification Rules and auditing standards. The responsibilities of the CPA under these standards are further explained in the section on the CPA's responsibilities for the audit of the consolidated financial statements. The personnel of the firm to which the CPA is affiliated, who are subject to independence requirements, have maintained independence from the Chelic Group in accordance with the Code of Ethics for Professional Accountants and have fulfilled other responsibilities under the code. We believe that we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.


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Key Audit Matters

Key Audit Matters are those matters that, in the our professional judgment, were of most significance in the audit of the Group's consolidated financial statements for the year 2025. These matters were addressed in the context of the audit of the consolidated financial statements as a whole and in forming the audit opinion, and we do not provide a separate opinion on these matters.

Key Audit Matters are stated as follows for the Group's consolidated financial statements for the year 2025:

Key Audit Matters

The group's many customers primarily consume "pneumatic components" as its main products. Due to market competition and the need to meet the expectations of shareholders and external investors, there is anticipated pressure on management to achieve the projected net revenue targets. We, as the CPAs, believe that for those sales recipients within the group with relatively higher sales amounts and whose individual revenue changes are better than the overall average change, the authenticity of their sales will have a significant impact on the financial statements. Therefore, this has been identified as a Key Audit Matter. For the accounting policy on the recognition of related revenue, refer to Note 4(11) of the NOTES TO CONSOLIDATED FINANCIAL STATEMENTS; for notes related to Net revenue, please refer to Note 23 of the NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

The audit procedures of the CPA included:

  1. Understand and test the design and operating effectiveness of the internal control systems related to the occurrence of the sales of the aforementioned customers.
  2. Select appropriate samples from the sales details of the aforementioned customers to examine original orders, external supporting documents, and collection status to verify the authenticity of the sales transactions.

Other Matters

TAIWAN CHELIC CO., LTD. has prepared the individual financial statements for the Years Ended December 31, 2024, and we have issued an unqualified audit report thereon for reference.


15

Responsibilities of Management and the Governance Unit for the Consolidated Financial Statements

Management's responsibility is for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards, International Accounting Standards, interpretations, and interpretative announcements endorsed and issued into effect by the Financial Supervisory Commission, as well as for maintaining necessary internal control related to the preparation of consolidated financial statements to ensure that they are free from material misstatement, whether due to fraud or error.

When preparing the consolidated financial statements, management's responsibility also includes assessing the ability of the AirTAC Group 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 AirTAC Group or to cease operations, or has no realistic alternative but to do so.

The governance unit of the Group (including the Audit Committee) is responsible for overseeing the financial reporting process.

The responsibilities of the CPA for the audit of the consolidated financial statements.

The purpose of the CPA in auditing the consolidated financial statements is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report. Reasonable assurance is a high level of assurance, but an audit conducted in accordance with auditing standards does not guarantee that a material misstatement in the consolidated financial statements will be detected. Misstatements may arise from fraud or error. If a misstatement's individual amount or aggregate can reasonably be expected to influence the economic decisions of users of the consolidated financial statements, it is considered material.

In conducting the audit in accordance with auditing standards, we exercised professional judgment and maintained professional skepticism. We also performed the following tasks:

  1. Identify and assess the risks of material misstatement of the consolidated financial statements due to fraud or error; design and implement appropriate responses to the assessed risks; and obtain sufficient and appropriate audit evidence to provide a basis for the audit opinion. Due to fraud potentially involving collusion, forgery, intentional omissions, misrepresentations, or the override of internal control, the risk of not detecting a material misstatement resulting from fraud is higher than that from error.

  1. Obtain an understanding of internal control relevant to the audit in order to design appropriate audit procedures for the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

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

  3. Based on the audit evidence obtained, draw a conclusion on the appropriateness of management's use of the going concern basis of accounting and whether there is a material uncertainty regarding events or conditions that may cast significant doubt on the AirTAC Group's ability to continue as a going concern. If the CPA believes that such events or conditions create significant uncertainty, they must draw attention to the relevant disclosures in the consolidated financial statements in the audit report, or modify the audit opinion if such disclosures are inadequate. The CPA's conclusion is based on the audit evidence obtained up to the date of the audit report. However, future events or conditions may cause the AirTAC Group to be unable to continue as a going concern.

  4. Evaluate the overall presentation, structure, and content of the consolidated financial statements, including the relevant notes, and whether the consolidated financial statements fairly represent the related transactions and events.

  5. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities within the Group to express an opinion on the consolidated financial statements. The CPA is responsible for directing, supervising, and executing the audit of the group, and for forming the group 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 under The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and communicate to 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 determined those matters that were of most significance in the audit of the Group's consolidated financial statements for the year 2025 and are therefore the key audit matters. We describe these matters in the audit report unless law or regulation precludes public disclosure or, in extremely rare circumstances, we

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determines that a specific matter should not be communicated in the report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits.

