Stock Code:1314

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report
For the Nine Months Ended September 30, 2025 and 2024

Address: No.1, Jingjian Rd., Dashe Dist., Kaohsiung City 815, Taiwan (R.O.C.)
Telephone: 886-7-351-3521

The independent auditors' review report and the accompanying consolidated 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' review report and consolidated financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Review Report	3
4. Consolidated Balance Sheets	4
5. Consolidated Statements of Comprehensive Income	5
6. Consolidated Statements of Changes in Equity	6
7. Consolidated Statements of Cash Flows	7
8. Notes to the Consolidated Financial Statements
(1) Company history	8
(2) Approval date and procedures of the consolidated financial statements	8
(3) New standards, amendments and interpretations adopted	8~10
(4) Summary of material accounting policies	10~13
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	13
(6) Explanation of significant accounts	13~63
(7) Related-party transactions	64~67
(8) Pledged assets	68
(9) Commitments and contingencies	69~75
(10) Losses Due to Major Disasters	75
(11) Subsequent Events	76
(12) Other	76~77
(13) Other disclosures
(a) Information on significant transactions	78~81
(b) Information on investees	81~82
(c) Information on investment in mainland China	83
(14) Segment information	84~86

KPMG

李侃建業聯合會計師事務所

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' Review Report

To the Board of Directors of China Petrochemical Development Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of China Petrochemical Development Corporation and its subsidiaries as of September 30, 2025 and 2024, and the related consolidated statements of comprehensive income, for the three months and nine months ended September 30, 2025 and 2024, changes in equity and cash flows for the nine months ended September 30, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in note 4(b), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $3,520,893 thousand and $19,239,238 thousand, constituting 2.71% and 13.24% of consolidated total assets as of September 30, 2025 and 2024, respectively, total liabilities amounting to $1,037,385 thousand and $5,777,391 thousand, constituting 1.92% and 8.75% of consolidated total liabilities as of September 30, 2025 and 2024, respectively, and total comprehensive income (loss) amounting to $223,491 thousand, $(16,484) thousand, $(918,329) thousand and $309,826 thousand, constituting (33.74)%, 4.16%, 25.86% and 60.65% of consolidated total comprehensive income (loss) for the three months and nine months ended September 30, 2025 and 2024, respectively.

Furthermore, as stated in note 6(h), the other equity accounted investments of China Petrochemical Development Corporation and its subsidiaries in its investee companies of $5,406,001 thousand and $6,339,732 thousand as of September 30, 2025 and 2024, respectively, and its equity in net earnings (losses) on these investee companies of $7,225 thousand, $143,622 thousand, $60,080 thousand and $340,960 thousand for the three months and nine months ended September 30, 2025 and 2024, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

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.

KPMG

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of China Petrochemical Development Corporation and its subsidiaries as of September 30, 2025 and 2024, and of its consolidated financial performance for the three months and nine months ended September 30, 2025 and 2024, as well as its consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Emphasis of Matter

As described in notes 6(m) and 9(c) 2. of the notes to the consolidated financial statements, on October 30, 2019, Core Pacific Dev. Corp., a subsidiary of the Company, entered into a real estate sales agreement with Core Pacific City Co., Ltd. for the land at Core Pacific Plaza, wherein Core Pacific Dev. Corp. signed a syndicated loan agreement with a consortium of banks on October 21, 2021, with the Company acting as the joint guarantor. However, the additional floor area for the land at Core Pacific Plaza is currently involved in a criminal dispute due to the incentives; hence, was seized by the Taipei District Court in October 2024, with a prohibition on disposal. Thereafter, Core Pacific Dev. Corp. filed three consecutive motions for appeal to the Taiwan High Court, who denied all three appeals. Currently, the case is still being decided by the Taipei District Court; hence, it is still not possible to determine whether the land of Core Pacific City Plaza will be prohibited from being disposed. Our opinion is not modified in respect of this matter.

The engagement partners on the reviews resulting in this independent auditors’ review report are Wu, Cheng-Yen and Lee, Feng-Hui.

KPMG

Taipei, Taiwan (Republic of China)

November 13, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ review report and the accompanying consolidated 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’ review report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2025, December 31, 2024, and September 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets	September 30, 2025		December 31, 2024		September 30, 2024
		Amount	%	Amount	%	Amount	%
Current assets:
1100	Cash and cash equivalents (Note 6(a))	$ 2,265,086	2	6,165,897	4	6,449,089	5
1110	Current financial assets at fair value through profit or loss (Notes 6(b) and 8)	279,676	-	349,332	-	433,468	-
1120	Current financial assets at fair value through other comprehensive income (Note 6(c))	19,315	-	17,180	-	18,453	-
1170	Notes and accounts receivable, net (Note 6(d))	1,936,849	2	2,375,513	2	2,776,523	2
1180	Accounts receivable due from related parties, net (Notes 6(d) and 7)	68,537	-	272,938	-	253,848	-
1200	Other receivables (Note 7)	134,197	-	148,772	-	288,614	-
1220	Current tax assets	34,632	-	37,961	-	37,741	-
130X	Inventories (Notes 6(e) and 8)	50,686,922	39	50,457,274	36	50,123,311	35
1410	Prepayments	1,174,102	1	1,416,562	1	1,841,786	1
1460	Non-current assets classified as held for sale, net (Notes 6(g) and 6(k))	1,065,078	1	4,386,472	3	4,706,741	3
1470	Other current assets (Notes 6(f) and 8)	1,730,501	1	2,314,392	2	5,048,290	4
	Total current assets	59,394,895	46	67,942,293	48	71,977,864	50
Non-current assets:
1510	Non-current financial assets at fair value through profit or loss (Note 6(b))	20,324	-	20,324	-	33,987	-
1517	Non-current financial assets at fair value through other comprehensive income (Notes 6(c) and 8)	916,199	1	1,446,601	1	1,393,200	1
1551	Investments accounted for using equity method (Notes 6(h) and 8)	6,163,552	5	7,182,835	5	7,189,489	5
1600	Property, plant and equipment (Notes 6(i) and 8)	24,126,518	18	25,943,733	18	27,407,716	19
1755	Right-of-see assets (Note 6(j))	1,016,504	1	1,032,903	1	1,126,050	1
1760	Investment property, net (Notes 6(k) and 8)	37,929,562	29	38,086,248	27	35,590,569	24
1780	Intangible assets (Note 6(l))	44,293	-	49,995	-	205,494	-
1840	Deferred tax assets (Note 6(v))	11,009	-	11,009	-	11,009	-
1900	Other non-current assets (Note 8)	423,698	-	369,952	-	356,813	-
	Total non-current assets	70,651,659	54	74,143,600	52	73,314,327	50












	Total assets	$ 130,046,554	100	142,085,893	100	145,292,191	100
Liabilities and Equity	September 30, 2025		December 31, 2024		September 30, 2024
---	---	---	---	---	---	---
	Amount	%	Amount	%	Amount	%
Current liabilities:
Short-term loans (Note 6(m))	$ 14,213,080	11	14,580,224	10	18,711,061	13
Short-term bills payable (Note 6(p))	1,038,208	1	1,591,181	1	2,457,064	2
Current contract liabilities (Note 6(y))	44,451	-	143,850	-	85,823	-
Accounts payable	1,286,122	1	2,093,642	1	2,117,656	2
Accounts payable to related parties (Note 7)	-	-	986	-	1,009	-
Other payables (Note 7)	1,507,415	1	2,021,747	1	1,806,298	1
Current tax liabilities	-	-	18,104	-	8,531	-
Current provisions (Notes 6(a) and 6(a))	220,173	-	824,554	1	111,176	-
Liabilities related to non-current assets classified as held for sale (Note 6(g))	407,596	-	601,503	1	-	-
Current lease liabilities (Note 6(c))	51,349	-	43,870	-	189,149	-
Long-term liabilities, current portion (Notes 6(n) and 6(o))	7,996,045	7	9,637,758	7	7,090,588	5
Other current liabilities, others	90,931	-	2,473,569	2	2,682,965	2
Total current liabilities	26,855,370	21	34,030,988	24	35,261,320	25
Non-Current liabilities:
Long-term loans (Note 6(o))	8,775,632	7	10,716,509	8	14,642,895	10
Non-current provisions (Notes 6(e) and 6(a))	2,730,196	2	2,571,078	2	2,071,182	1
Deferred tax liabilities (Note 6(v))	7,185,045	6	7,209,415	5	7,183,418	5
Non-current lease liabilities (Note 6(c))	358,004	-	343,058	-	207,131	-
Long-term bills payable (Note 6(g))	8,011,360	6	7,510,677	5	6,513,357	4
Other non-current liabilities, others	107,178	-	129,840	-	135,874	-
Total non-current liabilities	27,167,415	21	28,480,577	20	30,753,857	20
Total liabilities	54,022,785	42	62,511,565	44	66,015,177	45
Equity attributable to owners of parent (Note 6(w)):
Ordinary shares	37,848,502	29	37,848,502	27	37,848,502	26
Capital surplus	1,582,006	1	1,582,006	1	1,582,006	1
Legal reserve	2,512,486	2	2,260,465	2	2,260,465	2
Special reserve	34,277,475	26	34,854,417	25	35,510,781	24
Unappropriated retained earnings	1,017,366	1	3,475,614	2	2,443,395	2
Total other equity interest	(1,279,202)	(1)	(526,313)	(1)	(455,822)	-
Total equity attributable to owners of parent:	75,958,633	58	79,494,691	56	79,189,327	55
NOX	65,136	-	79,637	-	87,687	-
Total equity	76,023,769	58	79,574,328	56	79,277,014	55
Total liabilities and equity	$ 130,046,554	100	142,085,893	100	145,292,191	100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

	For the three months ended September 30				For the nine months ended September 30
		(notated)		(notated)		(notated)		(notated)
		2025	Amount	%	Amount	%	Amount	%	Amount
4000	Operating revenue (Notes 6(y) and 7)	$4,446,188	100	7,127,839	100	15,851,243	100	23,359,678	100
5000	Operating costs (Note 6(c))	4,991,477	112	7,138,842	100	16,956,992	107	22,595,965	97
	Gross (loss) profit from operations	(545,289)	(12)	(11,003)	-	(1,105,749)	(7)	763,713	3
	Operating expenses (Note 7):
6100	Selling expenses	140,341	3	220,038	3	548,972	3	629,081	3
6200	Administrative expenses	201,244	5	214,437	3	620,665	4	607,869	2
6300	Research and development expenses	51,658	1	64,859	1	160,900	1	193,641	1
6450	Impairment loss (gain from reversal of impairment loss) determined in accordance with IFRS 9	-	-	(9)	-	-	-	(1,236)	-
	Total operating expenses	393,243	9	499,325	7	1,330,537	8	1,429,355	6
	Net operating (loss) income	(938,532)	(21)	(510,328)	(7)	(2,436,286)	(15)	(665,642)	(3)
	Non-operating income and expenses:
7100	Interest income (Note 6(a))	19,073	-	59,401	1	92,619	1	192,540	1
7010	Other income (Notes 6(a) and 7)	155,978	4	70,720	1	209,704	1	171,856	1
7020	Other gains and losses (Note 6(a))	33,684	1	(72,924)	(1)	(398,117)	(3)	65,254	-
7050	Finance costs (Notes 6(r) and (aa))	(167,843)	(4)	(179,813)	(3)	(514,145)	(3)	(542,525)	(2)
7060	Shares of profit (loss) of associates and joint ventures accounted for using equity method, net (Note 6(b))	(2,691)	-	138,629	2	50,865	-	316,351	1
7215	Gains on disposals of investment property (Note 6(k))	29,493	1	-	-	380,079	2	169,975	-
7255	Gains on fair value adjustment, investment property (Note 6(k))	-	-	-	-	-	-	352,280	2
	Total non-operating income and expenses	67,694	2	16,013	-	(178,995)	(2)	725,731	3
	(Loss) profit before tax	(870,838)	(19)	(494,315)	(7)	(2,615,281)	(17)	60,089	-
7950	Less: tax expense (benefit) (Note 6(v))	1,901	-	8,439	-	11,247	-	115,495	-
	(Loss) profit from continuing operations	(872,739)	(19)	(502,754)	(7)	(2,626,528)	(17)	75,584	-
	(Loss) profit from discontinued operations:
8100	Less from discontinued operations, net of tax	(36,092)	(1)	(79,468)	(1)	(227,202)	(1)	(211,050)	(1)
	(Loss) profit	(908,831)	(20)	(582,222)	(8)	(2,853,730)	(18)	(135,466)	(1)
	Other comprehensive income (loss):
8310	Items that may not be reclassified subsequently to profit or loss:
8316	Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income (Note 6(w))	4,135	-	62,127	1	(55,545)	-	180,742	1
8320	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss (Note 6(w))	17,981	-	(23,796)	-	(1,920)	-	18,208	-
8349	Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss
	Components of other comprehensive income that will not be reclassified to profit or loss	22,116	-	38,331	1	(57,465)	-	198,950	1
	Items that may be reclassified subsequently to profit or loss:
8360	Items that may be reclassified subsequently to profit or loss	224,379	5	147,524	2	(639,364)	(4)	447,388	2
8370	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss (Note 6(w))
8399	Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss
	Components of other comprehensive income that may be reclassified subsequently to profit or loss	224,379	5	147,524	2	(639,364)	(4)	447,388	2
8500	Other comprehensive income, net of tax	246,495	5	185,855	3	(696,829)	(4)	646,338	3
8500	Total comprehensive income	$ (662,336)	(15)	(396,367)	(5)	(3,550,559)	(22)	510,872	2
	Profit (loss) attributable to:
8610	Owners of parent
	(Loss) profit, attributable to continuing operation	$ (867,878)	(19)	(497,521)	(7)	(2,612,279)	(17)	95,571	-
	(Loss) profit, attributable to discontinued operation	(36,092)	(1)	(79,468)	(1)	(227,202)	(1)	(211,050)	(1)
	(Loss) profit, attributable to owners of parent	$ (503,978)	(20)	(576,989)	(8)	(2,839,481)	(18)	(115,479)	(1)
	Non-controlling interest
8620	(Loss) profit, attributable to continuing operation	$ (4,861)	-	(5,233)	-	(14,249)	-	(19,987)	-
	(Loss) profit, attributable to discontinued operation
	(Loss) profit, attributable to non-controlling interest	$ (4,861)	-	(5,233)	-	(14,249)	-	(19,987)	-
	Comprehensive income attributable to:
8710	Owners of parent
	Comprehensive income, attributable to continuing operation	$ (621,475)	(14)	(311,566)	(4)	(3,308,856)	(21)	741,787	3
	Comprehensive income, attributable to discontinued operation	(36,092)	(1)	(79,468)	(1)	(227,202)	(1)	(211,050)	(1)
	Comprehensive income, attributable to owners of parent	$ (657,567)	(15)	(391,034)	(5)	(3,536,058)	(22)	530,737	2
	Non-controlling interests
8720	Comprehensive income, attributable to continuing operation	$ (4,769)	-	(5,333)	-	(14,501)	-	(19,865)	-
	Comprehensive income, attributable to discontinued operation
	Comprehensive income, attributable to non-controlling interests	$ (4,769)	-	(5,333)	-	(14,501)	-	(19,865)	-
	(Loss) earnings per share (expressed in dollars) (Note 6(c))
9750	Basic (loss) earnings per share
	Basic (loss) earnings per share-continuing operation	$ (0.23)		(0.13)		(0.69)		0.03
	Basic (loss) earnings per share-discontinued operation

9850	Diluted (loss) earnings per share
	Diluted (loss) earnings per share-continuing operation	$ (0.23)		(0.13)		(0.69)		0.03
	Diluted (loss) earnings per share discontinued operation

