Stock Code: 1718

China Man-Made Fiber Corporation

Individual Financial Statements and Independent Auditors' Report

2025 and 2024

Address No. 8, Jingjian Rd., Dashe Dist., Kaohsiung City 815

Address 10F, No.50, Sec. 1, Xinsheng S. Rd., Zhongzheng Dist., Taipei City

Tel (02) 2393-7111

§ TABLE OF CONTENTS §

ITEM		PAGE NO.	NOTE NUMBER TO THE FINANCIAL STATEMENTS
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Independent Auditor’s Audit Report	3~8	-
IV.	Individual Balance Sheets	9	-
V.	Individual Income Statement	9~12	-
VI.	Individual Statements of Changes in Shareholders’ Equity	13	-
VII.	Individual Statement of Cash Flow	14~15	-
VIII.	Notes to the Individual Financial Statements
	(I) Company Profile	16	1.
	(II) Financial reporting date and procedures	16	2.
	(III) Application of new and revised standards and interpretation	17~20	3.
	(IV) Summary of important accounting policies	20~38	4.
	(V) Main source of significant accounting judgment, estimates and assumptions uncertainty	38~39	5.
	(VI) Description of significant accounting items	39~70	6-26
	(VII) Transactions with related parties	79~85	29
	(VIII) Pledged assets	86	30
	(IX) Significant contingent liabilities and unrecognized contractual commitments	86~87	31
	(X) Significant disaster loss	-	-
	(XI) Significant subsequent events	-	-
	(XII) Others	70-71, 87	27-28, 32
	(XIII) Disclosures
	1. Information about significant transactions	88	33
	2. Information about reinvestees	88	33
	3. Information about investment in Mainland China	88	33
IX.	Statement of significant accounting items	96~111	-

Independent Auditor’s Audit Report

To China Man-Made Fiber Corporation:

Audit opinions

We have audited the accompanying individual balance sheet of China Man-Made Fiber Corporation and subsidiary as of December 31, 2025 and 2024, and the related individual statement of income, individual statement of changes in shareholders equity, individual statement of cash flows, and Note of the individual financial statements (including major accounting policy) for the years then ended.

In our opinion, based on our audit and the audit reports of other auditors (refer to the Other Matters paragraph), the above-mentioned standalone financial statements present fairly, in all material respects, the standalone financial position of China Man-Made Fiber Corporation as of December 31, 2025 and 2024, and its standalone financial performance and standalone cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

The basis for opinions

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the responsibilities of auditors for the audit of the separate financial statements. We are independent of Chinese Gamer International Corporation in accordance with the Code of Ethics for certified public accountants in the part relevant to the audit of the financial statements of China Man-Made Fiber Corporation, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audit results and the audit reports of other CPAs, we are of the opinion that sufficient and appropriate audit evidence has been obtained to serve as the basis for our audit opinion.

Key audit matter

Key audit matters are those matters that, in our professional judgment, were of most significant in our audit of the individual financial statements of China Man-Made Fiber Corporation in 2025. These matters were addressed in the content of our audit of the individual financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on those matters.

Key audit procedures of the individual financial statements of China Man-Made Fiber Corporation in 2025 included:

Authenticity of specific sales revenue

Notes to key audit matters

Revenue from sales of China Man-Made Fiber Corporation is recognized as revenue after the customer has obtained control of the product and assumed the risk of the product. We conducted an analysis of the revenue from sales in 2025 by taking into account the sales amount and gross profit of sales to identify particular sales customers, and include the authenticity of its revenue from sales as a key audit matter.

Please refer to Note 4 (14) of the financial statements for the accounting policies on sales revenue recognition.

Audit response

Awareness of the design and implementation of the internal control systems related to the recognition of sales revenues.
The efforts to obtain details of the sales revenues account for specific customers in 2025 and select samples to check the shipping-related forms and documents, and send letters for inquiries to sample check the authenticity of the sales recognition.

The ECL assessment of discounts and loans of investments under the equity method

Notes to key audit matters

As stated in Note 13 of the parent company only financial statements, the amount of investment in Taichung Commercial Bank Co., Ltd. by China Man-Made Fiber Corporation adopting the equity method was NT$19,469,234 thousand, accounting for 49% of the total assets as of December 31, 2025. Therefore, the financial performance of Taichung Commercial Bank Co., Ltd. will significantly impact China Man-Made Fiber Corporation’s share in subsidiaries, associates and joint ventures by equity method.

As of the end of 2025, Taichung Commercial Bank Co., Ltd. reported a balance of discounts and loans amounting to NT$633,982,283 thousand and expected credit losses of NT$397,746

thousand. In determining the expected credit losses, Taichung Commercial Bank Co., Ltd. made significant estimates and judgments by management, including the probability of default and loss given default. The calculation must also comply with the relevant regulations and directives issued by the competent authority, and the higher of the two amounts must be recognized. For these reasons, the ECL of discounts and loans of Taichung Commercial Bank Co., Ltd. is determined as key audit matters.

Audit response

Understand the internal control system adopted by Taichung Commercial Bank Co., Ltd. and its subsidiaries for assessing the ECL from discounts and advances. Test whether the discounts and loans are classified according to relevant laws and regulations and letters/orders of the competent authority.
For the comprehensive evaluation of the ECL adopted by Taichung Commercial Bank Co., Ltd., understand and re-calculated key parameters used in the impairment model (probability of default and loss given default) in order to evaluate the reasonableness. In addition, examine whether the amount provided comply with relevant laws and regulations and letters/orders of the competent authority.

Other information

The financial statements of investees included in the standalone financial statements of China Man-Made Fiber adopting the equity method have not been audited by us. They are audited by other accountants. Therefore, we refer to the audited reports of other accountants in expressing our opinions in the standalone statement regarding the investments by equity method and subsidiaries, affiliates, joint ventures and other comprehensive gains and losses. As of December 31, 2025 and 2024, investments accounted for using the equity method based on the audit reports of other auditors amounted to NT$717,387 thousand and NT$827,242 thousand, respectively; for the years 2025 and 2024, the shares of profit or loss and other comprehensive income of subsidiaries, affiliates, and joint ventures recognized using the equity method based on the audit reports of other auditors amounted to (109,855) thousand and (113,008) thousand, respectively. Meanwhile, certain information related to the re-investees' business disclosed under Note 33 of the individual financial statement is, as well, disclosed based on the audit reports of other certified public accountants.

Responsibilities of Management and Those in Charge with Governance of the Individual Financial Statements

Management is responsible for the preparation and fair presentation of the individual 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 individual financial statements that are free from material misstatement, whether due to fraud or error.

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

Those in charge of governance (including the Auditing Committee) are responsible for overseeing the reporting process of China Man-Made Fiber Corporation.

Auditor’s Responsibilities for the Audit of the Individual Financial Statements

Our objectives are to obtain reasonable assurance about whether the individual financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue and auditor’s report. Reasonable assurance is a high level of assurance, but is not a guarantee that and audit conducted in accordance with the accounting principles in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. If fraud or errors are considered materials, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these individual financial statements.

As part of an audit in accordance with the accounting principles in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following works:

Identify and assess the risks of material misstatement of the individual financial statements, whether or not due to fraud or error, design and perform audit procedures responsive risks and obtain evidence that is sufficient and appropriate to provide a basis of our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control effective in China Man-Made Fiber Corporation.
Evaluate the appropriateness of accounting policies used and the reasonability of accounting
6 -

estimates and related disclosures made by the management.

Conclude the appropriateness of the use of the going concern basis of accounting by the management, and, based on the audit evidence obtained, whether or not a material uncertainty exists related to events or conditions that may cast significant doubt on China Man-Made Fiber Corporation and its 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 individual financial statements or, if such disclosure are inappropriate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor's report. However, future events or conditions may cause China Man-Made Fiber Corporation to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the individual statements, including related notes, whether the individual statements represent the underlying transactions and events in a matter that achieves fair presentation.
Obtain sufficient and appropriate audit evidence on the financial information of business entities within the China Man-Made Fiber Corporation in order to express an opinion on the individual financial statements. The independent auditor is responsible for guiding, supervising, and implementing the audit of the China Man-Made Fiber Corporation; also, is responsible for forming an opinion on the audit of the China Man-Made Fiber Corporation.

We communicate with those in charge of 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 in charge of 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 in charge of governance, we determine those matters that were of most significance in the audit of the individual financial statements of China Man-Made Fiber Corporation of 2025 and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communications.

Deloitte and Touche
CPA Shu-Lin Liu
CPA Pan-Fa Wang

Financial Supervisory Commission Approval No.
Jin-Guan-Zheng-Shen-Zi
No. 1050024633

Financial Supervisory Commission Approval No.
Jin-Guan-Zheng-Shen-Zi
No. 1100356048

March 9, 2026
- 8 -

China Man-Made Fiber Corporation
Individual Balance Sheets
December 31, 2025 and 2024
Unit: NTD thousand

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Notes 4, 6, and 29)	$ 1,078,144	3	$ 1,088,053	3
1110	Financial assets through profit and/or loss with measuring for the faire values-current (Note 4 and 7)	16	-	14	-
1150	Notes receivable (Note 4 and 10)	66,199	-	61,109	-
1170	Accounts receivable (Note 4 and 10)	359,284	1	446,651	1
1180	Accounts receivable - related parties (Notes 4, 10, and 29)	82,949	-	146,767	1
1200	Other receivables (Notes 4, 10 and 29)	310,875	1	311,283	1
1220	Current income tax assets (Notes 4 and 25)	1,497	-	2,599	-
130X	Inventory (Note 4 and 11)	554,006	1	898,513	2
1410	Prepaid (Note 12)	754,384	2	710,998	2
1470	Other current assets (Notes 18 and 30)	140,512	-	145,981	-
11XX	Total current assets	3,347,866	8	3,811,968	10
Non-Current assets
1517	Financial assets at fair value through other comprehensive income - non-current (Notes 4, 8 and 30)	2,888,096	7	2,537,882	7
1550	Investments accounted for using the equity method (Notes 4, 13, 29 and 30)	24,024,860	60	22,045,339	57
1600	Property, plant and equipment - net (Notes 4, 14, 29 and 30)	6,171,171	16	6,730,410	17
1760	Investment property - net (Notes 4, 16 and 30)	2,891,980	7	2,908,387	7
1780	Intangible assets - net (Notes 4 and 17)	2,375	-	3,071	-
1840	Deferred income tax assets - net (Note 4 and 25)	656,291	2	655,875	2
1990	Other current non-assets (Notes 4, 18, 21)	32,270	-	111,776	-
15XX	Total non-current assets	36,667,043	92	34,992,740	90
1XXX	Total assets	$ 40,014,909	100	$ 38,804,708	100
Liabilities and equity
Current liabilities
2100	Short-term borrowings (Notes 19 and 30)	$ 9,022,045	23	$ 8,205,119	21
2110	Short-term bills payable (Note 19)	747,913	2	947,337	2
2170	Accounts payable	323,819	1	472,727	1
2180	Accounts payable - related parties (Note 29)	9,167	-	-	-
2230	Current income tax liability (Notes 25)	1,184	-	-	-
2219	Other payables (Note 20)	209,224	-	207,484	1
2320	Long-term liabilities due in one year or one business cycle (Note 19 and 30)	189,200	-	307,200	1
2399	Other current liabilities	27,917	-	38,843	-
21XX	Total of current liabilities	10,530,469	26	10,178,710	26
Non-current liabilities
2540	Long-term borrowings (Notes 19 and 30)	6,550,900	17	6,385,600	17
2550	Liability reserve (Note 4 and 21)	88,822	-	81,231	-
2570	Deferred tax liabilities (Note 4 and 25)	866,019	2	866,019	2
2670	Other liabilities (Note 4 and 22)	3,414	-	1,870	-
25XX	Total non-current liability	7,509,155	19	7,334,720	19
2XXX	Total liabilities	18,039,624	45	17,513,430	45
Equity (Note 23)
3110	Common stock capital	16,859,057	42	16,859,057	44
3200	Capital surplus	1,748,211	4	1,712,237	4
Retained earnings
3310	Legal reserve	553,344	1	537,491	1
3320	Special reserve	1,965,549	5	1,937,366	5
3350	Undistributed earnings	213,725	1	158,528	1
Other equity
3410	Exchange differences from the translation of financial statements of foreign operations	( 26,296 )	-	( 18,496 )	-
3420	Unrealized gain or loss on financial assets at fair value through other comprehensive profit or loss	1,844,210	5	1,240,151	3
3500	Treasury stock	( 1,182,515 )	( 3 )	( 1,135,056 )	( 3 )
3XXX	Total equity	21,975,285	55	21,291,278	55
Total liabilities and equity		$ 40,014,909	100	$ 38,804,708	100

The notes attached shall constitute an integral part of this individual financial statement.

(Refer to Auditor’s Report presented by Deloitte Taiwan dated March 9, 2026)

Chairman: Kuei-Hsien Wang
Manager: Jeb-Yi Wang
Accounting Supervisor: Yun-Yun Hsu

China Man-Made Fiber Corporation
Individual Income Statement
January 1 to December 31, 2025 and 2024

Code		Unit: NT$ thousands, except Earnings Per Share (NT$)		2024
		Amount	%	Amount	%
4000	Operating revenue (Notes 4 and 29)	$ 4,927,284	100	$ 5,681,459	100
5000	Operating cost (Notes 4, 11, 24, and 29)	( 6,098,701 )	( 124 )	( 6,779,181 )	( 119 )
5900	Gross losses	( 1,171,417 )	( 24 )	( 1,097,722 )	( 19 )
5910	Unrealized losses on the subsidiaries, affiliates and joint ventures (Note 4)	13,776	-	( 2,090 )	-
5920	Realized gain on the subsidiary, affiliated company and joint ventures (Note 4)	27	-	27	-
5950	Realized gross losses	( 1,157,614 )	( 24 )	( 1,099,785 )	( 19 )
	Operating expenses (Note 4, 10, 24 and 29)
6100	Marketing expenses	( 163,943 )	( 3 )	( 186,493 )	( 3 )
6200	Administrative and general affairs expenses	( 132,164 )	( 3 )	( 130,472 )	( 3 )
6450	Expected credit reversal benefit	10,648	-	45,019	1
6000	Total operating expenses	( 285,459 )	( 6 )	( 271,946 )	( 5 )
6900	Operating losses	( 1,443,073 )	( 30 )	( 1,371,731 )	( 24 )
	Non-operating revenues and expenses
7070	Amounts of profit and/or loss of subsidiaries recognized in equity method, associates and the share of the profit or loss of joint ventures (Note 4)	1,999,984	41	1,866,128	33
7100	Interest revenue (Notes 4 and 29)	19,518	-	16,284	-
(Continued)

10 -

(Continued)

Code		2025		2024
		Amount	%	Amount	%
7130	Dividend income (Note 4, 29)	$ 101,690	2	$ 96,296	2
7190	Other gains and losses (Notes 24 and 29)	50,141	1	49,324	1
7230	Net foreign exchange (loss) gain	( 7,468 )	-	33,312	1
7235	Gain (loss) on financial assets and liabilities at fair value through profit and loss (Note 4 and 24)	2	-	2,925	-
7610	Losses from disposal of property or equipment	( 100 )	-	( 148 )	-
7673	Impairment loss (Notes 4, 14, and 24)	( 241,876 )	( 5 )	( 330,152 )	( 6 )
7510	Financial cost (Note 4 and 24)	( 356,899 )	( 7 )	( 334,719 )	( 6 )
7000	Total non-operating revenues and expenses	1,564,992	32	1,399,250	25
7900	Income before tax from continuing operations	121,919	2	27,519	1
7950	Income tax gains (expenses) (Note 4 and 25)	( 3,092 )	-	2	-
8200	Net profits of the current year	118,827	2	27,521	1
	Other comprehensive profit or loss
The items that are not re-classified as profit or loss
8311	Determined Benefit Plan Reevaluation (Note 4 and 21)	( 2,082 )	-	( 5,426 )	-
8316	Unrealized valuation of the capital gain/loss from equity instrument at fair value through comprehensive income statement as other comprehensive income	373,263	7	307,078	5

(Continued)

Code		2025		2024
		Amount	%	Amount	%
8330	Share of other comprehensive income of subsidiaries, associates, and joint ventures accounted for using the equity method	$ 79,699	2	$ 346,943	6
8349	Income tax related to titles without reclassification (Notes 4 and 25)	416	-	1,085	-
8310		451,296	9	649,680	11
	Items that may be re-classified subsequently under profit or loss
8361	Exchange differences from the translation of financial statements of foreign operations	( 7,800 )	-	89,699	2
8380	Share of other comprehensive income of subsidiaries, associates, and joint ventures accounted for using the equity method	133,986	3	( 431,582 )	( 8 )
8360		126,186	3	( 341,883 )	( 6 )
8300	Other comprehensive income of the current year (net amount after taxation)	577,482	12	307,797	5
8500	Total amount of comprehensive income of the current year	$ 696,309	14	$ 335,318	6
	Earnings per share (Note 26)
9750	Basic earnings per share	$ 0.09		$ 0.02
9850	Diluted earnings per share	$ 0.09		$ 0.02

The notes attached shall constitute an integral part of this individual financial statement. (Refer to Auditor's Report presented by Deloitte Taiwan dated March 9, 2026)

Chairman: Kuei-Hsien Wang

Manager: Jeh-Yi Wang

Accounting Supervisor: Yun-Yun Hsu

China Man-Made Fiber Corporation

Individual Statements of Changes in Shareholders' Equity

January 1 to December 31, 2025 and 2024

Unit: NTD thousand

Code		Share capital	Capital surplus	Retained earnings			Other equity		Treasury stock	Total equity
				Legal reserve	Special reserve	Undistributed earnings	Exchange differences from the translation of financial statements of foreign operations	Unrealized gain or loss on financial assets at fair value through other comprehensive profit or loss
A1	Balance on January 1, 2024	$ 16,859,057	$ 1,712,776	$ 949,064	$ 1,937,366	($ 411,573)	($ 108,195)	$ 1,153,089	($ 1,135,056)	$ 20,956,528
B13	The 2023 appropriation and distribution of earnings
	Loss compensation with the legal reserve	-	-	( 411,573 )	-	411,573	-	-	-	-
D1	2024 profit	-	-	-	-	27,521	-	-	-	27,521
D3	Other comprehensive net income in 2024	-	-	-	-	8,944	89,699	209,154	-	307,797
D5	Total comprehensive income in 2024	-	-	-	-	36,465	89,699	209,154	-	335,318
M7	Changes in ownership interests in subsidiaries	-	( 539 )	-	-	( 29 )	-	-	-	( 568 )
Q1	Equity instrument at fair value through other comprehensive income statement	-	-	-	-	122,092	-	( 122,092 )	-	-
Z1	Balance as of December 31, 2024	16,859,057	1,712,237	537,491	1,937,366	158,528	( 18,496 )	1,240,151	( 1,135,056 )	21,291,278
B1	The 2024 appropriation and distribution of earnings
	Legal reserve appropriated	-	-	15,853	-	( 15,853 )	-	-	-	-
B3	Special reserve appropriated	-	-	-	28,183	( 28,183 )	-	-	-	-
D1	2025 profit	-	-	-	-	118,827	-	-	-	118,827
D3	Other comprehensive net income in 2025	-	-	-	-	( 28,379 )	( 7,800 )	613,661	-	577,482
D5	Total comprehensive income in 2025	-	-	-	-	90,448	( 7,800 )	613,661	-	696,309
L5	Subsidiaries' holding parent company's stock transferred to treasury stock (Note 23)	-	-	-	-	-	-	-	( 47,459 )	( 47,459 )
M7	Changes in ownership interests in subsidiaries	-	35,974	-	-	155	-	( 972 )	-	35,157
Q1	Disposal of equity instrument investments measured at fair value through other comprehensive income:	-	-	-	-	8,630	-	( 8,630 )	-	-
Z1	Balance as of December 31, 2025	$ 16,859,057	$ 1,748,211	$ 553,344	$ 1,965,549	$ 213,725	($ 26,296)	$ 1,844,210	($ 1,182,515)	$ 21,975,285

The notes attached shall constitute an integral part of this individual financial statement.

