COREMAX - Audit Report / Information 2026

Stock Code:4739

Coremax Corporation

Parent-Company-Only Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2025 and 2024

The independent auditors’ report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent-company-only financial statements, the Chinese version shall prevail.

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Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Report
4. Balance Sheets
5. Statements of Comprehensive Income
6. Statements of Changes in Equity
7. Statements of Cash Flows
8. Notes to the Parent-Company-Only Financial Statements
(1)
Company history
(2)
Approval date and procedures of the financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of material accounting policies
(5)
Significant accounting assumptions and judgments, and major
sources of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(14) Segment information
9. List of major account titles Page

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Parent-Company-Only Financial Statements (1) Company history (2) Approval date and procedures of the financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (14) Segment information 9. List of major account titles	Page
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KPMG

台北市 110615 信義路5段7號68樓 (台北101大樓) 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666 傳真 Fax +886 2 8101 6667 網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors Coremax Corporation:

Opinion

We have audited the financial statements of Coremax Corporation(“the Company”), which comprise the balance sheet as of December 31, 2025 and 2024, the statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Statements by Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Account of Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Based on our judgment, the key audit matters should be reflected in our report are as follow:

Loss allowance assessment of Receivables

Please refer to Note 4(6) “Financial instruments” for the accounting policies of loss allowance assessment of receivables, Note 5 “ for the relevant accounting estimation, and major sources of assumption uncertainty” ; and Note 6(3) “Notes and accounts receivable, net” to the financial statements for the details of relevant disclosures.

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KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

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Description of key audit matters:

The Company has a worldwide customer base. As such, the Company may encounter difficulty in obtaining financial information of the customers due to the rapid changes in the business environment which included the industry, technology, market, and economic, as well as legal matters. When assessing the expected credit loss of its receivables during its lifetime, the receivables are measured based on the factors such as aging analysis of accounts receivable, customers’ financial status, historical collection experience, current market conditions, and consideration of forward-looking information. The assessment of allowance for loss on accounts receivables involved subjective judgment of management, which has been identified as one of our key audit matters.

How the matter was addressed in our audit:

Our main audit procedures included: Obtaining and checking the accuracy of the impairment loss calculation from the management of the accounts receivable ; checking the completeness of the aging analysis of the receivables and accuracy of the aging bracket by sampling, and analyzing the receivables aging and historical receivables collection record and customer credit risk concentration in measuring the appropriateness of the expected credit loss rate in order to evaluate the reasonableness of the provision amount of the account receivable loss allowance of the Company, and evaluating the adequacy of the Company’s disclosures in the accounts.

2. Valuation of Inventories

Please refer to Note 4(7) “Inventories” for the accounting policies of inventories valuation, Note 5 “for the relevant accounting estimation, and major sources of assumption uncertainty”, and Note 6(4) “Inventories” to the financial statements for the details of relevant disclosures.

Description of key audit matters:

The Company's inventories are measured at the lower of cost and net realizable value. The Company will exercise judgment in estimating the net realizable value of its inventories as at reporting date. Estimation of net realizable value might subject to significant changes due to the fluctuations of the market and rapid changes in technology. Therefore, estimation of devaluation loss that reduce inventory to market value is one of our key audit matters.

How the matter was addressed in our audit:

Our principal audit procedures included: Understanding and evaluating the assessment performed by the management in calculating the net realizable value, as well as vouching to relevant documents for samples selected; evaluating the adequacy of the provisions policy ； assessing whether the valuation of inventories did follow such policy; and considering the adequacy of the Company’s disclosures in the accounts.

Responsibilities of Management and Those Charged with Governance for the Parent-company-only Financial Statements

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

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

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent-company-only Financial Statements

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

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

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on this financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Chen, Pei-Chi and Hsu, Ming-Fang.

KPMG

Taipei, Taiwan (Republic of China) March 5, 2026

Notes to Readers

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

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(1)) 1110 Financial assets at fair value through profit or loss`－`current (note 6(2)) 1170 Accounts receivable, net (note 6(3)) 1180 Accounts receivable due from related parties (notes 6(3) and 7) 1210 Other receivables due from related parties (note 7) 130X Inventories (note 6(4)) 1421 Prepayments to suppliers 1476 Other financial assets`－`current (note 6(8)) 1479 Other current assets (note 6(7)) Non-current assets: 1550 Investments accounted for using equity method (notes 6(5)(6) , and 7) 1600 Property, plant and equipment (notes 6(9) and 8) 1755 Right-of-use assets (note 6(10)) 1840 Deferred tax assets (note 6(17)) 1980 Other financial assets`－`non-current (notes 6(8) and 8) 1990 Other non-current assets (note 6(7)) Total assets	December 31, 2025 Amount % $ 2,392,976 28 - - 235,487 3 140,603 2 646 - 937,518 11 215,476 2 87,783 1 84,249 1 4,094,738 48 3,779,663 44 319,509 4 39,914 - 23,498 - 321,939 4 - - 4,484,523 52 $ 8,579,261 100	December 31, 2024 Amount % 1,999,536 28 9,456 - 127,230 2 21,356 - 283 - 451,370 7 51,130 1 80,878 1 96,208 1 2,837,447 40 3,738,801 53 337,465 5 33,767 - 22,136 - 101,916 2 4,564 - 4,238,649 60 7,076,096 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(11)) 2120 Financial liabilities at fair value through profit or loss-current (note 6(2)) 2130 Contract liabilities–current (note 6(20)) 2170 Accounts payable 2180 Accounts payable to related parties (note 7) 2200 Other payables (note 6(12)) 2230 Current tax liabilities 2280 Current lease liabilities (note 6(14)) 2321 Bonds payable, current portion (note 6(13)) 2322 Long-term borrowings, current portion (note 6(11)) 2399 Other current liabilities (note 6(12)) Non-current liabilities: 2500 Financial liabilities at fair value through profit or loss`－`non-current (notes 6(2) and (13)) 2530 Convertible bonds payable (note 6(13)) 2540 Long-term borrowings (notes 6(11) and 8) 2570 Deferred tax liabilities (note 6(17)) 2580 Non`－`current lease liabilities (note 6(14)) 2640 Net defined benefit liability`－`non-current (note 6(15)) Total liabilities Equity (notes 6(5)(13)(16) and (18)): 3100 Ordinary share capital 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest 3500 Treasury shares Total equity Total liabilities and equity	December 31, 2025 Amount % $ 1,072,724 13 5,257 - 43 - 84,275 1 23,984 - 62,392 1 25,954 - 13,294 - 690,830 8 48,592 1 97,383 1 2,124,728 25 2,807 - 550,082 6 65,595 1 40,983 1 28,269 - 6,367 - 694,103 8 2,818,831 33 1,186,493 14 3,485,068 40 1,120,632 13 (28,495) - (3,268) - 5,760,430 67 $ 8,579,261 100	December 31, 2024 Amount % 351,230 5 - - - - 16,200 - 21,304 - 47,718 1 3,145 - 10,009 - 686,417 10 120,356 2 77,599 1 1,333,978 19 - - - - 132,521 2 38,636 1 25,380 - 5,543 - 202,080 3 1,536,058 22 1,190,293 16 3,392,812 48 1,052,785 15 (11,194) - (84,658) (1) 5,540,038 78 7,076,096 100

See accompanying notes to financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation

Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, except for earnings per share)

4000 Net operating revenue (notes 6(20) and 7) 5000 Operating costs (notes 6(4)(15) and (21)) Gross profit (loss) 5910 Realized (unrealized) profit (loss) from sales (note 7) Realized gross profit (loss) 6000 Operating expenses (notes 6(15)(16) and (21)): 6100 Selling expenses 6200 General administrative expenses 6300 Research and development expenses Total operating expenses 6900 Net operating income (loss) 7000 Non-operating income and expenses: 7010 Other income (note 6(22)) 7020 Other gains and losses, net (note 6(22)) 7050 Finance costs (notes 6(11)(13) and (22)) 7100 Interest income (note 6(22)) 7370 Share of profit of subsidiaries accounted for using equity method (note 6(6)) 7230 Foreign exchange gains (losses) (note 6(23)) Total non-operating income and expenses Income (loss) before income tax 7950 Income tax expenses (benefits) (note 6(17)) Net income (loss) 8300 Other comprehensive income: 8310 Items that will not be reclassified subsequently to profit or loss: 8311 Remeasurements of defined benefit plans 8316 Unrealized gains (losses) of financial assets measured at fair value through other comprehensive income 8349 Income tax related to items that will not be reclassified to profit or loss Total items that will not be reclassified subsequently to profit or loss 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign financial statements 8399 Income tax relating to item that may be reclassified subsequently (note 6(17)) Total items that may be reclassified subsequently to profit or loss 8300 Other comprehensive income 8500 Total comprehensive income Earnings(loss) per share (New Taiwan Dollars) (note 6(19)): 9750 Basic earnings (loss) per share 9850 Diluted earnings (loss) per share	2025 Amount % $ 4,016,377 100 3,619,799 90 396,578 10 (12,587) - 383,991 10 41,127 1 126,705 3 10,134 - 177,966 4 206,025 6 8,695 - (33,908) (1) (39,146) (2) 29,917 1 20,119 1 20,686 1 6,363 - 212,388 6 28,076 1 184,312 5 1,504 - - - - - 1,504 - (21,626) (1) (4,325) - (17,301) (1) (15,797) (1) $ 168,515 4 $ 1.56 $ 1.41	2024 Amount % 2,116,817 100 1,968,519 93 148,298 7 (779) - 147,519 7 31,596 1 123,616 6 12,874 1 168,086 8 (20,567) (1) 26,523 1 36,175 2 (35,261) (2) 33,172 2 116,623 6 23,520 1 200,752 10 180,185 9 11,148 1 169,037 8 2,054 - - - - - 2,054 - 26,620 1 5,324 - 21,296 1 23,350 1 192,387 9 1.44 1.39

See accompanying notes to financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation Statements of Changes in Equity For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

	Retained	earnings	O	ther equity interes	Total equity 5,412,836
			Exchange differences on translation of foreign financial statements (32,408) - 21,296 21,296 - - - - - (82) - - (11,194) - (17,301) (17,301) - - - - - - - - - - (28,495)	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income (Note) (19,385) - - - - - - - - - 19,385 - - - - - - - - - - - - - - - -
Legal reserve 332,362 - - - - - - - - - - - 332,362 - - - 15,171 - - - - - - - - - 347,533	Special reserve 35,403 - - - 16,390 - - - - - - - 51,793 - - - - (40,599) - - - - - - - - 11,194	Retained earnings 590,940 169,037 2,054 171,091 (16,390) (57,626) - - - - (19,385) - 668,630 184,312 1,504 185,816 (15,171) 40,599 (112,717) - 62 - - (5,314) - - 761,905
					169,037 23,350
					192,387
					- (57,626) (36,457) 11,923 539 15,123 - 1,313
					5,540,038
					184,312 (15,797)
					168,515
					- - (112,717) 8,400 - 107,044 46,540 - 640 1,970
					5,760,430

Note: Include the Company’s share of profit of subsidiaries accounted for using equity method.