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Equity attributable to owners of parent
	Ordinary shares	Capital surplus	Retained earnings			Other equity
			Legal reserve	Special reserve	Unappropriated retained earnings (accumulated deficit)	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total equity attributable to owners of parent	Non-controlling interests	Total equity
Balance at January 1, 2024	$ 37,848,502	1,582,006	2,871,774	38,066,198	(611,309)	(718,012)	(380,569)	78,658,590	107,552	78,766,142
Profit for the nine months ended September 30, 2024	-	-	-	-	(115,479)	-	-	(115,479)	(19,987)	(135,466)
Other comprehensive income for the nine months September 30, 2024	-	-	-	-	3,457	447,266	195,493	646,216	122	646,338
Total comprehensive income for the nine months ended September 30, 2024	-	-	-	-	(112,022)	447,266	195,493	530,737	(19,865)	510,872
Appropriation and distribution of retained earnings:
Legal reserve used to offset accumulated deficits	-	-	(611,309)	-	611,309	-	-	-	-	-
Disposal of investment properties (Transfer of special reserve to unappropriated retained earnings)	-	-	-	(2,555,417)	2,555,417	-	-	-	-	-
Balance at September 30, 2024	$ 37,848,502	1,582,006	2,260,465	35,510,781	2,443,395	(270,746)	(185,076)	79,189,327	87,687	79,277,014
Balance at January 1, 2025	$ 37,848,502	1,582,006	2,260,465	34,854,417	3,475,614	(293,227)	(233,086)	79,494,691	79,637	79,574,328
Loss for the nine months ended September 30, 2025	-	-	-	-	(2,839,481)	-	-	(2,839,481)	(14,249)	(2,853,730)
Other comprehensive income for the nine months ended September 30, 2025	-	-	-	-	1,945	(639,112)	(59,410)	(696,577)	(252)	(696,829)
Total comprehensive income for the nine months ended September 30, 2025	-	-	-	-	(2,837,536)	(639,112)	(59,410)	(3,536,058)	(14,501)	(3,550,559)
Appropriation and distribution of retained earnings:
Legal reserve	-	-	252,021	-	(252,021)	-	-	-	-	-
Special reserve	-	-	-	3,223,593	(3,223,593)	-	-	-	-	-
Disposal of investment properties (Transfer of special reserve to unappropriated retained earnings)	-	-	-	(3,800,535)	3,800,535	-	-	-	-	-
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	11,074	-	(11,074)	-	-	-
Associated disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	43,293	-	(43,293)	-	-	-
Balance at September 30, 2025	$ 37,848,502	1,582,006	2,512,486	34,277,475	1,017,366	(932,339)	(346,863)	75,958,633	65,136	76,023,769

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the nine months ended September 30
	2025	2024 (restated)
Cash flows from (used in) operating activities:
(Loss) profit from continuing operations before tax	$ (2,615,281)	60,089
Loss from discontinued operations before tax	(227,202)	(211,050)
(Loss) profit before income tax	(2,842,483)	(150,961)
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense	1,008,138	1,098,916
Amortization expense	7,305	7,880
Impairment loss (gain from reversal of impairment loss) determined in accordance with IFRS 9	(4,213)	1,044
Net loss (gain) on financial assets at fair value through profit	12,612	(59,428)
Interest expense	531,936	579,645
Interest income	(92,652)	(192,652)
Dividend income	(48,120)	(32,396)
Share of profit of associates and joint ventures accounted for using equity method	(50,865)	(316,351)
(Gain) loss on disposal of property, plant and equipment	(3,008)	1,206
Gain on disposal of non-current assets classified as held for sale	(380,079)	(169,975)
Impairment loss (reversal of impairment gain) on non-financial assets	125,503	648
Impairment loss on non-current assets held for sale	93,727	-
Gain on fair value adjustment of investment properties	-	(352,280)
Other	(1,749)	-
Total adjustments to reconcile profit	1,198,535	566,257
Changes in operating assets and liabilities:
Accounts receivable	565,497	(65,498)
Accounts receivable from related parties	204,401	17,030
Other receivables	9,166	(6,735)
Inventories	(294,962)	(1,936,881)
Prepayments	244,083	(632,924)
Decrease (increase) in other current assets	566,186	(537,814)
Total changes in operating assets	1,294,371	(3,162,822)
Contract liabilities	(108,417)	(106,815)
Accounts payable	(827,200)	395,213
Accounts payable to related parties	(986)	130
Other payables	(236,156)	(447,073)
Provisions	(442,779)	(668,068)
Increase other current liabilities	1,682	77,452
Total changes in operating liabilities	(1,613,856)	(749,161)
Total changes in operating assets and liabilities	(319,485)	(3,911,983)
Total adjustments	879,050	(3,345,726)
Cash outflow used in operations	(1,963,433)	(3,496,687)
Interest received	101,399	177,304
Interest paid	(534,382)	(580,188)
Income taxes paid	(50,392)	(387,180)
Net cash flows used in operating activities	(2,446,808)	(4,286,751)

See accompanying notes to consolidated financial statements.

7-1

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the nine months ended September 30
	2025	2024 (restated)
Cash flows from (used in) investing activities:
Acquisition of financial assets at fair value through profit or loss	$ -	(192,030)
Proceeds from disposal of financial assets at fair value through profit or loss	57,044	243,707
Proceeds from disposal of financial assets at fair value through other comprehensive income	472,722	-
Proceeds from capital reduction of investments accounted for using equity method	635,420	-
Proceeds from disposal of non-current assets classified as held for sale	4,095,362	5,446,112
Acquisition of property, plant and equipment	(287,421)	(642,398)
Proceeds from disposal of property, plant and equipment	4,720	1,775
Increase in receipts in advance due to disposal of assets	(2,384,320)	-
Acquisition of intangible assets	(1,077)	(1,239)
Decrease (increase) in other financial assets	18,024	2,051,222
(Increase) decrease in other non-current assets	(11,707)	12,019
Dividends received	337,348	210,861
Net cash flows from investing activities	2,936,115	7,130,029
Cash flows from (used in) financing activities:
(Decrease) increase in short-term loans	(1,264,978)	2,271,721
(Decrease) increase in short-term bills payable	(553,000)	198,620
Repayments of bonds	-	(112,500)
Proceeds from long-term debt	7,130,000	15,578,979
Repayments of long-term debt	(9,858,927)	(18,728,313)
Increase in long-term bills payable	41,970,000	49,720,000
Decrease in long-term bills payable	(41,470,000)	(50,920,000)
Payment of lease liabilities	(42,652)	(40,095)
Decrease in other non-current liabilities	(22,662)	(4,704)
Interest paid	(6,364)	(4,053)
Net cash flows used in financing activities	(4,118,583)	(2,040,345)
Effect of exchange rate changes on cash and cash equivalents	(228,387)	132,553
Net (decrease) increase in cash and cash equivalents	(3,857,663)	935,486
Cash and cash equivalents at beginning of period	6,172,176	5,513,603
Cash and cash equivalents at end of period	$ 2,314,513	6,449,089
Components of cash and cash equivalents
Cash and cash equivalents reported in the statement of financial position	$ 2,265,086	6,449,089
Reclassification to non-current assets (or disposal groups) held for sale	49,427	-
Cash and cash equivalents at end of period	$ 2,314,513	6,449,089

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

China Petrochemical Development Corporation (hereinafter referred to as the "Company") was founded on July 8, 1969 under the approval of Ministry of Economic Affairs, R.O.C. The Company migrated to No.1, Jingjian Rd., Dashe Dist., Kaohsiung City 815, Taiwan (R.O.C.) on July 18, 2016. The Company and its subsidiaries (hereinafter together referred to as the "Group") primarily engage in the production of petroleum, alkali-chlorine, phosphoric acid and other petrochemical products and by-products and the storage, transportation, purchase and sale of these products, related chemicals and their raw materials, and land development. The primary products are acrylonitrile, caprolactam and nylon.

(2) Approval date and procedures of the consolidated financial statements:

These consolidated financial statements were authorized for issuance by the Board of Directors on November 13, 2025.

(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 Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated 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 Group 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 consolidated 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"

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• 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. | January 1, 2027
note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

The Group 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 consolidated 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”

(4) Summary of material accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS Accounting Standards endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the material accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024.

(b) Basis of Preparation

(i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) Financial assets at fair value through other comprehensive income are measured at fair value;
3) Non-current assets held for sale (or disposal groups) are measured at fair value;
4) Investment property is measured at fair value;
5) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(iii) As described in note 12(c), the consolidated financial statements have been prepared based on the going concern assumption after the Company’s assessment.

(i) List of subsidiaries in the consolidated financial statements

The subsidiaries included in the consolidated financial statements were as follows:

Name of investor	Name of subsidiary	Nature of business	Shareholding ratio			Notes
			September 30, 2025	December 31, 2024	September 30, 2024
The Company	Tsou Seen Chemical Industries Corporation (TSCIC)	Manufacture of chemical products and their derivatives of phosphoric acid and fertilizer storage, transport, purchase, marketing business	100.00 %	100.00 %	100.00 %	Note 1
*	CPDC Green Technology Corp. (CPDC GT)	Water treatment works, plumbing works, apparatus and instrument installation work, refrigeration and air conditioning engineering and tank car repair and other services	100.00 %	100.00 %	100.00 %	π
*	CPDC Investment (BVI) Co., Ltd. (CPDC (BVI))	Holding company	100.00 %	100.00 %	100.00 %	π
*	BES Twin Towers Development Co., Ltd. (BES Twin Towers)	Real estate investment and development	- %	- %	100.00 %	Note 1 - 2
*	Frontier Fortune Investment Pte. Ltd. (Frontier Fortune)	Holding company	100.00 %	100.00 %	- %	π
*	Unichem Development Limited (UDL)	Holding company	100.00 %	100.00 %	100.00 %
*	Jiangsu Weiming New Material Co., Ltd. (Weiming)	Petrochemical supporting facility construction	0.31 %	0.31 %	0.31 %
*	Weiqiang International Trade (Shanghai) Co., Ltd. (Weiqiang)	Engaged in trading of petroleum chemical products, electronic chemicals, a variety of industrial gases, gas mixtures and other manufacturing sub-fitted trading	44.52 %	44.52 %	44.52 %	Note 1
*	Thanh Phong Construction Investment Co., Ltd. (Thanh Phong)	Engaged in construction, real estate, building constructional consulting, lease equipment and wholesale of building materials	100.00 %	100.00 %	100.00 %	π
*	Core Pacific Development Corporation (Core Pacific Dev. Corp.)	Commissioned to create a vendor to build housing, commercial buildings and plant rental business, management of land development and playgrounds and other related business investment	100.00 %	100.00 %	100.00 %
TSCIC	Weihua (Rudong) Trade Co., Ltd. (Weihua)	Engaged in trading of petroleum chemical products, electronic chemicals, a variety of industrial gases, gas mixtures and other manufacturing sub-fitted trading	4.02 %	4.02 %	4.02 %	Note 1
*	Weiqiang International Trade (Shanghai) Co., Ltd. (Weiqiang)	Engaged in trading of petroleum chemical products, electronic chemicals, a variety of industrial gases, gas mixtures and other manufacturing sub-fitted trading	55.48 %	55.48 %	55.48 %	π

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of investor	Name of subsidiary	Nature of business	Shareholding ratio			Notes
			September 30, 2025	December 31, 2024	September 30, 2024
TSCIC	Taivex Therapeutics Corporation (Taivex)	Engaged in biotechnology, pharmaceutical research and development and marketing	65.34 %	65.34 %	65.34 %	Note 1
UDL	Weiming	Petrochemical supporting facility construction	99.69 %	99.69 %	99.69 %
*	Weihua (Rudong) Trade Co., Ltd. (Weihua)	Engaged in trading of petroleum chemical products, electronic chemicals, a variety of industrial gases, gas mixtures and other manufacturing sub-fitted trading	95.98 %	95.98 %	95.98 %	Note 1
*	Changzhou Weicai New Material Science & Technology Co., Ltd. (Weicai)	Engaged in engineering plastic and high-value petroleum chemical products	100.00 %	100.00 %	100.00 %	Note 1 - 3
Weiming	Weiming (Rudong) Construction Co., Ltd. (Weiming Construction)	Consult, design, construction, management service on engineering and sales of chemical products	100.00 %	100.00 %	100.00 %	Note 1
BES Twin Towers	Frontier Fortune Investment Pte. Ltd. (Frontier Fortune)	Holding company	- %	- %	100.00 %	Note 1 - 2
Frontier Fortune	Core Pacific Twin Star (Myanmar) Investment Co., Ltd. (Core Pacific Twin Star (Myanmar))	Investment and technical advisory services	100.00 %	100.00 %	100.00 %	Note 1
*	Core Pacific Twin Star (Vietnam) Investment Co., Ltd. (Core Pacific Twin Star (Vietnam))	Engineering, real estate and consultancy of construction	100.00 %	100.00 %	100.00 %	o
Core Pacific Twin Star (Myanmar)	Core Pacific Pioneer (Myanmar) Co., Ltd. (Core Pacific Pioneer (Myanmar))	Building construction, real estate management, development and sale	80.00 %	80.00 %	80.00 %	o
Core Pacific Dev. Corp.	Da Yin Construction Engineering Co., Ltd. (Da Yin)	Engineering, construction contracting business	100.00 %	100.00 %	100.00 %	o

Note1: The financial statements of the non-significant subsidiaries have not been reviewed.
Note2: The Company merged with BES Twin Towers Development Co., Ltd., a fully-owned subsidiary of the Company, on August 1, 2024, with the Company emerging as the sole surviving company, based on a resolution approved during its board meeting held on June 25, 2024, resulting in the Company to directly hold Frontier Fortune Investment Pte. Ltd.
Note3: Classified as non-current assets held for sale and discontinued operations starting from December 27, 2024.

(ii) Subsidiaries excluded from the consolidated financial statements: None.

(d) Provisions

Carbon fees

Carbon fees levied in accordance with Taiwan’s Climate Change Response Act and Regulations Governing the Collection of Carbon Fees are recognized when the annual greenhouse gas emissions are probably to exceed the threshold, and the amount is estimated based on the proportion of greenhouse gas emissions that have occurred as of the reporting date divided by the total annual greenhouse gas emissions.

(e) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Accounting Standards 34, Interim Reporting.

Income tax expenses for the period are measured by multiplying together the pre-tax income for the interim reporting period and the management’s best estimate of effective annual tax rate. This should be recognized fully as tax expense for the current period.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(f) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with the Regulations and IFRS Accounting Standards (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make 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.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2024.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

	September 30, 2025	December 31, 2024	September 30, 2024
Cash on hand	$ 1,522	1,588	1,610
Checking and demand deposits	1,310,444	2,844,832	1,617,187
Time deposits	883,120	3,069,477	4,830,292
Cash equivalents	70,000	250,000	-
Cash and cash equivalents in the consolidated statement of cash flows	$ 2,265,086	6,165,897	6,449,089

Time deposits with original maturity within three months which are held for the purpose of meeting short-term cash commitments, rather than for investment or other purposes, and are readily convertible to cash at the known amounts and subject to insignificant risk of value changes, are reported as cash equivalents. Please refer to note 6(f) for details of time deposits with original maturity between three months and one year which are accounted for as other financial assets under other current assets.

Please refer to note 6(ab) for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities of the Group.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Financial assets at fair value through profit or loss

	September 30, 2025	December 31, 2024	September 30, 2024
Current financial assets designated at fair value through profit or loss:
Beneficiary certificates	$ -	-	72,343
Stocks listed on domestic markets	279,676	349,332	361,125
Subtotal	279,676	349,332	433,468
Non-current financial assets designated at fair value through profit or loss:
Stocks unlisted on domestic markets	20,324	20,324	33,987
Total	$ 300,000	369,656	467,455

The Group held common stock of Core Pacific City Co., Ltd. within a business model whose objective is for financial investment. The Group neither has a representative at the Board of Directors nor participates in the daily operations and policy formulating of the investee. Therefore, the Group does not have significant influence over the investee and the investment was recorded under non-current financial assets at fair value through profit or loss.

Please refer to note 8 for details of the financial assets at fair value through profit or loss of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

For the amounts measured at fair value and recognized in profit or loss, please refer to Note 6(aa).