(Refer to Auditor's Report presented by Deloitte Taiwan dated March 9, 2026)

Chairman: Kuei-Hsien Wang

Manager: Jeh-Yi Wang

Accounting Supervisor: Yun-Yun Hsu

China Man-Made Fiber Corporation
Individual Statement of Cash Flow
January 1 to December 31, 2025 and 2024

Code	Cash flow from operating activities	2025	Unit: NTD thousand 2024
A10000	Current year net profit before taxation
Profits and loss	$ 121,919	$ 27,519
A20100	Depreciation expenses	386,952	454,501
A20200	Amortization expenses	696	364
A20300	Expected credit reversal benefit	( 10,648 )	( 45,019 )
A23900	Unrealized (gain) loss on sales to subsidiaries, affiliates, and joint ventures	( 13,776 )	2,090
A24000	Realized sales gains with subsidiaries, affiliates and joint ventures	( 27 )	( 27 )
A20400	Gain (loss) on financial assets and liabilities at fair value through profit and loss	( 2 )	( 2,925 )
A20900	Financial costs	356,899	334,719
A21200	Interest revenue	( 19,518 )	( 16,284 )
A21300	Dividend income	( 101,690 )	( 96,296 )
A21900	Provision for liabilities	34,906	-
A22400	Share of profit of subsidiaries, affiliates and joint ventures accounted for using the equity method	( 1,999,984 )	( 1,866,128 )
A22500	Losses from disposal of property or equipment	100	148
A23100	Gain on disposal of investments	( 908 )	-
A23700	Loss in impairment of non-financial assets	241,876	330,152
A23800	Inventory write-down and obsolescence loss (reversal gain)
Net change in operating assets and liabilities	5,174	( 74,710 )
A31115	Financial assets mandatorily measured at fair value through profit or loss	-	24,328
A31180	Accounts receivable	157,151	118,239
A31200	Inventory	339,333	154,715
A31230	Prepayments	( 43,386 )	( 36,960 )
A31240	Other current assets	3,704	( 4,805 )
A32180	Payables	( 140,238 )	49,875
A32230	Other current liabilities	( 10,926 )	( 5,150 )
A32240	Net determined benefit liability	( 41,805 )	( 137,759 )
A33000	Cash outflows generated from operations	( 734,198 )	( 789,413 )
A33100	Interest received	19,518	17,206
A33200	Dividends received	632,490	685,498

(Continued)

14 -

(Continued)

Code		2025	2024
A33300	Interest paid	($ 354,662)	($ 331,722)
A33500	Income tax paid	( 806)	( 929)
AAAA	Net cash outflow from operating activities	( 437,658)	( 419,360)
	Cash flow from investing activities
B00010	Acquisition of financial assets at fair value through other comprehensive profit or loss	( 841)	( 5,298)
B00020	Disposal of financial assets at fair value through other comprehensive profit or loss	23,824	40,000
B00030	De-capitalization refunded monies of financial assets at fair value through other comprehensive profit or loss (decrease)	66	-
B01800	Acquisition of long-term equity investments accounted for using the equity method	( 302,043)	-
B01900	Disposal of long-term equity investments accounted for using the equity method	-	177,710
B02700	Acquisition of property, plant and equipment	( 53,282)	( 23,464)
B02800	Disposal of property, plant and equipment	-	400
B03700	Decrease in Refundable deposits	6,000	100
B04300	Increase in receivables from related party loans	-	( 300,000)
B05400	Acquisition of investment property	-	( 12,024)
B06800	Decrease in other assets	85,914	86,527
B09900	Decrease (increase) in restricted assets	1,765	( 3,763)
BBBB	Net cash outflow from investing activities	( 238,597)	( 39,812)
	Cash flow from financing activities
C00100	Increase of short-term loans	816,926	-
C00200	Decrease in short-term loans	-	( 669,048)
C00500	Increase in short-term notes payable	-	100,240
C00600	Decrease in short-term notes payable	( 199,424)	-
C01600	Proceeds from long-term loan	4,590,000	4,860,000
C01700	Re-payments of long-term borrowings	( 4,542,700)	( 3,614,700)
C03000	Increase in guarantee deposits received	1,544	46
C04020	Payment of principal element of lease liabilities	-	( 1,595)
CCCC	Net cash inflow from financing activities	666,346	674,943
EEEE	Net increase (decrease) in cash and cash equivalents	( 9,909)	215,771
E00100	Cash and cash equivalents balance – beginning of year	1,088,053	872,282
E00200	Cash and cash equivalents balance – end of year	$ 1,078,144	$ 1,088,053

The notes attached shall constitute an integral part of this individual financial statement. (Refer to Auditor's Report presented by Deloitte Taiwan dated March 9, 2026)

Chairman: Kuei-Hsien Wang

Manager: Jeh-Yi Wang

Accounting Supervisor: Yun-Yun Hsu

China Man-Made Fiber Corporation
Notes to the Individual Financial Statements
January 1 to December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars, Unless Otherwise Noted)

I. Company Profile

(I) The Company was founded on May 11, 1955 in accordance with the Company Act and other related regulations. The Company was approved to be traded on the TWSE on December 2, 1963. Over the years after several rounds of increase and decrease in cash capital, the paid-in capital as of December 31, 2025 is NT$16,859,057 thousand.

(II) The Company is primarily engaged in the following business lines:

Manufacture, processing and trading of artificial fiber, glass paper, polyamine fiber, polyester fiber, chemical products and raw materials thereof;
Development, manufacture and trading of the machines referred to in the preceding paragraph;
Manufacture and trading of ethylene glycol, eto ethylene oxide, nonylphenol, ethylene, LGP and petrochemical industry-related products;
Lease and sale of national housing and commercial buildings constructed by commissioned contractors;
Distribution, sorting, handling and storage of various products;
Management of supermarkets, trading of fresh foods, vegetables, fish, dried merchandise and various seasonings;
Production and sale of steam and industrial power generated by cogeneration (no power may be sold to energy users);
Agency and distribution of cogeneration and pollution-prevention equipment, and contract of installation work;
Manufacture and trading of oxygen, liquid oxygen, nitrogen, argon, liquid argon, CO2 and compressed air;
Gas station.

(III) This parent company only financial statement is denominated in NT Dollar, the functional currency of the Bank.

II. Financial reporting date and procedures

The parent company only financial statements were approved for publication by the board of directors on March 9, 2026.

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III. Application of new and revised standards and interpretation

(I) The Company has applied the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC) and Standing Interpretations Committee (SIC) Interpretations (collectively, the “IFRS Accounting Standards”) recognized and endorsed into effect by the FSC (the “FSC Accounting Standards”) for the first time.

Amendments to IAS 21 "Lack of Exchangeability"

The IAS 21 Accounting Standards to which the amendment is applicable and recognized and promulgated to take effect by the Financial Supervisory Commission, R.O.C. (Taiwan) will not cause major changes in the company’s accounting policy.

(II) Applicable FSC-approved IFRSs as of 2026

The new / amended / revised standards or interpretation	Effective Date per IASB
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
“Annual Improvements to IFRS – Volume 11”	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments)	January 1, 2023

Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"

The amendments primarily revise the classification requirements for financial assets, including:

If a financial asset includes a contingent feature that may alter the timing or amount of contractual cash flows, and such feature is not directly linked to changes in lending risks or costs (e.g., whether the debtor meets specific carbon emissions reduction targets), the contractual cash flows of such a financial asset may still be considered solely payments of principal and interest on the principal amount outstanding, provided that the following two conditions are met:
In all possible scenarios (both before and after the occurrence of the contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and

The contractual cash flows under all possible scenarios are not significantly different from those of a financial instrument with the same contractual terms but without the contingent feature.
Clarifies that financial assets with non-recourse features refer to financial assets for which the entity's ultimate right to receive cash flows is contractually limited to the cash flows generated from specified assets.
Clarifies that contractually linked instruments use a waterfall payment structure to create multiple tranches of securities that establish the payment priority of holders of financial assets, thereby creating concentrations of credit risk and resulting in disproportionate allocation of cash flow shortfalls from the underlying pool among different tranches of securities.

Further to the above effects, the assessment of Company on other IFRSs as of the day this individual financial statement was approved for release did not cause significant influence on the financial position and consolidated financial performance.

(III) The IFRS Accounting Standards released by the IASB but not yet approved and announcement effective by the Financial Supervisory Commission

The new / amended / revised standards or interpretation	IASB publication effective date (Note 1)
Amendment to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and Investment in Associates.”	Undefined
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027 (Note 2)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless otherwise stated, the aforementioned new/revised/amended standards or interpretations become effective in the year after the respective date stated.

Note 2: On September 25, 2025, the FSC announced that enterprises in Taiwan shall apply IFRS 18 starting from January 1, 2028, and may elect for early adoption after IFRS 18 is endorsed by the FSC.

IFRS 18 "Presentation and Disclosure in Financial Statements" and related consequential amendments

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IFRS 18 will replace IAS 1 "Presentation of Financial Statements". Key changes under this new standard include:

The Company shall assess whether it has specific main business activities involving investment in particular types of assets and provision of financing to customers, and accordingly classify income and expense items in the statement of profit or loss into operating, investing, financing, income tax, and discontinued operations categories.
The income statement must present subtotals and totals for operating profit or loss, profit or loss before financing and income taxes, and profit or loss;
Guidance is provided to enhance aggregation and disaggregation requirements: the Company must identify assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and aggregate them based on shared characteristics so that each line item in the primary financial statements contains at least one common characteristic; Items with dissimilar characteristics must be disaggregated in the primary financial statements and the notes; The Company should label such items as "other" only when a more informative label cannot be identified.
Increased disclosure of performance measures defined by management: When the Company communicates performance measures that reflect management's view of some aspect of the entity's overall financial performance in public communications outside the financial statements, it shall disclose, in a single note to the financial statements, information regarding these management-defined performance measures, including a description, how they are calculated, a reconciliation to subtotals or totals specified by IFRS standards, and the effects of related reconciling items on income taxes and non-controlling interests.

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

When the Company prepares cash flows from operating activities using the indirect method, operating profit or loss shall be used as the starting point for reconciliation.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If the Company is assessed as having specific main business activities,
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the categories in which dividend income, interest income, and interest expenses are presented in the statement of profit or loss shall be considered in determining the classification of dividends received, interest received, and interest paid in the statement of cash flows. However, each of the aforementioned cash flows may only be classified within a single activity category in the statement of cash flows.

Apart from the impacts mentioned above, as of the approval date of these consolidated financial statements, the consolidated company is still evaluating other effects of amendments to standards and interpretations on its financial position and performance. The related impacts will be disclosed upon completion of the assessment. disclosed when the evaluation is completed.

IV. Summary of important accounting policies

(I) Compliance Statement

These individual financial statements are prepared in accordance with "Regulation Governing the Preparation of Financial Reports by Securities Issuers" and IFRSs accounting standards approved and announced effective by FSC.

(II) Basis of preparation

Except for the financial instruments on the basis of fair value and the recognition of net defined benefit (assets) liabilities on the basis of the present value of net defined benefit obligation net of the fair value of planned assets, this individual financial statement was compiled on the basis of historical cost.

The evaluation of fair value could be classified into Level 1 to Level 3 by the observable intensity and importance of related input value:

Level 1 input value: refers to the quotation of the same asset or liability in an active market as of the evaluation (before adjustment).
Level 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.
Level 3 input value: the unobservable input value of asset or liability.

(III) Current and non-current assets and liabilities

Current assets include:

Assets held mainly for trading purpose;
Assets expected to be realized within 12 months after the balance sheet date; and
Cash and cash equivalents (not including those that are limited to exchange or repay liabilities exceeding 12 months after the balance sheet date).
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Current liabilities include:

Liabilities held for trading purposes;
The liabilities to be liquidated upon due within 12 months after the balance sheet date (those with long-term refinancing or payment term rearrangement completed from the balance sheet date to the financial reports approved and published date are also classified as current liabilities), and
Liabilities for which the entity does not have a substantive right at the balance sheet date to defer settlement for at least 12 months after the balance sheet date.

For those that are not current assets or liabilities above are classified as non-current assets or liabilities.

Notwithstanding, given that the Company is engaged in construction projects and the operating period thereof is more than one year, the assets and liabilities related to construction projects were classified into current and non-current items according to the operation period.

(IV) Foreign Currency

In the process of compiling the parent company only financial statement, all transactions conducted other than the functional currency of the Bank shall be converted into the functional currency for bookkeeping as of the exchange rate effective on the transaction date.

Foreign currency monetary items are translated at the closing rate on each balance sheet date. The exchange differences arising from the settlement of monetary items or translating monetary items are recognized in the current profit or loss.

The foreign non-currency items measured at fair value are translated in accordance with the exchange rate on the fair value determination date and the exchange difference is booked as current profit or loss. However, for the changes in fair value recognized in the other comprehensive profit or loss, the exchange difference is recognized in the other comprehensive profit or loss.

The foreign non-currency items measured at historic cost are translated in accordance with the exchange rate on the transaction date without the need for a translation again.

Upon preparation of the Individual Financial Report, the assets and liabilities of the Company's and overseas operating institutions (including the subsidiaries, associates, joint ventures or branches in the countries of business operation or those using currencies different from the Company's) were converted to New Taiwan

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Dollars based on the exchange rate quoted on every balance sheet date. The profits and losses are translated in accordance with the current average exchange rates, and the exchange differences resulted is booked in other comprehensive income and attributable to the Company's shareholders and non-controlling equity, respectively.

When liquidating an offshore operating entity and which also results in losing control or with critical impact to said offshore operating entity, equity related to said offshore operating entity that can be classified to company owner's equity will be reclassified as loss or gain.

(V) Inventory

Inventories include raw materials, supplies, work-in-progress, products contracted to be processed, finished goods and products. Inventory is valued in accordance with the lower of cost or net cash value. When comparing cost and net cash value, except for the homogeneous inventories, it is based on the itemized lower of cost or net cash value. Net realizable value refers to the estimated sale price under normal circumstances net of the estimated cost needed to complete the project and the estimated expenses needed to complete the sale. Inventory cost is determined by the weighted-average method.

The construction inventories were stated at the cost invested actually. The cost for available-for-sale housing and land was amortized based on weighted-average building coverage method, and stated at the lower of cost or net realizable value at the end of the year.

(VI) Investment under the equity method

The Company has the investment in subsidiaries and affiliated companies handled in accordance with the equity method.

Investment in subsidiaries

Subsidiaries are the entities controlled by the Company.

Under the equity method, investments were originally recognized at cost; the book value after the acquisition date fluctuates along with the distribution of profit or loss from the subsidiaries and other comprehensive income. In addition, for the changes in the affiliated company's equity, the Company is entitled to have it recognized proportionately to the shareholding.

When the Company's change in the ownership of the subsidiary does not result in loss of control, it is treated as an equity transaction. The difference

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between the book amount of the investment and the fair value of the consideration paid or received shall be directly recognized as equity.

If the company's loss share amount to a subsidiary equals to or exceeds said subsidiary's equity (including the subsidiary's book value amount using the equity method and said subsidiary's other long-term equity in its investment makeup portion tangibly belonging to the company), it pertains to continuing to recognize as a loss by shareholding ratio.

Acquisition costs in excess of the Company's share of net identifiable assets and liabilities (i.e., fair value) in a subsidiaries on the date of acquisition are recognized as goodwill. This goodwill includes book value of the investment and is not amortized. Share of net identifiable assets and liabilities (i.e., fair value) in subsidiaries that exceeds acquisition cost on the date of acquisition is recognized as gains for the current year. In the acquisition of a subsidiary that does not constitute business undertakings, the acquisition cost is allocated to identifiable assets acquired where appropriate (including intangible assets), as well as the share of liabilities assumed, without producing goodwill or current benefits.

In assessing impairment, the Company based on the cash drivers of the financial statements and compared the recoverable amount and book value. If the amount of recoverable assets increased in the future, the reversal of impairment shall be recognized as income. The book value of the reversal of impaired assets shall not exceed the book value before recognition for impairment net of amortization. Subsequent reversal of impairment loss is not allowed.

In the event of loss of control over the subsidiary, the Company shall measure the fair value of the residual investment in the subsidiary on the date loss of control over the subsidiary. The difference between the fair value of the residual investment and the amount of disposal and the book amount of the investment on the date loss of control over the subsidiary is recognized in the profit and loss of the year. In addition, the accounting treatment for the amounts recognized in the other consolidated gains and losses that are related to the subsidiary is same as the accounting principle to be complied with while the Company directly disposing the relevant assets or liabilities.

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The unrealized concurrent trade between the company and the subsidiaries stated in the financial statement of individual entities shall be removed. The profit or loss resulting from the countercurrent, and side-stream transactions between the Company and the subsidiary are recognized in the individual financial statement within the range irrelevant with the Company's interest in the subsidiary.

Investments in the affiliated company

The term "associate" as set forth herein denotes an enterprise, which has significant effect upon the Company, but is not a subsidiary or a joint venture.

The Company adopts equity method for investment in associates.

Under the equity method, investments in the associates were originally recognized at cost; the book value after the acquisition date fluctuates along with the distribution of profit or loss from the associates and other comprehensive income. In addition, the changes in the equity of affiliates shall be recognized in proportion to the proportion of shareholding.

When the investee is an associate, the consolidated company chooses to adopt the treasury stock method to calculate the investment gain or loss from the associate.

When associates issue new shares, if the Company fails to subscribe stock share proportionally to their shareholding, resulting in changes in shareholding ratio and thus causing changes in net equity investment, the increase or decrease amount should be adjusted to the additional paid-in capital - recognizing changes in net equity of associates and joint under the equity method and investment under equity method. If the consolidated company' did not subscribe to the new shares pro rata to the shareholding percentages and led to a decrease of the shareholding percentages subscribed to or obtained from the associates, nevertheless, the amount of other comprehensive income so recognized was reclassified pro rata to the decrease ratio in the associate. The accounting management was on the grounds same as the grounds the associate must comply with if it directly disposed assets or liabilities. If the aforementioned adjustment must be debited into capital reserve where the balance of capital reserve yielded by the investment in equity method, the difference was debited as retained earnings.

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In the event that the Company’s shares of loss in the associates equal to or exceed its equity in the associates (including the book value of investment in the associates in equity method and other long-term interest of the Company in the investment composition of the associates), the Company’s discontinued recognition of the further losses. The Company’s recognized extra losses and liabilities only in the event of occurrence of legal obligations, presumed obligations or within the scope that the Consolidated Company’s had made payment on behalf of the associate.

When the Company performs an impairment evaluation, the overall carrying amount of the investments are treated as one single asset and then the impairment test performed to compare its recoverable amount with the carrying amount. The recognized impairment loss will not be allocated to any asset that causes the components of the carrying amount of investments. Any reversal of the impairment loss can be recognized within the range of the recoverable amount of the subsequently increased investment.

Besides, all relevant amounts relevant to the associates recognized in other comprehensive income were managed on the accounting grounds same as the grounds which it should comply with if the associates directly disposed of the relevant assets or liabilities.

The profit or loss resulting from the countercurrent, downstream and side-stream transactions between the Company and the associate is recognized in the individual financial statement within the range that is irrelevant to the Company’s interest in the associate.

(VII) Property, plant and equipment

Real property, plant and equipment are recognized as costs, and they will be measured by the amount after the costs less the amount of accumulated depreciation and accumulated impairment afterwards.

The property, plant and equipment and facilities under construction were recognized at the amount of the costs after deducting the loss in the accumulated impairment. Costs include professional service expenses and loan costs that meet the capitalization conditions. When such assets are completed and reach expected use status, such assets will be classified to proper items under real property, plant and equipment and the provision of depreciation shall begin.

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Except for self-owned land, the property, plant, and equipment are depreciated by significant parts over their useful lives on a straight-line basis. The Company shall at least inspect the estimated service life, residual value and depreciation method by the day of the end of each year and postpone the effect of applying estimated accounting changes.

In the case of derecognizing property, plants and equipment, the difference between the net disposal price and the book value of the asset is recognized in profit or loss.

(VIII) Investment property

Investment property is the real property held for purpose of earning of rental income or appreciation or both. Investment property includes lands held at present without determination of future use.

Investment property is measured on the basis of initial cost (including transaction cost) and subsequent measurement shall be based on the subtraction of accumulated depreciations and accumulated impairment from cost. The Company has depreciation appropriated in accordance with the straight-line method

In removing investment property, the difference between the net proceeds of disposition and the book value shall be recognized as income.

(IX) Intangible assets

Acquired separately

The intangible asset with limited useful life acquired separately was originally measured at cost and subsequently measured at cost, net of accumulated amortization and accumulated impairment losses. Intangible assets shall be subject to amortization under the straight-line method during its life span, and the estimation of life span, residual value and depreciation method shall be subject to review at least once a year and extend the effect of changes in applicable accounting policy.

Derecognition

In removing intangible assets, the difference between the net proceeds of disposition and the book value shall be recognized as income.

(X) The impairment of real estate, plants and equipment, right-of-use assets, and intangible assets (except goodwill)

The company evaluates whether there are any signs of impairment in real estate, plants and equipment, right-of-use assets and intangible assets (other than goodwill)

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on every balance sheet date. If there is any indication of impairment occurring, the recoverable amount of the asset should be estimated. If the recoverable amount of an individual asset cannot be estimated, the Company is to estimate the recoverable amount of the respective cash-generating unit. The common asset is amortized to each cash-generating unit in accordance with a consistent and reasonable sharing basis.

The intangible asset with indefinite useful lives and not yet available for use should be tested for impairment at least annually or should be tested when there is an indication of impairment.

The recoverable amount is the fair value net of cost or the value in use whichever is higher. When the recoverable amount of an individual asset or cash-generating unit is less than its book amount, the book amount of the asset or cash-generating unit should be reduced to its recoverable amount. The impairment loss is recognized in the profit or loss.

When the impairment loss was reversed subsequently, the book amount of the asset or cash-generating unit is increased to the adjusted recoverable amount, but the increased book amount may not exceed the book amount of the asset or cash-generating unit without recognizing the impairment loss in prior periods (net of amortization or depreciation). The reversed impairment loss is recognized in the profit or loss.

(XI) Financial instruments

When the Company has become a party to the instrument contract, the financial assets and financial liabilities are to be recognized in the individual balance sheet.

For the initial recognition of the financial assets and financial liabilities, if the financial assets or financial liabilities are not measured at fair value through profit or loss, it is measured at fair value plus transaction cost that is directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction cost directly attributable to the acquisition or issuance of financial assets or financial liabilities that are measured at fair value through profit or loss is immediately recognized in the profit or loss.