See accompanying notes to financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation

Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Income before income tax Adjustments: Adjustments to reconcile profit : Depreciation Net loss (profit) on financial assets and liabilities through profit or loss Interest expense Interest income Share-based payments Share of profit of subsidiaries accounted for using equity method Unrealized gain from inter-affiliate accounts sale Adjustment for other non-cash-related losses, net Subtotal of gains or losses on non-cash activities Changes in operating assets and liabilities: Notes and accounts receivable (including related parties) Inventories Prepayments to suppliers Other current assets Increase (decrease) in contract liabilities Notes and accounts payable (including related parties) Other current liabilities Net defined benefit liability Total adjustments Cash inflow from operations Interest received Interest paid Income taxes paid Net cash (used in) from operating activities Cash flows from investing activities: Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment (Increase) decrease in other financial assets (Increase) decrease in refundable deposits Increase in other non-current assets Dividends received Net cash used in investing activities Cash flows from financing activities: Increase (decrease) in short-term borrowings Repayments of bonds Proceeds from issuing bonds Proceeds from long-term borrowings Repayments of long-term borrowings (including current portion) Payment of lease liabilities Cash dividends paid Treasury stocks transfer to employees Disposal of ownership interests in subsidiaries (without losing control) Net cash from (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2025 $ 212,388 57,091 33,848 39,146 (29,917) 6,398 (20,119) 12,587 - 99,034 (227,504) (486,148) (164,346) 11,596 43 70,755 36,036 (137) (660,671) (448,283) 29,643 (34,925) (2,864) (456,429) (168,713) (20,164) - (242,079) (23) (140) 120,834 (310,285) 709,914 - 658,754 - (138,690) (15,045) (112,717) 46,540 - 1,148,756 11,398 393,440 1,999,536 $ 2,392,976	2024 180,185 64,310 (36,162) 35,261 (33,172) 10,357 (116,623) 779 (13) (75,263) 96,240 (53,223) (3,961) 391,778 - (66,525) (30,892) (124) 258,030 438,215 31,012 (41,171) (1,551) 426,505 (127,391) (17,292) 353 76,803 30 (1,398) 58,285 (10,610) (483,171) (5,500) - 95,000 (109,047) (13,162) (94,083) - 33,499 (576,464) 24,247 (136,322) 2,135,858 1,999,536

See accompanying notes to financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) COREMAX CORPORATION

Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024

(Amounts expressed in Thousands of New Taiwan Dollars, except for per share information and unless otherwise noted)

1. Company history

Coremax Corporation (the “Company”) was incorporated in Hsinchu, Republic of China (R.O.C.), on June 16, 1992. The registered address of the Company’s office is 11 Wenhua Road, Hsinchu Industrial Park, Hsinchu County 30352, Taiwan R.O.C. The Company’s ordinary shares were publicly listed on the Taiwan Stock Exchange on September 8, 2017 and the trading of Taipei Exchange stock was officially terminated on the same date.

The Company are mainly involved in the manufacturing, sales, import and export of oxidation catalyst, battery materials and specialty chemicals.

2. Approval date and procedures of the financial statements

The financial statements were authorized for issue by the Board of Directors on March 5, 2026.

3. New standards, amendments and interpretations adopted:

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2025:

●Amendments to IAS21 “Lack of Exchangeability”
(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its financial statements:

●IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
●Amendments to IFRS 9 and IFRS 7 “ Amendments to the Classification and Measurement of Financial Instruments”
●Annual Improvements to IFRS Accounting Standards—Volume 11
●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

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Coremax Corporation Notes to the Parent-Company-Only Financial Statements

The following new and amended standards, which may be relevant to the Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Effective date per Interpretations Content of amendment IASB IFRS 18 “Presentation and The new standard introduces three January 1, 2027 Disclosure in Financial categories of income and expenses, two note:On September Statements” income statement subtotals and one single 25, 2025, the FSC note on management performance issued a press release measures. The three amendments, announcing that combined with enhanced guidance on how Taiwan will adopt to disaggregate information, set the stage IFRS 18 beginning in for better and more consistent information 2028. Entities that for users, and will affect all the entities. need to adopt the new ●A more structured income statement: standard earlier may do with the under current standards, companies use endorsement of the different formats to present their results, FSC.

●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.
●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

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Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

The Company is evaluating the impact on its financial position and financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
●Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

4. Summary of material accounting policies

The significant accounting policies presented in the financial statements are summarized as follows. Except for those described individually, the significant accounting policies have been applied consistently to all the periods presented in the financial statements.

(1) Statement of compliance

The parent-company-only financial statements have been prepared in accordance with the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers” (hereinafter referred to as the Regulations).

(2) Basis of preparation
(i) Basis of measurement

The parent-company-only financial statements have been prepared on a historical cost basis except for the following material items in the balance sheets:

1) Financial instruments at fair value through profit or loss are measured at fair value (include derivative instruments);
2) The defined benefit liabilities are measured fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note 4(13).
(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan Dollars (TWD), which is the Company’s functional currency. Unless otherwise noted, all financial information presented in TWD has been rounded to the nearest thousand.

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Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(3) Foreign currency
(i) Foreign currency transactions

Transactions in foreign currencies are translated into the functional currency of the Company at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date.

Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

1) an investment in equity securities designated as at fair value through other comprehensive income;
2) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
3) qualifying cash flow hedges to the extent that the hedges are effective.

(ii) Foreign operations

The assets and liabilities of foreign operations are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

(4) Classification of current and non-current assets and liabilities

The Company classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

～ 11 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

The Company classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(5) Cash and cash equivalents

Cash comprises cash on hand, demand deposits and checking deposits. Cash equivalents are shortterm and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and held for the purpose of meeting short-term cash commitments rather than for investment or other purposes are classified as cash equivalents.

(6) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

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

On initial recognition, a financial asset is classified as measured at amortized cost; FVOCI – equity investment, or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

～ 12 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial asset. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

3) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable, other receivables and other financial assets), debt investments measured at FVOCI and contract assets.

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date; and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company’ s historical experience and informed credit assessment as well as forwardlooking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.

～ 13 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

The Company considers a financial asset to be in default when the financial asset is more than 180 days past due or the debtor is unlikely to pay its credit obligations to the Company in full.

The Company considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘ investment grade’ “ which is considered to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings”.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

4) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

～ 14 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(ii) Financial liabilities and equity instruments
1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interests in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

4) Compound financial instruments

Compound financial instruments issued by the Company comprise convertible bonds that can be converted to ordinary shares at the option of the holder, when the number of shares to be issued is fixed and does not vary with changes in fair value.

The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability that does not have an equity conversion option. The equity component is recognized initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not remeasured.

Interest related to the financial liability is recognized in gain or loss. On conversion, the financial liability is reclassified to equity, and no gain or loss is recognized.

～ 15 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

5) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

6) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid is recognized in profit or loss.

7) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(iii) Derivative financial instruments

Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

(7) Inventories

Inventories are measured at the lower of cost or net realizable value. The cost of inventories is based on the weighted-average method and includes expenditure and other costs incurred in bringing them to their existing location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(8) Investment in subsidiaries

The Company’s subsidiaries are accounted for using the equity method when preparing its parentcompany-only financial statements. Under the equity method, profit, other comprehensive income and equity in the parent-company-only financial statements are equivalent to the profit, other comprehensive income and equity which are contributed to the owners of the parent in the consolidated financial statements.

～ 16 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

Changes in the Company’s ownership interests in subsidiaries that do not result in a loss of control over the subsidiaries are accounted for as equity transactions.

(9) Property, plant and equipment
(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as major components of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives, for the current and comparative years, of significant items of property, plant and equipment are as follows:

1) Buildings: 3 to 50 years.
2) Machinery and equipment: 2 to 11 years.
3) Transportation Equipment: 3 to 7 years.
4) Other equipment: 2 to 31 years.
5) Buildings constitute mainly plant, buildings, mechanical and electrical power equipment, and related engineering, etc. Each constituent is depreciated based on its useful life, respectively.

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

～ 17 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(10) Leases
(i) Identifying a lease

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(ii) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

fixed payments, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
amounts expected to be payable under a residual value guarantee; and
payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

there is a change in future lease payments arising from the change in an index or rate; or
there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or
there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
there is a change of its assessment on whether it will exercise an extension or termination option; or
there is any lease modifications

～ 18 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for shortterm leases and leases of low-value assets, including printer and staff dormitory. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

As a practical expedient, the Company elects not to assess whether all the rent concessions for all leased land occurring as a direct consequence of the COVID 19 pandemic are lease modifications or not.

In accordance with the practical expedient, the effect of the change in the lease liability is reflected in profit or loss in the period in which the event or condition that triggers the rent concession occurs.

(iii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(11) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are companied together into the smallest Company of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or Cash Generating Units (CGUs).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

～ 19 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

For other non-financial assets (excluding goodwill), an impairment loss is reversed only to the extent that the asset’ s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(12) Revenue from contracts with customers

(i) Sale of goods

The Company researches, develops, produces, manufactures and sells various chemical catalyst products, cobalt compound products and electronic components, as well as batteries. The Company recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

(ii) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

～ 20 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(13) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.

(ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

(14) Share based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

～ 21 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

For share-based payment awards with non-vesting conditions, the grant-date fair value of the sharebased payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

(15) Income tax

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes shall be recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and
(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
1) the same taxable entity; or
2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

(16) Earnings per share

The Company discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. The calculation of basic earnings per share is based on the profit attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the Company, divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, such as convertible bonds payable and employee remuneration that could be distributed in share.

～ 22 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(17) Operating segment information

The Company has disclosed operating segment information in consolidated financial statements.

Hence, this information is not required to be disclosed in these parent-company-only financial statements.

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

In preparing these parent-company-only financial statements, management has made judgments and estimates, about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

There are no critical judgments in applying accounting policies that have significant effect on the amounts recognized in the parent-company-only financial statements.

(1) The loss allowance of notes and accounts receivables

The Company has estimated the loss allowance of notes and accounts receivable that is based on the risk of a default occurring and the rate of expected credit loss. The Company has considered historical experience, current economic conditions and forward-looking information at the reporting date to determine the assumptions to be used in calculating the impairments and the selected inputs. Please refer to note 6(3) for the impairment evaluation of receivables.

(2) Valuation of Inventories

Inventories are stated at the lower of cost or net realizable value, and the Company uses judgments and estimates to determine the net realizable value of inventory for obsolescence and unmarketable items at the reporting date. It also writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on the assumptions of the estimated demands of the products within a specific time horizon in the future, therefore, the above estimation may have a significant change. Please refer to note 6(4) for further description of the valuation of inventories.

Accounting policies and disclosures of the Company include the fair value measurement for financial or non-financial assets and liabilities. The Company determines the fair value using the independent data sources which reflect the current market condition and confirming the data available are independent, reliable, in consistent with other sources and represent the exercisable price. The Company also periodically assesses the evaluation model, performs retrospective tests, and updates inputs with any other necessary fair value adjustment for the evaluation model in order to ensure the reasonableness of the valuation.

～ 23 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

The Company evaluates its assets and liabilities using the observable market inputs. The hierarchy of the fair value depends on the valuation techniques used, and the different levels have been defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs (other than quoted prices included within Level 1) that are observable for the assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: inputs for assets or liabilities that are not based on observable market data (unobservable inputs).

When there is a transfer between levels of the fair value hierarchy, the Company recognizes the transfer at the reporting date. For the assumptions used in fair value measurement, please refer to note 6(23) of the financial instruments.

6. Explanation of significant accounts

(1) Cash and cash equivalents

Cash on hand Demand deposits and checking accounts Time deposits	December 31, 2025 $ 35 1,182,941 1,210,000 $ 2,392,976	December 31, 2024
		35 674,501 1,325,000
		1,999,536

Please refer to note 6(23) for the disclosure of currency risk of the financial assets and liabilities.