Deloitte & Touche Taiwan
CPA : Liu Li-Wei
CPA : Yu Cheng-Chuan

Approval Document No. by theFinancial SupervisoryCommission
Jin-Guan-Cheng-Shen-Zi No. 1110348898
Approval Document No. by theSecurities and FuturesCommission
Taiwan-Financial-Securities-Sixth No.0930128050

March26, 2026


TAIWAN CHELIC CO., LTD. and Subsidiaries

Consolidated Balance Sheets

December 31, 2025 and 2024

Unit: In Thousands of New Taiwan Dollars

Code Assets December 31, 2025 December 31, 2024
Amount % Amount %
CURRENT ASSETS
1100 Cash and cash equivalents (Notes 4 and 6) $ 690,643 15 $ 827,224 19
1110 Financial assets at fair value through profit or loss - current (Notes 4 and 7) 450 - - -
1136 Financial assets at amortized cost - current (Notes 4 and 9) 152,864 3 - -
1150 Notes receivable (Notes 4, 10, and 23) 76,049 2 47,890 1
1160 Notes receivable from related parties (Notes 4, 10, 23, and 30) - - 2,239 -
1170 Accounts receivable (Notes 4, 10, and 23) 380,423 8 308,134 7
1180 Accounts receivable from related parties (Notes 4, 10, 23, and 30) 10,618 - 34,594 1
1200 Other receivables (Notes 4 and 10) 2,045 - 1,299 -
1220 Current tax assets (Notes 4 and 25) 8,175 - 9,624 -
130X INVENTORIES (Notes 4 and 11) 881,693 20 844,405 19
1479 Other current assets (Notes 16 and 30) 69,186 2 66,120 2
11XX Total current assets 2,272,146 50 2,141,529 49
NON-CURRENT ASSETS
1517 Financial assets at FVTOCI - non-current (Notes 4 and 8) 51,552 1 38,658 1
1600 Property plant and equipment (Notes 4, 13, and 31) 1,969,775 44 2,008,499 46
1755 Right-of-use assets (Notes 4, 14, and 31) 142,634 3 147,997 3
1821 Intangible assets (Notes 4 and 15) 10,691 - 9,434 -
1840 Deferred income tax assets (Notes 4 and 25) 43,442 1 41,866 1
1990 Other non-current assets (Notes 4 and 16) 18,525 1 13,546 -
15XX Total non-current assets 2,236,619 50 2,260,000 51
1XXX Total assets $ 4,508,765 100 $ 4,401,529 100
Code Liabilities and equity
CURRENT LIABILITIES
2100 Short-term loans (Note 17) $ 217,440 5 $ 269,560 6
2130 Contract liabilities - current (Notes 4 and 23) 13,909 - 12,129 -
2150 Notes payable (Note 19) - - 218 -
2170 Accounts payable (Note 19) 168,572 4 136,010 3
2219 Other payables (Note 20) 121,875 3 112,832 3
2220 Other payables to related parties (Note 30) 443 - 356 -
2230 Income tax payable (Notes 4 and 25) 2,492 - 3,263 -
2280 Lease liabilities - current (Notes Four and 14) 8,450 - 6,490 -
2321 Bonds payable - current portion (Notes 4, 18, and 31) due within one year - - 556,139 13
2322 Long-term borrowings due within one year (Notes 17 and 31) 51,439 1 59,831 1
2399 Other current liabilities (Notes 20 and 30) 8,700 - 1,556 -
21XX Total current liabilities 593,320 13 1,158,384 26
NON-CURRENT LIABILITIES
2530 Bonds payable (Notes Four, 18, and 31) 474,789 11 - -
2540 Long-term borrowings (Notes 17 and 31) 476,593 11 309,476 7
2570 Deferred income tax liabilities (Notes Four and 25) - - 746 -
2580 Lease liabilities - non-current (Notes Four and 14) 11,926 - 15,439 1
2670 Other non-current liabilities (Note 20) 587 - 584 -
25XX Total non-current liabilities 963,895 22 326,245 8
2XXX Total liabilities 1,557,215 35 1,484,629 34
Equity attributable to the owners of the Company (Note 22)
Share capital
3110 Capital stock 699,876 16 699,840 16
3200 Capital surplus 735,215 16 729,041 16
Retained earnings
3310 Legal reserve 314,038 7 314,038 7
3320 Special reserve 104,621 2 190,924 5
3350 Unappropriated retained earnings 1,075,164 24 975,298 22
3300 Total retained earnings 1,493,823 33 1,480,260 34
3400 Other equity interest ( 65,374 ) ( 1 ) ( 86,376 ) ( 2 )
3500 Treasury stock ( 22,333 ) ( 1 ) - -
31XX Total equity attributed to the owners of the parent company 2,841,207 63 2,822,765 64
36XX Non-controlling Interests (Notes 12 and 22) 110,343 2 94,135 2
3XXX Total equity 2,951,550 65 2,916,900 66
Total liabilities and equity $ 4,508,765 100 $ 4,401,529 100

The accompanying notes are an integral part of the consolidated financial statements.

Chairman:YU, PING-CHENG

Executive officers:YU, PING-CHENG

Accounting Supervisor:SU, CHIH-AN


TAIWAN CHELIC CO., LTD. and Subsidiaries
Consolidated Statements of Comprehensive Income
Years Ended December 31, 2025 and 2024
Unit: NT$1000, except earnings (losses) per share, which is expressed in NT$1