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Financial Assets

The customary transaction of financial assets is recognized and de-recognized in accordance with the trade date accounting.

(1) Classification of measurement

The financial assets held by the Company are financial assets at fair value through income statements, financial assets on the basis of cost after amortization, investment of debt instruments at fair value through other comprehensive income statements, and equity instruments at fair value through other comprehensive income.

A. Financial assets at fair value through profit and loss

Financial assets measured at fair value through profits or losses are financial assets that are mandatorily measured at fair value through profits or losses. Financial instruments designated at fair value through income statements included the investment of equity instruments not designated at fair value through other comprehensive income and those not conforming to the standard of debt instruments on the basis of cost after amortization or at fair value through other comprehensive income.

The financial assets measured at fair value though profit or loss is measured at fair value; also, the profit or loss of revaluation (including any dividends or interest arising from the financial asset) is recognized in the profit and loss. Please refer to Note 28 for the determination of fair value.

B. Financial assets on the basis of cost after amortization

If the financial assets of the Company met both of the following conditions, classify as financial assets on the basis of cost after amortization:

a. Financial assets held under particular mode of operation and the purpose of holding is for the collection of cash flow from contracts; and
b. Cash flow generated on particular dates deriving from the contacts and the cash flow is wholly for the payment of principal and interest accrued from the outstanding amount of the principal.

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Financial assets on the basis of cost after amortization (including cash and cash equivalents, notes receivable on the basis of cost after amortization, accounts receivable, other receivables, and restricted assets) shall be determined for the total book value under the effective interest rate method after the initial recognition net of the cost of any impairment after amortization for measurement. Any exchange gains or loss will be recognized as income.

Interest income will be the product of effective interest rate and total book value of financial assets except under the following two conditions:

a. The interest income of financial assets procured or initiated under credit impairment will be the product of the effective interest rate after credit adjustment and the cost of financial assets after amortization.

b. Financial asset that has subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset.

The term “credit-impaired financial assets” refers to financial assets whose active market has disappeared due to significant financial difficulty or breach of contract of the issuer or borrower, possible declaration of bankruptcy or other financial reorganization of the borrower, or any other financial difficulty.

Cash equivalents are time deposits within 3 months from the date of acquisition, with high liquidity, can be converted into cash with marginal risk on the change in value, and are used for the fulfillment of short-term commitment in cash settlement.

C. Debt instrument investments measured at fair value through other comprehensive income

if the investment of debt instruments by the Company met both the two conditions below, classify as financial instruments at fair value through comprehensive income:

a. Financial assets held under the particular mode of operation and the purpose of holding being for collection of cash flow from contracts; and

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b. Cash flow generated on particular dates deriving from the contacts and the cash flow is wholly for the payment of principal and interest accrued from the outstanding amount of the principal.

Other investment of debt instruments at fair value through comprehensive income should be measured at fair value. Changes in the book value shall be recognized as income under the calculation of interest income under the effective interest rate method and exchange gain and loss and impairment or reversal benefits shall be recognized as income. Other changes shall be recognized as other comprehensive income and reclassified as income at the disposition of investment.

D. Equity instrument investments measured at fair value through other comprehensive income

The Company may make an irrevocable choice at the time of initial recognition for designating the investment of equity instruments not available-for-sale and not recognized by the consolidated acquirer under corporate acquisition or with consideration at fair value through other comprehensive income for measurement.

The investment of equity instruments at fair value through other comprehensive income is measured at fair value. Subsequent changes in fair value will be recognized as other comprehensive income and accumulated into other equity. In the disposition of assets, accumulated gains or loss shall be directly transferred to retained earnings without classification as income.

The dividends of the investment of equity instruments at fair value through other comprehensive income shall be recognized as income when the right of the Company in the collection of dividends is ascertained, unless the dividend is obviously representing the recovery of the cost of investment in part.

(2) Impairment of financial assets

The company measures its amortized financial assets (including accounts receivable) measured by cost and other general loss or gain by fair value on investments' impairment loss measured by debt instruments with anticipated credit loss assessment on every balance sheet date.

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Notes receivable and receivable accounts shall be recognized for provisions for loss on the basis of anticipated credit loss within the perpetuity of the assets. Other financial assets shall be evaluated for any significant increase of risk from the day of initial recognition. If none is found, recognize for provision for anticipated credit loss along a period of 12 months. If it is, recognize for provision of anticipated credit risk within the perpetuity of the assets.

Anticipated credit loss is the weighted average loss of credit on the basis of the weight of the risk of default. Anticipated credit loss in a period of 12 months means the expected loss of credit from the financial instruments within 12 months due to default. Anticipated credit loss with the perpetuity of the financial instruments means the expected loss of credit from the financial instruments within the perpetuity of these financial instruments.

For internal credit risk management purpose, the Company, without considering the collateral, determines the following circumstances indicating that a default has occurred on the financial instrument:

A. There is internal or external information indicating that the debtor is no longer able to pay off a debt.

B. Payments are overdue for more than 90 days, unless there are reasonable and supporting information showing that the delayed default benchmark is more appropriate.

All impairment of financial assets is recognized through the reduction of the book value of the provisioned account. However, the provision for loss of investment of debt instruments at fair value through comprehensive income shall be recognized as other comprehensive income without the reduction of its book value.

(3) The de-recognition of financial assets

The Company’s financial assets are de-recognized only when the contractual rights from the cash flows of a financial asset becomes invalid, or when the financial assets are transferred and almost all the risks and rewards of the asset ownership have been transferred to other enterprises.

Derecognition of financial asset measured at amortized costs in its entirety, the difference between the asset’s carrying amount and the

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consideration received is recognized in profit or loss. When particular debt instruments measured at fair value through comprehensive income is entirely removed, the total sum of any other accumulated gains or loss of the difference between book value and consideration recognized as other comprehensive income shall be recognized as income. When particular equity instruments measured at fair value through comprehensive income are entirely removed, the accumulated gains of loss shall be directly transferred to retained earnings without being classified as income.

2. Financial Liabilities

(1) Subsequent measurement

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

(2) De-recognition of financial liabilities

When derecognizing financial liabilities, the difference between the book amount and the consideration paid (including any transferred non-cash assets or assumed liabilities) is recognized as profit or loss.

(XII) Liability reserve

The recognized liability reserve amount is with the risk and uncertainty of the obligation considered, and it is the optimum estimate of the expenditure required to settle the obligations on the balance sheet date. Provision for liabilities shall be measured based on the discount value of the estimated cash flow for the settlement of obligation.

The provision for carbon fee liabilities recognized in accordance with Taiwan's Regulations Governing the Collection of Carbon Fees and related laws and regulations is measured based on the best estimate of the expenditures required to settle the obligation for the current year.

(XIII) Treasury stock

Treasury stock was stated at cost and shown as a deduction in shareholders' equity when the Company repurchased the stock, while it was stated at fair value if it was donation accepted by the Company.

The gains resulting from disposal of the treasury stock, if any, were higher than the book value, the difference thereof was stated under "capital surplus - treasury stock." If gains were lower than the book value, the difference should first be offset

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against capital surplus from the same class of treasury stock transactions, and the remainder, if any, should be debited to retained earnings.

When the Company retired treasury stock, the treasury stock was written off, and against the “capital surplus – stock premium” and “capital stock” on a pro rata basis. When the book value of the treasury stock exceeded the total of the “capital stock” and “capital surplus-capital stock premium”, the difference was charged to capital surplus generated from the same class of treasury stock transactions and to retained earnings for any remaining amount. When the book value was lower than the total, the difference was credited to capital surplus arising from the same class of treasury stock transactions.

(XIV) Recognition of revenue

The Company, after identifying the performance obligations, had the transaction price amortized to each performance obligation and recognized as income when the performance obligations were fulfilled.

Contracts of which the time interval between the transfer of goods or services and the consideration is less than one year shall not have its major financial components, such as transaction price, adjusted.

Commodity sales revenue

When income on goods sold having had a price and utilization right defined by the customer and who also shoulders the primarily resale liability and who also assumes the goods’ shelving and dating risk, the Company recognizes the income and accounts receivable at said timing point.

When the material is supplied for processing, the ownership of the processed product is not transferred; therefore, the income is not recognized when the material is supplied.

Interest revenue

Interest income of financial assets is recognized when the economic benefit is likely to flow to the Company and the amount of revenues can be measured reliably. Dividend revenues are recognized by the outstanding capital by the passage of time and the applicable effective interest rate on an accrual basis.

For a single or a group of similar financial asset that is reduced due to impairment losses, the subsequently recognized interest income is calculated in

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accordance with the interest rate that is used for the discounting of future cash flow when measuring the impairment loss.

Labor revenue

Labor service income is recognized at the time the service is provided.

Revenues yielded by the labor services rendered in accordance with the contract were recognized based on the progress degrees set forth under the contract.

Dividend income

Dividend income from investments is recognized when the shareholders' right to receive payment is established; however, it is under the pre-conditions that the economic benefits associated with the transaction system are likely to flow into the Company and the amount of revenues can be measured reliably.

(XV) Leases

The Company assesses whether or not the arrangement is (or includes) a lease arrangement on the agreement date

The Company as a lessor

When the lease term is to have all risks and returns attached to the ownership of assets transferred to the lessee, it is classified as a financing lease. All other leases are classified as operating leases. All lease agreements of the Company are currently operating leases.

Lease payments for operating leases upon deduction of lease incentives are recognized as income on a straight-line basis in relevant lease periods.

When leases include both land and building elements, the Company assesses whether or not different element categories are finance or operating leases based on whether almost all risks and returns associated with the ownership rights pertaining to each element have been transferred to the lessee. Lease payments are allocated proportionally to land and buildings based on the fair value of lease rights for land and buildings on the date of contract conclusion. If lease payments can be allocated to these two elements in a reliable manner, each element shall be handled in accordance with the applicable lease category. If lease payments cannot be allocated to these two elements in a reliable manner, the entire lease shall be classified as a finance lease. However, if it is evident that these two elements meet the operating lease standards, the entire lease shall be classified as an operating lease.

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The Company as a lessee

Except for recognizing low-value asset leases applying to exemption and lease payments for short-term leases being recognized as an expense on a straight-line basis over the lease term, other leases will be recognized as right-of-use assets and lease liabilities at lease commencement date.

The right-of-use asset is measured at cost (including the amount equal to the lease liability at its initial recognition, lease payments made before the commencement of the lease less any received, any incurred by the lessee, and an estimate of costs to be incurred by the restoring the underlying asset to the condition required) less any depreciation and any accumulated impairment losses, and the adjustments was made to the remeasurement of lease liabilities. Right-of-use assets are separately expressed on the individual balance sheet.

The right-of-use assets were depreciated on a straight-line basis over the period from the commencement date of the lease to expiration of its useful life or expiration of the lease term, whichever date is earlier.

Lease liabilities are measured initially based on the present value of lease payments (incl. fixed payments, in-substance fixed lease payments, and variable lease payments determined by indices or rates). If the implied interest rate of the lease is easily determined, the lease payments will be discounted to their present value using that interest rate. If such interest rate is not easily determined, the incremental borrowing rate will be used.

Subsequently, the lease liabilities are measured at amortized cost using effective interest method and the interest expenses are amortized over the lease term. If changes in indices or rates utilized to determine lease payments lead to changes in future lease payments, the Company should remeasure lease liabilities and adjust right-of-use assets correspondingly. However, if right-of-use asset carrying amounts have already dropped to zero, remaining remeasurement amounts are recognized as profit or loss. For lease modifications that are not treated as a separate lease, the remeasurement of lease liabilities due to the reduced scope of the lease is to reduce the right-of-use assets, and to recognize the gain or loss of the partial or full termination of the lease; the remeasurement of the lease liabilities due to other modifications is to adjust the right-of-use assets. Lease liabilities are separately expressed on the individual balance sheet.

35 -

(XVI) Borrowing costs

Borrowing costs directly belonging to acquiring, building or producing assets that meet the requirements are part of the costs of such assets until the completion of all necessary activities that the assets reaching the status of expected use or sale.

The income of a temporary investment with a specific loan that has not yet met the essential requirement of capital expenditure is deducted from the loan cost that meets the essential requirement of capitalization.

In addition to the transaction stated in the preceding paragraph, all other loan costs are recognized as profit and loss upon occurring.

(XVII) Government grants

The government subsidies shall only be recognized, provided that it can be reasonably convicted the company will comply with the supplementary terms for government subsidies and that the subsidies can be received.

If the government subsidies are used for compensating expenses or losses that have already incurred, or if the purpose is to provide the company with immediate financial support and if there are no related costs in the future, they shall be recognized as profit or loss during the collection period.

(XVIII) Employee welfare

Short-term employee benefits

Liabilities relating to short-term employee benefits are measured by the non-discounted amount of the expected payment in exchange for employee services.

Retirement benefits

Under the defined contribution pension plan, the pension amount appropriated during the service years of the employees is recognized as an expense.

The determined cost of benefit for determined benefit retirement plan (including the cost of service, net interest, and reevaluation) is based on the actuary of projected unit method. The net interest arising from the cost of services (including current service costs and net defined benefit liabilities) is recognized as an employee benefits expense when incurred. The value of second measurement (including the profits and loss under actuary and the return on assets of the plan net or interest) shall be recognized as other comprehensive

36 -

incomes and as retained earnings, if realized. No reclassification as profits and loss in subsequent periods.

Net defined benefit liability (asset) is the appropriation deficit (surplus) of the defined benefit pension plan. Net determined benefit asset shall not exceed the refund of the appropriated fund or decrease the present value of appropriation of fund in the future.

(XIX) Income tax

Income tax expense is the sum of the current income tax and deferred income tax.

Income tax expenses in the current period

Based on the regulations set by each income tax reporting jurisdiction, the company shall determine the current income (loss), based on which the payable (recoverable) income tax is calculated.

Additional income tax on unappropriated earnings is calculated in accordance with the provisions of the Income Tax Act of the Republic of China, to be recognized in the year of the shareholder resolution meeting.

The adjustment to prior period income tax payable is booked as current income tax.

Deferred tax

Income tax is computed in accordance with the temporary differences between the book value of assets and liabilities and the tax bases of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences. Deferred income tax assets are recognized when there is a likelihood to have taxable income available for income tax credit resulting from the expenses of deductible temporary differences and tax loss carryforwards.

The taxable temporary differences related to the investment in the equities of the subsidiaries, affiliates, and joint ventures are recognized as deferred income tax liabilities, except for those that the Company can control the timing of reversing the temporary difference and the temporary difference is unlikely reversible in the foreseeable future. The deferred income tax asset arising from deductible temporary differences associated with such investment and equity is recognized within the range of earnings that are with sufficient taxable income to

37 -

realize temporary differences and are expected to be reversed in the foreseeable future.

The book amount of deferred income tax asset must be reviewed at each balance sheet date. The book amount of those that no longer have any sufficient taxable income to recover all or part of the asset, should be adjusted down. Those that are not originally recognized as deferred income tax assets should also be reexamined at each balance sheet date. The book amount of those that are likely to generate taxable income in the future for the recovery of all or part of its assets should be adjusted up.

Deferred income tax assets and liabilities are measured in accordance with the expected liability liquidation or the tax rate in the period when the asset is realized. The tax rate is based on the tax rate and tax laws that are legislated or substantively legislated at the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax effect resulting from the book amount of the assets and liabilities expected to be recovered or liquidated at the balance sheet date.

Current & deferred income taxes

Current and deferred income taxes are recognized in the profit or loss, except for the current and deferred income taxes related to the items recognized in other comprehensive income or directly included in the equity are recognized in the other comprehensive income or directly included in the equity. If the current period's income tax or deferred income tax is incurred from acquiring a subsidiary, the income tax impact sum is streamlined into the invested subsidiary's accounting processing.

V. Main source of significant accounting judgment, estimates and assumptions uncertainty

When adopting accounting policy, the management of the Company shall make related judgments, estimations, and assumptions for information that cannot be easily retrieved from other sources based on historical experiences and other relevant factors. Actual results may differ from the estimates.

When developing material accounting estimates, the Company includes possible effects in the cash flow projection, growth rate, lease liabilities, profitability and related significant accounting estimates. The management will continue to review the estimates and basic assumptions.

38 -

Estimates with regard to the main source of uncertainty

Impairment of real property, plant and equipment

The evaluation of property, plant, and equipment impairment is based on the recoverable amount of the said equipment (i.e. the fair value of the said assets deducted by sales costs and higher value of use). The market price or changes in future cash flow will affect the recoverable amount of the said assets, which may result in the Company's need to recognize impairment costs or reverse recognized impairment losses.

VI. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 407	$ 407
Bank checks and demand deposits	1,077,737	1,087,646
	$ 1,078,144	$ 1,088,053

The market interest rate interval of bank deposit on the balance sheet date was as follows:

Bank deposits	December 31, 2025	December 31, 2024
	0%~0.71%	0%~1.10%

VII. Financial instrument at fair value through profit and loss

	December 31, 2025	December 31, 2024
Financial assets - current
Measured at fair value through income under compulsion
Non-derivative financial assets
- Shares traded on the Taiwan
Stock Exchange or OTC exchange	$ 16	$ 14

VIII. Financial assets at fair value through other comprehensive profit or loss

	December 31, 2025	December 31, 2024
Non-current
Equity investment	$ 2,818,096	$ 2,467,882
Debt instrument	70,000	70,000
	$ 2,888,096	$ 2,537,882

(I) Equity investment

	December 31, 2025	December 31, 2024
Non-current
Listed stocks – domestic and emerging stock	$ 2,454,605	$ 2,154,655
Domestic unlisted stocks	355,723	304,972
Foreign unlisted stocks	7,768	8,255
	$ 2,818,096	$ 2,467,882

The Company invested in the aforementioned stocks of companies in line with its long-term investment strategic objective with the anticipation of return from long-term investment. The management of the Company holds that the short-term fluctuation in the fair value of these investments shall be recognized as income or loss and is not congruent with the aforementioned long-term investment plan, therefore they chose to designate these investments as financial assets at fair value through other comprehensive income.
In 2025, the Company disposed of a portion of its common shares at a fair value of NT$23,824 thousand and reclassified the cumulative unrealized valuation loss of NT$23,806 thousand from other equity to retained earnings upon disposal.
The Company recognized dividend income in amounts of NT$101,690 thousand and NT$96,296 thousand in the years 2025 and 2024, respectively, both of which were related to the investments still held as of December 31, 2025 in 2024.
For more information on pledge of equity instrument investments measured at fair value through other comprehensive income, please refer to Note 30.

(II) Debt instrument

	December 31, 2025	December 31, 2024
Non-current
Domestic investment
Bank debentures of Taichung Commercial Bank Co., Ltd.	$ 70,000	$ 70,000

In July 2024, the Company recovered principal of NT$40,000 thousand due to Taichung Commercial Bank Co., Ltd.'s mandatory redemption of its issued financial bonds.

Refer to Note 9 for further information on investment of debt instruments measured at fair value through other comprehensive income and related risk management and evaluation of impairment.

IX. Credit risk management for investment in debt instruments

The company has invested of debt instruments are classified as financial assets measured by fair value under other general loss or gain.

	December 31, 2025	December 31, 2024
Total Book Value	$ 70,000	$ 70,000
Loss allowance	-	-
Cost after amortization	70,000	70,000
Fair value adjustment	-	-
	$ 70,000	$ 70,000

The company has adopted of policy for merely investing in debt instruments with an investment grade or higher (inclusive) and with loss assessment being low in credit risk. Bonds are classified in accordance with the initial credit rating classification from MOODY's, FITCH, S&P and Taiwan Ratings. The company would continue to follow up on external assessment information, through which to monitor the credit risk fluctuations on its invested debt instruments, and also monitors the bond yield ratio curve and creditors' critical information among other information, to assess whether the debt instruments' credit risk has apparently increased following the initial recognition.

The company takes into consideration of outside assessment entities-supplied various levels of history default loss ratios, debtors' current financial standing and the industries' future forecasts, to measure the debt instrument investment's 12-month expectant credit loss or expectant credit loss during the sustaining period.

The current credit risk evaluation approach of the Company and the total carrying amount of debt instrument investments with various credit ratings are shown as below:

Credit rating	Definition	Basis for recognizing expected credit losses	Expected credit loss rate	Total book value of December 31, 2025
Normal	The debtors' credit risk is low and also has sufficient capability to pay off contractual cash flows.	Anticipated credit loss in 12 months	0%~0.5%	$ 70,000
Credit rating	Definition	Basis for recognizing expected credit losses	Expected credit loss rate	Total book value of December 31, 2024
Normal	The debtors' credit risk is low and also has sufficient capability to pay off contractual cash flows.	Anticipated credit loss in 12 months	0%~0.5%	$ 70,000

X. Notes receivable, accounts receivable, and other accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable
Measured on the basis of cost after amortization
Notes receivable	$ 66,199	$ 61,109
Less: Allowance for losses	-	-
	$ 66,199	$ 61,109
Accounts receivable
Measured on the basis of cost after amortization
Accounts receivable	$ 370,475	$ 468,490
Accounts receivable - related parties	82,949	146,767
Less: Allowance for losses	( 11,191)	( 21,839)
	$ 442,233	$ 593,418
Other receivables
Receivables from related party loans	$ 300,000	$ 300,000
Receivable tax refund	6,737	7,145
Other receivable - related parties	2,682	3,878
Others	27,138	25,942
Less: Allowance for losses	( 25,682)	( 25,682)
	$ 310,875	$ 311,283

The company's average credit period of product sales is 30-90 days. No interest will be calculated for accounts receivable; if the credit condition of 30 days is exceeded, the unpaid balances of some customers will be computed at 3% interest rate per annum. The company has adopted of policy pertains to merely conducting transactions with subjects surpassing company internal credit check, and would cease to ship the goods or obtain a guarantee check under necessary circumstances, through which to mitigate the risk of financial loss incurred due to overdue payment. The Company will use other publicly available financial information and historical transaction records to rate major customers. The company would continue to monitor credit exposure and the transaction opponents' credit rating, and would also spread transaction amounts to varied customers with satisfactory credit rating; in addition, company management would manage credit exposure per approved empowerment on revalidation and approving the transaction opponents' line of credit.