(2) Financial assets and liabilities at fair value through profit or loss

Financial assets measured at fair value through profit or loss － current ：

Financial assets`－`non-current: Futures Financial liabilities`－`current`：` Futures Call and put option`－`convertible bonds payable	December 31, 2025 $ - December 31, 2025 $ 5,257 $ 2,807	December 31, 2024
		9,456
		December 31, 2024
		-
		-

～ 24 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(i) The Company uses derivative financial instruments to hedge the price fluctuations risk of raw materials due to fluctuations in international metal market. As of December 31, 2025 and 2024, the following derivative instruments, without the application of hedge accounting, were classified as mandatorily measured at fair value through profit or loss:

December 31, 2025 December 31, 2024		Open Position Amount (ton) Transaction Price Fair Value 156 USD 15,000/ton ~USD16,000/ton $ (5,257) 235 USD 15,200/ton ~USD29,211/ton $ 9,456
	Buyer/Seller Seller Seller	Amount (ton) 156 235

The futures trading day of the open position on December 31, 2025 is from October 2025 to December 2025, and the settlement dates would be at the period from January 2026 to March 2026, with net cash settlement.

The futures trading day of the open position on December 31, 2024 is from February 2024 to December 2024, and the settlement dates would be at the period from January 2025 to December 2025, with net cash settlement.

Please refer to note 6(8) for details of the outstanding futures contract margin on December 31, 2025 and 2024.

(ii) Please refer to note 6(22) for The Company’ s net profit and loss (including realized and unrealized) generated from trading in derivative financial instruments in 2025 and 2024'.
(3) Accounts receivable, net (including related parties)

Accounts receivable (including related parties)	December 31, 2025 $ 376,090	December 31, 2024
		148,586

The Company applies the simplified approach to provide for its loss allowance used for ECL, which permit the use of lifetime expected loss provision for all receivables. To measure the ECL, trade receivables have been companied based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision was determined as follows:

December 31, 2025	December 31, 2025
Gross carrying amount $ 373,029 3,061 - - $ 376,090	Weighted- average loss rate 0% 0% 0% 100%	Loss allowance provision
		- - - -
		-

～ 25 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

December 31, 2024	December 31, 2024
Gross carrying amount $ 137,681 10,905 - - $ 148,586	Weighted- average loss rate 0% 0% 0% 100%	Loss allowance provision
		- - - -
		-

The company's accounts receivable were not pledged as collaterals as of December 31, 2025 and 2024.

(4) Inventories

Raw materials Work in process Finished goods and commodities The components of operating costs were as follows: Cost of goods sold Inventory devaluation loss (reversal gain) Gain from sale of scrap	December 31, 2025 $ 469,114 218,041 250,363 $ 937,518 2025 $ 3,670,414 (48,626) (1,989) $ 3,619,799	December 31, 2024 167,297 182,533 101,540 451,370 2024 2,088,826 (120,000) (307) 1,968,519

As of December 31, 2025 and 2024, the Company’s inventories were not pledged as collaterals.

(5) Changes in the Company's ownership interest in a subsidiary
(i) Issuance of new shares for cash by subsidiaries, not subscribed to proportionately, did not lose control

As of June, 2024, the Company disposed a portion of its shareholdings in Uranus Chemicals Co. for $33,499 thousand, without losing control over the company, resulting in its disposal gain of $13,804 thousand to be recognized as capital surplus in the consolidated statements of changes in equity.

～ 26 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(ii) Change in shareholding ratio

Due to the above-mentioned transactions, the Company’s ownership of Uranus Chemicals and Heng I Chemical were changed. As of December 31, 2025 and 2024, the Company’ s shareholding to Uranus Chemicals were both 65.18%, and its shareholding to Heng I were both 82.44%.

(6) Investments accounted for using equity method

Investments accounted for using equity method
Subsidiaries	December 31, 2025 $ 3,779,663	December 31, 2024
		3,738,801

(i) Subsidiaries

Please refer to consolidated financial statements for the year ended December 31, 2025.

(ii) Share of profit of subsidiaries accounted for using equity method in 2025 and 2024 were as follows:

follows:
Subsidiaries	2025 $ 20,119	2024
		116,623

(iii) Information on major foreign currency equity investments on the reporting date were as follows:

USD VND	December 31, 2025	December 31, 2025		TWD 593,962 Note 2 493,222 Note 3		December 31, 2024	December 31, 2024	TWD 502,951 Note 1 417,171
	Foreign currency $ 18,898 $ 417,984,987	Exchange rate 31.430 0.00118				Foreign currency 15,341 328,481,901	Exchange rate 32.785 0.00127

Note1: The difference of $6,217 thousand from the balance of investments accounted for using equity method in the end of period had been recognized as unrealized profit and loss between affiliates in the current period.

Note2: The difference of $19,567 thousand from the balance of investments accounted for using equity method in the end of period had been recognized as unrealized profit and loss between affiliates in the current period.

Note3: The difference of $763 thousand from the balance of investments accounted for using equity method in the end of period had been recognized as unrealized profit and loss between affiliates in the current period.

～ 27 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(7) Other current assets and other non-current assets

Other current assets:

Offset against business tax payable and others Others Other non-current assets Prepaid equipment (8) Other financial assets Current: Margin on futures contracts Others Non-current: Refundable deposits Restricted deposits	December 31, 2025 $ 74,802 9,447 $ 84,249 December 31, 2025 $ - December 31, 2025 $ 58,948 28,835 $ 87,783 December 31, 2025 $ 1,939 320,000 $ 321,939	December 31, 2024
		89,373 6,835
		96,208
		December 31, 2024
		4,564
		December 31, 2024
		80,730 148
		80,878
		December 31, 2024
		1,916 100,000
		101,916

～ 28 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(9) Property, plant and equipment

Cost: Balance at January 1, 2025 Additions Disposals and scrap Reclassification Balance at December 31, 2025 Balance at January 1, 2024 Additions Disposals and scrap Reclassification Balance at December 31, 2024 Accumulated depreciation and impairment losses: Balance at January 1, 2025 Depreciation for the period Disposals and scrap Balance at December 31, 2025 Balance at January 1, 2024 Depreciation for the period Disposals and scrap Balance at December 31, 2024 Carrying amounts: Balance at December 31, 2025 Balance at December 31, 2024 Balance at January 1, 2024	Land $ 157,605 - - - $ 157,605 $ 157,605 - - - $ 157,605 $ - - - $ - $ - - - $ - $ 157,605 $ 157,605 $ 157,605	Building 261,493 - (1,278) - 260,215 269,862 - (8,369) - 261,493 167,517 11,725 (1,278) 177,964 163,481 12,405 (8,369) 167,517 82,251 93,976 106,381	Machinery and equipment 298,719 2,593 - 6,370 307,682 323,409 1,960 (28,420) 1,770 298,719 255,572 19,083 - 274,655 256,434 27,558 (28,420) 255,572 33,027 43,147 66,975	Other equipment 138,540 10,483 (1,255) 13,194 160,962 137,168 5,332 (3,960) - 138,540 103,073 12,518 (1,255) 114,336 94,795 12,238 (3,960) 103,073 46,626 35,467 42,373	Equipment pending acceptance and Construction in progress 7,270 7,590 - (14,860) - 1,770 9,128 (340) (3,288) 7,270 - - - - - - - - - 7,270 1,770	Total 863,627 20,666 (2,533) 4,704
						886,464
						889,814 16,420 (41,089) (1,518)
						863,627
						526,162 43,326 (2,533)
						566,955
						514,710 52,201 (40,749)
						526,162
						319,509
						337,465
						375,104

The property, plant and equipment of the Company pledged as collateral, please refer to note 8.

～ 29 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(10) Right-of-use assets

The Company leases many assets including land, buildings and transportation equipment. Information about leases for which the Company as a lessee was presented below:

Cost: Balance at January 1, 2025 Additions Disposal/Write off Balance at December 31, 2025 Balance at January 1, 2024 Additions Balance at December 31, 2024 Accumulated depreciation: Balance at January 1, 2025 Depreciation for the year Disposal/Write off Balance at December 31, 2025 Balance at January 1, 2024 Depreciation for the year Balance at December 31, 2024 Carrying amount: Balance at December 31, 2025 Balance at December 31, 2024 Balance at January 1, 2024	Land use right $ 46,533 16,658 (7,662) $ 55,529 $ 46,533 - $ 46,533 $ 24,262 6,594 (7,662) $ 23,194 $ 18,408 5,854 $ 24,262 $ 32,335 $ 22,271 $ 28,125	Buildings 26,464 3,254 - 29,718 17,402 9,062 26,464 16,073 6,281 - 22,354 10,876 5,197 16,073 7,364 10,391 6,526	Transportation equipment and others 5,296 - (1,015) 4,281 5,296 - 5,296 4,191 890 (1,015) 4,066 3,133 1,058 4,191 215 1,105 2,163	Total 78,293 19,912 (8,677) 89,528 69,231 9,062 78,293 44,526 13,765 (8,677) 49,614 32,417 12,109 44,526 39,914 33,767 36,814

(11) Long-term/Short-term borrowings

(i) Short-term borrowings:

Secured bank loans Unsecured bank loans Unused short-term credit lines Range of interest rates	December 31, 2025 $ 755,229 317,495 $ 1,072,724 $ 4,641,676 4.16%~4.45%	December 31, 2024
		351,230 -
		351,230
		4,871,570
		4.96%~5.07%

Please refer to note 6(23) for the disclosure of interest risk, currency risk and liquidity risk.

～ 30 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(ii) Long-term borrowings:

Lender Use Maturity year and Repayment O-Bank Working capital From 2019 to 2026, repayable monthly in 49 equal instalments beginning in June, 2022, and was fully repaid in advance in 2025. Mega Bank Working capital From 2019 to 2026, repayable monthly in 49 equal instalments beginning in June, 2022. Mega Bank Loans for machinery and equipment From 2020 to 2026, repayable monthly in 49 equal instalments beginning in June, 2022. HuaNan Bank The New Southbound Policy From 2024 to 2031, repayable monthly in 84 equal instalments beginning in November, 2024. Less: Current portion of long-term borrowings Unused long-term credit lines Range of interest rates at year end	December 31, 2025 $ - 30,612 4,408 79,167 (48,592) $ 65,595 $ - 0.925%~ 1.998%	December 31, 2024 55,078 91,837 13,224 92,738 (120,356) 132,521 - 1.025%~ 1.998%

The Company has signed a loan contract with the bank, and as of December 31, 2025 and 2024 the grade of the Republic of China, the Company has fulfilled the commitments in the loan contract.

The collateral of long-term borrowings, please refer to note 8.

(12) Other payables and other current liabilities

Other payables and other current liabilities mainly include salary payable, bonus payable, equipment payable, testing fee, environment examination and rectification fee payable and others. The estimate of the bonus payable by the company will be adjusted according to the overall environmental changes and other factors.

(13) Convertible bonds

The Company issued the third domestic guaranteed convertible bond on October 28, 2021, by pledging land $26,741 thousand, buildings $27,139 thousand, $40,000 thousand ordinary shares of Heng I Chemical, a demand deposit and time deposit of $200,000 thousand to Chang Hwa Commercial Bank Co., Ltd., and Chang Hwa Commercial Bank Co., Ltd. was the guarantor.

The Company issued the forth domestic guaranteed convertible bonds on December 17, 2025, by pledging time deposit of $120,000 thousand to First Commercial Bank Co., Ltd., and First Commercial Bank Co., Ltd. was the guarantor.

～ 31 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

The relevant information of the Company’s convertible corporate bonds is as follows:

Total proceeds from convertible corporate bonds issued Less: issued corporate bonds discount Cumulative converted amount Corporate bonds payable balance at year-end Less`：`convertible corporate bonds could be sold by within one year Convertible corporate bonds`－`non current Embedded derivative – call and put options(recorded in financial assets (liabilities) at FVTPL`－`non-current) Interest expense	December 31, 2025 $ 1,300,000 (53,658) (5,430) 1,240,912 (690,830) $ 550,082 $ 2,807 2025 $ 4,811	December 31, 2024 700,000 (8,153) (5,430) 686,417 (686,417) - - 2024 4,467

(i) The Company’ s third domestic guaranteed convertible corporate bonds are five year guaranteed convertible bonds with zero coupon rate, each with value of $100 thousand, amounting to $700,000 thousand. The conversion price on December 31, 2025 and 2024 were $98.5 and $100.5, respectively.