	September 30, 2025	December 31, 2024	September 30, 2024
Equity investments at fair value through other comprehensive income - current:
Stocks listed on domestic markets	$ 19,315	17,180	18,453
Subtotal	19,315	17,180	18,453
Equity investments at fair value through other comprehensive income - non-current
Stocks listed on domestic markets	523,250	768,577	737,298
Stocks unlisted on domestic markets	392,949	678,024	655,902
Subtotal	916,199	1,446,601	1,393,200
Total	$ 935,514	1,463,781	1,411,653

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group designated the investments show above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategic purposes. Please refer to note 6(w) for the gain or loss on financial assets recognized at fair value through other comprehensive income.

On March 12, 2025, the Company’s board resolved to sell its entire 28,500,000 common shares in Chain Yarn Co., Ltd. for a disposal price of $313,500 thousand. The transaction was completed in April 2025, resulting in a cumulative disposal gain of $28,500 thousand, which has been reclassified from other equity to retained earnings.

Please refer to note 8 for details of the financial assets at fair value through other comprehensive income of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

(d) Notes and accounts receivable

	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable (including related parties)	$ 234,962	67,634	646,766
Accounts receivable (including related parties)	2,008,230	2,818,623	2,627,153
Less: Loss allowance	(237,806)	(237,806)	(243,548)
Net amount	$ 2,005,386	2,648,451	3,030,371

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward-looking information, including macroeconomic and relevant industry information. The loss allowance provisions were determined as follows:

	September 30, 2025
	Carrying amount of notes receivable and accounts receivable	Weighted-average expected credit loss rate	Allowance for expected credit loss
Not past due	$ 1,971,857	0%~0.01%	129
0 to 30 days past due	3,908	0%~0.15%	6
31 to 120 days past due	22,795	0%~0.26%	60
121 to 365 days past due	3,719	0%~0.56%	21
More than 1 year past due	240,913	0%~98.62%	237,590
	$ 2,243,192		237,806

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Carrying amount of accounts receivable	Weighted-average expected credit loss rate	Allowance for expected credit loss
Not past due	$ 2,624,202	0%	11
0 to 30 days past due	20,609	0%~0.05%	10
31 to 120 days past due	3,302	0%~0.18%	6
121 to 365 days past due	367	0%~0.54%	2
More than 1 year past due	237,777	100%	237,777
	$ 2,886,257		237,806
	September 30, 2024
	Carrying amount of notes receivable and accounts receivable	Weighted-average expected credit loss rate	Allowance for expected credit loss
Not past due	$ 2,907,966	0%	124
0 to 30 days past due	78,213	0%~0.51%	397
31 to 120 days past due	32,258	0%~2.05%	661
121 to 365 days past due	13,788	0%~4.87%	672
More than 1 year past due	241,694	100%	241,694
	$ 3,273,919		243,548

The movement of the allowance for notes and accounts receivables were as follows:

	For the nine months ended September 30,
	2025	2024
Balance at January 1	$ 237,806	242,291
Impairment losses	-	1,044
Foreign exchange (losses) gains	-	213
Balance at September 30	$ 237,806	243,548

(i) Please refer to note 8 for details of the aforesaid receivables of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

For credit risk information, please refer to note 6(ab).

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Transfer of financial assets

Notes receivable sold to financial institutions meet the requirements for derecognition of financial assets. The Group bears the obligation to pay when the acceptor or payer of notes receivable fails to pay at maturity.

The components of notes receivable that were outstanding and derecognized as of September 30, 2025, December 31 and September 30, 2024 were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable sold	$ 38,686	117,477	251,397
Range of interest rates	1.33%~2.8%	1.05%~3.7%	1.05%~5.1%

(e) Inventories

	September 30, 2025	December 31, 2024	September 30, 2024
Inventories, manufacturing business
Finished goods	$ 1,172,398	1,206,142	1,604,125
Work in progress	336,250	506,294	460,553
Raw materials	676,241	853,914	806,396
Fuel	7,278	8,196	8,686
Subtotal	2,192,167	2,574,546	2,879,760
Inventories, construction business
Land held for construction site	3,941	3,941	3,941
Land held for construction site- compensation for levied land	-	-	9,423
Payment for floor area ratio	13,535	13,535	13,535
Construction in progress	48,477,279	47,865,252	47,216,652
Subtotal	48,494,755	47,882,728	47,243,551
Total	$ 50,686,922	50,457,274	50,123,311

On September 8, 2022, in order to apply for the transfer of building bulk, Core Pacific Dev. Corp. made a substitute payment to the Taipei City Government for the purchase of floor area rights, which was listed as the premises under construction under inventory. On the same date, Core Pacific Dev. Corp. signed a supplemental agreement with Core Pacific City Co., Ltd., which stated that bulk reward and corresponding bulk benefit obtained were attributed to Core Pacific Co., Ltd.; therefore, Core Pacific Dev. Corp. will pay the incremental bulk benefit to Core Pacific City Co., Ltd. according to the calculation formula stipulated in the agreement.

For the nine months ended September 30, 2025 and 2024, the capitalized interest on premises under construction amounting to $301,107 thousand and $443,952 thousand, respectively.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The details of the cost of sales were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Cost of goods sold	$ 4,617,045	7,102,789	16,142,180	22,562,238
Cost of land lease	22,486	23,003	67,564	79,795
Write-down of inventories
(Reversal of write-downs)	33,152	19,323	125,503	648
Net inventory (gain) loss	(507)	(257)	(2,772)	(909)
Unallocated fixed production
overheads from idle facilities	339,059	217,991	711,148	649,389
Revenue from sale of scraps	(108)	(166)	(348)	(528)
Less: Attributable to
discontinued operations	(19,650)	(223,841)	(86,283)	(694,668)
Net amount	$ 4,991,477	7,138,842	16,956,992	22,595,965

The allowance for inventory valuation and obsolescence loss was due to the decline of inventory to net realizable value or obsolescence, which was recognized as cost of goods sold. However, its reversal was due to the disappearance of the inventories abandoned that resulted in net realizable value which was lower than the costs, and the increase in net realizable value was due to the decrease of the operation costs.

Please refer to note 8 for details of the inventories of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

(f) Other current assets

	September 30, 2025	December 31, 2024	September 30, 2024
Other financial assets	$ 152,976	171,000	3,494,255
Restricted assets	1,190,469	1,645,228	947,751
Others	387,056	498,164	606,284
	$ 1,730,501	2,314,392	5,048,290

Other financial assets are time deposits with original maturity between three months and one year.

Please refer to note 8 for details of the other current assets of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

(g) Non-current assets held for sale

On December 27, 2024, the Board of Directors of our subsidiary, Changzhou Weicai New Material Science & Technology Co., Ltd. (Weicai) approved the proposed disposal of its 100% ownership of common stock and initiated the sale process.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As the post-pandemic recovery of industrial plastic products at the Qiaotou Plant has failed to meet the expectations, the Board of Directors, in its meeting held on May 14, 2025, resolved to dispose the said plant where the sale process has been initiated.

Due to the aforementioned transaction meeting the requirements of IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations,' the disposed assets have been reclassified as non-current assets held for sale. These assets meet the definition of discontinued operations and are presented as such. To align with the presentation of discontinued operations in the consolidated statement of comprehensive income for the year ended December 31, 2025, the Company has reclassified the profit and loss items of the discontinued operations for the year ended December 31, 2024, to make the information in the two periods' statements more relevant.

(i) Discontinued operations

The details of the profit and loss and cash flow information for the discontinued operations are as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	(Restatement) 2024	2025	(Restatement) 2024
Operating revenues	$ 2,613	197,706	36,030	650,394
Operating costs	(19,650)	(223,841)	(86,283)	(694,668)
Gross (loss) profit from operations	(17,037)	(26,135)	(50,253)	(44,274)
Selling expenses	(89)	(10,273)	(3,495)	(35,421)
Administrative expenses	(16,392)	(18,025)	(66,821)	(53,116)
Research and development expenses	(231)	(10,793)	1,008	(34,653)
Impairment loss (gain from reversal of impairment loss) determined in accordance with IFRS 9	2,735	(1,510)	4,213	(2,280)
Net operating loss	(31,014)	(66,736)	(115,348)	(169,744)
Interest income	21	52	33	112
Other income	970	227	1,451	4,900
Finance costs	(4,493)	(11,372)	(17,791)	(37,120)
Other gains and losses	(1,576)	(1,639)	(95,547)	(9,198)
Loss before tax	(36,092)	(79,468)	(227,202)	(211,050)
Income tax expense	-	-	-	-
Loss of discontinued operation	$ (36,092)	(79,468)	(227,202)	(211,050)

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	For the three months ended September 30,		For the nine months ended September 30,
	2025	(Restatement) 2024	2025	(Restatement) 2024
Loss of discontinued operations attributable to
Owners of parent	$ (36,092)	(79,468)	(227,202)	(211,050)
Non-controlling interests	-	-	-	-
	$ (36,092)	(79,468)	(227,202)	(211,050)
Cash Flows
operating activities	$ 71,759	147,891	141,385	184,409
investing activities	9,174	271	(26,470)	(718)
financing activities	(131,571)	(151,173)	(190,178)	(136,390)
Net cash used in cash and cash equivalent	$ (50,638)	(3,011)	(75,263)	47,301

No income tax loss or income arising from the profit and loss of discontinued operation.

(ii) Non-current assets classified as held for sale

	September 30, 2025	December 31, 2024	September 30, 2024
Discontinued operation	$ 1,065,078	818,474	-
Investment property	-	3,567,998	4,706,741
Assets held for sale	$ 1,065,078	4,386,472	4,706,741
Liabilities directly associated with non-current assets held for sale	$ 407,596	601,503	-

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The main categories of assets and liabilities held for sale related to discontinued operation are as follows:

	September 30, 2025	December 31, 2024
Cash and cash equivalents	$ 49,427	6,279
Notes and accounts receivable	15,644	143,151
Less: Loss allowance	(1,838)	(5,469)
Other receivables	2,077	5,415
Inventories	-	19,625
Prepayments	6,312	7,935
Other current assets	341	660
Property, plant and equipment	888,197	524,225
Right-of-use assets	100,477	107,662
Intangible assets	3,643	5,376
Other non-current assets	798	3,615
Total	$ 1,065,078	818,474
Accounts payable	$ 6,502	26,182
Other payables (Note)	62,757	47,863
Long-term liabilities, current portion	-	16,796
Current contract liabilities	955	9,973
Short-term loans	301,617	500,689
Non-current provisions	35,765	-
Liabilities directly associated with non-current assets held for sale	$ 407,596	601,503

Note: The amounts presented excluded those of the intercompany transactions.

The disposal group held for sale was measured at the lower of its carrying amount and fair value, less costs to sell, resulting in an impairment loss of $93,727 thousand to be recognized as Loss from Discontinued Operations as of September 30, 2025.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(h) Investments accounted for using equity method

(i) The Group’s investments accounted for using the equity method at the reporting date were classified as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Associates	$ 6,163,552	7,182,835	7,189,489

(ii) The Group’s investments accounted for using the equity method that are individually immaterial, in aggregate, were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Carrying value of interests in immaterial associates	$ 6,163,552	7,182,835	7,189,489
	For the three months ended September 30,		For the nine months ended September 30,
---	---	---	---
	2025	2024	2025
Attribution to the Group
Profit from continuing operations	$ (2,691)	138,629	50,865
Other comprehensive income	(21,846)	(17,090)	(59,712)
Total comprehensive income	$ (24,537)	121,539	(8,847)

(iii) Please refer to note 8 for details of the investments accounted for using equity method of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

(iv) The unreviewed financial statements of investments accounted for using equity method

As of September 30, 2025 and 2024, except for BES Engineering, Jean Pacific Development Co., Ltd., Chung Kung Safeguarding & Security Corp., Kaohsiung Monomer Company Limited, Core Pacific Overseas Holdings Ltd., Huading Enterprise Co., Ltd., and BES Engineering Vietnam Company Limited were accounted for using the equity method. The share of profit or loss and other comprehensive income from these investments was calculated based on financial statements that had not been reviewed by independent auditors.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group were as follows:

	Land	Land improvements	Buildings	Machinery and equipment	Vehicles	Other facilities	Unfinished construction	Accumulated impairment	Total
Cost or deemed cost:
Balance as of January 1, 2025	$ 6,241,468	442,217	5,672,095	51,952,969	95,857	534,372	7,761,821	-	72,700,799
Additions	-	-	-	7,435	99	747	279,140	-	287,421
Disposal	-	-	-	(139,201)	(2,226)	(2,372)	-	-	(143,799)
Adjustment	-	-	44,762	796,108	-	4,720	(1,167,205)	-	(321,615)
Reclassification	-	-	-	636	(25)	(611)	-	-	-
Reclassification to non-current assets classified as held for sale	(182,084)	(5,050)	(365,153)	(193,159)	(247)	(3,619)	-	-	(749,312)
Effect of movements in exchange rate	-	-	(61,737)	(176,067)	(1,453)	(11,482)	(198,493)	-	(449,232)
Balance as of September 30, 2025	$ 6,059,384	437,167	5,289,967	52,248,721	92,005	521,755	6,675,263	-	71,324,262
Balance as of January 1, 2024	$ 6,241,468	446,275	6,115,366	52,668,462	103,752	500,902	7,674,291	-	73,750,516
Additions	-	-	86	11,827	3,540	2,188	624,757	-	642,398
Disposal	-	-	(292)	(144,438)	(4,400)	(980)	-	-	(150,030)
Adjustment	-	833	29,942	209,519	(24)	16,772	(361,907)	-	(104,865)
Reclassification	-	(970)	977	(4,731)	-	6,766	(38,885)	-	(36,843)
Effect of movements in exchange rate	-	-	95,964	195,246	1,713	10,844	195,901	-	499,668
Balance as of September 30, 2024	$ 6,241,468	446,138	6,242,043	52,935,885	104,581	536,572	8,094,157	-	74,600,844
Depreciation and impairment loss:
Balance as of January 1, 2025	$ -	257,196	1,824,307	37,243,499	79,980	285,531	-	7,066,553	46,757,066
Depreciation for the period	-	11,507	101,373	732,894	3,287	51,184	-	-	900,245
Disposal	-	-	-	(131,454)	(2,224)	(2,356)	-	(6,800)	(142,834)
Reclassification	-	-	-	515	(19)	(496)	-	-	-
Reclassification to non-current assets classified as held for sale	-	(5,050)	(55,706)	(80,899)	(234)	(1,188)	-	(113,120)	(256,197)
Effect of movements in exchange rate	-	-	(10,334)	(40,121)	(1,155)	(4,733)	-	(4,193)	(60,536)
Balance as of September 30, 2025	$ -	263,653	1,859,640	37,724,434	79,635	327,942	-	6,942,448	47,197,744
Balance as of January 1, 2024	$ -	242,915	1,985,017	37,154,972	79,517	262,706	-	6,497,057	46,222,184
Depreciation for the period	-	13,216	127,994	846,941	6,157	45,489	-	-	1,039,797
Disposal	-	-	(292)	(142,854)	(3,014)	(889)	-	-	(147,049)
Effect of movements in exchange rate	-	-	19,971	52,996	1,191	4,038	-	-	78,196
Balance as of September 30, 2024	$ -	256,131	2,132,690	37,912,055	83,851	311,344	-	6,497,057	47,193,128
Carrying amounts:
Balance as of January 1, 2025	$ 6,241,468	185,021	3,847,788	14,709,470	15,877	248,841	7,761,821	(7,066,553)	25,943,733
Balance as of September 30, 2025	$ 6,059,384	173,514	3,430,327	14,524,287	12,370	193,813	6,675,263	(6,942,448)	24,126,518
Balance as of January 1, 2024	$ 6,241,468	203,360	4,130,349	15,513,490	24,235	238,196	7,674,291	(6,497,057)	27,528,332
Balance as of September 30, 2024	$ 6,241,468	190,007	4,109,353	15,023,830	20,730	225,220	8,094,157	(6,497,057)	27,407,716

(i) Collateral

Please refer to note 8 for details of the property, plant and equipment of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Property, plant and equipment under construction

For the nine months ended September 30, 2025 and 2024, the capitalized interests related to the property, plant and equipment under construction were $37,273 thousand and $38,757 thousand, respectively, which were calculated based on the capitalized interest rates ranging from 2.6458%~2.6500% and 2.4337%~5.4880%, respectively.