Code 2025 2024
Amount % Amount %
4100 NET REVENUE (Notes 4, 23, and 30)
Sales $ 1,602,951 100 $ 1,491,488 100
5110 COST OF REVENUE (Notes 11, 24, and 30)
Cost of sales ( 1,107,590 ) ( 69 ) ( 1,102,797 ) ( 74 )
5900 GROSS PROFIT 495,361 31 388,691 26
6100 OPERATING EXPENSES (Note 24)
Selling expenses ( 163,460 ) ( 10 ) ( 162,101 ) ( 11 )
6200 Administrative expenses ( 174,024 ) ( 11 ) ( 152,634 ) ( 10 )
6300 Research and development expenses ( 109,276 ) ( 7 ) ( 109,247 ) ( 7 )
6450 Gain on reversal of expected credit losses (Impairment) (Notes 4 and 10) 614 - ( 5,781 ) ( 1 )
6000 Total operating expenses ( 446,146 ) ( 28 ) ( 429,763 ) ( 29 )
6900 INCOME FROM OPERATIONS (loss) 49,215 3 ( 41,072 ) ( 3 )
7100 NON-OPERATING INCOME AND EXPENSES (Notes 4 and 24)
Interest revenue 6,630 - 6,438 1
7010 Other income 13,496 1 14,383 1
7020 Other gains and losses ( 2,074 ) - 12,565 1
7050 FINANCE COSTS ( 30,472 ) ( 2 ) ( 29,612 ) ( 2 )
7000 Total non-operating income and expenses ( 12,420 ) ( 1 ) 3,774 1
7900 Profit (loss) before income tax 36,795 2 ( 37,298 ) ( 2 )
7950 INCOME TAX EXPENSE (Notes 4 and 25) ( 7,977 ) - ( 13,445 ) ( 1 )
8200 Net income (loss) for the year 28,818 2 ( 50,743 ) ( 3 )
(Continued)

(Continued)

Code 2025 2024
Amount % Amount %
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 4, 22, and 25)
8310 Items not reclassified to income:
8316 Unrealized gain/ (loss) on investments in equity instruments at FVTOCI 11,252 1 15,874 1
Items that may be reclassified subsequently to income:
8361 Exchange differences from the translation of financial statements of foreign operations 13,140 - 91,103 6
8399 Income tax related to items that may be reclassified to profit or loss (2,437) - (17,607) (1)
8360 10,703 - 73,496 5
8300 Other comprehensive income, net of income tax for the year 21,955 1 89,370 6
8500 Total comprehensive income for the year $50,773 3 $38,627 3
8600 Net income (loss) attributable to:
8610 The Company $13,563 1 ($59,908) (4)
8620 Non-controlling interest 15,255 1 9,165 1
$28,818 2 ($50,743) (3)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
8710 The Company $34,565 2 $26,395 2
8720 Non-controlling interest 16,208 1 12,232 1
8700 $50,773 3 $38,627 3
Earnings (Loss) Per Share (Note 26)
From continuing operations
9710 Basic $0.19 ($0.86)
9810 Diluted $0.19

The accompanying notes are an integral part of the consolidated financial statements.

Chairman: YU, PING-CHENG

Executive officers: YU, PING-CHENG

Accounting Supervisor: SU, CHIH-AN


TAIWAN CHELIC CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2025 and 2024

Unit: In Thousands of New Taiwan Dollars

Code Equity attributable to the owners of the Company
Share capital Capital surplus Legal reserve Special reserve Unappropriated retained earnings Unrealized Gain (Loss) on Financial Assets at FVTOC Exchange differences from the translation of financial statements of foreign operations Treasury stock Non-controlling interest Total equity
A1 Balance as of January 1, 2024 $ 693,132 $ 733,519 $ 314,038 $ 155,050 $ 1,071,080 ($ 293) ($ 172,386) $ - $ 87,307 $ 2,881,447
B3 Appropriation of earnings for the year 2023 (Note 22)
Special reserve - - - 35,874 ( 35,874 ) - - - - -
O1 Cash dividends to subsidiary shareholders - - - - - - - - ( 5,452 ) ( 5,452 )
O1 Increase in non-controlling interests (Note 22) - - - - - - - - 48 48
T1 Capital surplus distributed as cash dividends to shareholders - ( 34,830 ) - - - - - - - ( 34,830 )
I1 Convertible bonds conversion (Notes 18 and 22) 6,708 30,352 - - - - - - - 37,060
D1 Net income (loss) for the Year Ended December 31, 2024 - - - - ( 59,908 ) - - - 9,165 ( 50,743 )
D3 Other comprehensive income (loss), net of income tax for the Year Ended December 31, 2024 (Note 22) - - - - - 15,874 70,429 - 3,067 89,370
D5 Total comprehensive income for 2024 - - - - ( 59,908 ) 15,874 70,429 - 12,232 38,627
Z1 Balance as of December 31, 2024 699,840 729,041 314,038 190,924 975,298 15,581 ( 101,957 ) - 94,135 2,916,900
B3 Appropriation of earnings for the year ended December 31, 2024 (Note 22)
Special reserve - - - ( 86,303 ) 86,303 - - - - -
C15 Capital surplus distributed as cash dividends to shareholders (Note 22) - ( 34,992 ) - - - - - - - ( 34,992 )
C5 Recognition of equity component from the issuance of convertible bonds (Notes 18 and 22) - 41,002 - - - - - - - 41,002
I1 Convertible bonds conversion (Note 18) 36 164 - - - - - - - 200
D1 Net profit for 2025 - - - - 13,563 - - - 15,255 28,818
D3 Other comprehensive income (loss), net of income tax for the Years Ended December 31, 2025 (Note 22) - - - - - 11,252 9,750 - 953 21,955
D5 Total comprehensive income for 2025 - - - - 13,563 11,252 9,750 - 16,208 50,773
L1 Treasury stock acquired (Note 22) - - - - - - - ( 22,333 ) - ( 22,333 )
Z1 Balance as of December 31, 2025 $ 699,876 $ 735,215 $ 314,038 $ 104,621 $ 1,075,164 $ 26,833 ($ 92,207 ) ($ 22,333 ) $ 110,343 $ 2,951,550

The accompanying notes are an integral part of the consolidated financial statements.