The date on which the above-mentioned convertible corporate bonds are issued for three years (October 28, 2024) shall be the base date for the holders of convertible corporate bonds to sell them back in advance.

The holders of the convertible corporate bonds issued by the Company may exercise their right to sell them back within the period specified in the issuance regulations. Hence, the Company classified the convertible corporate bonds under current liabilities as of December 31, 2023, whereas the Company may not necessarily be required by its bondholders to repay the bonds in the following year.

The Company has separately recognized its rights and liabilities of the above-mentioned convertible bonds upon issuance. The details are as follows:

Item		Amount
Total amounts of convertible corporate bonds issued
(deducting cost of issuing)	$	808,056
Fair value of embedded non-equity derivative issued		6,408
Fair value of bonds payable issued		(677,745)
Equity component – conversion options	$	136,719

After the separation of the above-mentioned embedded derivatives, the effective interest rate of the third domestic guaranteed convertible bond was 0.65%.

～ 32 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(ii) The Company’ s forth domestic guaranteed convertible corporate bonds are five year guaranteed convertible bonds with zero coupon rate, each with value of $100 thousand, amounting to $600,000 thousand. The conversion price on December 31, 2025 was $70.5.

The date on which the above mentioned convertible corporate bonds are issued for three years (December 17, 2028) shall be the base date for the holders of convertible corporate bonds to sell them back in advance.

The Company has separately recognized its rights and liabilities of the above-mentioned convertible bonds upon issuance. The details are as follows:

convertible bonds upon issuance. The details are as follows:
Item		Amount
Total convertible corporate bonds issued	$	658,754
Fair value of embedded non-equity derivatives upon issued		(2,027)
Issuing cost		(549,683)
Equity component-stock options (reported in capital surplus-stock
options)	$	107,044

After the separation of the above-mentioned embedded derivatives, the effective interest rate of the third domestic guaranteed convertible bond was 1.77%.

(14) Lease liabilities

The Company’s lease liabilities were as follow:

Current Non-current For the maturity analysis, please refer to note 6(23). The amounts recognized in profit or loss were as follows: Interest on lease liabilities Expenses relating to short-term leases and leases of low-value assets	December 31, 2025 $ 13,294 $ 28,269 2025 $ 1,307 $ 2,355	December 31, 2024
		10,009
		25,380
		2024
		1,151
		2,211

The amounts recognized in the statement of cash flows by the Company were as follows:

Total cash outflow for leases	2025 $ 18,707	2024
		15,373

(i) Leased land and buildings

As of December 31, 2025 and 2024, the Company has leased land and buildings for a period of 6 to 10, 2 to 10 years, respectively. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

～ 33 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(ii) Other leases

The Company leases vehicles and others, with lease terms of 1 to 5 years. In some cases, the Company has options to purchase the assets at the end of the contract term.

The Company also leases printers and staff dormitory with contract terms of 1 to 2 years. These leases are short-term and leases of low-value items. The Company has elected not to recognize right-of-use assets and lease liabilities for these leases.

(15) Employee benefits

(i) Defined benefit plans

The present value of the defined benefit obligation and the fair value adjustments of the plan assets for the Company were as follow:

Present value of the defined benefit obligation Fair value of plan assets Net defined benefit liability	December 31, 2025 $ 8,859 (2,492) $ 6,367	December 31, 2024 9,473 (3,930) 5,543

The Company established defined benefit plans by contributed to the pension fund account at Bank of Taiwan that provides pensions for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive an annual payment based on years of service and average salary for the six months prior to retirement.

1) Composition of plan assets

The Company allocate pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Fund, Ministry of Labor. Minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company Bank of Taiwan labor pension reserve account balance amounting to $2,481 thousand at December 31, 2025. For information on the utilization of the labor pension fund assets including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Fund.

～ 34 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

2) Movements in present value of defined benefit obligation

The movements in present value of the defined benefit obligation for the Company were as follows:

Defined benefit obligation at January 1 Current service cost and interest Benefits paid from plan assets Remeasurements of the net defined benefit liabilities Defined benefit obligation as of December 31	2025 $ 9,473 130 (1,998) 1,254 $ 8,859	2024 10,827 135 (1,241) (248) 9,473

3) Movements in the fair value of the defined benefit plan assets

The movements in the fair value of the defined benefit plan assets of the Company were as follows:

Fair value of plan assets at January 1 Contributions made Interest income Benefits paid from plan assets Return on plan assets Fair value of plan assets at December 31	2025 $ 3,930 219 49 (1,998) 292 $ 2,492	2024 4,476 203 57 (1,241) 435 3,930

4) Expenses recognized in profit or loss

The expenses recognized in profit or losses for the Company were as follows:

Net interest on the net defined benefit liabilities	2025 $ 81	2024
		78

5) Remeasurements of the net defined benefit liabilities recognized in other comprehensive income

The Company’ s remeasurements of the net defined benefit liabilities recognized as accumulated in other comprehensive income were as follows:

Cumulative amount at January 1 Recognized in losses (profit) for the period Cumulative amount as of December 31	2025 $ (7,029) 962 $ (6,067)	2024 (6,346) (683) (7,029)

～ 35 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follow:

Discount rate Future salary increase rate	December 31, 2025 December 31, 2024 1.40% 1.50% 3.00% 3.00%

The Company is expecting a contribution of $218 thousand to its defined benefit plans in the following year, beginning December 31, 2025.

The weighted-average lifetime of the defined benefit plan is 9.6 years.

7) Sensitivity analysis

The carrying amount of the Company’ s net defined benefit assets was $6,367 as of December 31, 2025. When the employee's unpaid salary growth rate is changed by 1%, it is estimated that the accrued pension liabilities recognized by the Company would increase by $683 thousand or decrease by $589 thousand, respectively.

(ii) Defined contribution plans

In accordance with the provisions of the Labor Pension Act, the Company should contribute 6% of its employees’ monthly wages to their labor pension personal accounts of the Bureau of Labor Insurance, Ministry of Labor (hereinafter referred to as the Bureau of Labor Insurance). Under this defined contribution plan, the Company contribute a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligations.

The Company’s pension costs under the defined contribution plan were $5,480 thousand and $5,562 thousand for the years ended December 31, 2025 and 2024, respectively.

(16) Share-based payment

The issuance of new shares through cash capital increase was resolved by the Board of Directors on October 15, 2025. The company reserved 600,000 shares for subscription by the employees of the Company and subsidiaries. The cost of share-based payments amounted to $8,400 thousand and recorded operating expenses and capital surplus.

～ 36 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(17) Income tax

(i) Income tax expense

Current tax expense Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Income tax expense	2025 $ 28,818 (6,052) 22,766 5,310 $ 28,076	2024
		- 172
		172
		10,976
		11,148

The amount of income tax expense (benefit) recognized in other comprehensive income were as follows:

as follows:
2025 Exchange differences on translation of foreign financial statements $ (4,325)	2024
	5,324

The reconciliation of income tax expenses and income before income tax were as follows:

Income before income tax Income tax at the Company’s domestic tax rate Permanent difference and others Undistributed earnings additional tax Change in provision in prior periods Total (ii) Unrecognized deferred tax asset Unrecognized deferred tax asset was as below: Tax losses	2025 $ 212,388 42,478 (12,540) 4,190 (6,052) $ 28,076 December 31, 2025 $ -	2024 180,185 36,037 (25,061) - 172 11,148 December 31, 2024 14,742

The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. Deferred tax assets have not been recognized because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom.

～ 37 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(iii) Recognized deferred tax assets and liabilities

Deferred tax assets Exchange differences on translation of foreign financial statements Inventory devaluation loss Pension not actually contributed Impairment loss Others Deferred tax liabilities Investment income recognized under equity method Others	January 1, 2024 $ 9,796 37,425 745 591 16,558 $ 65,115 January 1, 2024 $ 45,020 20,295 $ 65,315	Recognized in income statement - (24,000) - (286) (13,369) (37,655) Recognized in income statement (9,920) (16,759) (26,679)	Recognized in other comprehensive income (5,324) - - - - (5,324) Recognized in other comprehensive income - - -	December 31, 2024 4,472 13,425 745 305 3,189 22,136 December 31, 2024 35,100 3,536 38,636	Recognized in income statement - (9,725) - (228) 6,990 (2,963) Recognized in income statement 3,990 (1,643) 2,347	Recognized in other comprehensive income 4,325 - - - - 4,325 Recognized in other comprehensive income - - -	December 31, 2025
							8,797 3,700 745 77 10,179
							23,498
							December 31, 2025
							39,090 1,893
							40,983

(iv) The Company’ s income tax returns for the years through 2023 were assessed by the tax authority.

(18) Capital and other equity
(i) Issuance of ordinary shares

As of December 31, 2025 and 2024, the authorized capital of the Company both amounted to $1,500,000 thousand; the issued capital amounted to $1,186,493 thousand and $1,190,293 thousand with par value of $10 per share on December 31, 2025 and 2024, respectively.

The issuance of 6,000,000 shares through cash capital increase was resolved by the Board of Directors on October 15, 2025. The issue price is $58 per share, with January 19, 2026 as the date of capital increase. The relevant statutory registration procedures have not been completed.

Reconciliations of shares outstanding to the Company were as follows (in thousands of shares):

Balance at January 1 Transferred treasury shares Balance at December 31	Ordinary Shares	Ordinary Shares
	2025 117,604 1,045 118,649	2024
		117,604 -
		117,604

～ 38 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(ii) Capital surplus

Capital surplus
Additional paid-in capital Difference between consideration and carrying amount arising from acquisition or disposal of subsidiaries shareholdings Treasury share transaction Share options and others	December 31, 2025 $ 2,639,285 327,270 184,507 334,006 $ 3,485,068	December 31, 2024
		2,645,541 327,270 204,049 215,952
		3,392,812

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the ordinary share or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital share and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus should not exceed 10% of the total ordinary share outstanding.

The resolution decided by board of directors on February 27, 2024 to distribute the 2023 cash dividends from the capital surplus of $36,457 thousand, at $0.31 per share, is yet to be approved during the shareholders' meeting of the Company. The related information will be available on the Market Observation Post System on the website after the meeting.

(iii) Retained earnings

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

By choosing to apply exemptions granted under IFRS 1 during the Company’s first-time adoption of the IFRSs endorsed by the FSC, cumulative translation adjustments under shareholders’equity shall be reclassified as retained earnings at the transition date. The increase in retained earnings occurring before the transition date due to the first-time adoption of the IFRSs endorsed by the FSC amounted to $20,277. The net increase in retained earnings resulting from the first application of IFRS1 on the transition date was $16,830. In accordance with rules issued by the FSC, a net increase in retained earnings due to the first-time adoption of the IFRSs endorsed by the FSC shall be reclassified as a special reserve during earnings distribution, and when the relevant asset is used, disposed of, or reclassified, this special reserve shall be reversed as distributable earnings proportionately. There was no carrying and reversing in 2025 and 2024.