(iii) On November 26, 2013, the plan to invest in China was approved during the meeting of the Board of Directors of the Company. On March 25, 2014 and November 1, 2018, the Investment Commission, Ministry of Economic Affairs approved the Company’s investment of Weiming in China with the total amount of CNY2,388,000 thousand (equivalent to $11,100,000 thousand), mainly to establish manufacturing operations and facilities for petrochemical products, including hydro-refining crude benzol, cyclohexanone, nylon 6, etc. However, due to delays in the review process, the five approval documents have yet to be acquired. In light of this, the construction timeline for Weiming’s plant project will be adjusted in accordance with the schedule for obtaining the approvals.

(j) Right-of-use assets

The Group leases assets including land, land and sea area using rights, buildings, machinery and equipment, vehicles and other facilities. Information about leases for which the Group as a lessee was presented below:

	Land	Land and sea area using rights	Buildings	Machinery and equipment	Vehicles	Other facilities	Total
Cost:
Balance as of January 1, 2025	$ 393,887	548,672	134,347	193,971	28,011	2,781	1,301,669
Additions	-	-	60,709	3,949	717	-	65,375
Disposal	-	-	(81,502)	(2,843)	(4,322)	-	(88,667)
Effect of movements in exchange rate	-	(25,362)	-	-	-	-	(25,362)
Balance as of September 30, 2025	$ 393,887	523,310	113,554	195,077	24,406	2,781	1,253,015
Balance as of January 1, 2024	$ 249,457	660,177	123,403	161,531	16,898	106	1,211,572
Additions	144,430	-	11,135	-	18,756	-	174,321
Disposal	-	-	(4,178)	-	(7,534)	-	(11,712)
Reclassification	-	-	-	(2,675)	-	2,675	-
Effect of movements in exchange rate	-	30,069	-	-	-	-	30,069
Balance as of September 30, 2024	$ 393,887	690,246	130,360	158,856	28,120	2,781	1,404,250
Accumulated depreciation:
Balance as of January 1, 2025	$ 60,539	104,384	79,902	13,134	10,672	135	268,766
Depreciation for the period	13,230	7,921	24,721	8,317	6,494	135	60,818
Disposal	-	-	(81,502)	(2,843)	(4,000)	-	(88,345)
Others	-	-	-	-	168	-	168
Effect of movements in exchange rate	-	(4,896)	-	-	-	-	(4,896)
Balance as of September 30, 2025	$ 73,769	107,409	23,121	18,608	13,334	270	236,511

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Land	Land and sea area using rights	Buildings	Machinery and equipment	Vehicles	Other facilities	Total
Balance as of January 1, 2024	$ 46,061	113,504	50,613	3,444	11,676	61	225,359
Depreciation for the period	10,152	10,464	25,165	7,268	5,935	135	59,119
Disposal	-	-	(4,099)	-	(7,534)	-	(11,633)
Effect of movements in exchange rate	-	5,355	-	-	-	-	5,355
Balance as of September 30, 2024	$ 56,213	129,323	71,679	10,712	10,077	196	278,200
Carrying amounts:
Balance as of January 1, 2025	$ 333,348	444,288	54,445	180,837	17,339	2,646	1,032,903
Balance as of September 30, 2025	$ 320,118	415,901	90,433	176,469	11,072	2,511	1,016,504
Balance as of January 1, 2024	$ 203,396	546,673	72,790	158,087	5,222	45	986,213
Balance as of September 30, 2024	$ 337,674	560,923	58,681	148,144	18,043	2,585	1,126,050

(k) Investment property

The movement of investment properties was as followed:

	Land	Buildings	Total
Cost or deemed cost:
Balance as of January 1, 2025	$ 38,073,032	13,216	38,086,248
Reclassification	(123,011)	123,011	-
Disposal	(147,285)	-	(147,285)
Effects of foreign changes in exchange rates	-	(9,401)	(9,401)
Balance as of September 30, 2025	$ 37,802,736	126,826	37,929,562
Balance as of January 1, 2024	$ 41,787,489	13,056	41,800,545
Reclassification to non-current assets classified as held for sale	(6,562,256)	-	(6,562,256)
Change in fair value	352,280	-	352,280
Balance as of September 30, 2024	$ 35,577,513	13,056	35,590,569

On November 2, 2023, the Group sold the land located at No.1, Jingmao 5 Sec., Qianzhen District, Kaohsiung City at a public reserve price of $1,546,980 thousand by open tendering. Accordingly, the investment real estate-land was reclassified to non-current assets as held for sale. The Group completed the ownership transfer registration and received the full payment in February 2024. As a result, the Group recognized a gain of $17,700 thousand from the disposal of the non-current asset held for sale.

On March 26, 2024, the Group sold the land located at No.1-1, Jingmao 5 Sec., Qianzhen District, Kaohsiung City at a public reserve price of $2,007,790 thousand by open tendering. Accordingly, the investment property-land was reclassified to non-current assets as held for sale. The Group completed the ownership transfer registration and received the full payment in June 2024. As a result, the Group recognized a gain of $272,763 thousand on the disposal of non-current asset held for sale.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

On August 22, 2024, the Group sold the land located at No.16 and 17, Huimin Sec., Nanzi District, Kaohsiung City, for $2,846,860 thousand, at a public reserve price, resulting in its investment property-land were reclassified to non-current assets as held-for-sale. The Group completed the ownership transfer registration and received the full payment in December 2024. As a result, the Group recognized a gain of $1,706,648 thousand on the disposal of the non-current asset held for sale.

On August 22, 2024, the Group sold the land located at No. 2-1 and 2, Jingmao 5 Sec., Qianzhen District, Kaohsiung City, for $2,065,990 thousand and $1,883,660 thousand, respectively, at a public reserve price, resulting in its investment property-land were reclassified to non-current assets as held for sale. The Group completed the ownership transfer registration and received the full payment in January 2025. As a result, the Group recognized a gain of $350,586 thousand on the disposal of the non-current asset held for sale.

On September 26, 2025, the Group sold the land located at No. 926, Shuangxi Section, Toufen City, Miaoli County, through a public bidding process, for a transaction price of $180,210 thousand. The Group completed the ownership transfer registration and received the full payment in August 2025. As a result, the Group recognized a gain of $29,493 thousand on the disposal of the non-current asset held for sale.

(i) Evaluation by income approach

The Group’s following investment properties were subsequently measured at fair value using the income approach after initial recognition, and has been categorized as a Level 3 fair value based on the inputs to the valuation techniques used. The relevant contract information and key assumptions used in the method were as follows:

September 30, 2025

Subject	Qianjin Dist., Kaohsiung City	Qianzhen Dist., Kaohsiung City	Others
Contract terms	None	None	None
Rental at local market rate (per py per month)	$850~$1,000/py	$450~$660/py	$1,700~$1,900/py
Current market rent for comparable properties in similar locations and conditions (per py per month)	$878~$924/py	None	$1,850~$1,911/py
Current status	Unused	Leased (Note)	Unused
Income generated	$0	$450/py	$0
Capitalization rate	4.175%	None	1.880%
Discount rate	4.970%	4.845%	3.470%
Appraised by external independent appraiser or self-appraisal	External independent appraiser	External independent appraiser	External independent appraiser
Appraiser offices	Colliers International Taiwan	Colliers International Taiwan	China Real Estate Appraisers Firm
Appraiser names	Feng-Ru, Ke	Feng-Ru, Ke	Dian-Ching, Hsieh
Appraisal date	September 30, 2025	September 30, 2025	September 30, 2025
Fair value by external independent appraisers	$ 19,640	5,583,000	16,300

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

December 31, 2024

Subject	Qianjin Dist., Kaohsiung City	Qianzhen Dist., Kaohsiung City	Others
Contract terms	None	None	None
Rental at local market rate (per py per month)	$850~$1,000/py	$450~$660/py	$1,700~$1,900/py
Current market rent for comparable properties in similar locations and conditions (per py per month)	$878~$924/py	None	$1,850~$1,911/py
Current status	Unused	Leased (Note)	Unused
Income generated	$0	$450/py	$0
Capitalization rate	4.175%	None	1.880%
Discount rate	4.595%	4.845%	3.470%
Appraised by external independent appraiser or self-appraisal	External independent appraiser	External independent appraiser	External independent appraiser
Appraiser offices	Colliers International Taiwan	Colliers International Taiwan	China Real Estate Appraisers Firm
Appraiser names	Feng-Ru, Ke	Feng-Ru, Ke	Dian-Ching, Hsieh
Appraisal date	December 31, 2024	December 31, 2024	December 31, 2024
Fair value by external independent appraisers	$ 19,640	5,583,000	16,300

September 30, 2024

Subject	Qianjin Dist., Kaohsiung City	Qianzhen Dist., Kaohsiung City	Others
Contract terms	None	None	None
Rental at local market rate (per py per month)	$750~$900/py	$450~$660/py	$1,000~$1,400/py
Current market rent for comparable properties in similar locations and conditions (per py per month)	$862~$901/py	None	$1,202~$1,316/py
Current status	Unused	Leased (Note)	Unused
Income generated	$0	$0	$0
Capitalization rate	4.385%	None	1.370%
Discount rate	4.845%	4.720%	3.345%
Appraised by external independent appraiser or self-appraisal	External independent appraiser	External independent appraiser	External independent appraiser
Appraiser offices	Colliers International Taiwan	Colliers International Taiwan	China Real Estate Appraisers Firm
Appraiser names	Feng-Ru, Ke	Feng-Ru, Ke	Dian-Ching, Hsieh
Appraisal date	September 30, 2024	September 30, 2024	September 30, 2024
Fair value by external independent appraisers	$ 17,690	5,418,000	14,100

Note: On December 27, 2023, the Board of Directors approved the lease of land No. 4-3 and 4-4, Qianzhen District, Kaohsiung City, and the lease contract was signed on January 3, 2024.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

In accordance with Article 34 of the Regulations on Real Estate Appraisal, the procedures of the income approach include estimating the effective gross income and total expenses, computing the net operating income, determining the capitalization rate or discount rate, and computing the income. The attributes used by the Group for the estimations above were data from the last three years from the subject property and comparable properties which have similar characteristics, and these data were assessed and adjusted based on their persistency, stability, and growth to ensure the availability and reasonableness of these data. The movement of income (cash inflows) and expenditure (cash outflows) for future periods was based on the vacancies or losses, existing or future cash flow plans of the Group, and historical cash flows from the subject property, identical properties, or properties in the same industry. The estimation and computation of the net income were based on the highest and best use of the subject property and have taken into consideration the income generated from comparable properties in the same location based on their highest and best use.

External appraisers use the risk premium method to decide on the direct capitalization rate and discount rate. The fixed deposit interest rate, government bonds rate, real estate investment risk, money supply-demand variation, the trend of real estate value and etc. are taken into consideration to decide the likely rate of return on the most common investment as a basis in order to derive the capitalization rate or discount rate. The differences in individual characteristics between the above most common investment and the subject property are compared in terms of their liquidity, risk, appreciation, and management.

(ii) Evaluation through land development analysis

The Group classified its undeveloped land as investment properties. The Group adopted the development land analysis approach to measure the fair value of the undeveloped land in accordance with Article 9 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and has been categorized as a Level 3 fair value based on the inputs to the valuation techniques used. The relevant information is summarized as follows:

September 30, 2025

Subject	Annan Dist., Tainan City	Qianzhen Dist., Kaohsiung City	Others
Estimated revenue	14,673,375	127,785,935 (Note1)	821,751
Gross profit margin	17%	15%~16%	0%~18%
Rate of return	2.250%	5.910%~6.210%	0%~2.74%
Appraiser offices	CCIS Real Estate Joint Appraisers Firm	Colliers International Taiwan	Hon Bun Real EstateAppraisers Firm, Colliers International Taiwan and Baoyuan Real Estate Appraisers Firm
Appraiser names	Chih-Hao, Wu	Feng-Ru, Ke, Jian-Hui, Gu, You-Xuan, Chai and Jian-Xuan, Chen	Jian-Hui, Gu, You-Xuan, Chai, Ching-Tang, Li and Tzu-Kuang, Yeh
Appraisal date	September 30, 2025	September 30, 2025	September 30, 2025
Fair value by external independent appraisers	$ 5,818,704	25,993,665	522,684

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

December 31, 2024

Subject	Annan Dist., Tainan City	Qianzhen Dist., Kaohsiung City	Others
Estimated revenue	14,675,375	132,949,815 (Note1)	821,751
Gross profit margin	17%	15%~16%	0%~18%
Rate of return	2.250%	5.910%~6.2100%	0%~2.74%
Appraiser offices	CCIS Real Estate Joint Appraisers Firm	Colliers International Taiwan	Hon Bun Real Estate Appraisers Firm, Colliers International Taiwan and Baoyuan Real Estate Appraisers Firm
Appraiser names	Chih-Hao, Wu	Feng-Ru, Ke, Jian-Hui, Gu, You-Xuan, Chai and Jian-Xuan, Chen	Jian-Hui, Gu, You-Xuan, Chai, Ching-Tang, Li and Tzu-Kuang,Yeh
Appraisal date	December 31, 2024	December 31, 2024	December 31, 2024
Fair value by external independent appraisers	$ 5,818,704	29,608,000 (Note 2)	522,684

September 30, 2024

Subject	Annan Dist., Tainan City	Qianzhen Dist., Kaohsiung City	Others
Estimated revenue	11,991,011	127,090,623 (Note 1)	3,408,040
Gross profit margin	17%	16%~17%	12%~18%
Rate of return	2.190%	6.340%~7.3800%	1.28%~5.09%
Appraiser offices	CCIS Real Estate Joint Appraisers Firm	Colliers International Taiwan	Hon Bun Real Estate Appraisers Firm and Colliers International Taiwan
Appraiser names	Chih-Hao, Wu	Feng-Ru, Ke, Jian-Hui, Gu, You-Xuan, Chai and Jian-Xuan, Chen	Jian-Hui, Gu, You-Xuan, Chai, Ching-Tang, Li and Feng-Ru, Ke
Appraisal date	September 30, 2024	September 30, 2024	September 30, 2024
Fair value by external independent appraisers	$ 5,649,689	29,396,000 (Note 3)	1,657,346 (Note 4)

Note 1: Some of the estimated revenue, as a whole, is determined based on the basic unit.
Note 2: Including non-current assets classified as held for sale (or disposal groups) as of August 2024, amounting to $3,567,998 thousand, and the unrealized valuation gain of $46,337 thousand due to the classification as held for sale (or disposal groups).
Note 3: Including non-current assets classified as held for sale (or disposal groups) of $1,855,515 thousand.
Note 4: Including the non-current assets (or disposal groups classified) of $1,138,743 thousand, recognized as held for sale in August 2024.

The investment property of the Group located in Yangon, Myanmar does not have frequent comparable market transactions, nor is there a reliable alternative estimate of fair value available. Therefore, its fair value cannot be determined reliably.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group’s plan for the development land includes determining the scope of land development, estimating the duration of development, surveying and analyzing costs, obtaining current market prices, conducting on-site surveys, and investigating and analyzing the degree of development in the local environment. There was no significant fluctuation revealed by the assessment of macroeconomic factors, i.e., market indexes, population, employment rate, market prices and rates, market equilibrium, and other relevant market factors; hence, these data were used for estimating the total selling price after development or construction, and this expected selling price was used to derive the price before development and construction.

Investment properties included several rentals of real property to others. Each lease contract includes the original non-cancellable lease, and the subsequent lease is negotiated with the lessee without collection of contingent rentals. Please refer to note 6(t) for the relevant information including rent revenue and the direct operating expenses incurred.

Please refer to note 8 for details of investment properties of the Group pledged as collateral as of September 30, 2025, December 31 and September 30, 2024.