To mitigate credit risk, company management has assigned designated personnel to be responsible for determining the line of credit, credit approval and other monitoring procedures, through which to ascertain that adequate action has been taken on recalling

overdue payments receivable. In addition, the Company will review the recoverable amount of receivables on each balance sheet date to ensure that appropriate impairment loss has been appropriated for the uncollectible receivables. Under the circumstance, the Company's management believes that the Company's credit risk is significantly reduced.

The Company adopts the preparation matrix to measure the allowance loss for notes and accounts receivable (including related party) as follows:

December 31, 2025

	Not overdue	Overdue 1 to 30 days	Overdue 31 to 60 days	Overdue 61 to 120 days	Overdue over 120 days	Total
Expected credit loss rate	0%~2%	0%~3%	0%~4%	0%	0%
Total Book Value	$ 373,675	$ 108,071	$ 37,877	$ -	$ -	$ 519,623
Allowance for loss (expected credit loss of the given duration)	( 6,838 )	( 2,967 )	( 1,386 )	-	-	( 11,191 )
Cost after amortization	$ 366,837	$ 105,104	$ 36,491	$ -	$ -	$ 508,432

December 31, 2024

	Not overdue	Overdue 1 to 30 days	Overdue 31 to 60 days	Overdue 61 to 120 days	Overdue over 120 days	Total
Expected credit loss rate	0%~3%	0%~5%	0%~6%	0%	0%
Total Book Value	$ 534,531	$ 92,976	$ 48,859	$ -	$ -	$ 676,366
Allowance for loss (expected credit loss of the given duration)	( 15,127 )	( 3,947 )	( 2,765 )	-	-	( 21,839 )
Cost after amortization	$ 519,404	$ 89,029	$ 46,094	$ -	$ -	$ 654,527

Loss allowance of receivables as follows:

	2025	2024
Balance - beginning	$ 50,459	$ 95,478
Reduction: Impairment reversal benefits during the year	( 10,648 )	( 45,019 )
Balance - ending	$ 39,811	$ 50,459

The foresaid receivables' loss reserve includes loss reserve for notes receivable, accounts receivable, other receivables and collection.

XI. Inventory

	December 31, 2025	December 31, 2024
Merchandise	$ 6,253	$ 1,461
Finished goods	304,827	535,829
Work in process	66,010	80,597
Raw materials	139,406	208,916
Supplies	37,510	71,710
	$ 554,006	$ 898,513

(I) The inventories of finished goods included the finished goods, by-products, supplies in transit by the Company, primarily the finished goods produced by Kaohsiung

petrifaction plant, ethylene glycol, and the finished goods of the polyester plant, polyester silk, and others.

(II) The Company's building/land available for sale on December 31, 2025 and 2024 are both NT$65,775 thousand, which pertains to the He Ti co-development case located in Sanchong District, New Taipei City, in a three-way joint collaboration among the company, Hung Chou Fiber Industrial Co., Ltd. and San Feng Construction Co., Ltd. in 1997, which has been completed in 2000. As appraised, the unsold part's net realizable value is nil, and the allowance for bad debt was provided in full.

(III) The Company's cost of goods sold related to inventory in 2025 and 2024 were NT$6,098,701 thousand and NT$6,779,181 thousand, respectively. Cost of goods sold include inventory losses (revaluation gains) of NT$5,174 thousand and NT$(74,710) thousand, respectively, and the loss from work stoppage were NT$892,745 thousand and NT$983,905 thousand, respectively.

(IV) The reversal of inventory to net realizable value in 2024 was due to an increase in market selling prices of the products.

(V) As of December 31, 2025 and 2024, the allowance for inventory valuation losses was NT$116,464 thousand and NT$111,290 thousand, respectively.

XII. Prepayments

	December 31, 2025	December 31, 2024
Pre-paid expenses	$ 393,329	$ 355,763
Pre-paid materials purchases	61,013	71,376
Tax credit	300,042	283,859
	$ 754,384	$ 710,998

XIII. Investment under the equity method

	December 31, 2025	December 31, 2024
Investment in subsidiaries	$ 23,307,473	$ 21,218,097
Investments in the affiliated company	717,387	827,242
	$ 24,024,860	$ 22,045,339

(I) Investment in subsidiaries

	December 31, 2025	December 31, 2024
Listed (OTC) company
Taichung Commercial Bank Co., Ltd.	$ 19,469,234	$ 17,493,674
Pan Asia Chemical Corporation	1,984,333	1,862,092
Non-listed (OTC) company
De Xing Investment	1,023,058	1,007,903

Company
Chou Chin Industrial Co.,
Ltd.
Taichung Bank Securities
Investment Trust Co., Ltd.
816,102
839,637
14,746
14,791
$ 23,307,473
$ 21,218,097

The Company’s ownership and voting rights in the equity of the subsidiary at the balance sheet date is as follows:

	December 31, 2025	December 31, 2024
Taichung Commercial Bank Co., Ltd.	21%	21%
Pan Asia Chemical Corporation	44%	44%
De Xing Investment Company	100%	100%
Chou Chin Industrial Co., Ltd.	47%	47%
Taichung Bank Securities Investment Trust Co., Ltd.	3%	3%

The above ratio is indicated by individual shareholding percentage.
The 2025 and 2024 profit or loss and other comprehensive income of the subsidiary under the equity method was recognized in accordance with the audited financial statements during the same period of the subsidiary.
In 2024, the Company resolved at a Board of Directors meeting to sell 10,000 thousand common shares of Taichung Commercial Bank Co., Ltd. On August 26, 2024, the shares were sold through a block trade on the Taiwan Stock Exchange at a transaction price of NT$17.85 per share. The total proceeds, including handling fees and withholding tax, amounted to NT$177,710 thousand. As a result, the Company’s shareholding ratio decreased from 21.49% to 21.31%.
During 2025, the Company participated in the cash capital increase of Taichung Commercial Bank and acquired an additional 15,981 thousand shares at an investment cost of NT$302,043 thousand. As the subscription was not made in proportion to its shareholding ratio, the Company’s ownership interest decreased from 21.31% to 21.22%. Accordingly, capital reserve increased by NT$35,974 thousand. In addition, the portion of other comprehensive income previously recognized that corresponded to the reduced shareholding ratio was transferred to retained earnings and current-period profit or loss, resulting in an increase of NT$64 thousand in retained earnings. A gain on disposal of investment of NT$908 thousand was also recognized.
45 -

For the disclosure of the Company’s disposal of subsidiary of indirect control, please refer to the Company’s 2025 Consolidated Financial Statements, Note 17 and 36.
For subsidiaries the company invests in by designated mortgage lien as the loan guarantee, please refer to Note 30.

(II) Investments in the affiliated company

The balance the company investing in affiliated enterprises is as follows:

	December 31, 2025	December 31, 2024
Individual non-dominant associates
Nan Chung
Petrochemical Corporation	$ 717,387	$ 827,242

Summarized information of individually immaterial associates.

	2025	2024
Share of the Company
Net loss of current period	($ 110,421)	($ 112,606)
Current period other comprehensive income	566	( 402)
Total comprehensive loss	($ 109,855)	($ 113,008)

The 2025 and 2024 profit or loss and other comprehensive income of the associate under the equity method was recognized in accordance with the audited financial statements during the same period of the associate.

For the share amount on associates the company designating mortgage lien as the loan guarantee, please refer to Note 30.

XIV. Property, plant and equipment

	December 31, 2025	December 31, 2024
Book value of each category
Land	$ 2,926,476	$ 2,926,476
House and Building	761,951	816,078
Machine and Equipment	2,395,730	2,891,225
Transportation Equipment	2,201	3,566
Office Equipment	78,952	87,807
Construction in process and prepayment for machinery purchase	5,861	5,258
	$ 6,171,171	$ 6,730,410
	Land	House and Building
---	---	---
Cost
Balance on January 1, 2025	$ 2,926,476	$ 2,350,472
Increase in current period	-	-
Decrease in current period	-	-
Reclassification in current period	-	-
Balance as of December 31, 2025	$ 2,926,476	$ 2,350,472
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 1,148,741
Increase in current period	-	54,127
Decrease in current period	-	-
Balance as of December 31, 2025	$ -	$ 1,202,868
Accumulated impairment
Balance on January 1, 2025	$ -	$ 385,653
Increase in current period	-	-
Decrease in current period	-	-
Balance as of December 31, 2025	$ -	$ 385,653
Net amount as of January 1, 2025	$ 2,926,476	$ 816,078
Net amount as of Dec. 31, 2025	$ 2,926,476	$ 761,951

(Continued)

	Land	House and Building	Machine and Equipment	Transportation Equipment	Office Equipment	Construction in process and prepayment for machinery purchase	Total
Cont
Balance on January 1, 2024	$ 2,926,476	$ 2,346,917	$ 11,298,941	$ 20,359	$ 193,657	$ 13,017	$ 16,799,367
Increase in current period	-	3,555	14,817	-	1,905	3,187	23,464
Decrease in current period	-	-	( 597,286 )	( 3,054 )	( 3,016 )	-	( 603,356 )
Reclassification	-	-	-	-	5,520	( 10,946 )	( 5,426 )
Balance as of December 31, 2024	$ 2,926,476	$ 2,350,472	$ 10,716,472	$ 17,305	$ 198,066	$ 5,258	$ 16,214,049
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 1,093,506	$ 6,488,685	$ 13,996	$ 78,291	$ -	$ 7,674,478
Increase in current period	-	55,235	371,316	745	9,242	-	436,538
Decrease in current period	-	-	( 596,296 )	( 2,619 )	( 3,016 )	-	( 601,931 )
Balance as of December 31, 2024	$ -	$ 1,148,741	$ 6,263,705	$ 12,122	$ 84,517	$ -	$ 7,509,085
Accumulated impairment
Balance on January 1, 2024	$ -	$ 385,653	$ 1,243,816	$ 1,483	$ 14,327	$ -	$ 1,645,279
Increase in current period	-	-	318,566	171	11,415	-	330,152
Decrease in current period	-	-	( 840 )	( 37 )	-	-	( 877 )
Balance as of December 31, 2024	$ -	$ 385,653	$ 1,561,542	$ 1,617	$ 25,742	$ -	$ 1,974,554
Net amount as of January 1, 2024	$ 2,926,476	$ 867,758	$ 3,566,440	$ 4,880	$ 101,039	$ 13,017	$ 7,479,610
Net amount as of Dec. 31, 2024	$ 2,926,476	$ 816,078	$ 2,891,225	$ 3,566	$ 87,807	$ 5,258	$ 6,730,410

(I) In 2025 and 2024, due to a decline in the expected future economic benefits of the equipment in the chemical industry segment, the Company recognized impairment losses of NT$241,876 thousand and NT$330,152 thousand, respectively, as the recoverable amounts were lower than the carrying amounts. The impairment loss has been included under other income and expenses in the consolidated income statement.

The Company determines the recoverable amount of the equipment in the chemical industry sector after deducting the fair value from cost of disposal. Relevant fair values are determined through comprehensive evaluation using the cost method and market approach. The main assumptions include replacement cost under cost method, market approach functionality, economic loss, and other necessary adjustments, which fall under Level 3 fair value measurement.

(II) Property, plant and equipment are depreciated in accordance with the straight-line method over the following respective useful years:

49 -

House and Building
House	20 to 60 years
Renovation engineering	8 to 30 years
Machine and Equipment	3 to 47 years
Transportation Equipment	5 to 15 years
Miscellaneous equipment	2 to 30 years

(III) The Company's major construction in progress and equipment pending inspection as of December 31, 2025 and 2024 primarily consisted of the factory coal storage reconstruction project and office renovation project, respectively.

(IV) Buildings belonging to the Company are leased out as operating leases for a period of 1–5 years. The lessee has no preferential purchase option with regard to the asset when the lease period ends. Total receivable lease payments for operating leases are as follows:

	December 31, 2025	December 31, 2024
First year	$ 906	$ 534
Second year	479	379
Third year	47	356
Fourth year	47	29
Fifth year	18	23
	$ 1,497	$ 1,321

(V) Please see Note 30 for the status on property, plant and equipment provided as pledge collaterals.

XV. Lease agreements

(I) Right-of-use assets

	2025	2024
Depreciation expense of the right-of-use asset
Transportation Equipment	$ -	$ 1,556

(II) Other lease information

For more details on operating lease agreements for self-owned buildings and investment property of the Company, please refer to Note 14 and 16.

	2025	2024
Short-term lease expense	$ 3,939	$ 475
Low-value asset lease expense	$ 245	$ 245
Total cash of leases outflow	($ 4,184)	($ 2,321)

The Company chose the machinery and transportation equipment qualifying for short-term lease and office equipment qualifying for low-value asset lease to apply the recognition exemption, and did not recognize such leases as related right-of-use assets and lease liabilities.

XVI. Investment property

	2025
	Land	Buildings	Total
Cost
Balance - beginning	$ 1,970,579	$ 977,477	$ 2,948,056
Increase in current period	-	-	-
Balance - ending	1,970,579	977,477	2,948,056
Accumulated depreciation
Balance - beginning	-	21,575	21,575
Increase in current period	-	16,407	16,407
Balance - ending	-	37,982	37,982
Accumulated impairment
Balance - beginning	18,094	-	18,094
Increase in current period	-	-	-
Balance - ending	18,094	-	18,094
Net - ending	$ 1,952,485	$ 939,495	$ 2,891,980
	2024
	Land	Buildings	Total
Cost
Balance - beginning	$ 1,970,579	$ 965,453	$ 2,936,032
Increase in current period	-	12,024	12,024
Balance - ending	1,970,579	977,477	2,948,056
Accumulated depreciation
Balance - beginning	-	5,168	5,168
Increase in current period	-	16,407	16,407
Balance - ending	-	21,575	21,575
Accumulated impairment
Balance - beginning	18,094	-	18,094
Increase in current period	-	-	-
Balance - ending	18,094	-	18,094
Net - ending	$ 1,952,485	$ 955,902	$ 2,908,387

Investment property is leased out for a period of 1-10 years. Upon closure of the leasehold duration, the lessee was not entitled to preferential leasehold power over the real estate.

As of December 31, 2025 and 2024, total receivable lease payments for operating leases of investment property are as follows:

	December 31, 2025	December 31, 2024
First year	$ 16,119	$ 14,740

The Company has adopted general risk management policies to reduce residual asset risks of leased out investment property at the time of lease expiry.

Investment property of the appreciated in accordance with the straight line method over the useful years as follows:

House and Building
House
30 to 60 years
Renovation engineering
2 to 29 years

(I) The fair values of the Company’s investment properties as of December 31, 2025 and 2024 were NT$4,077,359 thousand and NT$3,997,019 thousand, respectively, as determined by independent appraisers. The key assumptions and fair value measurements as of December 31, 2025 and 2024 are as follows:

	December 31, 2025	December 31, 2024
Asset earning power	10%~20%	10%~20%
The overall capital interest rate during development	2.11%	2.11%

(II) All investment properties of the Company are self-owned assets. For the amounts of the Company’s investment in real estate, which had been pledged by the Consolidated Company’s collateralize loans, please refer to Note 30.

XVII. Intangible assets

	2025
	Royalties	Computer software	Total
Cost
Balance - beginning	$ 159,052	$ 3,071	$ 162,123
Amortization in the current period	-	( 696 )	( 696 )
Balance - ending	159,052	2,375	161,427
Accumulated impairment
Balance - beginning	$ 159,052	$ -	$ 159,052
Provided in the current period	-	-	-
Balance - ending	159,052	-	159,052
Net - ending	$ -	$ 2,375	$ 2,375

52 -

	2024
	Royalties	Computer software	Total
Cost
Balance - beginning	$ 159,052	$ -	$ 159,052
Amortization in the current period	-	( 364 )	( 364 )
Reclassification in current period	-	3,435	3,435
Balance - ending	159,052	3,071	162,123
Accumulated impairment
Balance - beginning	159,052	-	159,052
Provided in the current period	-	-	-
Balance - ending	159,052	-	159,052
Net - ending	$ -	$ 3,071	$ 3,071

Amortization expense for computer software is recognized on a straight-line basis over the estimated useful life of 5 years.

XVIII. Other assets

	December 31, 2025	December 31, 2024
Restricted assets	$ 138,098	$ 139,863
Net defined benefit assets (Note 21)	12,408	-
Refundable deposit	5,615	11,615
Others	16,661	106,279
Collections - Net	-	-
	$ 172,782	$ 257,757
current	$ 140,512	$ 145,981
Non-current	32,270	111,776
	$ 172,782	$ 257,757

The collection detail is as follows:

	December 31, 2025	December 31, 2024
Delinquent Accounts	$ 2,938	$ 2,938
Less: Loss reserve – collection	( 2,938 )	( 2,938 )
	$ -	$ -

(I) Restricted current assets are earmarked for Customs Office clearance procedures and pledged collateral for short-term loans – please refer to Note 30.

(II) Other assets - Others are mainly catalysts.

(III) For loss allowances for non-accrual loans, please refer to Note 10.

XIX. Borrowings

(I) Shot-term borrowings

	December 31, 2025	December 31, 2024
Secured loans
Bank loan	$ 5,450,000	$ 4,350,000
Unsecured loans
Credit loan	3,060,000	2,800,000
Material procurement loan	512,045	1,055,119
	3,572,045	3,855,119
	$ 9,022,045	$ 8,205,119

The bank loan interest rates for 2025 and 2024 ranged from 1.98% to 2.41% and from 1.98% to 2.52%, respectively.
For the aforementioned short-term loan collateral information, please refer to Note 30.

(II) Short-term notes payable

	December 31, 2025	December 31, 2024
Payable commercial paper	$ 750,000	$ 950,000
Less: Discount of short-term notes and bills payable	(2,087)	(2,663)
	$ 747,913	$ 947,337
Interest Rate	1.52% ~ 2.04%	1.50% ~ 2.03%

(III) Long-term borrowings

	December 31, 2025			December 31, 2024
	Collateral	Interest Rate	Amount	Amount
Secured loans
Taiwan Business Bank	Land and buildings	1.99%	$ 215,600	$ 232,800
Land Bank of Taiwan	Land and buildings	2.19%	175,000	175,000
Union Bank of Taiwan	Stock of Taichung Commercial Bank	2.34%	500,000	312,500
Bank of Panshin	Land, buildings and Stock of Taichung Commercial Bank	2.06%~2.32%	1,860,000	1,800,000
Sunny Bank	Stock of Taichung Commercial Bank	2.29%~2.32%	1,300,000	600,000
The Shanghai Commercial & Savings Bank	Land and buildings	2.18%	232,500	297,500
Bank of Kaohsiung	-	-	-	500,000
Shin Kong Commercial Bank	Land, buildings and Machine and Equipment	2.25%~2.30%	1,425,000	1,475,000
Taiwan Cooperative Bank	Land, buildings and Machine and Equipment	2.08%~2.23%	862,000	900,000
Unsecured loans
Bank of Kaohsiung	-	-	-	100,000
Mizuho Bank	-	2.30%~2.31%	170,000	300,000
			6,740,100	6,692,800
Less: Amount due in one year			(189,200)	(307,200)
			$ 6,550,900	$ 6,385,600

Note: Please refer to Note 30 for the collateral of the long-term borrowings.

54 -

XX. Other payables

	December 31, 2025	December 31, 2024
Payable salary and bonus	$ 84,129	$ 81,003
Payable repair and maintenance expense	18,570	18,089
Payable unloading fee	14,491	19,949
Payable insurance premium	8,263	7,828
Payable export expense	6,186	6,483
Payable pension	5,154	4,789
Payable utilities expense	2,623	10,254
Others	69,808	59,089
	$ 209,224	$ 207,484

XXI. Liability reserve

	December 31, 2025	December 31, 2024
Pending litigation reserve (Note 31)	$ 53,916	$ 53,916
Carbon fee	34,906	-
Net determined benefit liability	-	27,315
	$ 88,822	$ 81,231

(I) Defined contribution pension plan

The pension system of the "Labor Pension Act" that is applicable to the Company is a defined contribution pension plan subject to government management with an amount equivalent to 6% of the monthly salary appropriated and contributed to the personal account with the Bureau of Labor Insurance. In 2025 and 2024, Company recognized NT$17,606 thousand and NT$17,516 thousand in the statement of comprehensive income in accordance with the appropriation proportion specified in the defined contribution pension plan.