～ 39 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

In accordance with the guidelines of the above Ruling, a portion of current period earnings and undistributed prior period earnings shall be reclassified as a special reserve during earnings distribution. The amount to be reclassified should be equal to the difference between the total net current period reduction of special reserve resulting from the first-time adoption of the IFRSs endorsed by the FSC and the carrying amount of other shareholders’ equity as stated above. Similarly, a portion of undistributed prior period earnings shall be reclassified as a special reserve (which does not qualify for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior periods due to the first-time adoption of the IFRSs endorsed by the FSC. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

3) Earnings distribution

According to the Company’s articles of incorporation, in years of earnings, pay income tax, offset any accumulated deficit. Thereafter, a 10% appropriation of the remaining amount shall be set aside for legal reserve, unless the amount in the legal reserve is already equal to or greater than the total paid in capital. Thereafter, an amount shall be set aside or reversed as a special reserve in accordance with related laws, regulations, or provisions of the competent authorities. Distribution of the remaining earnings after setting aside the abovementioned amounts, together with the balance of the unappropriated retained earnings of the previous year, shall be proposed by the Board of Directors to be approved at the shareholders’ meeting.

Pursuant to Article 240 of the Company Act, the Board of Directors is authorized to distribute the dividends and bonuses, or all or part of the statutory surplus reserve and capital reserve as provided in Article 241 of the Company Act, in the form of cash after a resolution by a majority in a meeting attended by at least two-thirds of the directors. The resolution shall be submitted to the shareholders' meeting and the requirement for a resolution in a shareholders' meeting as stated in the preceding paragraph shall not apply.

As the Company is still in its growth stage, capital is needed to expand its production lines and to increase its investment in the coming years. Recently, the Company has been developing steadily based on its capital expenditure, business expansion, and appropriate financial planning. The Company will allot more than 10% of its distributable earnings above as dividends to its shareholders. However, if the distributable earnings are less than 30% of the paid-in capital, then no dividend shall be distributed. If the Company simultaneously distributes stock dividends and cash dividends, the cash dividends should not be less than 20% of the total dividend payout to its shareholders.

～ 40 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

The following are the appropriation of earnings in last two years which were approved during the shareholders’ meeting held on May 28, 2025, and May 27, 2024, respectively:

Dividends distributed to ordinary shareholders: Cash	2024 Amount per share (TWD) Total amount 0.95 $ 112,717	2023	2023
	Amount per share (TWD) 0.95	Amount per share (TWD) 0.49	Total amount 57,626

On March 5, 2026, the Company’s Board of Directors resolved to distribute the 2025 earnings. The relevant dividend distributions to the shareholders were as follows:

Dividends distributed to ordinary shareholders: Cash	2025
	Amount per share (TWD) Total amount 1.00 $ 124,649

(iv) Treasury stock

The Company repurchased treasury shares in accordance with the relevant provisions of the Securities and Exchange Law to transfer the shares to employees. The relevant information is as follows:

In Thousands of Units/Shares

	2025
Reason for holding shares Transferred shares to employees	Number of shares at the beginning of the period 1,425 2024	Increased in this period 1,045	Transferred in this period 380	Number of shares at the end of the period
				-

Reason for holding shares Transferred shares to employees	Number of shares at the beginning of the period 1,425	Increased in this period -	Transferred in this period -	Number of shares at the end of the period
				1,425

In accordance with the requirements of Securities and Exchange Act, treasury shares held by the Company should not be pledged, and do not hold any shareholder rights before the transfer. Shares of the Company held by its subsidiaries are accounted for as treasury shares, which are not allowed in participating in the Company's capital increase and without voting rights, except that, other right is the same as the general shareholders' rights.

～ 41 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

On December 20, 2024, the board of directors resolved to transfer a total of $1,081 thousand treasury stocks to the employees of the company and its subsidiary at the transfer price of $44.67 per share with the employee stock subscription base date set on December 20, 2024. Therefore, the recognized share-based compensation cost was $10,357 thousand and the adjustment of the investments accounted for using equity method was $1,566 thousand. The Company transferred 1,045 thousand shares on February 21, 2025.

On May 9, 2025, the Board of Directors resolved to cancel 380 thousand treasury shares in accordance with Article 28-2, Paragraph 4 of the Securities and Exchange Act. The capital reduction base date was set as May 18, 2025, and the statutory registration procedures for the change have been completed on June 16, 2025.

On December 31, 2025 and 2024, Uranus Chemicals holds 673 thousand ordinary shares of the Company, with the acquisition price of $5,014 thousand and the amount of deemed treasury shares the Company recognized were both $3,268 thousand, which was determined based on the Company’s shareholding ratio in Uranus Chemicals of 65.18%.

(19) Earnings per share

Basic earnings per share: Net income attributable to ordinary shareholders of the Company Ordinary shares at January 1 Repurchase treasury shares Shares held by subsidiaries Weighted-average number of ordinary shares outstanding during the year (in thousands of shares) Basic earnings per share (TWD) Diluted earnings per share: Net income attributable to ordinary shareholders of the Company (basic) Interest expense on convertible bonds, net of tax Net income attributable to ordinary shareholders of the Company (diluted) Weighted average number of ordinary shares outstanding (in thousands) (basic) Potential ordinary shares with dilutive effect: Effect of employee remuneration in share Effect of conversion of convertible bonds Weighted average number of ordinary shares outstanding (in thousands) (diluted) Diluted earnings per share (TWD)	2025 $ 184,312 119,029 (526) (439) 118,064 $ 1.56 $ 184,312 3,849 $ 188,161 118,064 65 15,562 133,691 $ 1.41	2024 169,037 119,029 (1,425) (443) 117,161 1.44 169,037 3,574 172,611 117,161 88 6,910 124,159 1.39

～ 42 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

When calculating earnings per share, if the potential ordinary shares of convertible corporate bonds and employee compensation that can be allotted by stocks have an anti-dilution effect, they will not be included in the calculation.

(20) Revenue from contracts with customers

Revenue from major markets region and products:

		2025
Oxidation catalyst department $ 205,824 246,164 $ 451,988	Battery material department 67,559 3,023,588 3,091,147	Specialty chemical department 15,358 89,769 105,127 2024	Other 29,695 338,420 368,115	Total
				318,436 3,697,941
				4,016,377

	Battery material department 105,549 1,111,437 1,216,986	Specialty chemical department 3,331 134,299 137,630	Other 58,864 339,667 398,531	Total
				384,393 1,732,424
				2,116,817

As of December 31, 2025, the contract liabilities – current amounting to $43 thousand.

(21) Remuneration to employees and directors

On May 28, 2025, the Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Articles, if there is a profit for the fiscal year, the Company shall allocate no less than 1.5% of the profit as employees' remuneration. At least 40% of the total amount allocated for employees' remuneration shall be distributed to entry-level employees. The remuneration to employees may be distributed in the form of stock or cash, as resolved by the Board of Directors. Employees in subordinate companies who meet certain criteria are entitled to receive remuneration. The Company may have the Board of Directors resolve to appropriate no more than 5% of the aforementioned amount as the directors' remuneration. The distribution of employees' and directors' remunerations shall be reported in the Shareholders' Meeting. Where there is an accumulated loss, the profit shall be reserved to make up for the loss before appropriating the employees' and directors' remunerations. Prior to the amendment, the Articles of Incorporation stipulated that, if there is a profit in the year, the Company shall allocate no less than 1.5% of the profit as employees' remuneration. The remuneration to employees will be distributed in shares or cash by a resolution made by the board of directors. Employees in subordinate companies who meet certain criteria are entitled to receive remuneration. The Company may have the Board of Directors resolve to appropriate no more than 5% of the aforementioned amount as the directors' remuneration. The distribution of employees' and directors' remunerations shall be reported in the Shareholders' Meeting. Where there is an accumulated loss, the profit shall be reserved to make up for the loss before appropriating the employees' and directors' remunerations.

～ 43 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024, the Company accrued and recognized its employee remuneration amounting to $3,441 thousand and $4,770 thousand and the director's remuneration were all amounting to $0 thousand. These amounts were calculated by using the Company’s pre-tax net profit for the period before deducting the amounts of the remuneration to employees, multiplied by the distribution of ratio of the remuneration to employees based on the Company’s articles of incorporation, and expensed under operating costs or expenses. The related information can be accessed from the Market Observation Post System website. The amounts, as stated in the Parent-Company-Only financial statements, are identical to those of the actual distributions for 2025 and 2024.

(22) Non-operating income and expenses
(i) Other income

Rental income Others (ii) Other gains and losses, net Gain (loss) on valuation of financial assets and liabilities at FVTPL Others (iii) Finance costs Interest expense – borrowings Interest expense – lease liabilities Interest expense – convertible bonds payable Interest expense – rent deposit (iv) Interest income Interest income from bank deposits Interest income from others	2025 $ 3,751 4,944 $ 8,695 2025 $ (33,848) (60) $ (33,908) 2025 $ (33,028) (1,307) (4,811) - $ (39,146) 2025 $ 29,908 9 $ 29,917	2024 3,702 22,821 26,523 2024 36,162 13 36,175 2024 (29,641) (1,151) (4,467) (2) (35,261) 2024 33,153 19 33,172

～ 44 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(23) Financial instruments
(i) Credit risk
- 1) Credit risk exposure

The carrying amount of financial assets and contract assets represent the maximum credit exposure.

2) Concentration of credit risk

The customers of the Company are concentrated on customer base of oxidation catalyst, power battery materials, chemical fertilizers and special chemicals. The Company limits its exposure to credit risk from accounts receivables by continuously evaluates the debt collectability and provides adequate reserves for loss allowance, if necessary. As of December 31, 2025 and 2024, there were 1 and 3 major customers, which represented 48% and 58% of the accounts receivable, respectively. Thus, credit risk is significantly concentrated.

3) Credit risk of receivables and debt securities

For credit risk exposure of note and trade receivables, please refer to note 6(3). Other financial assets at amortized cost include other receivables from related parties and other financial assets. There are no impairment losses recognized for the years ended.

All of these financial assets are considered to have low risk, and thus, the loss allowance recognized during the period was limited to 12 months expected losses. Regarding how the financial instruments are considered to have low credit risk, please refer to note 4(6).

(ii) Liquidity risk

The following are the contractual maturities of financial liabilities, (including interest payments):

payments):
December 31, 2025 Non-derivative financial liabilities Short-term borrowings Notes and accounts payable (including related parties) Other payables Long-term borrowing (including current portion of long-term borrowings) Lease liabilities (including current and non-current) Convertible bonds payable (including current portion of convertible bonds payable)	Carrying amount $ 1,072,724 108,259 2,528 114,187 41,563 1,240,912 $ 2,580,173	Contractual cash flow 1,088,791 108,259 2,528 119,194 44,289 1,294,500 2,657,561	Within 6 months 1,088,791 108,259 2,528 42,624 7,288 - 1,249,490	6 to 12 months - - - 7,500 7,071 694,500 709,071	1 to 2 years - - - 14,850 8,515 - 23,365	Above 2 years
						- - - 54,220 21,415 600,000
						675,635

～ 45 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

December 31, 2024 Non-derivative financial liabilities Short-term borrowings Notes and accounts payable (including related parties) Other payables Long-term borrowing (including current portion of long-term borrowings) Lease liabilities (including current and non-current) Convertible bonds payable (including current portion of convertible bonds payable)	Book value $ 351,230 37,504 2,209 252,877 35,389 686,417 $ 1,365,626	Cash flow of contract 357,776 37,504 2,209 260,306 37,552 694,500 1,389,847	Within 6 months 357,776 37,504 2,209 61,480 5,441 - 464,410	6 to 12 months - - - 61,262 5,406 694,500 761,168	1 to 2 years - - - 68,494 10,159 - 78,653	Above 2 years
						- - - 69,070 16,546 -
						85,616

The Company does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.