Chairman: YU, PING-CHENG

Executive officers: YU, PING-CHENG

Accounting Supervisor: SU, CHBH-AN


TAIWAN CHELIC CO., LTD. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended December 31, 2025 and 2024
Unit: In Thousands of New Taiwan Dollars

Code 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
A10000 Profit (loss) before income tax $ 36,795 ($ 37,298)
A20010 Profit and loss items
A20100 Depreciation expense 165,558 167,826
A20200 Amortization expenses 3,747 3,608
A20300 Expected credit (gains on reversal) losses ( 614) 5,781
A20400 Net loss on FINANCIAL ASSETS AND LIABILITIES AT FVTPL 441 -
A20900 FINANCE COSTS 30,472 29,612
A21200 Interest revenue ( 6,630) ( 6,438)
A21300 Dividend income - ( 722)
A22500 Gain on disposal of property, plant and equipment ( 2,879) ( 6,207)
A23700 Write-downs of inventories (gain on reversal) 4,949 2,286
A24100 Unrealized foreign exchange loss (gain) 8,059 ( 4,204)
A29900 Gains on lease modifications ( 1) -
A30000 Net changes in operating assets and liabilities:
A31130 Notes receivable ( 26,946) 3,998
A31140 Notes receivable from related parties 2,167 ( 2,227)
A31150 Accounts Receivable ( 68,076) ( 30,926)
A31160 Accounts receivable from related parties 23,072 ( 10,980)
A31180 Other receivables ( 150) 1,023
A31200 INVENTORIES ( 37,431) 86,294
A31230 Prepayments ( 4,186) ( 10,228)
A31240 Other current assets 1,378 924
A32125 Contract liabilities 1,662 3,405
A32130 Notes payable ( 218) 218
A32150 Accounts payable 30,342 36,012
A32160 Accounts payable to related parties - ( 1,827)
A32180 Other payables 8,577 3,351
A32190 Other payables to related parties 82 ( 7)
A32230 Other current liabilities 396 243
A33000 Cash inflow from operations 170,566 233,517
A33100 Interest received 6,028 6,415
(Continued)

22


23

(Continued)

Code 2025 2024
A33300 Interest paid ( 19,032 ) ( 20,060 )
A33500 Income tax paid ( 10,714 ) ( 6,419 )
AAAA Net cash generated by operating activities 146,848 213,453
CASH FLOWS FROM INVESTING ACTIVITIES
B00040 Acquisitions of Financial assets at amortized cost ( 147,322 ) -
B00100 Acquisitions of financial assets at fair value through other comprehensive income ( 1,080 ) -
B02700 Acquisition of property, plant and equipment ( 104,682 ) ( 69,737 )
B02800 Proceeds from disposal of property, plant and equipment 6,482 33,062
B02900 Increase in sales revenue received in advance - Disposal of property 6,500 -
B03700 Refundable deposits paid increase ( 230 ) ( 331 )
B04500 Purchase of intangible assets ( 3,432 ) ( 701 )
B06800 Decrease in other non-current assets 463 1,246
B07100 Increase in prepayments for equipment ( 15,538 ) ( 7,144 )
B07600 Dividends received - 722
BBBB Net cash used in investing activities ( 258,839 ) ( 42,883 )
CASH FLOWS FROM FINANCING ACTIVITIES
C00200 Decrease in short-term loans ( 51,665 ) ( 20,000 )
C01200 Convertible bonds issuance 514,385 -
C01300 Repayment of bonds ( 561,900 ) -
C01600 Proceeds from long-term bank loans 490,000 -
C01700 Repayments of long-term borrowings ( 331,275 ) ( 33,529 )
C04020 Repayment of the principal portion of lease liabilities ( 8,189 ) ( 7,224 )
C04500 Cash dividends paid ( 34,992 ) ( 34,830 )
C04900 Cost of treasury stock acquired ( 22,333 ) -
C05800 Increase in non-controlling interests - 48
C09900 Payments for transaction costs attributable to the issuance of bonds ( 6,722 ) -
C09900 Payment of Cash dividends of non-controlling interests - ( 5,452 )
CCCC Net cash used in financing activities ( 12,691 ) ( 100,987 )
DDDD Effect of exchange rate changes on cash and cash equivalents ( 11,899 ) 17,152

(Continued)


24

(Continued)

Code 2025 2024
EEEE (DECREASE) ADDITIONS IN CASH AND CASH EQUIVALENTS ( 136,581 ) 86,735
E00100 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 827,224 740,489
E00200 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 690,643 $ 827,224

The accompanying notes are an integral part of the consolidated financial statements.