(II) Defined benefit plan

The Company's pension system under the "Labor Standards Act" of the R.O.C. is a defined benefit pension plan. Pension payment is calculated in accordance with the years of service and the average salary six months prior to the authorized retirement date. The Company has a pension appropriated for an amount equivalent to 2% of the monthly salary and the proceeds are deposited in the designated account with the Bank of Taiwan in the name of the Labor Pension Reserve Commission. If the account balance before year-end is expected to be insufficient for paying the retiring employees of the year, the amount of difference should be appropriated in a lump sum before the end of March in the following year. The special account has been commissioned to the Bureau of Labor Fund of the Ministry of Labor Affairs for

management. The Company contained in the financial statements exercises no influence on the right of the bureau in its investment management strategy.

The amount of determined benefit plan recognized in the individual balance sheet is shown below:

	December 31, 2025	December 31, 2024
Present value of the defined benefit obligations	$ 187,006	$ 198,743
The fair value of plan assets	( 199,414 )	( 171,428 )
Appropriation (surplus) shortage	( 12,408 )	27,315
Net defined benefit (asset) liability	($ 12,408 )	$ 27,315

Change in net defined benefit (asset) liability is shown below:

	Present value of the defined benefit obligations	The fair value of plan assets	Net defined benefit (asset) liability
January 1, 2024	$ 222,696	($ 63,048)	$ 159,648
Service cost
Current service cost	1,745	-	1,745
Interest expenses (revenues)	2,895	( 860 )	2,035
Recognized in profit or loss	4,640	( 860 )	3,780
Reevaluation
Return on plan assets	-	( 7,540 )	( 7,540 )
Actuarial gain – change in financial assumptions	( 4,345 )	-	( 4,345 )
Actuarial loss – adjustment through experience	17,311	-	17,311
Recognized in the other comprehensive income	12,966	( 7,540 )	5,426
Employer appropriation	-	( 132,208 )	( 132,208 )
Benefits paid	( 32,228 )	32,228	-
Company account payment	( 9,331 )	-	( 9,331 )
December 31, 2024	198,743	( 171,428 )	27,315
Service cost
Current service cost	1,595	-	1,595
Interest expenses (revenues)	3,180	( 2,791 )	389
Recognized in profit or loss	4,775	( 2,791 )	1,984
Reevaluation
Return on plan assets	-	( 11,291 )	( 11,291 )
Actuarial loss – change in financial	3,997	-	3,997

56 -

assumptions
Actuarial loss – adjustment through experience	9,376	-	9,376
Recognized in the other comprehensive income	13,373	( 11,291 )	2,082
Employer appropriation	-	( 39,097 )	( 39,097 )
Benefits paid	( 25,193 )	25,193	-
Company account payment	( 4,692 )	-	( 4,692 )
December 31, 2025	$ 187,006	($ 199,414)	($ 12,408)

The pension fund system of the company contained in the financial statements is exposed to the following risks due to the “Labor Standards Act:”

Investment risk: The Bureau of Labor Fund of the Ministry of Labor Affairs uses the labor pension fund for investment in domestic and foreign equity securities and debt securities, and as bank deposits through proprietary trade or commissioned third parties. However, the amount attributable to the planned asset of the Company shall not fall below the interest rate offered by the banks in the regions or countries of investment for 2-year time deposit as return.
Interest risk: the decline of the interest rate for government/corporate bonds will cause an increase in the present value of determined benefit obligation. However, the ROI of the debt of the planned assets will also increase accordingly. The effect of the two on net determined benefit liability is mutually offsetting.
Salary risk: the calculation of the present value of determined benefit obligation is based on the salaries of the members in the plan of the future. As such, an increase of the salaries of the members of the plan is bound to increase the present value of determined benefit obligation.

The determined benefit obligation of the company contained in the financial statements is based on the actuarial calculation of the actuary and the major assumption as of the evaluation day is shown below:

	December 31, 2025	December 31, 2024
Discount rate	1.30%	1.60%
The expected rate of increase in salaries	2%	2%

In case of reasonable and possible change in the major actuarial assumptions, and other assumptions remained unchanged, the amount of increase (decrease) in the present value of determined benefit obligation will be:

	December 31, 2025	December 31, 2024
Discount rate
Increase by 0.25%	($ 3,408)	($ 3,701)
Decrease by 0.25%	$ 3,506	$ 3,811
The expected rate of increase in salaries
Increase by 0.25%	$ 3,376	$ 3,679
Decrease by 0.25%	($ 3,297)	($ 3,591)

Actuarial assumptions may be inter-related. The possibility of change in specific assumption is not high. The aforementioned sensitivity analysis may not be able to reflect the actual change in the present value of determined benefit obligation.

	December 31, 2025	December 31, 2024
Amount projected for appropriation in 1 year	$ 6,119	$ 6,097
Average maturity of determined benefit obligation	7 years	8 years

(III) Provision for carbon fee liabilities

Starting from 2025, the Company recognized provisions for carbon fee liabilities in accordance with Taiwan's Regulations Governing the Collection of Carbon Fees and other relevant laws and regulations. The Company has submitted an application for an autonomous reduction plan to the competent authority. However, as of December 31, 2025, the application was still under review. Therefore, the provision for carbon fee liabilities for the current period was calculated based on the latest preferential fee rate reviewed by the competent authority.

XXII. Other liabilities

	December 31, 2025	December 31, 2024
Guarantee deposits received	$ 3,414	$ 1,870

XXIII. Equity

(I) Share capital

	December 31, 2025	December 31, 2024
Authorized number of shares (thousand shares)	2,100,000	2,100,000
Authorized capital	$21,010,000	$21,010,000
Number of shares issued with fully paid-in capital (thousand shares)	1,685,906	1,685,906
Outstanding capital	$16,859,057	$16,859,057

As of December 31, 2025 and 2024, the paid-in capital amounted to NT$16,859,057 thousand, consisting of 1,685,906 thousand common shares with a par value of NT$10 per share. Each share carries one voting right and the right to receive dividends.

(II) Capital surplus

	December 31, 2025	December 31, 2024
For covering loss carried forward, payment in cash or capitalization as equity shares (Note)
Shares issued in excess of par value	$ 589,895	$ 589,895
Assets received	2,129	2,129
Treasury stock transactions	773,594	773,594
Invalid ESO	2,600	2,600
For covering loss carried forward only.
Changes in the ownership equity on a subsidiary	210,791	174,817
Transaction of treasury stock (cash dividends paid to subsidiaries)	169,202	169,202
	$ 1,748,211	$ 1,712,237

Note Such additional paid-in capital can be used to make up for losses; also, when the company is without any loss, it can be applied for cash distribution or capitalization. However, it is limited to a certain percentage of the annual paid-in capital for the purpose of capitalization.

(III) Retained earnings and Dividend Policy

According to the Articles of Incorporation, the policy for the distribution of earnings stated that if there is a surplus after account settlement of the fiscal year, the company shall pay applicable taxes and cover loss carried forward, followed by the allocation of 10% of the remainder as legal reserve, and appropriate for special reserve or reverse special reserve. If there is still a balance, it will be pooled up with the undistributed earnings carried forward from previous years for distribution as shareholder dividends under a proposal prepared by the Board subject to the final approval of the General Meeting of Shareholders. The policy of remuneration to employees and Directors to the Articles of Incorporation is elaborated in Note 24 (7) to the financial statement, on Remuneration to Employees and Directors.

The Company's dividend policy shall be drafted subject to the Company's future investment environment and long-term financial planning, and also takes the shareholders' equity into consideration. The dividends shall be allocated in the form of cash dividend as the first priority per year, and may be allocated in the form of stock dividend, provided that the ratio of allocation of stock dividends shall be no more than 95% of the total dividends.

The Company has a special reserve appropriated and reversed in accordance with FSC.Certificate.Issue.Tzi No. 1010012865 Letter, FSC.Certificate.Issue.Tzi No. 1010047490 Letter, and "Special reserve appropriation Q&A after the adoption of International Financial Reporting Standards (IFRSs)." If the amount debited to the other shareholders' equity is reversed subsequently, the reversed amount can be distributed.

The legal reserve should be contributed until its balance reaches the Company's total paid-in capital. The legal reserve may be applied to make up loss. If there is no loss, the amount of legal reserve in excess of the paid-in capital by 25% could be allocated as capital stock and paid out as cash dividend.

The Company convened its annual general shareholders' meetings on June 11, 2025 and June 12, 2024, respectively, and resolved the 2024 earnings distribution proposal and the 2023 deficit compensation proposal as follows:

	Earnings Distribution Proposal	Deficit Compensation Proposal
	2024	2023
Legal reserve appropriated	$ 15,853	$ -
Special reserve appropriated	28,183	-
Loss compensation with the legal reserve	-	411,573

The Company had resolved in the board meeting the earnings distribution of 2025 on March 9, 2026 as follows:

	2025
Legal reserve appropriated	$ 9,923
Special reserve appropriated	$ 76,269

The proposal for the distribution of earnings in 2025 is pending on the resolution of the General Meeting of shareholders scheduled to be held in June 11, 2026.

59 -

For more information on the proposal approved by the board of directors of the Company and the surplus distribution proposal adopted by resolution of the General Shareholders Meeting, please refer to the TWSE Market Observation Post System.

(IV) Other equity

Exchange differences from the translation of financial statements of foreign operations

	2025	2024
Balance - beginning	($ 18,496)	($ 108,195)
Subsidiaries’ conversion differential amount adopting the equity method	( 7,800)	89,699
Balance - ending	($ 26,296)	($ 18,496)

Unrealized valuation gains or losses on financial assets at fair value through other comprehensive profit or loss

	2025	2024
Balance - beginning	$ 1,240,151	$ 1,153,089
Accrued in current year
Unrealized gain or loss
Debt instruments	133,986	( 431,582 )
Equity instruments	479,675	640,736
Subsidiaries’ share liquidated adopting the equity method	( 972 )	-
The accumulated gain/loss from the disposition of equity instruments will be transferred to retained earnings.	( 8,630 )	( 122,092 )
Balance - ending	$ 1,844,210	$ 1,240,151

(V) Treasury stock

The details and changes of the treasury stocks of the Company in 2025 and 2024 are shown as follows:

Cause	Transferring stocks to employees (thousand shares)	Shares of parent company held by subsidiaries (in thousand shares)	Total (thousand shares)
Number of shares as of January 1, 2025	-	344,226	344,226
Increase in current period	-	7,449	7,449

61 -

Decrease in current period	-	-	-
Number of shares as of December 31, 2025	-	351,675	351,675
Number of shares as of January 1, 2024	-	344,226	344,226
Increase in current period	-	-	-
Decrease in current period	-	-	-
Number of shares as of December 31, 2024	-	344,226	344,226

In 2025, Pan Asia Chemical Corporation purchased a total of 4,574 thousand shares of the Company's stock for NT$29,076 thousand.
In 2025, De Xing Investment Company purchased a total of 2,875 thousand shares of the Company's stock for NT$18,383 thousand.
As of December 31, 2025 and 2024, the Company's shares held by the subsidiaries are as follows:

Name of Subsidiary	Shareholding ratio %	Number of shares held (thousand shares)	Book Value	Market Value
December 31, 2025
Pan Asia Chemical Corporation	44%	266,075	$ 908,149	$ 810,421
De Xing Investment Company	100%	14,494	44,170	99,432
Chou Chin Industrial Co., Ltd.	50%	61,488	195,060	209,748
Chou Chang Co., Ltd.	39%	9,618	35,136	25,692
		351,675	$ 1,182,515	$ 1,145,293
December 31, 2024
Pan Asia Chemical Corporation	44%	261,501	$ 879,073	$ 855,704
De Xing Investment Company	100%	11,619	25,787	85,636
Chou Chin Industrial Co., Ltd.	50%	61,488	195,060	225,341
Chou Chang Co., Ltd.	39%	9,618	35,136	27,602
		344,226	$ 1,135,056	$ 1,194,283

The Company's Treasury stock may not be pledged in accordance with the Security and Exchange Law; moreover, it is without the privilege of dividend and voting right. Company shares held by its subsidiaries are deemed as shares held in vault in processing, and besides regulations set forth under the Corporate Law article 167 and article 179, the rest of which are the same as general shareholders' entitlements.

XXIV. Business units in continuing operation income

Net profit of continuing operations includes the following items:

(I) Other income and earnings and expense and loss

	2025	2024
Income derived from sales of substandard goods and scraps	$ 3,282	$ 1,848
Rental revenue	19,432	15,519
Others	27,427	31,957
	$ 50,141	$ 49,324

(II) Gain (loss) on financial assets and liabilities at fair value through profit and loss

	2025	2024
The realized gain or loss of financial assets and liabilities measured at fair value through profit or loss
Beneficiary certificate	$ -	$ 812
Valuation gains or losses of financial assets and liabilities measured at fair value through profit or loss
Stocks	2	2
Beneficiary certificate	-	2,111
	2	2,113
	$ 2	$ 2,925

(III) Financial costs

	2025	2024
Interest from bank borrowings	$ 356,899	$ 334,713
Lease liability interest expenses	-	6
	$ 356,899	$ 334,719

(IV) Reversal gains on financial assets (included in operating expenses)

| Accounts receivable | 2025
(\$ 10,648) | 2024
(\$ 45,019) |
| --- | --- | --- |

(V) Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 370,545	$ 436,538
Investment property	16,407	16,407
Right-of-use assets	-	1,556
Intangible assets	696	364
	$ 387,648	$ 454,865
Consolidation of depreciation expenses based on functions
Operating cost	$ 364,656	$ 431,600
Operating expenses	22,296	22,901
	$ 386,952	$ 454,501
Consolidation of amortization expenses based on functions
Operating cost	$ -	$ -
Operating expenses	696	364
	$ 696	$ 364

(VI) Employee benefits expenses
2025

	Operating cost	Operating expenses	Total
Short-term employee benefits
Salary & wage	$ 325,533	$ 50,957	$ 376,490
Expenses for labor insurance and the National Health Insurance	37,465	6,804	44,269
Remuneration to Directors	-	5,399	5,399
Other employee benefits expenses	19,306	10,103	29,409
	382,304	73,263	455,567
Pension expenses (Note 21)
Defined contribution pension plan	15,471	2,135	17,606
Defined benefit plan	1,917	67	1,984
	17,388	2,202	19,590
Total employee benefits expenses	$ 399,692	$ 75,465	$ 475,157

2024

Short-term employee benefits	Operating cost	Operating expenses	Total
Salary & wage	$ 342,961	$ 48,493	$ 391,454
Expenses for labor insurance and the National Health Insurance	36,442	6,097	42,539
Remuneration to Directors	-	5,865	5,865
Other employee benefits expenses	20,221	17,076	37,297
	399,624	77,531	477,155
Pension expenses (Note 21)
Defined contribution pension plan	15,284	2,232	17,516
Defined benefit plan	2,956	824	3,780
	18,240	3,056	21,296
Total employee benefits expenses	$ 417,864	$ 80,587	$ 498,451

The average numbers of company employees in 2025 and 2024 accounted for 572 and 591 people, respectively. Among them, 7 directors are not concurrently serving as employees.

In 2025 and 2024 average employee benefit expenses amounted to NT$831 thousand and NT$843 thousand, respectively; employee salary expenses amounted to NT$666 thousand and NT$670 thousand, which represents an adjustment by (0.6%).

The company has set up the Audit committee. No supervisors are hired. Therefore, no remunerations for supervisors are allocated.

The company's remuneration policy is as follows:

The remunerations for directors are in accordance with provisions in Article 22 and Article 40 of the company charter.

(1) The board of directors shall authorize remunerations for directors based on their level of participation in company operations and value contributed. Remunerations are set in reference to the standard of payment adopted by companies in the same trade.

64 -

(2) If the company has made profits during the year, remunerations for directors not exceeding 0.3% shall be granted upon resolution by the board of directors and shall be resolved at the shareholders' meeting

Remunerations for managers and employees are conducted in accordance with the company's Charter Article 40, the Company Remuneration Committee Organizational Rules and related company regulations (including the Remunerations Management Guidelines, Assessment Guidelines, End-of-Year Bonus Distribution Guidelines, etc.)

(1) Remunerations for managers are set by the company's Remuneration Committee and are periodically assessed. In reference to the usual payment standard of the same industry, considerations are also given to personal performance, corporate operation performance, and the reasonability of association with future risks, which shall be submitted to the board of directors for resolution.

(2) Remunerations for employees are conducted in accordance with the company's regulations. In addition, considerations are given to personal work performance, and degree of corporate operation contribution. The reasonability of remunerations are periodically assessed.

(3) If the company has made profits during the year, 1%–5% will be allocated as remunerations for employees. The distribution ratio and distribution in shares or cash shall be resolved by the board of directors and shall be submitted to the shareholders' meeting for resolution.

(VII) Remuneration of employees and Directors

The Company appropriated 1% to 5% and no more than 0.3% of the earnings before tax before the deduction of remuneration to the employees and Directors of the same year. Pursuant to the amendment to the Securities and Exchange Act in August 2024, the Company amended its Articles of Incorporation at the 2025 shareholders' meeting to stipulate that no less than 35% of the employee remuneration appropriated for the current year shall be distributed to entry-level employees. Employee remuneration (including entry-level employee remuneration) and directors' remuneration for 2025 and 2024 were resolved by the Board of Directors on March 9, 2026 and March 3, 2025, respectively, as follows:

65 -

If there are still changes in the amount specified in the parent company only financial statement after announcement, proceed to the accounting of change and adjusted for booking in the next fiscal year.

The Company incurred a loss before tax in 2023; therefore, no employee or directors' remuneration was appropriated. The actual amount for remuneration to employees and Directors in 2024 did not vary from the amount recognized in the financial statements of 2024.

For further information on the appropriation of remuneration to the employees and Directors by the Board of Company, visit the "MOPS" website of Taiwan Stock Exchange Corporation.

(VIII) Loss in impairment of non-financial assets

	2025	2024
Property, plant and equipment	($ 241,876)	($ 330,152)

XXV. Continuing department income tax

(I) Main components of income tax expense (profit) recognized in profit or loss:

	2025	2024
Income tax expenses in the current period
Prior years' adjustment	$ -	($ 2)
Additional levy on undistributed earnings	3,092	-
Income tax expense (income) recognized in profit and loss	$ 3,092	($ 2)

Adjustment of accounting income and income tax expense (gains) is as follows:

	2025	2024
Income before tax from continuing operations	$ 121,919	$ 27,519
Income tax expenses calculated based on net profit before tax calculated at the statutory tax rate (20%)	$ 24,383	$ 5,504
Non-deductible expenses and losses for tax purposes	5,617	5,208

67 -

Non-taxable income ( 420,335 ) ( 393,070 )
Additional levy on undistributed earnings 3,092 - -
Unrecognized deductible temporary differences and loss credit 390,335 382,358 -
Adjustments to current income tax benefits of prior years during the year - ( 2 )
Income tax expense (income) recognized in profit and loss $ 3,092 ($ 2 )

(II) Income tax benefits recognized in the other comprehensive profit or loss

	2025	2024
Deferred tax
Accrued in current year
- Re-evaluation of determined benefit plan	$ 416	$ 1,085

(III) Current income tax asset

	December 31, 2025	December 31, 2024
Current income tax asset
Tax refund receivable	$ 1,497	$ 2,599
Current Tax Liability
Income tax payable	$ 1,184	$ -

(IV) Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows:

2025

	Balance - beginning	Recognized in profit or loss	Recognized in the other comprehensive income	Balance - ending
Deferred income tax assets
Temporary difference
Property, plant and equipment	$ 18,318	$ -	$ -	$ 18,318
Inventory	23,134	-	-	23,134
Defined benefit pension plans	42,029	( 8,361 )	416	34,084
Loss allowance	39,256	-	-	39,256
Others	38,291	-	-	38,291
	161,028	( 8,361 )	416	153,083
Loss credit	494,847	8,361	-	503,208
	$ 655,875	$ -	$ 416	$ 656,291
Deferred tax liabilities

68 -

	Balance - beginning	Recognized in profit or loss	Recognized in the other comprehensive income	Balance - ending
Temporary difference
Allowance for land increment value tax	$ 866,019	$ -	$ -	$ 866,019
2024
	Balance - beginning	Recognized in profit or loss	Recognized in the other comprehensive income	Balance - ending
Deferred income tax assets
Temporary difference
Property, plant and equipment	$ 18,318	$ -	$ -	$ 18,318
Inventory	23,134	-	-	23,134
Defined benefit pension plans	67,386	( 26,442 )	1,085	42,029
Loss allowance	39,256	-	-	39,256
Others	38,291	-	-	38,291
	186,385	( 26,442 )	1,085	161,028
Loss credit	468,405	26,442	-	494,847
	$ 654,790	$ -	$ 1,085	$ 655,875
Deferred tax liabilities
Temporary difference
Allowance for land increment value tax	$ 866,019	$ -	$ -	$ 866,019

(V) The deductible temporary differences of deferred income tax assets not recognized on the balance sheet

	December 31, 2025	December 31, 2024
Deductible temporary differences
Allowance to reduce inventory to market	$ 114,314	$ 114,314
Defined benefit pension plans	7,550	7,550
Loss credit	6,500,142	5,546,306
	$ 6,622,006	$ 5,668,170

(VI) Unused losses credit related information

As of December 31, 2025, information on loss carryforwards is as follows:

Uncredited balance	Last year of credit
$ 505,260	2026
1,743,326	2029

69 -

1,474,481	2030
638,325	2031
1,728,060	121 years
1,663,616	122 years
603,039	123 years
660,075	124 years
$ 9,016,182

(VII) Income tax audit

The declared cases before 2023 have been approved by the taxation collection agency before the deadline of the Company's business income tax declaration.