(iii) Currency risk

1) Exposure to currency risk

The Company’ s financial assets and liabilities exposed to exchange rate risk were as follows:

Financial Assets Monetary items USD Financial Liabilities Monetary items USD Financial Assets Monetary items USD Financial Liabilities Monetary items USD	December 31, 2025	December 31, 2025
	Foreign currency Exchange rate TWD $ 25,366 31.430 797,253 36,190 31.430 1,137,452 December 31, 2024
	Foreign currency $ 14,678 10,780	Exchange rate TWD 32.785 481,218 32.785 353,422

2) Sensitivity analysis

The Company’s exposure to foreign current risk arises from the translation of cash and cash equivalents, receivables, short-term borrowing, accounts payable, and other payables, that are primarily denominated in USD. Assuming all other variable factors remain constant, a strengthening (weakening) of $1 of the TWD against as of December 31, 2025 and 2024, would have (decreased) increased the net income $8,659 thousand, and increased (decreased) the net income $3,118 thousand, respectively.

～ 46 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

3) Exchange gains and losses of monetary items

The information on foreign exchange gain (loss) on monetary items. For years 2025 and 2024, foreign exchange gain (loss) (including realized and unrealized portions) amounted to $20,686 and $23,520, respectively.

(iv) Interest rate analysis

The Company’ s interest rate exposure regarding its financial assets and liabilities has been disclosed in the note of financial risk management.

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities are outstanding for the whole year on the reporting date. The exposure to changes in interest rates (assuming all other variables remain constant) would have influenced the net income for the years ended December 31, 2025 and 2024, as illustrated below:

Annual interest rate	Range of the fluctuations Increase of 1% Decrease of 1%	2025 $ (9,495) $ 9,495	2024 (4,833) 4,833

(v) Fair value of financial instruments
1) Fair value hierarchy

The fair value of financial assets and liabilities at fair value through profit or loss is measured on a recurring basis. The carrying amount and fair value of the Group’ s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

	December 31, 2025	December 31, 2025	December 31, 2025
Carrying amount $ 5,257 $ 2,807 $ 1,240,912		Fair Value
	Level 1 5,257 - $ 1,400,891	Level 2 - 2,807 -	Level 3 - - -	Total
				5,257
				2,807
				$ 1,400,891

～ 47 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

December 31, 2024	December 31, 2024	December 31, 2024
	Fair Value
Level 1 9,456 701,792	Level 2 - -	Level 3 - -	Total
			9,456
			701,792

2) Valuation techniques for financial instruments not measured at fair value

The Company’s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

Financial assets and financial liabilities measured at amortized cost. If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

3) Valuation techniques for financial instruments that are measured at fair value

The right-of-call or put option that embedded in derivative is measured by using the appropriate option pricing models.

There is no transfer between the levels for the years ended 2025 and 2024.

(24) Financial risk management

This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and process for measuring and managing risk. Further quantitative disclosures are included throughout the relevant footnotes of the parent-company-only financial statements.

(i) Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.

The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

～ 48 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

The financial management department provides services for each business, coordinating access to domestic and international financial market operations, monitors and manages the financial risks associated with the operations of the Company by analyzing the internal risk report on risk based on the degree and extent of the risk. The risk including credit risk, liquidity risk and market risk. The market risk which including currency risk, rate risk, and other market price risk.

(ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company deposits its cash and cash equivalents with reputable banks; thus, the credit risk is low.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate. The Company limits its exposure to credit risk by establishing a dedicated team that is responsible for customer’ s credit assessment and approval, limit and monitoring procedures. This is to ensure that appropriate actions are taken for the recoverability of overdue receivables. In addition, the Company will review the recoverable amount of the receivables individually at each reporting date so that impairment losses are appropriately provided for those irrecoverable receivables.

The Company’ s policy is to provide financial guarantees only to wholly owned subsidiaries. There is no endorsement guarantee to entity other than subsidiary on December 31, 2025 and 2024.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’ s reputation.

The Company manages and maintains sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Company’ s management supervises the banking facilities and ensures compliance with the terms of loan agreements.

(iv) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Company’ s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

～ 49 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

1) Currency risk

The Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of the Company’s entities, primarily the USD.

Interest in borrowing is denominated with the same currency of borrowing principal. Generally, the denominated currency of borrowing is the same with the Company’s cash flow generated from operation, primarily in TWD, but also USD. Under these circumstances, the natural economic hedge exists without using derivative instrument.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.

2) Interest rate risk

The Company’ s short-term and long-term borrowings are carried in variable interest rates. Therefore, the fluctuation of market rate will make the effective interest rate of short-term and long-term borrowings changed accordingly which resulted fluctuation in future cash flows.

(25) Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios to support its business and maximize shareholder's value.

The Company’s industry is volatile, capital and technology-intensive industries, and the Company’s life cycle is in a stable growth stage of operation. The remaining dividend policy must be adopted at this stage with funds to retain the surplus in response to operational growth and investment needs. The cash dividend distributed by the shareholder bonus shall not be less than 20% of the total distribution.

The top management of the Company re-examines the capital structure every six months, and its review includes consideration of the cost of each category of capital and related risks. Based on the recommendations of the top management, the Company will balance its overall capital structure by paying dividends, issuing new shares, buying back shares and issuing new debts or repaying old debts.

As of December 31, 2025, the way in which the Company’s capital management was managed has not changed.

The debt-to-equity ratio at the reporting date is as follows:

Total liabilities Less: cash and cash equivalents Net debt Total equity Debt-to-equity ratio	December 31, 2025 $ 2,818,831 (2,392,976) $ 425,855 $ 5,760,430 % 7.39	December 31, 2024 1,536,058 (1,999,536) (463,478) 5,540,038 % (8.37)

～ 50 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(26) Financing activities not affecting current cash flow

Reconciliation of liabilities arising from financing activities were as follows:

Non-cash changes

Additions - - 19,912 - Non-cash	Foreign exchange movement and others December 31, 2025 11,580 1,072,724 - 114,187 1,307 41,563 (104,259) 1,240,912 changes Foreign exchange movement and others December 31, 2024 24,247 351,230 - 252,877 1,151 35,389 4,537 686,417	December 31, 2025
		1,072,724
		114,187
		41,563
		1,240,912
	changes Foreign exchange movement and others 24,247 - 1,151 4,537
Additions - - 9,062 -

7. Related-party transactions

(1) Names and relationship with related parties

Name of related party

Coremax (BVI) Corporation COREMAX (THAILAND) CO., LTD. Uranus Chemicals Co., Ltd. Heng I Chemical Co., Ltd. Coremax Ningbo Chemical Co., Ltd. Coremax (Zhangzhou) Chemical Co., Ltd. Jiangxi Tianjiang Materials Co., Ltd. VINACOREMAX COMPANY LIMITED

Relationship with the Company

The subsidiary of the Company The subsidiary of the Company The subsidiary of the Company The subsidiary of the Company The subsidiary of the Company The subsidiary of the Company The subsidiary of the Company The subsidiary of the Company

～ 51 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(2) Significant related-party transactions
(i) Operating revenue

Subsidiaries	2025 $ 334,111	2024
		137,521

The selling prices for sales to related parties and collection period were similar to those for unrelated customers.

As of December 31, 2025 and 2024, the unrealized profit or loss from sales with the investees under equity method amounted to $12,587 and $779, respectively, which were deducted from the investments accounted for using the equity method.

(ii) Purchase

Subsidiaries	2025 $ 88,848	2024
		13,271

The terms and pricing of purchase transactions with related parties were not significantly different from those offered by other vendors.

(iii) Accounts receivable from related parties

The receivable from related party was as follows:

Subsidiaries (iv) Accounts payable to related parties	December 31, 2025 $ 140,603	December 31, 2024
		21,356

The payables to related parties were as follows:

The payables to related parties were as follows:
Related Party Categories	December 31, 2025 $ 5,973	December 31, 2024
Subsidiaries		2,523

(v) Processing charges

For the years 2025 and 2024, expenses of the Company incurred due to the processing by subsidiaries amounted to $5,783 thousand and $77,830 thousand, respectively.

(vi) commission income

The Company charges commission to its subsidiary. The commission income recognized in 2025 and 2024 were $0 thousand and $9,953 thousand, respectively.

～ 52 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(vii) Endorsement guarantee

As of December 31, 2025 and 2024, the Company’ s endorsement guarantee provided to subsidiaries amounted to $1,524,740 thousand and $1,589,905 thousand, respectively.

(viii) Rental

(a) Rental income and imputed interest

The Company enters into a lease agreement with its subsidiaries. The rental income recognized in years 2025 and 2024 were $3,151 thousand and $3,058 thousand, respectively. The imputed interest recognized in years 2025 and 2024 were $0 thousand and $14 thousand, respectively.

(b) Utilities, fuel fee and others

The Company rented land and factories, fuel fee and others from subsidiaries, the amount paid for related expenses in years 2025 and 2024 were $9,008 thousand and $4,115 thousand, respectively.

(c) The Company rented land and offices from subsidiaries. For the years 2025 and 2024, the Company recognized the amount of $1,303 thousand and $1,138 thousand as interest expense, respectively. As of December 31, 2025 and 2024, the balance of lease liabilities amounted to $41,346 thousand and $34,272 thousand, respectively.
(d) For the year ended December 31, 2025 and 2024, the amount paid by the Company to its subsidiaries for rent expenses incurred under the staff dormitory lease agreement were both $72 thousand.
(e) Other income

During the year 2025, the Company sold equipment to its subsidiary and recognized other income amounting to NT$171 thousand.

The amount paid by the Company and its related parties for receivable (payable) due from (to) related parties incurred under the rent expenses, interest income and other transactions, etc. were as follows:

Other receivables due from related parties

Subsidiaries	December 31, 2025 December 31, 2024 $ 646 283

～ 53 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

Accounts payable due to related parties

Accounts payable due to related parties
Subsidiaries	December 31, 2025 $ 18,011	December 31, 2024
		18,781

(ix) Purchasing machinery and equipment

The Company purchased machinery and equipment on behalf of its Thai subsidiary for the price of $425 thousand in 2024.

(3) Transactions with key management personnel

Key management personnel remuneration comprised:

Short-term employee benefits Post-employment benefits	2025 $ 18,203 - $ 18,203	2024
		17,694 -
		17,694

8. Pledged assets

Except for notes 6(13), the carrying amount of the Company’s pledged assets are as follows:

Assets Land Buildings Restricted deposit (recorded in other financial assets`－`non-current)	Purpose of pledge Long-term borrowings and obtaining credit limit for short-term borrowings Long-term borrowings and obtaining credit limit for short-term borrowings Create a pledge of convertible bonds payable	December 31, 2025 $ 157,605 47,606 320,000 $ 525,211	December 31, 2024
			130,864 24,581 100,000
			255,445

9. Commitments and contingencies

Except for the note 6(11), the remaining statements were as follow:

(1) As of December 31, 2025, and 2024, the Company had acquired property, plant and equipment, with the remaining commitments of $0 thousand and $7,381 thousand, respectively.
(2) As of December 31, 2025, and 2024, the subsidiary, Coremax (BVI) Corporation, had applied for a borrowing facility with an amount of USD3,000 thousand (equivalent to $94,290 thousand and $98,355 thousand, respectively) from a bank, in which the Company holds the responsibility as its joint guarantor.

～ 54 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(3) As of December 31, 2025 and 2024, VINACOREMAX COMPANY LIMITED, had applied for a borrowing facility with an amount of USD $35,000 thousand and VND $280,000,000 thousand, and USD $30,000 thousand and VND $400,000,000 thousand (equivalent to $1,430,450 thousand and $1,491,550 thousand, respectively) from a bank, in which the Company holds the responsibility as its joint guarantor.