Chairman: YU, PING-CHENG Executive officers: YU, PING-CHENG Accounting Supervisor: SU, CHIH-AN


Independent Auditors' Review Report

To TAIWAN CHELIC CO., LTD.:

Audit Opinion

We have audited the accompanying parent company only balance sheets of TAIWAN CHELIC CO., LTD. (hereinafter referred to as the “Company”) as of December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years from January 1 to December 31, 2025 and 2024, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, based on our audits, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of TAIWAN CHELIC CO., LTD. as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years from January 1 to December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Audit Opinion

We conducted our audits in accordance with the CPA Auditing Certification Rules and auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. The personnel of our firm who are subject to independence requirements have remained independent of TAIWAN CHELIC CO., LTD. in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and fulfilled all other responsibilities thereunder. We believe that we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of TAIWAN CHELIC CO., LTD.'s Parent Company Only Financial Statements of 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

  • 25 -

not provide a separate opinion on these matters.

Below is a summary of the key audit matters of TAIWAN CHELIC CO., LTD. Parent Company Only Financial Statements for the year ended December 31, 2025:

Key Audit Matters

TAIWAN CHELIC CO., LTD. has a wider customer base and is mainly engaged in production and sale of "pneumatic components". Considering marketplace competition and the obligation to fulfill shareholders' and external investors' expectations, the management should be facing the pressure to achieve the operating revenue targets. Given so, we believe that the authenticity of sales revenue from customers who constitute a relatively high proportion of sales and whose individual change in sales is greater than the average change in sales will materially impact the financial statements, so we identify the said customers as the key audit matter. For the accounting policy for the recognition of relevant revenue, please refer to Note 4 (11) of the Parent Company Only Financial Statements; for the operating revenue related information, please refer to Note 21 of the Parent Company Only Financial Statements.

The audit procedures of the CPA included:

  1. Understand and test the design and operating effectiveness of the internal control systems related to the occurrence of the sales of the aforementioned customers.
  2. Select appropriate samples from the sales details of the aforementioned customers to examine original orders, external supporting documents, and collection status to verify the authenticity of the sales transactions.

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 the Parent Company Only Financial Statements that are free from material misstatement, whether due to fraud or error.

During preparation of these Parent Company Only Financial Statements, the management was also responsible for evaluating TAIWAN CHELIC CO., LTD.'s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and adopting the going concern basis of accounting, unless the management intended either to liquidate TAIWAN CHELIC CO., LTD. or to terminate its operations, or had no feasible alternatives but to do so.

TAIWAN CHELIC CO., LTD.'s governance body (including the Audit Committee) was responsible for supervising the financial reporting procedures.

  • 26 -

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 auditing standards will always detect a material misstatement when it exists in these Parent Company Only Financial Statements. Misstatements may arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Parent Company Only Financial Statements.

In conducting the audit in accordance with auditing standards, we exercise professional judgment and maintained professional skepticism. The CPA also performed the following tasks:

  1. 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. Due to fraud potentially involving collusion, forgery, intentional omissions, misrepresentations, or the override of internal control, the risk of not detecting a material misstatement resulting from fraud is higher than that from error.

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

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

  4. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on TAIWAN CHELIC CO., LTD.'s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Parent Company Only Financial Statements or, if such disclosures are inadequate, to modify our opinion. The CPA's conclusion is based on the audit evidence obtained up to the date of the audit report. However, future events or conditions may cause TAIWAN CHELIC CO., LTD. to cease to continue as a going concern.

  5. Evaluate the overall presentation, structure, and content of the Parent Company Only Financial Statements (including relevant notes), and whether the Parent Company Only Financial Statements fairly represent the underlying transactions and events.

  6. 27 -


  1. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within TAIWAN CHELIC CO., LTD. to express an opinion on the Parent Company Only Financial Statements. We are responsible for the direction, supervision, and execution of the audit of TAIWAN CHELIC CO., LTD.. 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 under The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and communicate to 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 TAIWAN CHELIC CO., LTD.'s 2025 Parent Company Only Financial Statements and are therefore the key audit matters. We describe these matters in the audit report unless law or regulation precludes public disclosure or, in extremely rare circumstances, we determine that a specific matter should not be communicated in the report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits.

Deloitte & Touche Taiwan
CPA : Liu Li-Wei
CPA : Yu Cheng-Chuan

Approval Document No. by the Financial Supervisory Commission
Financial-Supervisory-Securities-Auditing No. 1110348898
Approval Document No. by the Securities and Futures Commission
Taiwan-Financial-Securities-Sixth No. 0930128050

March 26, 2026


TAIWAN CHELIC CO., LTD.
Parent Company Only Balance Sheets
December 31, 2025 and 2024
Unit: In Thousands of New Taiwan Dollars