In the era of pre-Taiwan Alkali Industrial Corporation (TAIC), TAIC had leased the lands located in Tainan and Chiayi area to the local peasants and fishermen, and the surviving tenants shall continue paying the rent to the Group according to the agreements. In the event of the resumption for self-business use or the sale of the lands, the leases shall be terminated under the contractual agreements and Land Laws. If there is any redemption in some cases, the Company will recognize and evaluate the possible expenses and costs case by case.

Anshun Land Located in Tainan City Annan District:

The Company had estimated the remediation expense according to the remediation plan. Please refer to note 6(s) for relevant remediation expenses and provisions.

(i) History:

1) In April 1983, MOEA ordered China Petrochemical Development Corp., the state-owned Company, the subsidiary of Chinese Petroleum Corporation (CPC) at the time, to merge with TAIC. The Company took charge of Anshun land of TAIC.

2) Tainan City Government (“TCG”) and other government authorities cited Article 75 of Taiwan’s Company Law that since the Company merged with TAIC, and was regarded as the surviving company, the Company should take all responsibilities for the rights and obligations of TAIC, along with the treatment projects and remediation plan.

3) TCG issued letters No. 09722000130 and No. 09722003360 in January and February 2008 respectively, and requested the Company to propose a remediation plan for the soil and groundwater pollution of the Anshun plant in accordance with the SGPR Act.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Extension legislation:

a) TCG issued Letter No. 1080412260 requesting the Company to pay the amount of $59,624 thousand, of which, the Supreme Administrative Court ruled that the amount of $9,356 thousand is not payable; hence, the Company is only liable to pay the amount of $16,859 thousand, with the remaining amount of $32,955 thousand to be remanded to the Taiwan High Court for retrial, who ruled that the Company is not liable for the amount of $8,345 thousand and should only pay the amount of $24,610 thousand. However, the Company disagreed with the court's decision, and therefore, has filed an appeal to the Supreme Court, wherein the case was still in progress as of the reporting date.

b) TCG issued Letter No. 1090092471 requesting the Company to pay the amount of $32,718 thousand; of which, the Taiwan High Court ruled that the Company is not liable for the amount of $8,804 thousand. Of the remaining $23,422 thousand under dispute, the Company has been ordered to only pay for the amount of $17,981 thousand, excluding the portion of $5,441 thousand. The above ruling has been finalized, and the case is considered closed. However, TCG disagreed with the decision made by the Taiwan High Court, thus, proceeded to file an appeal to the Supreme Court, wherein the case was still in progress as of the reporting date.

c) TCG issued Letter No. 1110077064 requesting the Company to pay the amount of $30,748 thousand in disbursement, which was later adjusted to $19,431 thousand. However, the Company disagreed with the court's ruling and filed an administrative litigation to the Taiwan High Court, who ruled that the Company need not pay the amount of $6,356 thousand and only liable for the amount of $13,076 thousand. The Company was dissatisfied with the High Court's decision, and therefore, filed an appeal to the Supreme Court, wherein the case was still in progress as of the reporting date.

d) TCG issued Letter No. 1140001024 requiring the Company to pay the disbursement of $19,279 thousand. However, the Company refused to pay the said amount and filed an administrative appeal. In turn, TCG has denied the Company's appeal, prompting the Company to initiate an administrative litigation to seek legal remedy.

(iii) Others:

The cumulative fee of invested and estimated control & management cost, and remediation fee were $6,928,326 thousand until September 30, 2025. The preceding remediation fee was estimated according to the current possible situations by the Company. However, unpredictable future events may cause large fluctuations in the total expected remediation fees. This will be closely monitored and evaluated by management.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Anshun dormitory designated monuments case

Original Kagakude Negai O Ka Corporation’s dormitories of Tainan plant belonging to the Company was designated by the TCG, under the letter issued Letter No. 1031053448B on November 17, 2014, as a municipal historic site. However, the administrative sanction has various areas of dispute, thus the Company was not satisfied with the judgment. Hence, the Company filed an administrative appeal for remedy in December 2014. The administrative appeal decision from the Ministry of Culture revoked the designated land of the Company as a historical site including 4 areas in August 2015. The Company appealed for the administrative remedy of the remaining areas, which was under hearing by the Supreme Court. In July 2020, the Supreme Administrative Court reversed the original judgement and remanded the case to KHAC for a new trial. KHAC revoked the original disposition and dismissed parts of the administrative appeal decision in June 2023. TCG filed an appeal, and currently this case is ongoing in the Supreme Administrative Court.

2) Shulin Land of TAIC:

The Company estimated the remediation expense according to the control plan, and please refer to note 6(s) for relevant remediation expenses and provisions.

(l) Intangible assets

The cost, amortization and impairment of the intangible assets of the Group were as follows:

	Goodwill	Computer software	Patents and trademark	Total
Costs :
Balance as of January 1, 2025	$ 157,664	50,577	92,389	300,630
Acquisition	-	1,077	-	1,077
Effect of movement in exchange rates	(10,820)	(2,189)	-	(13,009)
Balance as of September 30, 2025	$ 146,844	49,465	92,389	288,698
Balance as of January 1, 2024	$ 147,982	24,641	119,925	292,548
Acquisition	-	1,177	62	1,239
Transfer from property, plant and equipment	-	28,481	-	28,481
Effect of movement in exchange rates	4,409	1,526	1,254	7,189
Balance as of September 30, 2024	$ 152,391	55,825	121,241	329,457
Accumulated amortization and impairment loss:
Balance as of January 1, 2025	$ 152,220	18,376	80,039	250,635
Amortization for the period	-	3,971	1,425	5,396
Effect of movement in exchange rates	(10,820)	(806)	-	(11,626)
Balance as of September 30, 2025	$ 141,400	21,541	81,464	244,405

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Goodwill	Computer software	Patents and trademark	Total
Balance as of January 1, 2024	$ -	12,940	101,611	114,551
Amortization for the period	-	5,045	2,647	7,692
Effect of movement in exchange rates	-	630	1,090	1,720
Balance as of September 30, 2024	$ -	18,615	105,348	123,963
Carrying value:
Balance as of January 1, 2025	$ 5,444	32,201	12,350	49,995
Balance as of September 30, 2025	$ 5,444	27,924	10,925	44,293
Balance as of January 1, 2024	$ 147,982	11,701	18,314	177,997
Balance as of September 30, 2024	$ 152,391	37,210	15,893	205,494

The goodwill generated from the acquisition of Weicai Company by the Group in 2018 was fully recognized as an impairment loss of $149,131 in 2024 due to continuous losses and the recoverable amount of Weicai Company being less than its carrying amount.

(m) Short-term loans

The short-term loans were summarized as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Unsecured bank loans	$ 3,792,654	2,575,268	4,451,114
Secured bank loans	10,420,426	12,004,956	14,259,947
Total	$ 14,213,080	14,580,224	18,711,061
Total short-term credit lines	$ 22,991,405	24,052,170	27,707,501
Range of interest rates	1.14%~4%	1.1%~4.35%	1.8782%~6.64%

Secured bank loans from Shin Kong Commercial Bank

On October 21, 2021, Core Pacific Dev. Corp. signed a 4-year syndicated loan agreement with financial institutions, including Shin Kong Commercial Bank (the lead bank), for the development of its land, with the Company as the joint guarantor. In November 2024, Core Pacific Dev. Corp. obtained the consent of financial institutions, including Shin Kong Bank, to waive the default caused by the ruling of the Taipei District Court. On November 27, 2024, the board of directors resolved to sign the second supplementary agreement to the joint credit agreement with the financial institutions, to reduce the total syndicated loan amount, from $14,900,000 thousand to $13,380,000 thousand, and to make voluntary prepayments in successive installments.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The syndicated loan balance of $7,380,000 thousand under the credit facility was amended by the fourth supplemental agreement signed on November 5, 2025, stipulating the loan payment can be made in an installment basis before November 5, 2026. Furthermore, the Company also committed to establishing an asset disposal review mechanism for certain investment property located in Kaohsiung City, with a specified portion of the disposal proceeds to be applied as a priority for the loan payment.

Please refer to note 8 for details of the related assets pledged as collateral.

(n) Long-term loans

The long-term loans were summarized as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Unsecured bank loans	$ -	-	1,493
Secured bank loans	16,563,962	16,473,842	16,841,867
Finance lease loans	207,715	380,425	437,485
Less: current portion	(7,996,045)	(6,137,758)	(2,637,950)
Total	$ 8,775,632	10,716,509	14,642,895
Total long-term credit lines	$ 17,159,052	20,475,895	22,306,167
Range of interest rates	2.15%~9.72%	2.15%~9.72%	2.15%~9.72%

(i) Conditions of loan agreement

During the period covered in the consolidated financial statements, the material conditions of the loan agreements of the Group were summarized as follows:

Secured bank loans from Mega International Commercial Bank

1) The Company is required to maintain the following certain financial ratios and other matters based on the reviewed semi-annual consolidated financial statements and audited annual consolidated financial statements during the loan period.

a) Current ratio not lower than 100%.

b) Debt-to-equity ratio (total liabilities divided by equity): not higher than 150%.

c) Interest coverage ratio (income before tax plus depreciation expense, amortization expense and losses from pollution or litigation divided by interest expenses): not lower than 200%.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) In the event that there is any non-compliance with the interest coverage ratio agreement for each fiscal year, the borrower may provide deposits and set up the first priority to pledge the maximum amount to the managing bank in the manner agreed by the managing bank, or deposit such deposits into the reserve account designated by the managing bank to make up the difference. In the event that there is any non-compliance with the financial ratios and limitations set forth in any paragraph of this agreement for each fiscal year, the period from the date of the announcement of the consolidated financial statements of such non-compliance to the date of the announcement of the next period of the consolidated financial statements shall be the period of improvement, and if the borrower completes the improvements within the period of improvement, the borrower shall not be deemed to be in breach of the financial commitments. If the improvement is not completed by the deadline, it may be subject to a breach of contract under this agreement. If the breach of contract occurs, the managing bank has the right to take actions in accordance with the contract directly or in accordance with the resolution of the majority of the credit syndicate.

The financial covenants under the loan agreement require the interest coverage ratio to be maintained twice the amount or above. In the second quarter of 2025, the Group did not meet the above financial ratio covenant, and thus, it was required to make improvements within the stipulated period in accordance with the agreement.

Secured bank loans from CTBC Bank

1) The financial covenants under the loan agreement include the requirement to maintain the following financial ratios based on the reviewed semi-annual consolidated financial statements and audited annual consolidated financial statements. In the event of any violation and if improvements are not made within the specified period, the CTBC Bank is entitled to reduce credit lines, shorten the loan period, and have all principals and interests repaid immediately.

a) Current ratio: not lower than 120%.

b) Debt-to-equity ratio (total liabilities divided by net worth): not higher than 100%.

c) Interest coverage ratio (income before tax plus depreciation expense and amortization expense divided by interest expenses): not lower than 200%.

d) Tangible net worth (total equity excluding intangible assets): not lower than $72 billion.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Secured bank loans from Taiwan Life Insurance Co., Ltd.

The total credit line, which was mutually shared and endorsed by the Company and Core Pacific Dev. Corp.

(ii) Pledged assets of loan agreement

Please refer to note 8 for details of the related assets pledged as collateral.

(o) Bonds payable

(i) The details of bonds payable were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Secured non-convertible bonds	$ -	3,500,000	4,462,500
Unamortized balance of discounted bonds payable	-	-	(9,862)
Less: current portion	-	(3,500,000)	(4,452,638)
Total	$ -	-	-
Maturity year	-	114	114

(ii) The Group issued domestic secured non-convertible bonds at the amount of $3,500,000 thousand in 2020, the terms were as follows:

	The first domestic secured non-convertible bond in 2020
	Bond A	Bond B	Bond C
Issue amount	$ 1,500,000	1,000,000	1,000,000
Issue date	2020.9.21	2020.9.21	2020.9.21
Issue period	5 years	5 years	5 years
Coupon rate	0.64 %	0.64 %	0.64 %
Interest payment date	September 21	September 21	September 21
Repayment and interest payment	Repayment on maturity, interest payment annually	Repayment on maturity, interest payment annually	Repayment on maturity, interest payment annually

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) The Group issued domestic secured non-convertible bonds at the amount of $1,250,000 thousand in 2021, the terms were as follows:

	Domestic secured non-convertible bond in 2021
	Bond A	Bond B
Issue amount	$ 625,000	625,000
Issue date	2021.10.21	2021.10.22
Issue period	4 years	4 years
Coupon rate	2.75 %	2.75 %
Interest payment date	21st of every month	22nd of every month
Repayment and interest payment	From the 1st to the 12th month, only the interest is paid monthly.
From the 13th to the 47th month, the principal and interest are repaid by $6,250 thousand on a monthly basis.
The remaining principal is repaid once on maturity.

Please refer to note 8 for details of the related assets pledged as collateral.

(p) Short-term bills payable

The components of short-term bills payable were as follows:

	September 30, 2025
	Acceptance institution	Period	Amount
Bills payable	Taching Bills Finance Corporation	2025.09.05~2025.11.04	$ 395,900
„	International Bills Finance Corporation	2025.09.05~2025.11.04	495,300
„	Taiwan Finance Corporation	2025.09.19~2025.10.17	150,000
			1,041,200
Less: Discount on short-term bills payable			(2,992)
Total			$ 1,038,208
Interest rate range			3.16%~4.14%

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Acceptance institution	Period	Amount
Bills payable	Taching Bills Finance Corporation	2024.12.05~2025.01.17	$ 552,800
〃	International Bills Finance Corporation	2024.12.05~2025.01.17	691,400
〃	Taiwan Finance Corporation	2024.12.02~2025.02.03	350,000
			1,594,200
Less: Discount on short-term bills payable			(3,019)
Total			$ 1,591,181
Interest rate range			3.16%~3.64%
	September 30, 2024
---	---	---	---
	Acceptance institution	Period	Amount
Bills payable	Taching Bills Finance Corporation	2024.09.27~2024.11.26	$ 718,000
〃	International Bills Finance Corporation	2024.09.27~2024.11.26	898,000
〃	Mega Bills Finance Corporation	2024.09.18~2024.10.18	500,000
〃	Taiwan Finance Corporation	2024.07.05~2024.10.03	350,000
			2,466,000
Less: Discount on short-term bills payable			(8,936)
Total			$ 2,457,064
Interest rate range			1.825%~2.930%

The Group had revolving commercial promissory note agreements with bills finance companies in order to finance its operating requirement.

Please refer to note 8 for details of the related assets pledged as collateral.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(q) Long-term bills payable

The components of long-term bills payable were as follows:

	September 30, 2025
	Acceptance institution	Period	Amount
Bills payable	International Bills Finance Corporation	2025.07.09~2025.10.02	$ 550,000
〃	Taching Bills Finance Corporation	2024.07.11~2025.10.09	620,000
〃	China Bills Finance Corporation	2025.09.01~2025.12.24	2,300,000
〃	Mega Bills Finance Corporation	2025.08.22~2025.11.21	4,550,000
			8,020,000
Less: Discount on long-term bills payable			(8,640)
Total			$ 8,011,360
Interest rate range			1.53%~2.15%
	December 31, 2024
---	---	---	---
	Acceptance institution	Period	Amount
Bills payable	International Bills Finance Corporation	2024.11.06~2025.02.13	$ 350,000
〃	Taching Bills Finance Corporation	2024.10.15~2025.01.13	620,000
〃	China Bills Finance Corporation	2024.12.04~2025.01.17	2,000,000
〃	Mega Bills Finance Corporation	2024.11.13~2025.02.27	4,550,000
			7,520,000
Less: Discount on long-term bills payable			(9,323)
Total			$ 7,510,677
Interest rate range			1.52%~2.15%
	September 30, 2024
---	---	---	---
	Acceptance institution	Period	Amount
Bills payable	International Bills Finance Corporation	2024.09.10~2024.11.06	$ 250,000
〃	Taching Bills Finance Corporation	2024.08.16~2024.10.15	620,000
〃	China Bills Finance Corporation	2024.09.10~2024.11.19	2,300,000
〃	Mega Bills Finance Corporation	2024.09.03~2024.10.18	3,350,000
			6,520,000
Less: Discount on long-term bills payable			(6,643)
Total			$ 6,513,357
Interest rate range			1.48%~1.87%

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group had revolving commercial promissory note agreements with bills finance companies in order to finance its operating requirement.