10. Losses due to major disasters: None

11 Subsequent events

On March 5, 2026, the Board of Directors resolved to capital increase in an Vietnam subsidiary, VINACOREMAX COMPANY LITIMED, amounting to USD 3,000 thousands.

12. Other

(1) A summary of employee benefits, depreciation, and amortization, by function, is as follows:

By function By item		2025			2024
	Classified as operating cost	Classified as operating expenses	Total	Classified as operating cost	Classified as operating expenses	Total
Employee benefits Salaries Labor and health insurance Pension Remuneration of directors Others Depreciation	80,310 7,853 3,235 - 9,288 46,791	77,484 5,476 2,326 5,595 3,302 10,300	157,794 13,329 5,561 5,595 12,590 57,091	71,301 7,089 3,277 - 6,887 53,562	78,198 5,285 2,363 5,457 2,578 10,748	149,499 12,374 5,640 5,457 9,465 64,310

The number of employees and employee benefits for the years ended December 31, 2025 and 2024, was follows:

2025 The number of employees 170 The number of directors who were not holding as a position of employee 7 The average of employee benefits $ 1,161 The average of Salaries $ 968 The average of salary adjust rate % - Supervisor's remuneration $ -	2024
	160
	6
	1,149
	971
	% 36
	-

The Company’ s salary and remuneration policy (including directors, managers and employees) is as follows:

(i) Directors’ remuneration: The remuneration of each director shall be proposed by the Salary Remuneration Committee for implementation after being approved by the Board of Directors.

～ 55 ～

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(ii) Salaries of employees and managers: Monthly salary will be determined with reference to the salary market conditions, job category, academic experience, professional knowledge and technology, seniority, practical experience, as well as personal performance, regardless of age, gender, race, etc.; and it will be adjusted in due course according to the Company's operating conditions, market wage dynamics, the overall economic and industrial climate changes, and the government laws and regulations.
(iii) Year-end bonus for employees and managers is allocated according to the Company's operating conditions, with reference to each employee’s performance appraisal results.
(iv) Remuneration for employees and managers is based on the Company's employee remuneration distribution policy, with reference to the achievement of personal goals, job contribution and overall performance of the individual.

The remuneration policies of the above-mentioned general manager, deputy general managers and equivalent position manager, in addition to the company’s business strategy, profit results, performance and job contribution etc. factors, and reference to the salary market level. The Salary Remuneration Committee puts forward a proposal and implement after approved by the Board of Directors.

13. Other disclosures:

(1) Information on significant transactions:

The following is the information on the Company’ s significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” :

(i) Loans to other parties: Please refer to Table 1.
(ii) Guarantees and endorsements for other parties: Please refer to Table 2.
(iii) Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures): Please refer to Table 3.
(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
(v) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
(2) Information on investees: Please refer to Table 4.
(3) Information on investment in mainland China:
(i) The names of investees in Mainland China, the main businesses and products, and other information: Please refer to Table 5(1).
(ii) Limitation on investment in Mainland China: Please refer to Table 5(2).

～ 56 ～

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(iii) Significant transactions:

The significant inter-company transactions with the subsidiaries in Mainland China, which were eliminated in the preparation of parent-company-only financial statements, are disclosed in “Information on significant transactions”.

14. Segment information

Please refer to consolidated financial statements for the year ended December 31, 2025.

～ 57 ～

Coremax Corporation

Loans to other parties

For the year ended December 31, 2025

Table 1

(Amounts in Thousands)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower (Note 5)	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad deb	Collateral	Collateral	Individual funding loan limits (Note 3)	Maximum limit of fund financing (Note 2)
													Item	Value
1 1 1 2 3	COREMAX (BVI) CORPORATION COREMAX (BVI) CORPORATION COREMAX (BVI) CORPORATION Coremax Ningbo Chemical Co., Ltd. Coremax (Zhangzhou) Chemical co., Ltd.	Coremax Ningbo Chemical Co., Ltd. COREMAX (THAILAND)CO., LTD. Coremax (Zhangzhou) Chemical co., Ltd. Coremax (Zhangzhou) Chemical co., Ltd. Coremax Ningbo Chemical Co., Ltd.	Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes	26,564 83,013 33,205 18,292 18,292	25,144 78,575 31,430 17,984 17,984	- 48,717 - - -	5% 4.5% 5% 3.5% 3.5%	2 2 2 2 2	- - - - -	Operating demand Operating demand Operating demand Operating demand Operating demand	- - - - -	None None None None None	- - - - -	118,792 118,792 118,792 37,322 42,895	178,188 178,188 178,188 55,983 64,342

Note 1: The number denote the following `：`

(1) The issue is number 0.
(2) Interest are listed in accordance with names and sequential order starting with 1.
Note 2: Limit of total financing amount shall not exceed 30% of latest financial statements of the lender’s capital.
Note 3: Limit of financing amount for individual counter-party shall not exceed 20% of the latest financial statements of the lender’s capital.
Note 4: Limit of total financing amount shall not exceed 100% of latest financial statements of the lender’s capital. Limit of financing amount for individual counter-party shall not exceed 80% of the latest financial statements of the lender’s capital.
Note 5: (1) Parties which have business relationship with the Company
(2) The need for short-term financing.

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Coremax Corporation

Guarantees and endorsements for other parties

For the year ended December 31, 2025

Table 2

(Amounts in Thousands)

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise (Note 4)	Highest balance of guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements (Note 3)	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements / guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company (Note 2)
0 0	The Company The Company	Coremax (BVI) Corporation VINACOREMAX COMPANY LIMITED	2 2	2,880,215 2,880,215	99,615 1,508,150	94,290 1,430,450	- 774,984	- -	% 1.64 % 24.83	2,880,215 2,880,215	Y Y	N N	N N

Note 1: The numbers denote the following:

(1) The issuer is number 0.
(2) Investees are listed in accordance with names and in sequential order starting with 1.
Note 2: The relation between guarantor and guarantee and their endorsement should be disclosed as one of the following:
(1) An entity that is with business relationship.
(2) Subsidiary which owned more than 50 percent by the guarantor.
(3) An investee owned more than 50 percent in total by both the guarantor and its subsidiary.
(4) An investee owned more than 90 percent by the guarantor or its subsidiary.
(5) Fulfillment of contractual obligations by providing mutual endorsements and guarantor for peer or joint builders in order to undertake a construction project.
(6) An entity that is guaranteed and endorsed by all capital contributing shareholders in proportion to their shareholding percentages.
(7) The companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for per-construction homes pursuant to the Consumer Protection Act for each other.
Note 3: The total amount for guarantees and endorsements provided by the Company to other entities shall not exceed 50% of latest financial statements of the Company’s net worth audited.
Note 4: The total amount for guarantees and endorsements provided by the Company to any individual entity shall not exceed 50% of latest financial statements of the Company’s net worth audited.

～ 59 ～

Coremax Corporation

Marketable Securities Held (excluding Investment in Subsidiaries, Associates and Joint Ventures)

December 31, 2025

Table 3

December 31, 2025	December 31, 2025	December 31, 2025	December 31, 2025	December 31, 2025
able 3					(Shares/Amounts in Thousands)
Name of holder	Category and name of security	Relationship with company	Account title	Shares	Ending balance			Note
					Carrying value	Percentage of ownership	Fair value
Uranus Chemicals Co., Ltd.	Stock of HSINCHU GOLF COUNTRY CLUB Co.,Ltd	None	Non-current financial assets at fair value through other comprehensive income	3	3,369	0.35 %	3,369	-

～ 60 ～

Coremax Corporation

Information on Investees (Excluding Information on Investees in Mainland China)

For the year ended December 31, 2025

Table 4

(Shares in Thousands /Amount in Thousands)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2025	Balance as of December 31, 2025	Balance as of December 31, 2025	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
The Company The Company The Company The Company Coremax (BVI) Corporation	Coremax (BVI) Corporation Heng I Chemical Co., Ltd. Uranus Chemicals Co., Ltd. VINACOREMAX COMPANY LIMITED COREMAX (THAILAND) CO.,LTD.	British Virgin Islands Taiwan Taiwan Vietnam Thailand	Investment company Manufacturing and sales of chemical fertilizers, chemical raw materials, organic fertilizer and fertilizers with organic matter. Import and export of related business. Recycling and reproduce of solvent and pollutants. Manufacturing and sales of oxalic (acid), organic and inorganic acid, rare earth compounds, cobalt compound and related products Manufacturing and sales of organic and inorganic acid Manufacturing and processing of pure terephthalic acid oxidation catalyst, sodium carbonate solutions, wastewater treatment solutions, exhaust gas absorbent and cobalt compound series products.	302,406 1,143,369 934,321 614,868 67,047	302,406 1,143,369 934,321 446,155 67,047	9,658 41,058 43,266 - 70	% 100 % 82.44 % 65.18 % 100 % 100	574,394 1,587,905 1,123,380 493,984 142,055	83,750 115,302 (138,485) (63,801) 25,052	83,750 95,230 (95,060) (63,801) 25,052	- - - - -

～ 61 ～

Coremax Corporation

Information on Investment in Mainland China

For the year ended December 31, 2025

Table 5

(Amounts in Thousands)

(1) The names of investees in Mainland China, the main businesses and products, and other information

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Notes 3)	Book value	Accumulated remittance of earnings in currentperiod
					Outflow	Inflow
Coremax Ningbo Chemical Co., Ltd. Coremax (Zhangzhou) Chemical Co., Ltd. Jiangxi Tianjiang Materials Co., Ltd.	Manufacturing and processing of pure terephthalic acidoxidation catalyst, sodium carbonate solutions, wastewater treatment solutions,exhaust gas absorbent and cobalt compound series products. Manufacturing, processing and wholesale of pure terephthalic acid oxidation catalyst, sodium carbonate solutions, wastewater treatment solutions, waste gas absorbent and cobalt compound series products, and regeneration treatment of abort oxidation catalyst. Manufacturing and sales of oxalic acid (organic) and inorganic acid`、` rare earth compounds and related products	98,482 185,654 43,947	Investment in companies in Mainland China through investment companies in the third regions.(note 1) Investment in companies in Mainland China through investment companies in the third regions. (note 2) Uranus Chemical invest companies in Mainland China	81,240 148,795 43,947	- - -	- - -	81,240 148,795 43,947	39,006 17,795 (2,449)	100.00% 100.00% 100.00%	39,006 17,795 (2,449)	186,611 214,475 11,190	- - -

～ 62 ～

(2) Limitation on investment in Mainland China

Limitation on investment in Mainland China
Cumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA (Note 5)	Upper Limit on Investment (Note 4)
273,982 (USD 8,808 )	449,072 (USD 14,288 )	3,456,258

Note 1:The paid-up capital amount is NTD 98,482 thousand (USD 3,000 thousand), which included the cash remitted by the Company through its subsidiary, Coremax (BVI) Corporation amounting to NTD 81,240 thousand (USD 2,470 thousand) and surplus from Coremax (BVI) Corporation amounting to NTD 17,242 thousand (USD 530 thousand).
Note 2:The paid up capital amount is NTD 185,654 thousand (USD 6,280 thousand), which included the cash remitted by the Company through its subsidiary, Coremax (BVI) Corporation, amounting to NTD 124,097 thousand (USD 4,200 thousand), surplus from Coremax (BVI) Corporation amounting to NTD 6,055 thousand (USD 200 thousand), Coremax (BVI) Corporation acquired of shares from other external shareholders amounting to NTD 24,698 thousand (USD 788 thousand) in obtaining paid up capital of NTD 21,890 thousand (USD 750 thousand), cash remitted by Coremax Zhuhai Chemical Co., Ltd. (sold to a third party in July 2021) is amounting to NTD 20,720 thousand (USD 700 thousand), and cash remitted by Coremax Ningbo Chemical Co., Ltd. Is amounting to NTD 12,892 thousand (USD 430 thousand).