Code Assets December 31, 2025 December 31, 2024
Amount % Amount %
CURRENT ASSETS
1100 Cash and cash equivalents (Notes 4 and 6) $ 474,218 12 $ 443,736 11
1110 Financial assets at fair value through profit or loss - current (Note 7) 450 - - -
1150 Notes receivable, net (Notes 4, 9 and 21) 7,526 - 8,637 -
1170 Accounts receivable, net (Notes 4, 9 and 21) 37,080 1 39,105 1
1180 Accounts receivable from related parties (Notes 4, 9, 21 and 28) 61,742 2 61,094 2
1200 Other receivables (Notes 4 and 9) 59 - 38 -
1210 Other receivables due from related parties (Notes 4 and 28) 10,238 - - -
1220 Current tax assets (Notes 4 and 23) 8,175 - 9,624 -
130X Inventories (Notes 4 and 10) 222,507 5 253,853 6
1479 Other current assets (Note 14) 9,205 - 5,736 -
11XX Total current assets 831,200 20 821,823 20
NON-CURRENT ASSETS
1520 Financial assets at FVTOCI (Notes 4 and 8) 1,523 - - -
1550 Investments accounted for using equity method (Notes 4 and 21) 2,567,888 63 2,497,173 62
1600 Net of property, plant and equipment (Notes 4, 12, 28 and 29) 639,141 16 653,702 17
1821 Intangible assets (Notes 4 and 13) 5,097 - 4,905 -
1840 Deferred income tax assets (Notes 4 and 23) 43,442 1 41,866 1
1990 Other non-current assets (Note 14) 9,813 - 2,312 -
15XX Total non-current assets 3,266,904 80 3,199,958 80
1XXX Total assets $ 4,098,104 100 $ 4,021,781 100
Code Liabilities and equity
CURRENT LIABILITIES
2100 Short-term loans (Note 15) $ 150,000 4 $ 180,000 4
2130 Contract liabilities (Notes 4 and 21) 1,592 - 1,992 -
2150 Notes payable (Note 17) - - 218 -
2170 Accounts payable (Note 17) 43,641 1 40,053 1
2180 Accounts payable to related parties (Note 28) 20,149 1 13,527 -
2219 Other payables (Note 18) 36,456 1 34,601 1
2230 Current tax liabilities (Notes 4 and 23) 332 - 885 -
2322 Long-term borrowings due within one year (Notes 15 and 29) 51,439 1 59,831 2
2321 Bonds payable, current portion (Notes 4, 16 and 29) - - 556,139 14
2399 Other current liabilities (Note 18) 1,904 - 1,546 -
21XX Total current liabilities 305,513 8 888,792 22
NON-CURRENT LIABILITIES
2530 Bonds payable (Notes 4, 16 and 29) 474,789 11 - -
2540 Long-term borrowings (Notes 15 and 29) 476,593 12 309,476 8
2570 Deferred income tax liabilities (Notes 4 and 23) - - 746 -
2670 Other non-current liabilities (Note 18) 2 - 2 -
25XX Total non-current liabilities 951,384 23 310,224 8
2XXX Total liabilities 1,256,897 31 1,199,016 30
Equity (Note 20)
3110 Capital stock 699,876 17 699,840 17
3200 Capital surplus 735,215 18 729,041 18
Retained earnings
3310 Legal reserve 314,038 8 314,038 8
3320 Special reserve 104,621 2 190,924 5
3350 Unappropriated retained earnings 1,075,164 26 975,298 24
3300 Total retained earnings 1,493,823 36 1,480,260 37
Other equity interest
3410 Exchange differences from the translation of financial statements of foreign operations ( 92,207 ) ( 2 ) ( 101,957 ) ( 2 )
3420 Unrealized Gain (Loss) on Financial Assets at FVTOCI 26,833 - 15,581 -
3400 Total other equity interests ( 65,374 ) ( 2 ) ( 86,376 ) ( 2 )
3500 Treasury stock ( 22,333 ) - - -
3XXX Total equity 2,841,207 69 2,822,765 70
Total liabilities and equity $ 4,098,104 100 $ 4,021,781 100

The accompanying notes are an integral part of the Parent Company Only Financial Statements.

ChairmanYU, PING-CHENG
Executive officers: YU, PING-CHENG
Accounting Supervisor: SU, CHIH-AN


TAIWAN CHELIC CO., LTD.

Parent Company Only Statement of Comprehensive Income

January 1 through December 31, 2025 and 2024

Unit: NT$1000, except earnings (losses) per share, which is expressed in NT$1

Code 2025 2024
Amount % Amount %
4100 Revenue
Sales revenue (Notes 4, 21, and 28) $ 440,267 100 $ 434,692 100
5110 COST OF REVENUE
Cost of goods sold (Notes 10, 22 and 28) ( 315,061 ) ( 71 ) ( 307,063 ) ( 71 )
5900 GROSS PROFIT 125,206 29 127,629 29
5910 Unrealized gains on sales to subsidiaries, associates, and joint venture (Notes 4 and 11) ( 16,093 ) ( 4 ) ( 21,485 ) ( 5 )
5920 Realized gains on sales to subsidiaries, associates, and joint venture (Note 4) 21,485 5 24,262 6
5950 Realized gross profit 130,598 30 130,406 30
6100 Operating expenses (Notes 22 and 28)
Selling expenses ( 44,087 ) ( 10 ) ( 46,253 ) ( 11 )
6200 Administrative expenses ( 63,279 ) ( 15 ) ( 57,069 ) ( 13 )
6300 Research and development expenses ( 35,059 ) ( 8 ) ( 31,923 ) ( 7 )
6000 Total operating expenses ( 142,425 ) ( 33 ) ( 135,245 ) ( 31 )
6900 Operating Losses ( 11,827 ) ( 3 ) ( 4,839 ) ( 1 )
7100 Non-operating income and expenses (Notes 4, 22, and 28)
Interest revenue 3,672 1 2,615 1
7010 Other income 279 - 1,778 -
7020 Other gains and losses ( 5,432 ) ( 1 ) 5,769 1
7050 FINANCE COSTS ( 26,797 ) ( 6 ) ( 24,742 ) ( 6 )

(Continued)


(Continued)