XXVI. Earnings per share

	Unit: NTD per share
	2025	2024
Basic earnings per share	$ 0.09	$ 0.02
Diluted earnings per share	$ 0.09	$ 0.02

The net income and weighted average common stock shares used for calculating earnings per share are as follows:

Net income

	2025	2024
Net profit attributable to the company	$ 118,827	$ 27,521

Quantity

	2025	2024
Weighted average common stock shares used to calculate basic earnings per share	1,340,008	1,341,680
Effect of dilutive potential common stock:
Remuneration to employees	972	197
Weighted average common stock shares used to calculate diluted earnings per share	1,340,980	1,341,877

XXVII. Capital risk management

Under the premise of capital management for assuring sustainable operation, the Company seeks to maximize return to shareholders through the optimization of debts and equity balance.

The company capital structure is made up of company net debt (meaning the borrowing minus cash and cash equivalent) and those belonging to company owner's equity (meaning its capitalization, capital reserve, retained earnings and other equity items).

The Company's management reviews the capital structure yearly, and the reviews include taking into consideration the cost of capital and the risks associated with each class of capital. The Company based on the suggestions of management has the overall capital structure balanced by paying dividends, issuing new shares, buying back shares and issuing new debts or paying back old debts.

XXVIII. Financial instruments

(I) Fair value information- Financial instruments that are not measured at fair value

The management of the Company believes that the carrying amount of financial assets and liabilities not measured by fair values approaches their fair values.

(II) Information on fair value – financial instruments at fair value on repetition.

1. Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit and loss
Shares traded on the Taiwan Stock Exchange or OTC exchange	$ 16	$ -	$ -	$ 16
Financial assets at fair value through other comprehensive profit or loss
Equity investment
- Domestic stocks listed on TPWE (TPEx) and Emerging Stock Market	2,454,605	-	-	2,454,605
- Domestic non-listed (OTC) stocks	-	-	355,723	355,723
- Foreign TSEC/GTSM unlisted shares	-	-	7,768	7,768
Debt instrument
- Domestic corporate bonds	-	70,000	-	70,000
	$ 2,454,621	$ 70,000	$ 363,491	$ 2,888,112

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit and loss
Shares traded on the Taiwan Stock Exchange or OTC exchange	$ 14	$ -	$ -	$ 14

71 -

Financial assets at fair value through other comprehensive profit or loss
Equity investment
- Domestic stocks listed on TPWE (TPEx) and Emerging Stock Market	2,154,655	-	-	2,154,655
- Domestic non-listed (OTC) stocks	-	-	304,972	304,972
- Foreign TSEC/GTSM unlisted shares	-	-	8,255	8,255
Debt instrument
- Domestic corporate bonds	-	70,000	-	70,000
	$ 2,154,669	$ 70,000	$ 313,227	$ 2,537,896

In 2025 and 2024, there was no transfer of fair values measures in Level 1 and Level 2.

Reconciliation of financial instruments at Level 3 fair value:

The Company's financial assets measured at fair value using Level 3 inputs are equity instrument investments measured at fair value through other comprehensive income. The reconciliation for the periods from January 1 to December 31, 2025 and 2024 is as follows:

	2025	2024
Balance - beginning	$313,227	$282,919
Recognized in the other comprehensive income	49,679	29,041
- Purchase	841	1,267
- Disposal	( 256 )	-
Balance - ending	$363,491	$313,227

Evaluation techniques and an input value of Level 2 fair value measurement

Categories of financial instruments	Evaluation techniques and input values
Non-derivatives	The bid price in active markets is not taken as fair value.

Evaluation techniques and an input value of Level 3 fair value measurement

Categories of financial instruments	Evaluation techniques and input values
Investment equity not listed at TWSE (TPEx)	Market multiple method: The fair value of the subject matter may be evaluated by comparison with the bid price of the stocks in the industry in the active market with liquidity discount ratio taken into account and the corresponding net value of multiples.

The measurement of Level 3 fair value is the sensitivity analysis of the reasonable substituted assumption of fair value

The significant unobservable input value under the market multiple method adopted by the company is the liquidity discount ratio. When the ratio increases, the fair value of the investment decreases. Sensitivity analysis is compiled as follows:

	December 31, 2025	December 31, 2024
Liquidity Discount Ratio
Increase by 10%	($ 15,190)	($ 13,027)
Decrease by 10%	$ 15,190	$ 13,027

(III) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial Assets
Measured at fair values through profit and/or loss
Measured at fair value through income under compulsion	$ 16	$ 14
Financial assets on the basis of cost after amortization (Note 1)	2,034,427	2,198,196
Financial assets at fair value through other comprehensive profit or loss
Equity investment	2,818,096	2,467,882
Debt instrument	70,000	70,000
Financial Liabilities
Financial liabilities based on cost after amortization (Note 2)	17,055,682	16,527,337

Note 1: The balance includes cash and cash equivalent, notes receivable, accounts receivable (including related parties), other receivables (excluding tax rebates receivable), withheld guarantee (classified as other asset in the account) and restricted asset – liquid (classified as other liquid asset in the account) and related financial assets measured by cost.
Note 2: The balance includes short-term loans, short-term bills payable, accounts payable (including related parties), other payables, long-term loans (including amounts due within one year) and deposits, and the like which are measured at post-amortization cost financial liabilities.

(IV) Purpose and policy of financial risk management

The main financial tools of the Company include equity and debt investments, accounts receivable, other receivables, accounts payable, loans and other payables. The Company's financial management department shall provide services to each business unit, to plan and coordinate operations in the domestic financial markets, and to monitor and manage the company's operation-related financial risks with the internal risk report, with the risk exposure analyzed in accordance with the degree and breadth of risks. The risks include market risk, credit risk and liquidity risk.

Market risk

The company's operating activities subjecting the company to shoulder key financial risks being the foreign exchange rate fluctuation risk, interest rate fluctuation risk and equity securities pricing fluctuation risk.

The exposure of market risk of the financial instruments of the Company and the management and measurement of this risk remained unchanged.

(1) Exchange rate risk

The company incurs exchange rate fluctuation exposure for engaging in foreign currency-priced sales transactions. Approximately 19% of the company's sales amount is priced by nonfunctional currency. The Company's exchange rate exposure management is within the permitted scope of the policies and with the use of forward foreign exchange contract to manage risk.

Sensitivity analysis

The Company is mainly affected by the changes in the exchange rate of USD.

The company's sensitivity analysis for the exchange rate of nt dollar (the functional currency) to each relevant foreign currency increased or decreased by 3% is detailed as follows. The 3% sensitivity rate is used for the company's reporting exchange rate risk to management; also, it is management's reasonable estimation of the possible fluctuation in exchange rates.

The sensitivity analysis includes only the outstanding foreign currency monetary items; also, the translation at the end of the year is adjusted with the change in exchange rate by 3%. The positive figures in the below table indicate that when various relevant currencies devaluating at 3%, which will affect the pretax net earnings' amount; when ntd appreciating by 3% to various relevant currencies, its impact to the pretax net earnings will be at the same amount but in a negative figure.

	The impact of the U.S. dollar
	2025	2024
Profit and loss	$ 11,004	$ 11,053

(2) Interest rate risk

The Company is exposed to interest rate risks due to funds borrowed at floating interest.

74 -

The carrying amount of financial assets and liabilities of the Company under interest rate exposure on balance sheet date is as follows:

	December 31, 2025	December 31, 2024
With fair value interest rate risk
- Financial Assets	$ 138,098	$ 139,863
Contain cash flow interest rate risk
- Financial Assets	70,000	70,000
- Financial Liabilities	16,510,058	15,845,256

Sensitivity analysis

The following sensitivity analyses are based on the interest rate risk exposure of the derivative and non-derivative instruments on the balance sheet date. For liabilities with floating rate, it is analyzed by assuming the liabilities on the balance sheet date are outstanding throughout the reporting period. The fluctuation rate used on the interest rate in company internal report to key management level is at the interest rate plus or minus 100 base points, which also represents company management's assessment on rational probable fluctuation range on the interest rate.

If the interest rate increases/decreases by 100 base points, and under the circumstance that all other variables remain unchanged, and the company's pretax net earnings in 2025 and 2024 will decrease/increase by nt$164,401 thousand and nt$157,753 thousand.

(3) Other price oriented risks.

The company has incurred equity pricing exposure for investing in OTC equity securities investment and beneficiary certificates. The equity investments (except for financial assets at fair value through profit or loss) are not held for trading and are considered strategic. The company has not actively traded such investments. The company's equity pricing risk primarily concentrates on equity instructions at Taiwan stock exchange.

SENSITIVITY ANALYSIS

The below listed sensitivity analysis has been sought by equity pricing exposure on the balance sheet date.

75 -

If equity prices increase/decrease by 15%, the company's profit or loss before tax for 2025 and 2024 would both increase/decrease by nt$2 thousand, while equity would increase/decrease by nt$422,714 thousand and nt$370,182 thousand, respectively.

Credit risk

Credit risk refers to the risk that the customer or counter party fails to perform the contractual obligation resulting in the financial loss of the Company. As of the balance sheet date, the Company's maximum credit risk exposure of financial loss due to the counterparty's failure in fulfilling contractual obligations is mainly derived from the book value of the financial assets recognized on the individual balance sheet.

To mitigate the credit risk, the company management has assigned designated personnel responsible for determining the line of credit cap, loan approval and adopting other adequate monitoring procedure, through which to ascertain that adequate action has been taken on recalling overdue receivables. In addition, the Company will review the recoverable amount of receivables on each balance sheet date to ensure that appropriate impairment loss has been appropriated for the uncollectible receivables. Under the circumstance, the Company's management believes that the Company's credit risk is significantly reduced.

The Company continues to assess the financial condition of the customers of accounts receivable.

Except for the major customer Company A of the consolidated company, the company does not have a significant credit exposure to any single counterparty or any group counterparty with similar characteristics. When the counterparty is an affiliated company, the company has it defined as a counterparty with similar characteristics. In 2025 and 2024, the credit risk concentration with Company A accounted for 10% and 8% of total monetary assets, respectively; the credit risk concentration with other counterparties accounted for 10% and 16% of total monetary assets, respectively.

Liquidity risk

The Company has supported the Group's business operations and mitigated the impact of changes in cash flow by managing and maintaining sufficient cash and cash equivalent position. The Company's management

76 -

monitors the use of banking facilities and ensures the compliance of loan agreement.

Bank loan is a main source of liquidity to the company. Please refer to Note (2) "introduction of financing quota" for the Company's unused financial quota as of December 31, 2025 and 2024.

(1) Liquidity risk table for non-derivative financial liabilities

Non-derivative financial liabilities remaining contract maturity analysis is prepared in accordance with the consolidated company's undiscounted cash flow of financial liabilities on the possible earliest repayment date upon request. The following table shows the earliest times that the Company may be demanded to make immediate repayment of bank loans, without considering the likelihood of such demands. Maturity analysis of other non-derivative financial liabilities is prepared based on the agreed repayment date.

December 31, 2025

	0 - 30 days	31 - 90 days	91-180 days	181 days to 1 year	More than 1 year	Total
Non-derivative financial liabilities
Short-term borrowings	$ 1,524,389	$ 3,017,656	$ 2,880,000	$ 1,600,000	$ -	$ 9,022,045
Short-term notes payable	350,000	400,000	-	-	-	750,000
Long-term borrowings	-	4,300	75,800	109,100	6,550,900	6,740,100
Payables	467,406	33,827	40,977	-		542,210
Guarantee deposits received	-	-	-	-	3,414	3,414

December 31, 2024

	0 - 30 days	31 - 90 days	91-180 days	181 days to 1 year	More than 1 year	Total
Non-derivative financial liabilities
Short-term borrowings	$ 1,720,000	$ 2,454,293	$ 2,430,826	$ 1,600,000	$ -	$ 8,205,119
Short-term notes payable	400,000	550,000	-	-	-	950,000
Long-term borrowings	-	4,300	159,300	143,600	6,385,600	6,692,800
Payables	589,969	46,069	44,173	-	-	680,211
Guarantee deposits received	-	-	-	-	1,870	1,870

(2) Financing amount

	December 31, 2025	December 31, 2024
Bank loan amount (renewal must be with the mutual agreement)
The loan quota used	$16,512,145	$15,847,919
The loan quota not yet used	5,160,721	4,058,184
	$21,672,866	$19,906,103

XXIX. Transactions with related parties

(I) Name and affiliation of related parties

Name	Affiliation
Taichung Commercial Bank Co., Ltd.	Subsidiary of the Company
Pan Asia Chemical Corporation	Subsidiary of the Company
De Xing Investment Company	Subsidiary of the Company
Taichung Bank Securities Investment Trust Co., Ltd.	Subsidiary of the Company
Chou Chin Industrial Co., Ltd.	Subsidiary of the Company
Hebei Hammock Company Limited	Indirect subsidiary of the Company
Taichung Insurance Brokers Co., Ltd.	Indirect subsidiary of the Company
Taichung Bank Leasing Corporation Limited	Indirect subsidiary of the Company
Taichung Bank Securities Co., Ltd.	Indirect subsidiary of the Company
TCCBL Co., Ltd.	Indirect subsidiary of the Company
Taichung Commercial Bank Leasing (Suzhou) Ltd.	Indirect subsidiary of the Company
Taichung Bank Venture Capital Co., Ltd.	Indirect subsidiary of the Company
Greenworld Food Co., Ltd.	Indirect subsidiary of the Company
Chou Chang Co., Ltd.	Indirect subsidiary of the Company
Bomy International Co., Ltd.	Indirect subsidiary of the Company
Shanghai Bomy Food Stuff Co., Ltd.	Indirect subsidiary of the Company
Noble House Global Limited	Indirect subsidiary of the Company
Noble House Glory Co., Ltd(Japan)	Indirect subsidiary of the Company
Shanghai Bangyi International Trade Co., Ltd.	Indirect subsidiary of the Company
Shanghai Bomy Consultancy Management Co., Ltd.	Indirect subsidiary of the Company
Chuang Chien Investment Co., Ltd.	Investors with control
Pan Asia Investment Corporation	Investors with control

(Continued)

Name	Affiliation
Nan Chung Petrochemical Corporation	Affiliated enterprises
Wk Taipei Co., Ltd.	Affiliated enterprises
Storm Model Management Co., Ltd.	Affiliated enterprises
Lay Coffee Co., Ltd.CO., LTD.	Affiliated enterprises
TRIFORD INTERNATIONAL LIMITEDUNFON CONSTRUCTION CO., LTD (Hong Kong)	Affiliated enterprises
Hua Nan Financial Holding	Substantial related party
Hua Nan Bank	Substantial related party
South China Insurance Company, Ltd.	Substantial related party
TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD.	Substantial related party
Syuten Investment Co., Ltd.	Substantial related party
Yu Hui Co.,Ltd	Substantial related party
Formosa Imperial Wineseller Corp.	Substantial related party
Formosawine Vintners Corporation	Substantial related party
Dah Fa Investment Co.,Ltd	Substantial related party
Sheen Ren Knitting Factory Co., Ltd.	Substantial related party
Reliance Consolidated Securities Co., Ltd.	Substantial related party
Wang Wan Chin Education Foundation	Substantial related party
Sheng Yuan Zhe Investment	Substantial related party
Chao Qing Investment Co., Ltd.	Substantial related party
Pan Xu Investment Co., Ltd.	Substantial related party
General Pride Enterprise Co., Ltd.	Substantial related party
Feng Chi Investment Co., Ltd.	Substantial related party
Han Hua Co., Ltd. (formerly Key Wisdom Technology Co., Ltd.)	Substantial related party
Ri Yao United Trading Co., Ltd.	Substantial related party
Shen Ching Investment Co., Ltd.	Substantial related party
Yao Shang Investment Co., Ltd.	Substantial related party
Chi Ta Investment Co., Ltd.	Substantial related party
Hsu Yi Investment Co., Ltd.	Substantial related party
Chuang Chien Recreation Investment Co., Ltd.	Substantial related party
Shuo Rong Investment Limited Company	Substantial related party
Bang Yu Co., Ltd.	Substantial related party
Weierfu Investment Co., Ltd.	Substantial related party
Baoxinghong Development Co., Ltd.	Substantial related party
Hongxuan Investment Co., Ltd.	Substantial related party
TAICHUNG COMMERCIAL BANK	Substantial related party
Cultural and Educational Foundation, TAICHUNG COMMERCIAL BANK Workers’ Welfare Commission, Taichung Commercial Bank Charity Foundation
Others	Key management personnel of the merged company and their spouses and relatives within the second degree of kinship

79 -

(II) Important transactions between the Company and related parties:

Except as disclosed in other notes, transactions between the Companies and related parties, are also as follows:

Sales

Name	2025	2024
Pan Asia Chemical Corporation	$ 635,000	$ 769,604

(1) The terms and conditions of the Company's sale to said related parties are as same as that to the general customers, other than some sales which no similar sales may be comparable to. The general customers apply the A/R settlement from 1 month ~2 months.

(2) The Company's sales to Pan Asia Chemical Corporation primarily refer to the ETO ethylene oxide and nonylphenol produced by the Company's Kaohsiung Plant.

(3) The Company entered into sales contracts with Pan Asia Chemical Corporation for ethylene oxide, ethylene glycol, diethylene glycol, and nonylphenol. The main terms are as follows:

A. Contract Period: The ethylene oxide sales agreement is effective from August 1, 2023 to June 30, 2025, while the ethylene glycol, diethylene glycol, and nonylphenol sales agreements are effective from July 1, 2020 to June 30, 2025. If neither party agrees to terminate the agreements prior to the expiration of the contract period, the agreements shall be automatically extended for an additional year.

B. Quantity: To be supplied based on the scheduled quantity requested by Pan Asia Chemical Corporation, provided that the Company may adjust the quantity subject to its production.

C. Purchasing price: to be settled based on the pricing method agreed by both parties.

Purchases

Name	2025	2024
Affiliated enterprises	$ 39,160	$ -

The terms and conditions of the Company's purchase from said related parties are as same as that to the general suppliers. The general suppliers apply the A/R settlement 1 month~2 months.

Bank deposits and interest revenue

Name	2025		2024
	Balance - ending	Interest revenue	Balance - ending	Interest revenue
Hua Nan Bank	$ 120,557	$ 446	$ 114,846	$ 273
Taichung Commercial Bank	86,813	3,685	113,851	4,638
	$ 207,370	$ 4,131	$ 228,697	$ 4,911

81 -

82 -
Receivables from related parties

Name	December 31, 2025	December 31, 2024
Accounts receivable
Pan Asia Chemical Corporation	$ 82,949	$ 146,767
Other receivables
Subsidiaries	$ 1,901	$ 2,510
Affiliated enterprises	18	602
Sub-subsidiary	-	15
Substantial related party	24	12
	$ 1,943	$ 3,139

Accounts payable to related parties

Name	December 31, 2025	December 31, 2024
Accounts payable
Affiliated enterprises	$ 9,167	$ -
Other payables
Subsidiaries	$ 301	$ 389
Sub-subsidiary	26	30
Substantial related party	853	-
	$ 1,180	$ 419

Disposal of property, plant and equipment

Name	Disposal price		Disposal profit
	January 1 to December 31, 2025	January 1 to December 31, 2024	January 1 to December 31, 2025	January 1 to December 31, 2024
Substantial related party
Others	$ -	$ 400	$ -	$ 2

Disposal of financial assets

Name	Account titles in book	Number of traded shares	Transaction object	Disposal price	Disposal profit
Substantial related party	The financial assets measured for the fair values through other comprehensive income-non-current	6,636	Preferred stock	$ 66	$ 55

Loans to related parties

Name	December 31, 2025	December 31, 2024
Affiliated enterprises
Nan Chung
Petrochemical
Corporation	$ 300,000	$ 300,000

The funds loaned by the Company to Nan Chung Petrochemical Industrial Corporation were unsecured borrowings bearing interest rates comparable to market rates. As of December 31, 2025 and 2024, interest receivable amounted to NT$739 thousand for both years.

Interest revenue

Name	2025	2024
Affiliated enterprises
Nan Chung
Petrochemical
Corporation	$ 8,676	$ 3,194

Rental revenue

Name	2025	2024
Subsidiaries
Pan Asia Chemical
Corporation	$ 4,786	$ 4,786
Chou Chin Industrial
Co., Ltd.	3,411	2,549
Others	37	37
Affiliated enterprises
Storm Model
Management Co., Ltd.	2,106	1,608
Others	23	2
Sub-subsidiary	146	56
Investors with control	24	24
Substantial related party
Formosa Imperial
Wineseller Corp.	3,364	2,532
Others	177	183
	$ 14,074	$ 11,777

The rental was negotiated and agreed based on the rental prevailing in the neighborhood and payable per month.

83 -

84 -
Tenancy agreement

Rent expense

Name	2025	2024
Pan Asia Chemical Corporation	$ 3,729	$ 929

Other income

Name	2025	2024
Hua Nan Financial Holding	$ 13,980	$ 12,333
Pan Asia Chemical Corporation	8,225	8,047
Ri Yao United Trading Co., Ltd.	-	2,803
Chou Chin Industrial Co., Ltd.	300	300
TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD.	96	96
	$ 22,601	$ 23,579

In 2025 and 2024, other income recognized by the Company from Hua Nan Financial Holdings Co., Ltd. consisted of directors' remuneration and attendance transportation allowances received by the Company for serving as a corporate director of the company.