Please refer to note 8 for details of the related assets pledged as collateral.

(r) Lease liabilities

The lease liabilities of the Group were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Current	$ 51,349	43,870	189,149
Non-current	$ 358,004	343,058	207,131

For the maturity analysis, please refer to note 6(ab).

The amounts recognized in profit or loss were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Interest on lease liabilities	$ 1,530	1,917	6,364	4,053
Expenses relating to short-term leases	$ 1,947	7,976	20,754	30,531

The amounts recognized in the statement of cash flows for the Group were as follows:

	For the nine months ended September 30,
	2025	2024
Total cash outflow for leases	$ 69,770	74,679

(s) Provisions

	Site dismantling	Site restoration	Employee benefits	Carbon fees	Total
Balance as of January 1, 2025	$ 1,762,738	1,578,956	53,938	-	3,395,632
Provisions made during the year	-	-	7,373	10,198	17,571
Provisions used during the year	-	(437,611)	(22,739)	-	(460,350)
Effect of movements in exchange rate	(2,484)	-	-	-	(2,484)
Balance as of September 30, 2025	$ 1,760,254	1,141,345	38,572	10,198	2,950,369
Current	$ -	204,681	5,294	10,198	220,173
Non-current	1,760,254	936,664	33,278	-	2,730,196
	$ 1,760,254	1,141,345	38,572	10,198	2,950,369
Balance as of January 1, 2024	$ 1,779,016	835,030	234,040	-	2,848,086
Provisions made during the year	-	-	10,530	-	10,530
Provisions used during the year	-	(496,202)	(182,395)	-	(678,597)
Effect of movements in exchange rate	2,339	-	-	-	2,339
Balance as of September 30, 2024	$ 1,781,355	338,828	62,175	-	2,182,358

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Site dismantling	Site restoration	Employee benefits	Carbon fees	Total
Current	$ -	105,882	5,294	-	111,176
Non-current	1,781,355	232,946	56,881	-	2,071,182
	$ 1,781,355	338,828	62,175	-	2,182,358

(i) Anshun Land Located in Tainan City Annan District:

On July 9, 2024, TCG approved the fourth remediation plan for the Anshun Plant, with the related remediation work to be completed by the specified improvement deadline on June 30, 2026. The Company additionally budgeted the amount of $1,003,000 thousand for the remediation plan in the fiscal year 2024.

(ii) Shulin Land of TAIC:

1) No. 540 and three other parcels of land located in Dongshan Section, Shulin District, New Taipei City, Taiwan, were originally owned by the Shulin Plant of TAIC. In April 1983, pursuant to an order issued by MOEA, the Company merged with TAIC, and thereby assumed ownership of the aforementioned land. The land was subsequently transferred to CPC. On August 16, 2010, the Environmental Protection Bureau of the New Taipei City Government designated the land as a “soil pollution control site.” In March 2011, the Bureau issued Letter No. 1000010000, declaring that the Company, as the surviving entity in the merger with TAIC, was deemed the responsible polluter. In accordance with applicable regulations, the Company postponed the initial phase of the soil pollution control plan for a portion of the Shulin land formerly owned by TAIC. This plan was registered with, and approved by, the Environmental Protection Bureau of the New Taipei City Government on May 16, 2014. Pursuant to the approved plan, the Company allocated a control budget of $273,750 thousand.

2) From 2017 to 2021, in response to the three changes in the designated storage site and relocation requirements of CPC, the Company submitted three corresponding amendments to the soil pollution control plan. Each amendment was subsequently registered with, and approved by, the Environmental Protection Bureau of the New Taipei City Government in accordance with applicable regulations.

3) In consideration of the maturity of the remediation methodology and its potential environmental impact, the Company submitted the fourth amendment to the soil pollution control plan to the Environmental Protection Bureau of the New Taipei City Government. Pursuant to the approval of the 4th phase of the soil pollution control plan for the Shulin Land of the former TAIC, the Company allocated an additional budget of $365,500 thousand in December 2024 to implement the relevant remediation measures. The budget will be further adjusted based on the actual progress and execution status of the remediation work. On March 31, 2025, the transfer of the title deed to CPDC Corp. had been completed, and the Company commenced its on-site control operations on April 1, 2025.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(t) Operating lease

The Company leases out its property and has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Please refer to note 6(k) that sets out information about the operating leases of investment property.

(u) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2024 and 2023.

The expenses recognized in profit or loss for the Group were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Operating cost	$ 1,248	2,025	3,767	6,178
Selling expenses	31	43	108	162
Administration expenses	188	240	533	712
Research and development expenses	-	42	16	127
Total	$ 1,467	2,350	4,424	7,179

(ii) Defined contribution plans

The Group's expenses under the pension plan cost to the Bureau of Labor Insurance for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024 were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Operating cost	$ 7,240	7,719	23,624	24,246
Selling expenses	192	226	641	1,016
Administration expenses	2,254	2,648	7,298	8,211
Research and development expenses	511	660	1,821	2,117
Total	$ 10,197	11,253	33,384	35,590

(iii) The pension recognized consists of pension expenses and pensions for professional management. The pension expenses for professional management amounted to $970 thousand, $1,102 thousand, $2,948 thousand and $3,628 thousand for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Short-term compensated absences liabilities

As of September 30, 2025, December 31 and September 30, 2024 the Group’s short-term compensated absences liabilities all amounted to $5,294 thousand.

(v) Income tax

(i) Income tax

The components of income tax expense were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Current tax expense
Current period	$ 1,901	9,642	10,891	14,734
Adjustment for prior periods	-	(1,203)	356	481
	1,901	8,439	11,247	15,215
Deferred tax expense (benefit)
Change in land value-added tax	-	-	-	(30,710)
Income tax expense (benefit)	$ 1,901	8,439	11,247	(15,495)

(ii) Assessment of tax

The Company’s tax return for the years through 2023 were assessed by the Tax Authority.

(iii) Global minimum top-up tax

In some of the Group’s operating locations, new tax laws implementing the global minimum tax have been enacted and are in effect. The Group is closely monitoring the legislative progress of the global minimum tax in other jurisdictions where it operates. As of September 30, 2025, the assessment indicates that the application of this new tax law has no significant impact on the Group. The Group will recognize the supplementary tax as current income tax when it actually occurs, while the deferred income tax accounting treatment related to the supplementary tax will be subject to temporary mandatory exemption.

(w) Capital and other equity

(i) The issuance of common stock

As of September 30, 2025, December 31 and September 30, 2024, the authorized, issued and outstanding capital of the Company all amounted to $37,848,502 thousand, divided into 3,784,850 thousand shares, with par value of $10 per share.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Reconciliation of shares outstanding for the nine months ended September 30, 2025 and 2024 was as follows:

(In thousands of shares)

	Common Stock
	For the nine months ended September 30,
	2025	2024
Ending Balance (i.e., beginning balance)	3,784,850	3,784,850

(ii) Capital surplus

The balances of capital surplus were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Premium of common stock	$ 1,408,088	1,408,088	1,408,088
Difference arising from subsidiary's share price and its carrying value	26,314	26,314	26,314
Recognize changes in ownership interests in subsidiaries	127,115	127,115	127,115
Changes in equity of associates and joint ventures accounted for using equity method	2,348	2,348	2,348
Other	18,141	18,141	18,141
Total	$ 1,582,006	1,582,006	1,582,006

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 common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock 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 in excess of par value should not exceed 10% of the total common stock outstanding.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Retained earnings

As specified in Company’s Articles of Incorporation, if the Company has earnings, after payment of taxation, it shall offset the losses in previous years, and set aside a legal reserve and special reserve in accordance with relevant laws and regulations or requested by the authorities in charge. With respect to any balance herein together with the undistributed cumulative profits from previous years and from the current year, the Board of Directors shall prepare an earnings distribution proposal and submit to the shareholders’ meeting for approval according to the following dividend policy. The Company is in a highly capital-intensive industry, subject to volatility and high levels of competition, where the Company is subject to the influence of the global economy and changes in industrial performance. The Company should take into account the Company’s business operations, capital needs and status of the competitive environment, interests of shareholders and the Company’s own financial planning in the allotment of its profits. Under such circumstances, the Company may set aside profits into a special reserve either in whole or in part to assure financial stability and sustainability. The Company may allot dividends in cash or stock. In the case that the allotment is made by way of stock dividend, the ratio for the stock dividend shall not exceed 50% of the total distribution unless the ratio of the Company’s total liabilities to total assets is equivalent or above 50% or otherwise prescribed in relevant laws and regulations.

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

In consideration of future earnings development, capital requirements, industry competition, and the interests of shareholders, the Company appropriated a special reserve of $4,194,973 thousand in 2012. This reserve was derived from the profit generated from the disposal of its investment in Xinchang Chemical Industry Co., Ltd. in 2011, and was intended to support sustainable development and long-term financial planning. As of September 30, 2025, December 31 and September 30, 2024, the carrying amount of this special reserve remained at $4,194,973 thousand.

By adopting the exemptions allowed under IFRS 1 First-time Adoption of International Financial Reporting Standards during the Company’s first-time adoption of the International Financial Reporting Standards approved by the Financial Supervisory Commission (IFRSs), unrealized asset revaluation gains in shareholders’ equity of $5,281,790 thousand was reclassified to retained earnings. The net increase in retained earnings due to the first-time adoption of IFRSs amounted to $4,235,076 thousand. In accordance with Rule issued by the Financial Supervisory Commission, a special reserve is appropriated from the distribution of retained earnings as a result of an increase in retained earnings due to the first-time adoption of IFRSs. When the related assets are used, disposed of, or reclassified, this special reserve is reversed as distributable earnings proportionately. The carrying amount of such special reserve amounted to $3,977,561 thousand, $3,977,561 thousand and $3,995,976 thousand as of September 30, 2025, December 31 and September 30, 2024, respectively.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Company changed the subsequent measurement of investment properties from cost model to fair value model. In accordance with Rule issued by the Financial Supervisory Commission, on the first-time adoption of fair value model for the subsequent measurement of investment properties, the Company set aside an equal amount of special reserve when the fair value increment of investment properties is transferred to retained earnings. The Company appropriated to the special reserve an amount of $21,224,233 thousand. The carrying amount of such special reserve amounted to $18,170,681 thousand, $18,170,681 thousand and $18,668,632 thousand as of September 30, 2025, December 31 and September 30, 2024.

For every year the Company distributes earnings, a special reserve is appropriate in the following order:

a) Each year, a special reserve is appropriated from current year’s net income and prior years’ undistributed earnings for the same amount as the net increase in the fair value of investment properties using the fair value model. A special reserve is also appropriated for the same amount as the cumulated net increase in the fair value for the year when the undistributed earnings are not distributed. When the investment property is disposed of, this special reserve is reverted proportionately to distributable earnings. As of September 30, 2025, December 31 and September 30, 2024, the Company appropriated to the special reserve all amounting to $7,934,259 thousand, $8,511,202 thousand and $8,651,200 thousand, respectively.

b) A special reserve is appropriated by the parent company for the difference between market value and book value of parent company shares being held by a subsidiary time the percentage of the parent company’s equity investment in the said subsidiary, if the stock price of the parent company is lower than the its value. If the market value recovers subsequently, this special reserve is reverted proportionately to distributable earnings.

c) A portion of current-period earnings and undistributed prior-period earnings is appropriated as a special reserve during earnings distribution. Such appropriation of special reserve is based on the difference between the total net amount of contra accounts in the shareholders’ equity and the carrying amount of special reserve. Similarly, a portion of undistributed prior period earnings (which does not qualify for earnings distribution) is likewise appropriated as a special reserve on account of cumulative changes to other shareholders’ equity pertaining to prior periods. The subsequent reversals of the contra accounts in the shareholders’ equity shall qualify for additional earnings distributions.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Earnings Distribution

The shareholders’ meeting of the Company held on May 15, 2025 and May 30, 2024 approved the appropriation of earnings for 2024 and the offsetting of losses for 2023, respectively.

Information regarding the distribution of the Company’s earnings in the previous years can be found on the Market Observation Post System after the relevant meetings have been held.

(iv) Other equity

	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
Balance at January 1, 2025	$ (293,227)	(233,086)
Exchange differences on translation of foreign operations	(581,320)	-
Exchange difference on associates accounted for using equity method	(57,792)	-
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	(55,545)
Unrealized gains from financial assets measured at fair value through other comprehensive income for affiliated companies accounted for using equity method	-	(3,865)
Disposal of financial assets measured at fair value through other comprehensive income	-	(11,074)
Associated disposal of financial assets measured at fair value through other comprehensive income	-	(43,293)
Balance at September 30, 2025	$ (932,339)	(346,863)

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
Balance at January 1, 2024	$ (718,012)	(380,569)
Exchange differences on translation of foreign operations	442,697	-
Exchange difference on associates accounted for using equity method	4,569	-
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	180,742
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates accounted for using equity method	-	14,751
Balance at September 30, 2024	$ (270,746)	(185,076)

(x) Earnings (loss) per share

The Group’s earnings (loss) per share were calculated as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	(Restated) 2024	2025	(Restated) 2024
Net income (loss) attributable to ordinary shareholders of the Company
Continuing operations	$ (867,878)	(497,521)	(2,612,279)	95,571
Discontinued operations	(36,092)	(79,468)	(227,202)	(211,050)
Total	$ (903,970)	(576,989)	(2,839,481)	(115,479)
Weighted-average number of outstanding ordinary shares (thousand shares)	3,784,850	3,784,850	3,784,850	3,784,850
	For the three months ended September 30,		For the nine months ended September 30,
	2025	(Restated) 2024	2025	(Restated) 2024
Basic earnings (loss) per share (NT dollars)
Continuing operations	$ (0.23)	(0.13)	(0.69)	0.03
Discontinued operations	(0.01)	(0.02)	(0.06)	(0.06)
Total	$ (0.24)	(0.15)	(0.75)	(0.03)

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	For the three months ended September 30,		For the nine months ended September 30,
	2025	(Restated) 2024	2025	(Restated) 2024
Net income (loss) attributable to ordinary shareholders of the Company
Continuing operations	$ (867,878)	(497,521)	(2,612,279)	95,571
Discontinued operations	(36,092)	(79,468)	(227,202)	(211,050)
Total	$ (903,970)	(576,989)	(2,839,481)	(115,479)
Weighted average number of outstanding ordinary shares (thousand shares)	3,784,850	3,784,850	3,784,850	3,784,850
Effect of dilutive potential ordinary shares
Effect of employee share bonus (thousand shares)	576	1,314	576	1,314
Weighted-average number of outstanding ordinary shares (in thousands) (after adjustments of the effect of dilutive potential ordinary shares)	3,785,426	3,786,164	3,785,426	3,786,164
Diluted earnings (loss) per share (NT dollars)
Continuing operations	$ (0.23)	(0.13)	(0.69)	0.03
Discontinued operations	(0.01)	(0.02)	(0.06)	(0.06)
Total	$ (0.24)	(0.15)	(0.75)	(0.03)

(y) Revenue from contracts with customers

(i) Disaggregation of revenue

The Group primarily engages in the production of petrochemical products and by-products and the storage, transportation, purchase and sale of these products, related chemicals and their raw materials. For the details of products and sales area, please refer to note 14(b) and (c).

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Contract balances

	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable (including related parties)	$ 234,962	67,634	646,766
Accounts receivable (including related parties)	2,008,230	2,818,623	2,627,153
Less: loss allowance	(237,806)	(237,806)	(243,548)
	$ 2,005,386	2,648,451	3,030,371
Contract liabilities	$ 44,451	143,850	85,823

For details on accounts receivable and allowance for impairment, please refer to note 6(d).