Code 2025 2024
Amount % Amount %
7070 Share of profit and loss in subsidiaries, associates, and joint ventures recognized using the equity method 51,983 12 ( 43,896 ) ( 10 )
7000 Total non-operating income and expenses 23,705 6 ( 58,476 ) ( 14 )
7900 Profit (loss) before income tax 11,878 3 ( 63,315 ) ( 15 )
7950 Income tax benefit (Notes 4 and 23) 1,685 - 3,407 1
8000 Net profit (loss) for the year 13,563 3 ( 59,908 ) ( 14 )
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 4 and 20)
8310 Items not reclassified to profit or loss
8316 Unrealized gain/ (loss) on investments in equity instruments at FVTOCI 443 - - -
8330 Share of other comprehensive income in subsidiaries accounted for using the equity method 10,809 3 15,874 4
11,252 3 15,874 4
8360 Items that may be reclassified subsequently to profit or loss
8361 Exchange differences from the translation of financial statements of foreign operations 12,187 3 88,036 20
8399 Income tax related to items that might be reclassified to profit or loss (Note 23) ( 2,437 ) ( 1 ) ( 17,607 ) ( 4 )
9,750 2 70,429 16

(Continued)


(Continued)

Code 2025 2024
Amount % Amount %
8300 Other comprehensive income for the year, net of income tax 21,002 5 86,303 20
8500 Total comprehensive income for the year $ 34,565 8 $ 26,395 6
Earnings (Losses) per share (Notes 2 and 4)
9710 Basic $ 0.19 ($ 0.86)
9810 Diluted $ 0.19

The accompanying notes are an integral part of the Parent Company Only Financial Statements.

Chairman: YU, PING-CHENG

Executive officers: YU, PING-CHENG

Accounting Supervisor: SU, CHIH-AN


TAIWAN CHELIC CO., LTD.

Parent Company Only Statement of Changes in Equity

January 1 through December 31, 2025 and 2024

Unit: In Thousands of New Taiwan Dollars

Code Share capital Capital surplus Retained earnings Other equity interest Treasury stock Total equity
Legal reserve Special reserve Unappropriated retained earnings Exchange differences from the translation of financial statements of foreign operations Unrealized Gain (Loss) on Financial Assets at FVTOCI
A1 Balance as of January 1, 2024 $ 693,132 $ 733,519 $ 314,038 $ 155,050 $ 1,071,080 ($ 172,386) ($ 293) $ - $ 2,794,140
Appropriation and distribution of earnings in 2023 (Note 20)
B3 Special reserve - - - 35,874 ( 35,874 ) - - - -
C15 Cash dividends distributed from capital surplus (Note 20) - ( 34,830 ) - - - - - ( 34,830 )
I1 Conversion of convertible corporate bonds (Notes 16 and 20) 6,708 30,352 - - - - - 37,060
D1 Net Loss for 2024 - - - - ( 59,908 ) - - ( 59,908 )
D3 Other comprehensive income (loss) after tax for 2024 - - - - - 70,429 15,874 - 86,303
D5 Total comprehensive income for 2024 - - - - ( 59,908 ) 70,429 15,874 - 26,395
Z1 Balance as of December 31, 2024 699,840 729,041 314,038 190,924 975,298 ( 101,957 ) 15,581 - 2,822,765
Appropriation and distribution of earnings in 2024 (Note 20)
B3 Special reserve - - - ( 86,303 ) 86,303 - - - -
C15 Cash dividends distributed from capital surplus (Note 20) - ( 34,992 ) - - - - - ( 34,992 )
C5 Recognizing the equity component of issued convertible corporate bonds (Notes 16 and 20) - 41,002 - - - - - 41,002
I1 Conversion of convertible corporate bonds (Notes 16 and 20) 36 164 - - - - - 200
D1 Net profit for 2025 - - - - 13,563 - - 13,563
D3 Other comprehensive income (loss) after tax for 2025 - - - - - 9,750 11,252 - 21,002
D5 Total comprehensive income for 2025 - - - - 13,563 9,750 11,252 - 34,565
L1 Treasury stock acquired (Note 20) - - - - - - - ( 22,333 ) ( 22,333 )
Z1 Balance as of December 31, 2025 $ 699,876 $ 735,215 $ 314,038 $ 104,621 $ 1,075,164 ($ 92,207 ) $ 26,833 ($ 22,333 ) $ 2,841,207

Chairman: YU, PING-CHENG

The accompanying notes are an integral part of the Parent Company Only Financial Statements.

Executive officers: YU, PING-CHENG

Accounting Supervisor: SU, CHIH-AN


TAIWAN CHELIC CO., LTD.