Dividend income

Name	2025	2024
Hua Nan Financial Holding	$ 91,452	$ 86,925

(III) Remuneration to the management

	2025	2024
Short-term employee benefits	$ 16,177	$ 15,930
Retirement benefits	399	391
	$ 16,576	$ 16,321

The salaries and remunerations to directors and other key management were determined by the Salary Committee in accordance with the personal performances and trends in the markets:

(IV) Other related party transaction

In 2025, the Company participated in the cash capital increase of Taichung Commercial Bank and made an additional investment of NT$302,043 thousand.

XXX. Pledged assets

The details of the company pledging its assets as bank loan’s mortgaging collateral, import duty guarantee payment, guarantee for hiring foreign workers is as follows (shown by book value):

	December 31, 2025	December 31, 2024
Other current assets
Restricted assets - Pledged time deposit	$ 138,098	$ 139,863
The financial assets measured for the fair values through other comprehensive income-
non-current	35,588	30,020
Investment under the equity method	8,305,761	9,239,824
Investment property	1,570,336	634,539
Property, plant and equipment
Land	2,922,505	2,863,895
House and Building	500,537	263,258
Machine and Equipment	1,413	1,619
	$ 13,474,238	$ 13,173,018

The fund and investment-common stock furnished as security is stated as following:

	December 31, 2025	December 31, 2024
The financial assets measured for the fair values through other comprehensive income-
non-current	1,148 thousand shares	1,148 thousand shares
Hua Nan Financial Holding Investment under the equity method	10,000 thousand shares	10,000 thousand shares
Nan Chung Petrochemical Corporation	540,400 thousand shares	615,550 thousand shares
Taichung Commercial Bank

XXXI. Significant contingent liabilities and unrecognized contractual commitments

In addition to those disclosed in other notes, the significant commitments and contingencies of the Company as of balance sheet date were as follows:

(I) As of December 31, 2025 and 2024, the company has issued but not used of letters of credit are at NT$2,002,623 thousand and NT$1,345,515 thousand, respectively.

(II) The company and Air Liquide Company have signed of gas purchasing contract, where the contract specifies a minimum purchasing volume for oxygen and nitrogen, with purchasing price, besides at monthly cost of approximately $13,800 thousand, which is subject to adjustment per wholesale price index in April every year, and is

calculated at the contract price on oxygen and nitrogen purchasing volumes, with said purchasing contract period set to 240 months, and will be automatically extended for 36 months at contract expiry if the two parties made no contest, and if the contract needs to be terminated, a 24-month advance notice is required, with the two parties determining said contract’s starting date as July 1, 2014.

(III) O-Bank and Yuanta Bank filed a litigation in February and November, 2020 by reason of several employees receiving the aforementioned bank’s assignment of claim notice and serving as the contact window in cooperation with the New Site Industries Inc., resulting in bank clerks’ error and mistakenly believing the company, Yijinyang Industries Co., Ltd., and New Brite Industries Inc. incurred transactions and continuing to lend and allocate funds, and claiming the company and employees shall be jointly and severally liable for compensation. The Company has commissioned a defense attorney to represent the Company in this lawsuit. Based on the lawyer’s opinion, this case subjectively possesses no external form of duties performed by employed persons. After the trial, the court deemed the bank’s entitlement to seek compensation from the company. If the bank is at fault shall also be determined, which will reduce or exempt the company from compensation liability (i.e., the compensation amount). On August 23, 2024, the Company received a notice from the Taipei District Court informing that Yuanta Bank had withdrawn its lawsuit. The case was concluded as Yuanta Bank withdrew its claim against the Company. In addition, the Company has recognized a provision of NT$53,916 thousand for the unresolved litigation with O-Bank. Please refer to Note 21.

XXXII. Information about foreign exchange of foreign currency financial assets and liabilities:

The information about foreign currency financial assets and liabilities rendering material effect on the Company:

December 31, 2025

Financial Assets	Foreign Currency	Foreign Exchange Rate	Book Value
Monetary Items
USD	$ 11,671	31.43	$ 366,807
EUR	193	36.90	7,106
JPY	34,682	0.20	6,964

December 31, 2024

Financial Assets	Foreign Currency	Foreign Exchange Rate	Book Value
Monetary Items
USD	$ 11,238	32.79	$ 368,444
EUR	327	34.14	11,165
JPY	13,553	0.21	2,845

The Company's foreign exchange (losses) gains related to foreign currencies (including realized and unrealized amounts) for 2025 and 2024 were NT$(7,468) thousand and NT$33,312 thousand, respectively. Due to the wide variety of foreign currency transactions, exchange gains or losses by individual foreign currencies with significant impact are not disclosed separately.

XXXIII. Disclosures

(I) Material transactions and transfer investment information:

Item No.	Item	Remark
1	Loans to others.	Refer to Schedule 1
2	Endorsements/guarantees to others.	N/A
3	Significant marketable securities - ending.	Refer to Schedule 2
4	Amount on purchase from and sale to related parties reaching NT$100 million or more than 20% of the Paid-in shares capital.	Refer to Schedule 3
5	Accounts receivable-related party reaching NT$100 million or more than 20% of the paid-in shares capital.	Refer to Schedule 4
6	Investee information.	Refer to Schedule 5

(II) Information about investment in Mainland China:

Item No.	Item	Remark
1	Name of the investee in the Mainland Area, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding ratio, investment gain or loss, carrying amount of the investment at the end of the period, repatriated investment gains and limit on the amount of investment in the Mainland Area.	Refer to Schedule 6

| 2 | With Mainland China, major transactions, and other prices, payment conditions, unrealized gains and losses that happened directly or indirectly through the third region by the investment company:
(1) Purchase amounts, percentages, balance and percentages of relevant payable at end of the period.
(2) Sales amounts, percentages, balance and percentages of relevant receivables at end of the period.
(3) Amount of property transaction and amount of the profit and/or loss so incurred.
(4) Balance and purposes of endorsements/guarantees or collateral provided at end of the term.
(5) The highest balance of fund financing balance at end of the term, range of interest rates and total amount of interest in the current term.
(6) Other transactions having significant effect upon profit and/or loss or financial standing of the current term, e.g., provision or acceptance of services. | Refer to Schedule 6 |
| --- | --- | --- |

88 -

Schedule 1. Loans to others:
Unit: NTD thousand, unless otherwise noted

Number (Note 1)	Lender	Borrower	Transaction title (Note 2)	Are they related parties	Maximum balance – current period (Note 3)	Balance – ending (Note 8)	The actual amounts disbursed	Interest Rate Collars	Nature of Loan (Note 4)	Amount of Business Transaction (Note 5)	Reasons necessary for offering short-term loan (Note 6)	Amount of allowance for bad debt	Collateral		Limit of loan to particular borrower (Note 7)	Limit of total loan (Note 7)	Remark
													Name	Value
0	China Man-Made Fiber Corporation	Sun Chung Petrochemical Corporation	Other receivables	Yes	$ 300,000	$ 300,000	$ 300,000	2.90%	Necessary for offering short-term loan	$ 39,160	Working capital	$ -	N/A	$ -	$ 2,197,529	$ 8,790,114	Note 9

Note 1: The column for numbering is elaborated below:
(1) Fill in 0 for the issuer.
Note 2: The receivables-affiliates, receivables-related parties, shareholders accounts, prepayments, temporary payments and others as stated in book shall be filled in here if they are classified as financing.
Note 3: Maximum balance of financing a third party in current period.
Note 4: Specify if the nature of financing is for business transactions or short-term financing is necessary.
Note 5: If the nature of financing is for business transactions, specify the amount of business transactions. The amount of business transactions shall be the amount of business conducted between the lender and the beneficiary of financing.
Note 6: If it is necessary for short-term financing, specify the reasons and the beneficiary of financing and the use of the fund, such as: retirement of loans, procurement of equipment, and working capital.
Note 7: Specify the Procedure for Financing Third Parties and the upper limit of financing in favor of particular beneficiary and the total limit of financing, and also the method for the calculation of the upper limit of financing in favor of particular beneficiary and the total limit of financing in the space provided in this field.
Note 8: For public companies proposed the lending of funds before the Board for resolution case by case pursuant to Article 14-1 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies," the amount approved by the Board but not yet being drawn shall still be included in the amount for announcement for the disclosure of risk being assumed. If the loans are being retired in the future, disclose the outstanding balance to reflect the adjustment of risk. For public companies proposed the lending of funds before the Board for resolution case by case pursuant to Article 14-2 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies" whereby the Board resolved to authorize the Chairman to effect the drawdown or in revolving credit in tranches within specific limit and in the year, the amount and the limit approved by the Board shall still be announced as the outstanding balance. In subsequent retirement of loans, repeated drawdown shall still be considered and the amount and the limit approved by the Board shall still be announced as the outstanding balance.
Note 9: The total amount of funds lent by China Man-Made Fiber Corporation to a single enterprise must not exceed 10% of the net worth of China Man-Made Fiber Corporation. Total loan amounts must not exceed 40% of the net worth of China Man-Made Fiber Corporation.

Unit: NTD thousand / thousand shares

Schedule 2: Significant marketable securities - ending:

Account Title	Type and Name of Securities	Holder of Securities	Affiliation with securities Issuer	Ending				Remark
				Quantity	Book Value	Shareholding %	Fair value
Equity instrument investments measured at fair value through other comprehensive income-non-current	Shares traded on the Taiwan Stock Exchange or OTC exchange
	Hua Nan Financial Holding	China Man-Made Fiber Corporation	Substantial related party	73,893	$ 2,290,687	1	$ 2,290,687	1,148 thousand shares pledged
	Taiwan Tea Corporation	”	N/A	6,335	84,256	1	84,256
	Non listed (OTC) domestic stock
	Sunny Bank	”	N/A	3,769	34,144	-	34,144
	TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD. Taiwan Silk & Filament Weaving Development Co. common shares	”	China Man-Made Fiber Corporation is its corporate director.	10,878	21,539	18	21,539
	TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD. Taiwan Silk & Filament Weaving Development Co. pPreferred shares	”	n	192	381	6	381
	Minchali Metal Industrial Co., Ltd.	”	N/A	7,193	87,464	3	87,464
	TWSE	”	N/A	3,075	210,135	-	210,135
	Non-listed (OTC) overseas stock
	TRIFORD INTERNATIONAL LIMITEDUNFON-CONSTRUCTION CO., LTD (Hong Kong)	”	Affiliated enterprises	3,250	7,768	18	7,768

Debt instrument investments at fair value through other comprehensive income – non-current	Domestic corporate bonds		A subsidiary of China Man-Made Fiber Corporation	7	70,000	-	70,000
	Taichung Commercial Bank financial bonds	China Man-Made Fiber Corporation

Note: Materiality standards refer to amounts with carrying values below NT$30,000 thousand that may be exempt from disclosure; however, all securities held in related parties shall be fully disclosed.

91 -

Schedule 3. Amount on purchase from and sale to related parties reaching NT$100 million or more than 20% of the Paid-in shares capital:
Unit: NTD thousand, unless otherwise noted

Purchaser/Seller	Trading Counterpart	Affiliation	Status				Distinctive terms and conditions of trade and the reasons		Receivable (payable) accounts/notes
			Purchase (sale)	Amount	Percentage in total purchase (sale) amount %	Duration	Unit Price	Duration	Balance	Percentage of total notes and accounts receivable (payable) (%)
China Man-Made Fiber Corporation	Pan Asia Chemical Corporation	A subsidiary of China Man-Made Fiber Corporation	Sales	($ 635,000)	( 13%)	30 - 60 days	Not distinctive	30~90 days for the general transactions	$ 82,949	16%
Pan Asia Chemical Corporation	China Man-Made Fiber Corporation	Parent company of Pan Asia Chemical Corporation	Purchases	635,000	59%	30 - 60 days	"	"	( 82,949 )	( 63%)

Note: China Man-Made Fiber Corporation's sales to Pan Asia Chemical Corporation include electricity, purified water, steam, and natural gas.

Schedule 4. Accounts receivable-related party reaching NT$100 million or more than 20% of the paid-in shares capital:
Unit: NTD thousand

Company of receivables on book	Trading Counterpart	Affiliation	Balance of receivables with related party	Turnover Rate	Overdue receivables with related party		Receivables with related party after period collection	Amount of allowance for bad debt
					Amount	Mode of Processing
China Man-Made Fiber Corporation	Nan Chung Petrochemical Corporation	China Man-Made Fiber Corporation	$ 300,739	(Note)	$ -	—	$ -	$ -

Note: Mainly other receivables, for which the calculation of turnover days is not applicable.

Schedule 5. Information on investees' name, location, etc.

Unit: NTD thousand, unless otherwise noted

Investor	Investor	Location	Major Business Lines	Initial Investment Amount		Equity Ownership by the Company			Current period net gain (loss) of the investee	Investment gain (loss) recognized in current period	Remark
				Current period-ending	Previous period-ending	Quantity	Percentage %	Book Value
China Man-Made Fiber Corporation	Taichung Commercial Bank Co., Ltd.	Taichung City	Banking	$ 7,854,519	$ 7,552,476	1,277,768	21	$ 19,469,234	$ 9,057,493	$ 1,928,647	540,400 thousand shares pledged
	Pan Asia Chemical Corporation	Taipei City	Petrochemical business	968,472	968,472	179,259	44	1,984,333	360,421	160,029	10,000 thousand shares pledged
	Nan Chung Petrochemical Corporation	Yunlin County	Petrochemical business	1,000,002	1,000,002	100,000	50	717,387	( 220,843 )	( 110,421 )
	De Xing Investment Company	Taipei City	General investment business	790,000	790,000	79,000	100	1,023,058	33,969	33,969
	Taichung Bank Securities Investment Trust Co., Ltd.	Taipei City	Securities investment trust business	6,295	6,295	922	3	14,746	( 4,767 )	( 141 )
	Thaihung Securities Investment Trust Co., Ltd.	Changhua County	Manufacturing and trading	176,430	176,430	38,759	47	816,102 $ 24,024,860	( 25,697 )	( 12,099 ) $ 1,999,984

Note: Investment gain (loss) recognized in current period

95 -

Schedule 6. Information about mainland China investment:

Investor	Major Business Lines	Paid-in capital	Mode of investment	Amount remitted from Taiwan in accumulation at beginning of the present term	Investment Remittance or Regain during the current period		Amount remitted from Taiwan in accumulation at ending of the present term	Current period net gain (loss) of the investee	The Company's Direct or Indirect Investment Holding Ratio %	Investment (loss) gain recognized during the period (Note 6)	Book Value of Investment at the End of the Period	Investment return already remitted back as of the present term
					Remittance	Regain
Shanghai Bomy Food Stuff Co., Ltd.	OEM, production and marketing of canned vegetable and fruit juice and beverages	$ 645,000 (US$20,000)	Invested through the third area	$ 638,972 (US$19,850)	$ -	$ -	$ 638,972 (US$19,850)	( $ 14,120 ) (US$453)	28% (Note 1)	( $ 3,978 ) (US$128) (2)C	$ 90,867 (US$2,891)	$ -
Shanghai Bomy Consultancy Management Co., Ltd.	Consultation service	-	-	-	-	-	-	-	- (Note 2)	-	-	-
Shanghai Bangyi International Trade Co., Ltd. Shanghai Bangyi International Trading Co., Ltd.	International trade	4,305 (CNY 1,000)	Self-owned capital investment of Shanghai Bomy Foodstuff Co., Ltd.	-	-	-	-	( 1,251 ) (CNY 289)	28% (Note 3)	( 355 ) (CNY 82) (2)C	( 571 ) (CNY 127)	-
Chou Chin Shanghai	Manufacturing, processing and sale of modern, PC, computer shell and related metal stamping, interface, main frame and fiber optical system appliances	30,355 (US$1,001)	Invested through the third area	14,486 (US$450)	-	-	14,486 (US$450)	-	49% (Note 4)	-	-	-
Hebei Hammock Company Limited	Manufacturing and trading	470,685 (US$15,000)	p	470,685 (US$15,000)	-	-	470,685 (US$15,000)	( 9,429 ) (CNY 2,176)	28%	( 2,640 ) (CNY 609) (2) C	88,258 (CNY 19,630)	-
Taichung Bank Financial Leasing (Suzhou) Co., Ltd.	Financing leasing and investments	893,373 (CNY 186,329)	p	893,373 (CNY 186,329)	-	-	893,373 (CNY 186,329)	26,107 (CNY 6,035)	29% (Note 5)	7,571 (CNY 1,750) (2)B	297,713 (CNY 66,217)	-

Note 1: The consolidated shareholding calculated based on the reinvestment by Chou Chin Industrial Co., Ltd. and Greenworld Food Co., Ltd. through Bomy Enterprise.
Note 2: The deregistration was completed in the second quarter of 2025.
Note 3: The comprehensive shareholding ratio of Bomy International Co., Ltd. and Shanghai Bomy Foodstuff Co., Ltd. Calculated based on the reinvestment method.
Note 4: The consolidated shareholding calculated based on the reinvestment by Chou Chin Industrial Co., Ltd. and Chou Chang Co., Ltd. through a third area.
Note 5: Percentage of comprehensive cross holding of Taichung Bank Leasing through investment in companies in the third region.
Note 6: Recognized as gains or losses on investment in current period:
(1) Please note if the investee is still under preparation and there was no investment gain or loss.
(2) The basis of recognition of investment income is classified into following three types, which should be marked out:
A. Financial statements audited and audited and attested by an international accounting firm that has a cooperative relationship with a certified public accounting firm registered in the Republic of China.
B. Financial statements audited and attested by the independent accounts of the parent company.
C. Others: Conduct analytical procedures based on the provisions of the Standards on Auditing No. 600 regarding the determination of key composition.
(3) Not audited by a CPA
Note 7: The ceiling calculated by the applicant, Chou Chin Industrial Co., Ltd., Taichung Bank Leasing Corporation Limited Taichung Commercial Bank Lease Enterprise and De Xing Investment Company according to the "Regulations Governing the Review of Investment or Technical Cooperation in Mainland China" of Investment Commission, MOEA.
Note 8: The foreign currency, if any, has been translated into NTD (USD1=NT$31.43, USD1=NT$31.18, CNY1=NT$4.50, CNY1=$4.33) at the foreign exchange rate-ending and average foreign exchange rate prevailing on the date of the financial statement.

Amount accumulated, remitted from Taiwan for investment in Mainland China at the end of the current term	Investment Amount Approved by Investment Commission of MOEA (Note 7)
$ 2,017,516 (US$ 35,300 and RMB$ 186,329)	$ 2,204,953 (US$ 41,400 and RMB$ 186,329)

96 -

§TABLE OF CONTENT OF THE STATEMENT OF ACCOUNTING TITLES§

ITEM	NUMBER/INDEX
Statement of Assets, Liabilities and Equity
Statement of Cash and Cash Equivalents	Statement 1
Statement of Financial Assets and Liabilities at Fair Value through Profit or Loss - Current	Statement 2
Statement of Notes Receivable	Statement 3
Statement of Accounts Receivable	Statement 4
Statement of Other Receivables	Note 10
Statement of Inventories	Statement 5
Statement of Prepayments	Note 12
Statement of Changes in Financial Assets at Fair Value through Other Comprehensive Income - Non-current	Statement 6
Statement of Changes in Investments in Long-term Equity Accounted for Using the Equity Method	Statement 7
Statement of Changes in Property, Plant and Equipment	Note 14
Statement of Changes in Investment Property	Note 16
Statement of Deferred Income Tax Assets	Note 25
Statement of Short-term Borrowings	Statement 8
Statement of Short-term Notes Payable	Note 19
Statement of Other Payables	Note 20
Statement of Accounts Payable	Statement 9
Statement of Long-term Borrowings	Statement 10
Liability reserve	Note 21
Statement of Deferred Income Tax Liabilities	Note 25
Statement of Profit and Loss Items
Statement of Operating Income	Statement 11
Statement of Operating Cost	Statement 12
Statement of Sales and Marketing Expenses	Statement 13
Statement of Administrative and General Affairs Expenses	Statement 14
Summary Statement of Employee Welfare, Depreciation, Depletion, and Amortization Expenses during the Period by Function	Note 24

China Man-Made Fiber Corporation
Statement of Cash and Cash Equivalents
December 31, 2025

Statement 1
Units: Unless otherwise specified, in NTD thousands

Item	Memo	Amount
Cash
Cash on hand		$ 107
Working capital		300
Bank deposits
Check deposits		540,420
Demand deposits	Including foreign currencies of US$10,186 thousand @31.43; JPY34,682 thousand @0.20; and EUR193 thousand @36.9.	537,317
		$ 1,078,144

97 -

China Man-Made Fiber Corporation
Statement of Financial Assets and Liabilities at Fair Value through Profit or Loss - Current
December 31, 2025

Statement 2

Unit: In thousands of New Taiwan dollars / thousands of shares / thousands of units, unless otherwise stated.