The amounts of revenue recognized for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024 that were included in the contract liability balance at the beginning of the periods were $8,466 thousand, $65,590 thousand, $142,143 thousand and $181,287 thousand, respectively.

The changes in contract liabilities were primarily due to the timing differences between the satisfaction of performance obligations and customer payments.

(z) Remunerations to employees and directors

On May 15, 2025, the Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Company Article of Incorporation, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2% (in cash) of the remaining net profit shall be allocated as directors’ remuneration, and 3% (in shares or in cash) as employee remuneration, including 1% to those base-level employees. The distribution should also include those employees of the Company’s subsidiaries who meet certain requirements. Prior to the amendment, the Articles of Incorporation stipulated that, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2% (in cash) of the remaining net profit shall be allocated as directors’ remuneration, and 3% (in shares or in cash) as employee remuneration, including those employees of the Company’s subsidiaries who meet certain requirements.

The Group incurred a loss before tax for the nine months ended September 30, 2024 and 2025; therefore, no remunerations to employees and directors were accrued during the periods. Relevant information can be accessed through public information platforms such as the Market Observation Post System.

For the year ended 2024, the Company’s employee remuneration of $11,740 thousand, resolved by the Board of Directors, was consistent with the amount recognized in the financial statements. For the year ended December 31, 2023, no employee remuneration was accrued due to the pre-tax loss incurred by the Company during the period. Relevant information is available on the Market Observation Post System website.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(aa) Non-operating income and expense

(i) Interest income

The details of interest income were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Interest income from bank deposits	$ 18,175	58,442	89,818	189,401
Other interest income	919	1,011	2,834	3,251
Less: Discontinued operations (Note 6(g))	(21)	(52)	(33)	(112)
Total	$ 19,073	59,401	92,619	192,540

(ii) Other income

The details of other income were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Rent income	$ 10,740	11,246	32,507	32,429
Dividend income	48,120	32,331	48,120	32,396
Other income, others	98,088	27,370	130,528	111,931
Less: Discontinued operations (Note6(g))	(970)	(227)	(1,451)	(4,900)
Total	$ 155,978	70,720	209,704	171,856

(iii) Other gains and losses

The details of other gains and losses were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Foreign exchange (losses) gains	$ 64,877	(41,759)	(251,826)	166,162
(Losses) gains on financial assets at fair value through profit	5,150	16,208	(12,612)	59,428
Impairment loss on non-current assets held for sale	1,555	-	(93,727)	-
Service fee charge	(27,622)	(42,011)	(117,802)	(151,049)
Losses on work stoppages	(6,130)	(2,508)	(12,292)	(11,318)
Other gains and losses	(5,722)	(4,493)	(5,405)	(7,167)
Less: Discontinued operations (Note 6(g))	1,576	1,639	95,547	9,198
Other gains and losses, net	$ 33,684	(72,924)	(398,117)	65,254

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Finance costs

The details of finance costs were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Interest expense	$ (172,336)	(191,185)	(531,936)	(579,645)
Less: Discontinued operations (Note 6(g))	4,493	11,372	17,791	37,120
Finance costs, net	$ (167,843)	(179,813)	(514,145)	(542,525)

(ab) Financial Instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For related information, please refer to note 6(ab) of the consolidated financial statements for the year ended December 31, 2024.

(i) Credit risk

1) The concentration of credit risk

The Group’s "Customer Credit Evaluation Group" has established a credit policy. The Customer Credit Evaluation Group may, based on the two most recent years’ and the most recent period’s certified financial statements or other information necessary for the evaluation of individual customers, refer to the evaluation reports of external credit rating agencies, and take into account the Group's credit risk, capital position, the domestic and international economic environment, the economic climate, the customers’ industry status, the size and creditworthiness, and the collateral provided by the customers, to assign credit ratings and determine the credit limits of individual customers, and the limits are subject to periodic review. Customers who do not meet the Group's benchmark credit ratings may only trade with the Group on a prepayment basis.

Due to the Group’s large customer base, the sales of the Group were not significantly concentrated in a small number of customers and the sales of the area are dispersion. There were not significantly concentrated on the credit risk of accounts receivable. In order to reduce credit risk, the Group evaluated the financial status regularly, which did not usually require customers to provide a guarantee.

2) Credit risk of receivables

For credit risk exposure of notes and accounts receivables, please refer to note 6(d).

Other financial assets at amortized cost include other receivables, time deposits and guarantee deposits paid. All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected credit losses. As of September 30, 2025, December 31 and September 30, 2024, the allowance for impairment was $0 thousand, $129,200 thousand and $0 thousand, respectively.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

	Carrying amount	Contractual cash flows	Within 6 months	6-12 months	1-2 years	2-5 years	More than 5 years
September 30, 2025
Non-derivative financial liabilities
Accounts payable	$ 1,286,122	1,286,122	1,238,636	47,286	-	200	-
Other payables	1,486,973	1,486,973	1,486,973	-	-	-	-
Other current liabilities, other	7,978	7,978	7,978	-	-	-	-
Other non-current liabilities, other	102,900	102,900	57,528	18,774	1,165	2,726	22,707
Lease liabilities	409,353	453,876	30,680	26,320	45,798	80,261	270,817
Floating-rate loans (Note)	20,475,690	20,884,002	11,704,660	5,548,632	1,125,461	2,505,249	-
Fixed-rate loans (Note)	10,509,066	10,717,537	7,644,240	2,314,973	98,015	141,495	518,814
Short-term bills payable	1,038,208	1,041,200	1,041,200	-	-	-	-
Long-term bills payable	8,011,360	8,020,000	-	-	8,020,000	-	-
	$ 43,327,650	44,000,588	23,211,895	7,955,985	9,290,439	2,729,931	812,338
December 31, 2024
Non-derivative financial liabilities
Accounts payable	$ 2,094,628	2,094,628	2,044,740	49,888	-	-	-
Other payables	2,015,757	2,015,757	1,923,925	54,147	2,301	8,345	27,039
Other current liabilities, other	8,175	8,175	8,175	-	-	-	-
Other non-current liabilities, other	125,562	125,805	91,081	6,719	3,396	1,903	22,706
Lease liabilities	386,928	448,594	30,637	18,968	32,609	67,712	298,668
Floating-rate loans (Note)	23,666,300	24,357,697	3,921,338	13,543,189	6,095,474	797,696	-
Fixed-rate loans (Note)	7,768,191	8,044,711	4,433,044	1,336,099	1,557,738	163,642	554,188
Short-term bills payable	1,591,181	1,594,200	1,594,200	-	-	-	-
Long-term bills payable	7,510,677	7,520,000	-	-	7,520,000	-	-
Bonds payable	3,500,000	3,516,140	-	3,516,140	-	-	-
	$ 48,667,399	49,725,707	14,047,140	18,525,150	15,211,518	1,039,298	902,601
September 30, 2024
Non-derivative financial liabilities
Accounts payable	$ 2,118,665	2,118,665	2,021,715	95,113	1,626	211	-
Other payables	1,363,904	1,363,904	1,274,019	44,459	45,230	196	-
Other current liabilities, other	8,602	8,602	8,602	-	-	-	-
Other non-current liabilities, other	131,596	131,596	124,006	2,775	1,752	1,556	1,507
Lease liabilities	396,280	459,824	31,513	21,118	34,431	68,653	304,109
Floating-rate loans (Note)	27,172,113	28,515,825	3,454,033	2,487,870	21,666,470	907,452	-
Fixed-rate loans (Note)	8,819,793	9,130,264	5,648,436	947,397	1,592,415	376,037	565,979
Short-term bills payable	2,457,064	2,457,064	2,457,064	-	-	-	-
Long-term bills payable	6,513,357	6,513,357	-	-	6,513,357	-	-
Bonds payable	4,452,638	4,473,811	952,024	3,521,787	-	-	-
	$ 53,434,012	55,172,912	15,971,412	7,120,519	29,855,281	1,354,105	871,595

The Group does not expect that the cash flow of the due date analysis will occur significantly earlier, or the actual amount will be significantly different.

Note: The amount within 6 months includes recyclable long-term loans.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Currency risk

1) Currency risk exposure

The Group’s significant exposure to foreign currency risk was as follows:

	September 30, 2025			December 31, 2024			September 30, 2024
	Foreign Currency	Exchange rate	NTD	Foreign Currency	Exchange rate	NTD	Foreign Currency	Exchange rate	NTD
Financial assets
Monetary items
USD(Note)	$ 47,072	30.463	1,433,968	67,052	32.794	2,198,898	67,721	31.658	2,143,912
EUR	3,069	35.750	109,731	-	34.130	10	-	-	-
MMK	529,042	0.0145	7,671	222,449	0.0156	3,470	182,782	0.0151	2,760
CNY	29,016	4.272	123,957	64,990	4.479	291,090	96,625	4.523	437,037
Non-Monetary items
HKD	$ 193,342	3.9182	757,551	195,649	4.2275	827,107	208,350	4.0785	849,756
VND	65,238,333	0.0012	78,286	565,610,769	0.0013	735,294	562,875,385	0.0013	731,738
Financial liabilities
Monetary items
USD(Note)	$ 5,007	30.463	152,534	12,604	32.794	413,342	7,818	31.658	247,509
MMK	193,829	0.0145	2,811	-	-	-	-	-	-

Note: Including discontinued operations.

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the foreign currency exchange rate fluctuations on cash and cash equivalents, receivables, payables, and loans, which are denominated in foreign currency. A strengthening of 1% of the USD, EUR, MMK, and CNY against the NTD as on September 30, 2025, December 31 and September 30, 2024 would have increased the net profit after tax by $12,160 thousand and $18,690 thousand for the nine months ended September 30, 2025 and 2024, respectively. The analysis is performed on the same basis for both periods.

3) Foreign exchange gains (losses) on monetary items

Due to the Group’s diversity of functional currency, the information on foreign exchange gains or losses on monetary items is disclosed by total amount. For the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024, foreign exchange gains (losses) (including realized and unrealized portions) amounted to gains of $64,877 thousand and losses of $41,579 thousand, losses of $251,826 thousand and gains of $166,162 thousand, respectively.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group’s financial assets and liabilities.

The following sensitivity analysis is based on the risk exposure to interest rates on the derivative and non-derivative financial instruments on the reporting date. For financial instruments bearing floating-rate, the sensitivity analysis assumes the floating-rate liabilities are outstanding for the whole year on the reporting date. The Group’s internal management reported the increases/decreases in the interest rates and the exposure to changes in interest rates of 1% is considered by management to be a reasonable change of interest rate.

If the interest rate increases by 1%, the Group’s net profit before tax will decrease by $204,757 thousand and $271,721 thousand for the nine months ended September 30, 2025 and 2024, respectively, assuming all other variable factors remain constant. This is mainly due to the Group’s borrowing at variable rates.

(v) Other market price risk

If the equity price changes, and if it is based on the same basis for both years and assumes that all other variables remain the same, the impact to comprehensive income will be as follows:

	For the nine months ended September 30,
	2025		2024
Prices of securities at the reporting date	Other comprehensive income	Profit after tax	Other comprehensive income	Profit after tax
Increasing 1%	$ 9,355	2,400	14,117	3,740
Decreasing 1%	$ (9,355)	(2,400)	(14,117)	(3,740)

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(vi) Fair value information

1) Fair value hierarchy

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:

	September 30, 2025
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Stocks listed on domestic markets	$ 279,676	279,676	-	-	279,676
Stocks unlisted on domestic markets	20,324	-	-	20,324	20,324
Subtotal	300,000	279,676	-	20,324	300,000
Financial assets at fair value through other comprehensive income
Stocks listed on domestic markets	542,565	542,565	-	-	542,565
Stocks unlisted on domestic markets	392,949	-	-	392,949	392,949
Subtotal	935,514	542,565	-	392,949	935,514
Financial assets measured at amortized cost
Cash and cash equivalents	$ 2,265,086	-	-	-	-
Notes and accounts receivables	2,005,386	-	-	-	-
Other receivables	134,197	-	-	-	-
Other financial assets	1,343,445	-	-	-	-
Subtotal	5,748,114	-	-	-	-
Total	$ 6,983,628	822,241	-	413,273	1,235,514
Non-financial assets
Investment property	$ 37,929,562	-	-	37,929,562	37,929,562
Non-current assets held for sale	1,065,078	-	-	1,065,078	1,065,078
Subtotal	$ 38,994,640	-	-	38,994,640	38,994,640
Financial liabilities measured at amortized cost
Short-term loans	$ 14,213,080	-	-	-	-
Short-term bills payable	1,038,208	-	-	-	-
Accounts and other payable	2,773,095	-	-	-	-
Long-term liabilities, current portion	7,996,045	-	-	-	-
Long-term loans	8,775,632	-	-	-	-
Long-term bills payable	8,011,360	-	-	-	-
Other financial liabilities	110,878	-	-	-	-
Lease liabilities	409,353	-	-	-	-
Total	$ 43,327,651	-	-	-	-

(Continued)

^{ 57

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Stocks listed on domestic markets	$ 349,332	349,332	-	-	349,332
Stocks unlisted on domestic markets	20,324	-	-	20,324	20,324
Subtotal	369,656	349,332	-	20,324	369,656
Financial assets at fair value through other comprehensive income
Stocks listed on domestic markets	785,757	785,757	-	-	785,757
Stocks unlisted on domestic markets	678,024	-	-	678,024	678,024
Subtotal	1,463,781	785,757	-	678,024	1,463,781
Financial assets measured at amortized cost
Cash and cash equivalents	6,165,897	-	-	-	-
Notes and accounts receivables	2,648,451	-	-	-	-
Other receivables	148,772	-	-	-	-
Other financial assets	2,019,424	-	-	-	-
Subtotal	10,982,544	-	-	-	-
Total	$ 12,815,981	1,135,089	-	698,348	1,833,437
Non-financial assets
Investment property	$ 38,086,248	-	-	38,086,248	38,086,248
Non-current assets held for sale	4,386,472	-	-	4,386,472	4,386,472
Total	$ 42,472,720	-	-	42,472,720	42,472,720
Financial liabilities measured at amortized cost
Short-term loans	14,580,224	-	-	-	-
Short-term bills payable	1,591,181	-	-	-	-
Accounts and other payable	4,110,385	-	-	-	-
Long-term bank loans, current portion	9,637,758	-	-	-	-
Long-term loans	10,716,509	-	-	-	-
Long-term bills payable	7,510,677	-	-	-	-
Other financial liabilities	133,737	-	-	-	-
Lease liabilities	386,928	-	-	-	-
Total	$ 48,667,399	-	-	-	-

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	September 30, 2024
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Stocks listed on domestic markets	$ 361,125	361,125	-	-	361,125
Stocks unlisted on domestic markets	33,987	-	-	33,987	33,987
Beneficiary certificates	72,343	72,343	-	-	72,343
Subtotal	467,455	433,468	-	33,987	467,455
Financial assets at fair value through other comprehensive income
Stocks listed on domestic markets	755,751	755,751	-	-	755,751
Stocks unlisted on domestic markets	655,902	-	-	655,902	655,902
Subtotal	1,411,653	755,751	-	655,902	1,411,653
Financial assets measured at amortized cost
Cash and cash equivalents	6,449,089	-	-	-	-
Notes and accounts receivables	3,030,371	-	-	-	-
Other receivables	288,614	-	-	-	-
Other financial assets	4,589,545	-	-	-	-
Subtotal	14,357,619	-	-	-	-
Total	$ 16,236,727	1,189,219	-	689,889	1,879,108
Non-financial assets
Investment property	$ 35,590,569	-	-	35,590,569	35,590,569
Non-current assets held for sale	4,706,741	-	-	4,706,741	4,706,741
Subtotal	40,297,310	-	-	40,297,310	40,297,310
Financial liabilities measured at amortized cost
Short-term loans	18,711,061	-	-	-	-
Short-term bills payable	2,457,064	-	-	-	-
Accounts and other payable	3,482,569	-	-	-	-
Long-term liabilities, current portion	7,090,588	-	-	-	-
Long-term loans	14,642,895	-	-	-	-
Long-term bills payable	6,513,357	-	-	-	-
Other financial liabilities	140,198	-	-	-	-
Lease liabilities	396,280	-	-	-	-
Total	$ 53,434,012	-	-	-	-

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

The Group’s valuation techniques and assumptions used for financial instruments not measured at fair value are the discounted cash flows method.