Parent Company Only Statement of Cash Flow

January 1 through December 31, 2025 and 2024

Unit: In Thousands of New Taiwan Dollars

Code 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
A10000 Profit (loss) before income tax $ 11,878 ($ 63,315)
A20010 Profit and loss items
A20100 Depreciation expense 32,319 35,177
A20200 Amortization expenses 2,693 2,511
A20400 Net loss on financial assets and liabilities at FVTPL 441 -
A20900 Finance costs 26,797 24,742
A21200 Interest revenue ( 3,672 ) ( 2,615 )
A22400 Share of profit in subsidiaries, associates, and joint ventures recognized using the equity method ( 51,983 ) 43,896
A22500 Gain on disposal of property, plant and equipment ( 1,357 ) -
A23900 Unrealized sales gains 16,093 21,485
A24000 Realized sales gains ( 21,485 ) ( 24,262 )
A24100 Unrealized foreign currency exchange losses (profits) 8,757 ( 3,866 )
A30000 Net changes in operating assets and liabilities:
A31130 Notes receivable 1,111 ( 789 )
A31150 Accounts Receivable 1,983 ( 6,270 )
A31160 Accounts receivable from related parties ( 2,724 ) ( 10,531 )
A31180 Other receivables - ( 2 )
A31200 Inventories 31,346 56,621
A31240 Other current assets ( 3,469 ) 1,664
A32125 Contract liabilities ( 400 ) 479
A32130 Notes payable ( 218 ) 218
A32150 Accounts payable 3,588 14,601
A32160 Accounts payable to related parties 6,143 3,321
A32180 Other payables 1,335 ( 5,796 )
A32230 Other current liabilities 358 233
A33000 Cash generated from operations 59,534 87,502
A33100 Interest received 3,651 2,592
A33300 Interest paid ( 14,890 ) ( 15,237 )
A33500 Income tax paid ( 834 ) ( 7,350 )
AAAA Net cash generated by operating activities 47,461 67,507

(Continued)


(Continued)

Code 2025 2024
CASH FLOWS FROM INVESTING ACTIVITIES
B00010 Acquisition of financial assets at fair value through other comprehensive income ( 1,080 ) -
B02200 Acquisition of subsidiaries (Note 11) - ( 24,142 )
B02700 Acquisition of property, plant and equipment ( 13,182 ) ( 13,232 )
B02800 Proceeds from disposal of property, plant and equipment 1,716 -
B04300 Additions to Other receivables due from related parties ( 10,238 ) -
B04500 Purchase of intangible assets ( 1,370 ) ( 500 )
B06700 Increase (decrease) in other non-current assets ( 205 ) 505
B07100 Increase in prepayments for equipment ( 13,279 ) ( 1,430 )
B07600 Dividends received from subsidiaries 9,656 136,269
BBBB Net cash inflow (outflow) from investing activities ( 27,982 ) 97,470
CASH FLOWS FROM FINANCING ACTIVITIES
C00200 Decrease in short-term loans ( 30,000 ) ( 20,000 )
C01200 Convertible bonds issuance 514,385 -
C01300 Repayment of bonds ( 561,900 ) -
C01600 Proceeds from long-term bank loans 490,000 -
C01700 Repayments of long-term borrowings ( 331,275 ) ( 33,529 )
C04500 Cash dividends paid ( 34,992 ) ( 34,830 )
C04900 Cost of treasury stock acquired ( 22,333 ) -
C09900 Payments for transaction costs attributable to the issuance of bonds ( 6,722 ) -
CCCC Net cash inflow (outflow) from financing activities 17,163 ( 88,359 )
DDDD Effect of exchange rate changes on cash and cash equivalents ( 6,160 ) 3,520
EEEE Increase in cash and cash equivalents 30,482 80,138
E00100 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 443,736 363,598
E00200 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 474,218 $ 443,736

The accompanying notes are an integral part of the Parent Company Only Financial Statements.

Chairman: YU, PING-CHENG Executive officers: YU, PING-CHENG Accounting Supervisor: SU, CHIH-AN


Attachment V

TAIWAN CHELIC CO., LTD. Earnings Distribution Statement 2025

Unit: NTD

Item Amount Remark
Undistributed earnings at the beginning of the period 1,061,601,314
Plus: Net Income After Tax for the Year 13,562,647
Plus: reversal of special reserve 21,002,306
Less: Appropriation to Legal Reserve 1,356,265
Distributable earnings at the beginning of the period 1,094,810,002
Distribution Items:
Cash Dividends to Shareholders 13,897,531 (NT$0.2 per share)
Undistributed earnings at the ending of the period 1,080,912,471
Notes: The Company’s earnings shall be distributed from the most recent year’s earnings on a priority basis.

Chairman: PING-CHENG YU

Manager: PING-CHENG YU

Chief Accounting Officer: CHIH-AN SU

  • 36 -

  • 37 -

Attachment VI

Details of the Proposed Release of Non-Compete Restrictions for Director Candidates

| Director / Independent Director | Proposed Release of Non-Compete Restrictions (for Shareholders’ Approval)
Concurrent Positions / Positions Held |
| --- | --- |
| YU,PING-CHENG | Chairman, Cheng Hsiung Investment Co., Ltd.
Director, Shang Bo Investment Co., Ltd.
Director, Shang Jia Investment Co., Ltd.
Director, Full Investment Co., Ltd. |
| YU, PO-HSUN | Supervisor, Zhejiang Bangye Automation Technology Co., Ltd.
Chairman, Shangbo Investment Co., Ltd.
Director, Zhengxiong Investment Co., Ltd.
Director, Shang Jia Investment Co., Ltd.
Director, Full Investment Co., Ltd.
Director, Air Automatic Co., Ltd. |
| LEE, SHAH-RONG | Independent Director, New Asia Construction & Development Corp. |
| TSAO, CHEN-HUA | Partner, Wister Capital Management Corporation
Chairman, Jiawei Innovative Technology Co., Ltd. |
| WU,CHUN-CHIANG | Independent Director, FineTek Co., Ltd.
Independent Director, Para Light Electronics Co., Ltd. |
| TSAI ,LI-JU | Independent Director, FineTek Co., Ltd. |