Financial instrument	Number of shares or units	Face value	Total amount	Acquisition cost	Fair Value
					Unit Price	Total amount
Financial assets at fair value through profit and loss
Shares traded on the Taiwan Stock Exchange or OTC exchange
Taiwan Business Bank	1	10	$ 10	$ 4	16.00	$ 16
Non listed (OTC) domestic stock
EVERSOL CORP.	35	10	350	990	-	-
	36		$ 360	$ 994		$ 16

98 -

China Man-Made Fiber Corporation
Statement of Notes Receivable
December 31, 2025

Statement 3
Unit: NTD thousand

Customer Name	Memo	Amount
Company D	Loan	$ 28,311
Company E	//	21,726
Others (Note)	//	16,162
		66,199
Less: Allowance for losses		-
		$ 66,199

Note: A compiled presentation for accounts with a respective balance of less than 5% of the total amount.

99 -

China Man-Made Fiber Corporation
Statement of Accounts Receivable (including Related Parties)
December 31, 2025

Statement 4
Unit: NTD thousand

Customer Name	Memo	Amount
Related party
PACC	Loan	$ 82,949
Non-related party
Company A	Loan	183,469
Company B	”	25,001
Company C	”	22,054
Others (Note)	”	139,951
Less: Allowance for losses		( 11,191 )
		359,284
		$ 442,233

Note: A compiled presentation for accounts with a respective balance of less than 5% of the total amount.

100 -

China Man-Made Fiber Corporation
Statement of Inventories
December 31, 2025

Statement 5
Unit: NTD thousand

Item	Cost	Net realizable value
Merchandise	$ 10,115	$ 6,253
Finished goods	367,163	304,827
Work in process	76,781	66,010
Raw materials	174,786	139,406
Supplies	41,625	37,510
	670,470	$ 554,006
Less: Allowance to reduce inventory to market	( 116,464 )
	$ 554,006

101 -

2025
Statement of Changes in Financial Assets at Fair Value through Other Comprehensive Income - Non-current
Unit: NTD thousand

Name	Beginning		Increase in current period		Decrease in current period		Ending		Provision of guarantees or pledges
	Number of shares or shares	Fair value	Number of shares or shares	Amount	Number of shares or shares	Amount	Number of shares or shares	Fair value
Shares traded on the Taiwan Stock Exchange or OTC exchange
Hua Nan Financial Holdings Co., Ltd. (Note 1)	73,162	$ 1,913,174	731	$ 377,513	-	$ -	73,893	$ 2,290,687	(Note 1)
Maxigen Biotech Inc. (Note 2)	646	31,617	-	-	-	3,972	646	27,645
Taiwan Tea Corporation (Note 3)	7,900	158,790	-	-	1,565	74,534	6,335	84,256
Bank of Kaohsiung Preferred Stock A (Note 4)	1,200	26,340	-	2,280	-	-	1,200	28,620
Tonlin Department Store Co., Ltd. (Note 5)	895	20,272	-	-	-	1,790	895	18,482
Bank of Kaohsiung common stock (Note 6)	388	4,462	12	453	-	-	400	4,915
Non listed (OTC) domestic stock
Sunny Bank (Note 7)	3,542	33,834	227	841	-	531	3,769	34,144
Minchali Metal Industrial Co., Ltd. (Note 8)	7,193	107,892	-	-	-	20,428	7,193	87,464
TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD, Taiwan Silk & Filament Weaving Development Co. common shares- (Note 9)	10,878	20,995	-	544	-	-	10,878	21,539
TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD, Taiwan Silk & Filament Weaving Development Co. preferred shares (Note 10)	199	384	-	63	7	66	192	381
Taiwan Stock Exchange (Note 11)	2,365	139,808	710	70,327	-	-	3,075	210,135
Everterminal Co., Ltd. (Note 12)	149	2,059	-	1	-	-	149	2,060
China Trade and Development Co., Ltd.	756	-	-	-	-	-	756	-
Formosa Imperial Wineseller Corp. (Note 13)	1,900	-	-	-	1,900	-	-	-
Chia Hsin Food & Synthetic Fiber Co., Ltd.	103	-	-	-	-	-	103	-
Taitung Business Bank	4,027	-	-	-	-	-	4,027	-
Non-listed (OTC) overseas stock
TRIFORD INTERNATIONAL LIMITED Sanfeng International Technology Co., Ltd. (Note 14)	3,250	8,255	-	-	-	487	3,250	7,768
Domestic listed bonds
Taichung Commercial Bank Co., Ltd.	7	70,000	-	-	-	-	7	70,000

102 -

$ 2,537,882
$ 452,022
$ 101,808
$ 2,888,096

Note 1: The increase during the period includes 731 thousand shares received as stock dividends and unrealized valuation gains of NT$377,513 thousand recognized under other comprehensive income for financial assets measured at fair value. In addition, 1,148 thousand common shares were provided as pledged collateral.

Note 2: The decrease during the period was unrealized losses of financial assets at fair value through other comprehensive income recognized at fair value of NT$3,972 thousand.

Note 3: The decrease during the period was mainly due to the disposal of 1,565 thousand shares of investments, with sales proceeds of NT$23,634 thousand and a disposal loss of NT$4,996 thousand reclassified to retained earnings. In addition, an unrealized valuation loss of NT$45,904 thousand on financial assets measured at fair value through other comprehensive income was recognized based on fair value measurement.

Note 4: The increase during the period was unrealized gains of financial assets at fair value through other comprehensive income recognized at fair value of NT$2,280 thousand.

Note 5: The decrease during the period was unrealized losses of financial assets at fair value through other comprehensive income recognized at fair value of NT$1,790 thousand.

Note 6: The increase during the period was 12 thousand shares due to the receipt of stock dividends and the unrealized valuation gains of financial assets at fair value through other comprehensive income recognized at fair value of NT$453 thousand.

Note 7: The increase during the period was mainly due to the receipt of 143 thousand shares as stock dividends and an additional 84 thousand shares subscribed proportionately in the capital increase of Sunny Bank, with share subscription payments of NT$841 thousand made. In addition, an unrealized valuation loss of NT$531 thousand on financial assets measured at fair value through other comprehensive income was recognized based on fair value measurement.

Note 8: The decrease during the period was unrealized losses of financial assets at fair value through other comprehensive income recognized at fair value of NT$20,428 thousand.

Note 9: The increase during the period was unrealized gains of financial assets at fair value through other comprehensive income recognized at fair value of NT$544 thousand.

Note 10: The increase in the current period was mainly due to the recognition of an unrealized valuation gain of NT$63 thousand on financial assets measured at fair value through other comprehensive income based on fair value measurement. The decrease in the current period was mainly due to the redemption of preferred shares by Taiwan Filament Weaving Development Co., Ltd., resulting in a proportional decrease of 7 thousand shares and redemption proceeds of NT$66 thousand.

Note 11: The increase during the period was 710 thousand shares due to the receipt of stock dividends and the unrealized valuation gains of financial assets at fair value through other comprehensive income recognized at fair value of NT$70,327 thousand.

Note 12: The increase during the period was unrealized gains of financial assets at fair value through other comprehensive income recognized at fair value of NT$1 thousand.

Note 13: The decrease in the current period was mainly due to the disposal of 1,900 thousand shares of investments, with sales proceeds of NT$190 thousand, and a disposal loss of NT$18,810 thousand reclassified to retained earnings.

Note 14: The decrease during the period was unrealized losses of financial assets at fair value through other comprehensive income recognized at fair value of NT$487 thousand.

103 -

China Man-Made Fiber Corporation
Statement of Changes in Long-term Equity Investment under the Equity Method
2025
Statement 7
Unit: Unless otherwise specified, in NTD thousand/thousand shares

Name	Balance - beginning		Increase during the period		Decrease during the period		Share of profit or loss of subsidiaries, affiliates and joint ventures accounted for using the equity method	(Unrealized) realized gross profit of subsidiaries	Quantity	Shareholding %	Amount	Market Value / Equity Net Worth
	Quantity	Amount	Quantity	Amount	Quantity	Amount
Taichung Commercial Bank Co., Ltd.	1,175,943	$ 17,493,674	101,825	$ 539,942	-	($ 493,029)	$ 1,928,647	$ -	1,277,768	21	$ 19,469,234	$ 26,577,583
Pan Asia Chemical Corporation	179,259	1,862,092	-	25,805	-	( 77,396)	160,029	13,803	179,259	44	1,984,333	1,837,400
Nan Chung Petrochemical Corporation	100,000	827,242	-	566	-	-	( 110,421)	-	100,000	50	717,387	717,387
De Xing Investment Company	79,000	1,007,903	-	28,437	-	( 47,251)	33,969	-	79,000	100	1,023,058	1,023,058
Chou Chin Industrial Co., Ltd.	38,759	839,637	-	9,886	-	( 21,322)	( 12,099)	-	38,759	47	816,102	816,102
Taichung Bank Securities Investment Trust Co., Ltd. Taichung Securities Investment Trust Co., Ltd.	922	14,791	-	96	-	-	( 141)	-	922	3	14,746	14,746
		$ 22,045,339		$ 604,732		($ 638,998)	$ 1,999,984	$ 13,803			$ 24,024,860	$ 30,986,276

Note 1: The market price refers to the closing price at the end of the period in December 2025; the net worth of equity was mainly calculated based on the financial statements of the investees and the Company's shareholding ratio.
Note 2: The increase in the current period amounted to NT$604,732 thousand, mainly due to the receipt of 85,844 thousand shares as stock dividends, participation in the cash capital increase of Taichung Commercial Bank through the subscription of 15,981 thousand shares with an additional investment cost of NT$302,043 thousand, adjustments resulting from changes in shareholding ratios that increased capital reserve by NT$35,974 thousand and retained earnings by NT$155 thousand, adjustments increasing retained earnings by NT$47,378 thousand due to the recognition of gains on the disposal of equity instrument investments measured at fair value through other comprehensive income, recognition of unrealized gains on financial instruments of NT$214,337 thousand, recognition of actuarial gains on defined benefit plans under the equity method of NT$4,089 thousand, and recognition of cumulative translation adjustments under the equity method of NT$756 thousand.
Note 3: The decrease in the current period amounted to NT$638,998 thousand, mainly due to the recognition of unrealized losses on financial instruments of NT$6,439 thousand, recognition of actuarial losses on defined benefit plans under the equity method of NT$30,802 thousand, adjustment of treasury shares held by subsidiaries in the parent company amounting to NT$47,459 thousand, cumulative translation adjustments recognized under the equity method of NT$8,556 thousand, retained earnings of NT$14,942 thousand, and cash dividends received from investee companies amounting to NT$530,800 thousand.

104 -

China Man-Made Fiber Corporation
Statement of Short-term Borrowings
December 31, 2025
Statement 8
Unit: Unless otherwise specified,
in NTD thousand

Type of borrowings and creditors	Balance - ending	Contract period	Interest rate collars (%)	Financing amount	Pledge or guarantee
Credit loan
Bank of Kaohsiung	$ 400,000	2024.12.27 - 2025.12.27	2.40	$ 400,000	Kuei-Hsien Wang
Entie Commercial Bank	250,000	2025.4.1~2026.3.31	2.33	300,000	Kuei-Hsien Wang
Shin Kong Commercial Bank	100,000	2025.7.11~2026.7.11	2.18	100,000	Kuei-Hsien Wang
Taiwan Business Bank	1,350,000	2025.12.30~2026.12.30	2.18	1,450,000	Kuei-Hsien Wang
Chang Hwa Commercial Bank	300,000	2025.7.18~2026.5.31	2.08	300,000	Kuei-Hsien Wang
Mega International Commercial Bank	300,000	2025.7.16~2026.7.15	2.11	300,000	Kuei-Hsien Wang
Far Eastern International Bank	100,000	2025.9.16~2026.9.16	2.01	100,000	Kuei-Hsien Wang
Cathay United Bank	100,000	2025.11.12~2026.11.12	2.26	100,000	Kuei-Hsien Wang
Bank of Taiwan	160,000	2025.7.28~2026.7.28	2.41	300,000	Kuei-Hsien Wang
	3,060,000			3,350,000
Secured borrowings
CTBC Bank	350,000	2025.6.30~2026.6.30	2.35	400,000	Stock of Taichung Commercial Bank
Cathay United Bank	400,000	2025.11.12~2026.11.12	2.01	400,000	Stock of Taichung Commercial Bank
KGI Bank	300,000	2025.4.18~2026.4.18	2.20	300,000	Stock of Taichung Commercial Bank
Taipei Fubon Bank	1,200,000	2025.8.8~2026.8.9	2.25~2.30	1,200,000	Stock of Taichung Commercial Bank
Union Bank of Taiwan	400,000	2025.11.26~2026.12.26	2.34	400,000	Stock of Taichung Commercial Bank
Taiwan Cooperative Bank	1,500,000	2025.7.29~2026.7.29	1.98	1,500,000	Land and buildings
Land Bank of Taiwan	300,000	2025.6.05~2026.6.05	2.19	300,000	Nan Chung Petrochemical shares, Hua Nan Financial Holdings shares, and pledged time deposits
First Commercial Bank	500,000	2025.4.08~2026.4.08	2.12	500,000	Wang Kuei-Hsien and pledged time deposits
Bank of Kaohsiung	500,000	2024.12.27 - 2025.12.27	2.35	500,000	Stock of Taichung Commercial Bank
	5,450,000			5,500,000
Material procurement loan
Bank of Taiwan	141,817	2025.7.28~2026.7.28	2.28	900,000	Kuei-Hsien Wang
Cathay United Bank	80,672	2025.11.12~2026.11.12	2.37	300,000	Kuei-Hsien Wang
Chang Hwa Commercial Bank	183,900	2025.7.18~2026.5.31	2.08	800,000	Kuei-Hsien Wang
First Commercial Bank	46,905	2025.4.08~2026.4.08	2.12	1,200,000	Wang Kuei-Hsien and pledged time deposits
Taiwan Cooperative Bank	58,751	2025.7.29~2026.7.29	1.98	500,000	Kuei-Hsien Wang
	512,045			3,700,000
	$ 9,022,045			$ 12,550,000

105 -

China Man-Made Fiber Corporation
Statement of Accounts Payable (including Related Parties)
December 31, 2025

Statement 9
Unit: NTD thousand

Customer Name	Memo	Amount
Related party
Company A	Loan	$ 9,167
Non-related party
Company B	Loan	116,197
Company C	//	51,144
Company D	//	44,997
Others (Note)	//	111,481
		$ 332,986

Note: A compiled presentation for accounts with a respective balance of less than 5% of the total amount.

106 -

China Man-Made Fiber Corporation
Statement of Long-term Borrowings
December 31, 2025
Statement 10
Unit: Unless otherwise specified, in NTD thousand

Lending bank	Memo	Contract period	Interest rate per annum (%)	Amount			Pledge or guarantee
				Due within one year	Due over one year	Total
Taiwan Business Bank	Mid-to-long-term secured borrowings (Note 19)	2023.12.28 - 2028.12.28	1.99	$ 17,200	$ 198,400	$ 215,600	Land and buildings
Shin Kong Commercial Bank	Mid-to-long-term secured borrowings (Note 19)	2022.06.27 - 2027.06.27	2.25~2.30	50,000	1,375,000	1,425,000	Land, buildings, and machinery and equipment
Taiwan Cooperative Bank	Mid-to-long-term secured borrowings (Note 19)	2022.11.11~2027.11.11	2.23	40,000	440,000	480,000	Land, buildings, and machinery and equipment
Taiwan Cooperative Bank	Mid-to-long-term secured borrowings (Note 19)	2025.7.29~2028.7.29	2.08	27,000	355,000	382,000	Land, buildings, and machinery and equipment
Union Bank of Taiwan	Mid-to-long-term secured borrowings (Note 19)	2025.12.18~2030.12.18	2.34	-	500,000	500,000	Stock of Taichung Commercial Bank
The Shanghai Commercial & Savings Bank	Mid-to-long-term secured borrowings (Note 19)	2020.05.25 - 2030.05.25	2.18	15,000	217,500	232,500	Land and buildings
Land Bank of Taiwan	Mid-to-long-term secured borrowings (Note 19)	2025.6.6~2028.6.6	2.19	-	175,000	175,000	Land and buildings
Sunny Bank	Mid-to-long-term secured borrowings (Note 19)	2025.9.3~2027.9.3	2.29	-	600,000	600,000	Stock of Taichung Commercial Bank
Sunny Bank	Mid-to-long-term secured borrowings (Note 19)	2025.3.27~2030.3.27	2.30	10,000	290,000	300,000	Stock of Taichung Commercial Bank
Sunny Bank	Mid-to-long-term secured borrowings (Note 19)	2025.8.21~2027.8.21	2.32	-	400,000	400,000	Stock of Taichung Commercial Bank
Bank of Panshin	Mid-to-long-term secured borrowings (Note 19)	2024.03.27~2029.03.27	2.32	30,000	630,000	660,000	Land and buildings
Bank of Panshin	Mid-to-long-term secured borrowings (Note 19)	2024.07.19~2027.07.19	2.32	-	400,000	400,000	Land and buildings
Bank of Panshin	Mid-to-long-term secured borrowings (Note 19)	2024.11.15~2027.11.15	2.06~2.32	-	800,000	800,000	Land, buildings, and Taichung Commercial Bank stocks
Mizuho Bank	Mid-term credit borrowings (Note 19)	2025.4.20~2027.4.20	2.30~2.31	-	170,000	170,000	-
				$ 189,200	$ 6,550,900	$ 6,740,100

107 -

China Man-Made Fiber Corporation
Statement of Operating Income
2025

Statement 11
Unit: NTD thousand

Item	Amount
Ethylene glycol	$ 1,247,721
Nonylphenol	558,504
DTY	647,338
POY	718,020
EO	459,864
CHIP	619,001
SDY	403,812
Others (Note)	282,358
Less: Sales return	( 443 )
Sales discount	( 8,891 )
	$ 4,927,284

Note: A compiled presentation for items with a respective balance of less than 5% of the total amount.

108 -

China Man-Made Fiber Corporation
Statement of Operating Cost
2025

Statement 12
Unit: NTD thousand

Item	Amount
Cost of sales of self-made products
Raw materials at the beginning of the period	$ 312,277
Add: Materials purchased during the period	3,657,618
Less: Raw materials sold	( 2,179 )
Raw materials at the end of the period	( 216,411 )
Transfer to other items	( 149,958 )
Direct consumption of raw materials	3,601,347
Direct labor	134,759
Manufacturing expenses	1,213,415
Manufacturing cost	4,949,521
Add: Work-in-progress at the beginning of the period	86,721
Inward transfer of spare parts	4,150
Less: Work-in-progress at the end of the period	( 76,781 )
Cost of finished goods	4,963,611
Add: Finished goods at the beginning of the period	607,020
Purchases during the period	860,342
Less: Finished goods at the end of the period	( 367,163 )
Transfer to other items	( 5,292 )
Cost of sales of self-made products	6,058,518
Cost of sales of purchased goods
Goods at the beginning of the period	3,785
Add: Purchases during the period	39,160
Less: Goods at the end of the period	( 10,115 )
Cost of sales of purchased goods	32,830
Loss on inventory write-down and obsolescence	5,174
Raw materials sold directly	2,179
	$ 6,098,701

109 -

China Man-Made Fiber Corporation
Statement of Sales and Marketing Expenses
2025

Statement 13
Unit: NTD thousand

Item	Memo	Amount
Import/export expenses		$ 76,603
Transportation charges		63,659
Employee benefits expenses		15,010
Others (Note)		8,671
		$ 163,943

Note: A compiled presentation for items with a respective balance of less than 5% of the total amount.

110 -

China Man-Made Fiber Corporation
Statement of Administrative and General Affairs Expenses
2025
Statement 14
Unit: NTD thousand

Item	Memo	Amount
Employee benefits expenses		$ 60,455
Depreciation		22,294
Insurance premium		6,799
Others (Note)		42,616
		$ 132,164

Note: A compiled presentation for items with a respective balance of less than 5% of the total amount.

111 -

AI assistant

CMFC — Audit Report / Information 2026

51899_rns_2026-05-25_416b6cbf-06a9-4a0d-9a92-697d043d4a10.pdf

China Man-Made Fiber Corporation

Individual Financial Statements and Independent Auditors' Report

Audit opinions

The basis for opinions

Key audit matter

Authenticity of specific sales revenue

Notes to key audit matters

Audit response

The ECL assessment of discounts and loans of investments under the equity method

Notes to key audit matters

Audit response

Other information

Responsibilities of Management and Those in Charge with Governance of the Individual Financial Statements

Auditor’s Responsibilities for the Audit of the Individual Financial Statements

China Man-Made Fiber Corporation

Individual Statements of Changes in Shareholders' Equity

IV. Summary of important accounting policies

(I) Compliance Statement

(II) Basis of preparation

(III) Current and non-current assets and liabilities

2. Financial Liabilities

(XII) Liability reserve

(XIII) Treasury stock

XV. Lease agreements

(I) Right-of-use assets

(II) Other lease information

XVI. Investment property

XX. Other payables

XXI. Liability reserve

(I) Defined contribution pension plan

(II) Defined benefit plan

(III) Provision for carbon fee liabilities

XXII. Other liabilities

XXIII. Equity

(II) Capital surplus

(III) Retained earnings and Dividend Policy

(IV) Other equity

(V) Treasury stock

XXIV. Business units in continuing operation income

XXVIII. Financial instruments

1. Fair value hierarchy

December 31, 2025

December 31, 2024

Sensitivity analysis

SENSITIVITY ANALYSIS

Schedule 6. Information about mainland China investment:

§TABLE OF CONTENT OF THE STATEMENT OF ACCOUNTING TITLES§

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CMFC Audit Report / Information 2026