Note 3:Amount was recognized based on the audited financial statement.

Note 4:The Company investment in Mainland China pursuant to "Principle of investment or Technical Cooperation in Mainland China" is not exceeding the investment amount or percentage limit.

Note 5: Exchange rates at the dates of balance sheet date.

～ 63 ～

Coremax Corporation Statement of cash and cash equivalents

December 31, 2025

(In Thousands of New Taiwan Dollars; Foreign currencies: In Thousands of U.S. Dollars, Canadian Dollars, Euro and Chinese Yuan)

Item Cash Deposits	Description Amount Petty cash $ 35 Checking deposits 1,527 Demand deposits 948,371 Foreign currency deposits (USD: 7,373) 233,043 (EUR: 25) (RMB: 25) (VND: 231,131) 1,182,941 Time deposits 1,210,000 Total $ 2,392,976	Amount
		35
		1,527 948,371 233,043
		1,182,941
		1,210,000

Note: Foreign exchange rates on the balance sheet date are as follows:

USD exchange rates ： 31.43 EUR exchange rates ： 36.9 RMB exchange rates ： 4.496 VND exchange rates ： 0.00118

～ 64 ～

Coremax Corporation Statement of accounts receivable

December 31, 2025

(In thousands of New Taiwan Dollars)

Client Name		Amount
CF	$	178,759
CE		21,609
Others (The amount of individual client included in others does not exceed
5% of the account balance.)		35,119
Notes and accounts receivables, net	$	235,487
Note 1: The accounts receivables are resulting from the operating activities.

Note 2: Receivables from related parties are not included. Please refer to note 7 for further details.

～ 65 ～

Coremax Corporation Statement of inventories

December 31, 2025

(In thousands of New Taiwan Dollars)

Item Finished goods Work-in progress Raw materials Total	Amount Cost NRV Note $ 250,363 292,575 Note: Please refer to note 4(7) for further explanation of the net realizable value of 218,041 280,988 inventories in the parent-company-only 469,114 550,222 financial statements. $ 937,518 1,123,785
	Cost $ 250,363 218,041 469,114 $ 937,518

Statement of other current assets

Please refer to note 6(7) for further explanation of the other current assets in the parent-company-only financial statements.

`－` Statement of other financial assets current

－ Please refer to note 6(8) for further explanation of the other financial assets current in the parent-company-only financial statements.

～ 66 ～

Coremax Corporation

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2025

(In Thousands of New Taiwan Dollars and Shares)

Investees	Balance January 1, 2025 Shares Amount 9,658 $ 496,734 41,058 1,575,110 43,266 1,249,786 - 417,171 $ 3,738,801	Balanc	e December 31,	Market Value Or Net Assets Value
	Shares 9,658 41,058 43,266 -	Shares 9,658 41,058 43,266 -	Amount 574,394 1,587,905 1,123,380 493,984 3,779,663	Total Amount
Investments accounted for using the equity method`：` Coremax(BVI) Corporation Heng I Chemical Co., Ltd. Uranus Chemicals Co., Ltd. VINACOREMAX COMPANY LIMITED				593,961 1,587,905 1,123,380 493,221
				3,798,467

Note 1: Please refer to note 6(13) for further explanation of the equity investments were provided as guarantee or pledge.

Note 2: Including the Company did not subscribe to proportionately, adjustment of capital surplus for company's dividends received by subsidiaries, and transfer treasury shares to employees and disposal of company's share by subsidiaries recognized as treasury shares transactions .

～ 67 ～

Coremax Corporation Statement of changes in property, plant and equipment

For the year ended December 31, 2025

Please refer to note 6(9) for further explanation of the property, plant and equipment in the parent-companyonly financial statements.

Statement of changes in accumulated depreciation of property, plant and equipment

Please refer to note 6(9) for further explanation of the accumulated depreciation of property, plant and equipment in the parent-company-only financial statements.

Statement of changes in right-of-use assets

Please refer to note 6(10) for further explanation of the right-of-use assets in the parent-company-only financial statements.

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

Please refer to note 6(10) for further explanation of the accumulated depreciation of right-of-use assets in the parent-company-only financial statements.

～ 68 ～

Coremax Corporation

Statement of deferred tax assets

December 31, 2025

Please refer to note 6(17) for further explanation of the deferred assets in the parent-company-only financial statements.

Statements of other non-current assets

Please refer to note 6(7) for further explanation of the other non-current assets in the parent-company-only financial statements.

`－` Statements of other financial assets non-current

－ Please refer to note 6(8) for further explanation of the other financial assets non-current in the parent-company-only financial statements.

～ 69 ～

Coremax Corporation

Statement of short-term borrowings

December 31, 2025

(In thousands of New Taiwan Dollars)

Type Purchase bank loans Purchase bank loans Purchase bank loans Purchase bank loans Purchase bank loans Purchase bank loans Purchase bank loans Purchase bank loans	Description Mega Bank Land Bank Hua Nan Bank Chang Hwa Bank Cathay United Bank First Bank Far Eastern Bank Taipei Fubon Bank	Balance, End of Year $ 755,229 - - - 137,140 180,355 - - $ 1,072,724	Contract Period 2025.05~2026.05 2025.01~2026.01 2025.08~2026.08 2025.03~2025.03 2025.07~2026.07 2025.04~2026.04 2025.05~2026.05 2025.01~2026.01	Range of Interest Rates (%) Unused Credit Facility Collateral 1,130,570 Land and buildings 400,000 Land and buildings 800,000 Land and buildings 600,000 Land and buildings 262,861 None 419,645 None 628,600 None 400,000 None 4.16%~4.45% $ 4,641,676

～ 70 ～

Coremax Corporation

Statements of long-term borrowings

December 31, 2025

Please refer to note 6(11) for further explanation of the long-term borrowings in the parent-company-only financial statements.

Statements of accounts payables December 31, 2025

(In thousands of New Taiwan Dollars)

	Vendor Name	Amount
VCP	$	60,984
VCM		4,542
VDB		4,365
Others (The amount of individual vendor in others does not exceed 5%
of the account balance.)		14,384
Total	$	84,275
Note 1: The accounts payable are resulting from the operating activities.
Note 2: Accounts payable to related parties are not included. Please refer to note 7 for further details.

～ 71 ～

Coremax Corporation Statement of other current liabilities

December 31, 2025

(In thousands of New Taiwan Dollars)

	Item		Amount
Environment examination and	inspection fees	$	30,764
Import and export shipping fee			5,751
Interest payable			5,951
Others (The amount of each item	in others does not exceed 5% of the account balance.)		54,917
Total		$	97,383

Statement of deferred tax liabilities

Please refer to note 6(17) for further explanation of the deferred tax liabilities in the parent-company-only financial statements.

～ 72 ～

Coremax Corporation

Statement of lease liabilities

December 31, 2025

Please refer to note 6(14) for further explanation of the lease liabilities in the parent-company-only financial statements.

Statement of operating revenue For the year ended December 31, 2025

Please refer to note 6(20) for revenue from contracts with customers in the parent-company-only financial statements.

～ 73 ～

Coremax Corporation Statement of operating costs

For the year ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item		Amount
Raw materials used:
Balance, beginning of year	$	191,136
Plus: Raw materials purchased		3,569,373
Less: Raw materials sold		309,102
Less: Raw materials, end of year		307,646
Raw materials used for the year		3,143,761
Materials used:
Balance, beginning of year		4,721
Plus: Materials purchased		55,414
Less: Materials used by other department		6,467
Less: Materials sold		9
Less: Materials, end of year		3,916
Materials used for the year		49,743
Direct labor cost		63,840
Manufacturing expenses		248,199
Manufacturing cost		3,505,543
Plus: Work-in progress, beginning of year		204,689
Less: Work-in progress used by other department		2
Less: Finished goods used by other department		7,256
Less: Work-in progress, end of year		226,552
Cost of finished goods		3,476,422
Plus: Finished goods beginning of year		117,952
Plus: Finished goods purchased		2,281
Less: Used by other department		29
Less: Finished goods, end of year		113,728
Cost of goods sold for finished goods		3,482,898
Cost of sales		3,482,898
Goods
Plus: Inventory purchased		678
Less: Used by department		671
Cost of goods sold for inventory		7
Inventory devaluation loss (reversal gain)		(48,626)
Revenue from sale of scrap		(1,989)
Other (Note)		187,509
Total	$	3,619,799

Note ： Consist of cost of raw materials sold, cost of materials sold, cost of work-in-progress, and others .

～ 74 ～

Coremax Corporation

Statements of manufacturing expenses For the year ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item		Amount
Depreciation expense	$	46,791
Utilities expense		41,053
Payroll expense		36,822
Gas expense		33,663
Repair and maintenance fee		33,268
Others (The amount of each item in others does not exceed 5% of the
account balance.)		56,602
Total	$	248,199

Statement of selling expenses

		Amount
Import and export expense	$	26,860
Payroll expense		7,595
Others (The amount of each item in others does not exceed 5% of the account balance.)		6,672
Total	$	41,127

～ 75 ～

Coremax Corporation

Statement of administrative expenses

For the year ended December 31, 2025

(In thousands of New Taiwan Dollars)

Item		Amount
Payroll expense	$	62,766
Depreciation expense		8,711
Professional service fees		8,513
Others (The amount of each item in others does not exceed 5% of the account balance.)		46,715
Total	$	126,705
Statement of research and development expenses
Item		Amount
Payroll expense	$	7,123
Depreciation expense		1,467
Others (The amount of each item in others does not exceed 5% of the
account balance.)		1,544
Total	$	10,134

～ 76 ～

Coremax Corporation

Statement of other gains and losses, net

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Please refer to note 6(22) for further explanation of the net other gains and losses in the parent-company-only financial statements.

Statement of finance costs

Please refer to note 6(22) for further explanation of the finance cost in the parent-company-only financial statements.

Summary statement of current period employee benefits, depreciation, depletion and amortization expenses by function

Please refer to note 12 for further explanation of the current-period employee benefits and depreciation expense in the parent-company-only financial statement.

～ 77 ～

AI assistant

COREMAX — Audit Report / Information 2026

52424_rns_2026-04-20_b84190ae-3d38-4946-aa72-6e1036810c3b.pdf

Coremax Corporation

Parent-Company-Only Financial Statements

Table of contents

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Description of key audit matters:

How the matter was addressed in our audit:

2. Valuation of Inventories

Description of key audit matters:

Responsibilities of Management and Those Charged with Governance for the Parent-company-only Financial Statements

Auditors’ Responsibilities for the Audit of the Parent-company-only Financial Statements

KPMG

Notes to Readers

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation

Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, except for earnings per share)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation Statements of Changes in Equity For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Coremax Corporation

Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024

1. Company history

2. Approval date and procedures of the financial statements

3. New standards, amendments and interpretations adopted:

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

4. Summary of material accounting policies

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(ii) Foreign operations

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

(5) Cash and cash equivalents

(6) Financial instruments

(i) Financial assets

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

4) Derecognition of financial assets

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

2) Equity instrument

3) Treasury shares

4) Compound financial instruments

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

5) Financial liabilities

(7) Inventories

(8) Investment in subsidiaries

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(iii) As a lessor

(11) Impairment of non-financial assets

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(i) Sale of goods

(ii) Financing components

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

(13) Employee benefits

(ii) Defined benefit plans

(iii) Short-term employee benefits

(14) Share based payment

Coremax Corporation

Notes to the Parent-Company-Only Financial Statements

Coremax Corporation Notes to the Parent-Company-Only Financial Statements

COREMAX Audit Report / Information 2026