3) Valuation techniques for financial instruments measured at fair value

The Group determines the input value with reference to the analysis of the financial status and operating results, recent transaction price, related equity instruments are quoted in non-active markets, similar tools offer in the active market and comparable company evaluation multiplier of the investee company and periodically updates the input value and information and any other necessary fair value adjustments to ensure that the evaluation results are reasonable.

a) Non-derivative financial instruments

Financial instruments, if there is a public market offer, then the public market offers for the fair value, such as listing (cabinet) company stock.

The fair value of the financial instruments held by the Group in the case of a non-active market is as follows:

No public offer debt investment tools: The discounted cash flow model is used to estimate fair value; it is mainly assumed that it is measured by discounting the expected future cash flows of the investee by the rate of return of the monetary time value and the investment risk.

No public offer equity instruments: Use the net asset value method, the main assumptions are based on the net per share of the investee.

b) Derivative financial instruments

Derivative financial instruments are evaluated according to the evaluation model accepted by the market users, such as the discount method and the option pricing model.

4) There have been no transfers from each level for the nine months ended September 30, 2025 and 2024.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

5) Statements of changes in fair value measurements of financial assets in Level 3

	Non-current assets held for sale	Investment property	Financial assets reported at fair value through profit or loss	Financial assets reported at fair value through other comprehensive income
			Designated at initial recognition	Non-public quoted equity instruments
January 1, 2025	$ 4,386,472	38,086,248	20,324	678,024
Disposal	(3,567,998)	(147,285)	-	(313,500)
Reclassification to non-current assets held for sale	246,604	-	-	-
Exchange differences	-	(9,401)	-	-
Total gain and losses recognized in other comprehensive income	-	-	-	28,425
September 30, 2025	$ 1,065,078	37,929,562	20,324	392,949
	Non-current assets held for sale	Investment property	Financial assets reported at fair value through profit or loss	Financial assets reported at fair value through other comprehensive income
			Designated at initial recognition	Non-public quoted equity instruments
January 1, 2024	$ 1,529,280	41,800,545	33,987	655,902
Disposal	(3,554,770)	-	-	-
Reclassification to non-current assets held for sale	6,562,256	(6,562,256)	-	-
Total gain and losses recognized in profit or loss	169,975	352,280	-	-
September 30, 2024	$ 4,706,741	35,590,569	33,987	655,902

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

6) Quantitative information on the measurement of fair value of significant unobservable input values (level 3)

Level 3 refers to the measurement of the fair value of the input parameters are not based on market availability of information, must be based on the assumption that the appropriate estimates and adjustments. If the evaluation model cannot be developed on its own, the fair value of the counterparty is used as the fair value. According to IFRS13, for the fair value of the third level classified at the fair value level, the firm shall provide quantitative information about the significant unobservable input values used for the fair value measure. Businesses do not need to create quantitative information to comply with this disclosure, if quantified unobservable input value is not built when enterprises are measuring fair value (for instance, when a firm uses an unadjusted previous transaction price or a third-party pricing information), e.g. part of the Group’s investment in non-active market equity and debt instruments. The fair value of the Group’s investment properties belongs to the third level, which is determined in accordance with IFRSs, i.e., outsourcing to external appraisers for assessment based on market evidence (please refer to note 6(k)). Due to the impracticability to evaluate the relationship between the unobservable input value and fair value, the quantitative information is not disclosed. The fair value of the aforesaid assets at September 30, 2025, December 31 and September 30, 2024 was $38,994,640 thousand, $42,472,720 thousand and $40,297,310 thousand, respectively.

The Group holds investments in equity shares, which is classified as financial assets at fair value through profit or loss, whose fair value belongs to level 3.

Most of fair value assets belonging to level 3 possess no more than one significant unobservable input value. Only the equity instruments with inactive market may possess multiple unobservable input values which are all independent from and irrelevant to each other.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
Financial assets at fair value through other comprehensive income - equity investments without an active market	• Public company comparable method.
• Net Asset Value Method	• Net Asset Value	• Not applicable
		• P/E ratio 9.37–9.8 and 19.08–23.43 as multiply on December 31 and June 30, 2024, respectively.	• The higher the P/E ratio, the higher the fair value
		• Lack of market liquidity, discount rate 20% and 30% on December 31 and June 30, 2024, respectively.	• Lack of market liquidity, the more the discount, the lower the fair value
Financial assets at fair value through other comprehensive income	Net asset value method	• Net asset value	• Not applicable
		• Lack of market liquidity, discount rate 30% on September 30, 2025, December 31 and September 30, 2024.	• Lack of market liquidity, the more the discount, the lower the fair value
Financial assets at fair value through profit or loss	Net asset value method	• Net asset value	• Not applicable

7) The evaluation process for fair value belonging to level 3

The Group’s fair value evaluation involves observable input value requiring unobservable parameters for significant adjustments or unobservable input value, both of which belong to level 3. The main source of such input value is external appraisers’ reports. The results of the evaluation are then reviewed to ensure the consistency with the source of the evaluation and the reasonability.

The evaluation of investment properties complies with FSC’s regulations of the evaluation methods and parameters and is conducted by external appraisers.

8) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The fair value of the financial instruments is reasonable, and the self-built evaluation model is not used for the fair value of the level 3. Therefore, it is not necessary to perform the sensitivity analysis of the possible alternative assumptions.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ac) Financial risk management

There were no significant changes in the Group’s financial risk management and policies as disclosed in note 6(ac) of the consolidated financial statements for the year ended December 31, 2024.

(ad) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2024. Also, management believes that there were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2024. Please refer to note 6(ad) of the consolidated financial statements for the year ended December 31, 2024 for further details.

(ae) Investing and financing activities not affecting current cash flow

The Company’s non-cash financing activities for the three months ended September 30, 2025 and 2024 involved acquiring right-of-use assets through leasing. For details, please refer to Note 6 (j).

Reconciliation of liabilities arising from financing activities was as follows:

	Non-cash changes
	January 1, 2025	Cash flows	Foreign exchange movement	Other	September 30, 2025
Short-term loans	$ 14,580,224	(1,264,978)	97,834	800,000	14,213,080
Long-term loans	16,854,267	(2,728,927)	(53,663)	2,700,000	16,771,677
Short-term bills payable	1,591,181	(553,000)	-	27	1,038,208
Long-term bills payable	7,510,677	500,000	-	683	8,011,360
Bonds payable	3,500,000	-	-	(3,500,000)	-
Lease liabilities	386,928	(49,016)	-	71,441	409,353
Total liabilities from financing activities	$ 44,423,277	(4,095,921)	44,171	72,151	40,443,678
	Non-cash changes
	January 1, 2024	Cash flows	Foreign exchange movement	Other	September 30, 2024
Short-term loans	$ 16,319,097	2,271,721	120,243	-	18,711,061
Long-term loans	20,371,348	(3,149,334)	58,831	-	17,280,845
Short-term bills payable	2,255,846	198,620	-	2,598	2,457,064
Long-term bills payable	7,712,256	(1,200,000)	-	1,101	6,513,357
Bonds payable	4,557,353	(112,500)	-	7,785	4,452,638
Lease liabilities	262,133	(44,148)	-	178,295	396,280
Total liabilities from financing activities	$ 51,478,033	(2,035,641)	179,074	189,779	49,811,245

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(7) Related-party transactions:

(a) Parent company and ultimate controlling company

The Company is the ultimate parent company.

(b) Names and relationships with related parties

The followings are entities that have had transactions with related-party during the periods covered in the consolidated financial statements.

Name of related-party	Relationship with the Group
Kaohsiung Monomer Company Limited (KMC)	Investee as accounted for using equity method
Chung Kung Safeguarding & Security Corp. (CKS&S)	”
BES Engineering Corporation	”
Chung Kung Management and Maintenance of Apartments Co., Ltd.	Investee as accounted for using equity method of CKS&S
Chain Yarn Co., Ltd. (Chain Yarn) (Note)	The Company is the director of the entity
Linde Taiwan Technologies Limited	”
Chung Kung Management Consultant Co., Ltd.	Subsidiary of CKS&S
Coreasia Human Resources Management Co., Ltd.	Subsidiary of BES Engineering
Sheen Chuen-Chi Cultural & Educational Foundation	The director is the corporate director representative of the Company
Core Pacific City Co., Ltd.	Substantive related party
Cheng Yao Enterprise Co., Ltd.	”
Cinemark Core Pacific, Ltd.	”
Core Pacific Marketing Corporation	”
Jing Du Construction Development CO., LTD.	Associates
All board of directors, general manager and deputy general manager	The main management of the Group

Note: In April 2025, the Group disposed of its entire shareholdings in the Company and relinquished its corporate directorship. As a result, it has ceased to be a related party.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Sales

The amounts of significant sales by the Group to related parties were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Associates	$ 179,978	205,584	563,275	607,374
Other related parties	-	280,122	253,507	812,827
	$ 179,978	485,706	816,782	1,420,201

The terms for related party sale transactions were the same as ordinary sales.

(ii) Purchases

The amounts of significant purchases by the Group from related parties were as follows:

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Other related parties	$ -	2,349	2,348	6,485

The terms for related party purchase transactions were the same as those of other unrelated vendors.

(iii) Receivables from related parties

The receivables from related parties were as follows:

Accounts	Types of related parties	September 30, 2025	December 31, 2024	September 30, 2024
Accounts receivable	Associates	$ 68,537	78,787	66,516
Accounts receivable	Other related parties	-	194,151	187,332
Other receivables	Associates	20,189	15,269	18,071
Other receivables	Other related parties	17,469	697	888
		$ 106,195	288,904	272,807

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Payables to related parties

The payables to related parties were as follows:

Accounts	Types of related parties	September 30, 2025	December 31, 2024	September 30, 2024
Accounts payable	Other related parties	$ -	986	1,009
Other payables	Associates	9,138	426,424	426,187
Other payables	Other related parties	159	6	24
		$ 9,297	427,416	427,220

(v) Other

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Associates
Rent income	$ 3,445	3,437	10,341	10,265
Other income	3,157	6,767	19,871	18,900
Other expenses	(26)	(13)	(77)	(39)
Security service fees	(6,168)	(7,769)	(20,828)	(19,901)
Other related parties
Rent income	5,199	5,628	15,891	16,885
Other income	489	905	1,830	2,490
Other expenses	2	(241)	(849)	(786)

Please refer to note 6(t) for lease of land and buildings to related parties.

(vi) Lease

1) Lease liability

	September 30, 2025	December 31, 2024	September 30, 2024
Associates	$ 56,855	15,464	22,146

2) Depreciation expense

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Associates	$ 6,451	6,699	19,683	20,095

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Interest expense

Associates	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
	$ 468	46	849	57

The rent is based on market conditions and paid monthly.

(vii) The Group had contracts with BES Engineering, for mechanical engineering services projects and paid commission on the basis of actual construction. The relevant amounts are as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Total amount	$ -	1,377,800	1,377,800
Unpaid fee	$ -	419,127	419,127
Guaranteed bill received	$ 1,847	139,627	137,780

(viii) Based on a resolution of the Board of Director’s meeting held on December 28, 2022, the Group signed a sales agency contract with Core Pacific Marketing Corporation, which entrusted Core Pacific Marketing Corporation to sell the properties of Core Pacific Plaza. The term of the contract is five years.

(ix) The Group acquired land from Core Pacific City Co., Ltd., which the contract and the amendment of property transaction were signed on October 30, 2019. The accumulated payment made by the Group based on the aforementioned amendment as of September 30, 2025 was $476,190 thousand, please refer to note 6(e).

(d) Key management personnel compensation

	For the three months ended September 30,		For the nine months ended September 30,
	2025	2024	2025	2024
Short-term employee benefit	$ 30,195	18,688	64,627	59,273
Post-employment benefits	603	653	1,844	1,855
	$ 30,798	19,341	66,471	61,128

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(8) Pledged assets:

The carrying amounts of pledged assets were as follows:

Assets pledged as security	Purpose of pledge	September 30, 2025	December 31, 2024	September 30, 2024
Restricted assets (listed as other current assets)	Guarantee for priority right-of-use of harbor, guarantee for purchases	$ 887,144	871,327	947,751
Restricted assets (listed as current and non-current assets)	Short-term syndicated loan (Shin Kong), collateral for long-term and short-term financial credit	346,046	773,901	1,638,368
Notes receivable	Short term loans	30,998	-	62,202
Inventories, construction business	Short-term bills payable, short-term syndicated loan (Shin Kong)	48,373,285	47,754,730	47,086,793
Property, plant and equipment (Note)	Collateral for long-term and short-term financial credit, syndicated loan (Mega)	10,847,706	10,494,792	10,567,764
Investment property (Including Non-current assets as held for sale)	Collateral for short-term, medium-term and long-term financial credit, syndicated loan (Mega), bonds payable and long-term bills payable	32,380,597	36,142,217	35,107,253
Investments accounted for using equity method	Long-term bills payable	4,493,851	4,588,193	4,573,733
Non-current financial assets at fair value through other comprehensive income	Long-term bills payable	231,725	739,600	709,500
Current financial assets at fair value through profit or loss	Long-term bills payable	223,040	251,600	234,580
Other non-current assets	Deposit for lawsuit	94,040	98,613	97,419
Right-of-use assets, land and sea areas (Note)	Collateral for long-term financial credit	650,009	373,765	379,856
		$ 98,558,441	102,088,738	101,405,219

Note: including discontinued operations

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(9) Commitments and contingencies:

(a) Commitments

(i) Unused letters of credit:

	September 30, 2025	December 31, 2024	September 30, 2024
USD	$ 8,231	14,118	10,981
EUR	690	690	2,760
NTD	717,000	988,000	839,000

(ii) The unrecognized commitments of the Group are as follows:

1) Total price

	September 30, 2025	December 31, 2024	September 30, 2024
Construction and remediation	$ 41,926,730	50,565,681	54,185,431
Preclinical drug research	210,891	203,215	204,000
Preclinical drug research (Note)	2,328	2,790	3,866

Note: Expressed in thousands of US dollars.

2) Unpaid amount

	September 30, 2025	December 31, 2024	September 30, 2024
Construction and remediation	$ 26,031,545	31,772,600	34,545,666
Preclinical drug research	100,284	110,864	111,561
Preclinical drug research (Note)	413	489	526

Note: Expressed in thousands of US dollars.

(iii) The amount which the Group issued guarantee notes for bank loans, sales, purchases, as well as research and development projects, in aggregate, were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
NTD	$ 28,001,287	26,328,963	26,328,963
USD	40,000	40,000	40,000

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) For the purpose of several research and development projects, the Group signed various license agreements with National Health Research Institutes. The payment would be made after reaching the condition agreed in the contract with amount of net sales premium of future product sales. The relevant amounts were as follows:

1) Total license fee

	September 30, 2025	December 31, 2024	September 30, 2024
New type of tumor identification and drug delivery system	$ 270,000	270,000	270,000
Antineoplastic candidate drug	135,000	135,000	135,000
New type of anticancer drug delivery system and candidate drug	125,000	125,000	125,000

2) Paid amount

	September 30, 2025	December 31, 2024	September 30, 2024
New type of tumor identification and drug delivery system	$ 20,000	20,000	20,000
Antineoplastic candidate drug	10,000	10,000	10,000
New type of anticancer drug delivery system and candidate drug	4,000	4,000	4,000

(b) The Group signed an agreement to purchase raw materials such as benzene, hydrogen and methylbenzene from CPC. Under this contract, the Group may purchase specified monthly volume of these raw materials at current month prices announced by the CPC with prepayment or domestic letter of credit.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) The case of loss compensation for the Kaohsiung gas explosion

CPC was issued the permits of road excavation of No.950129 on December 15, 1990 and No. 050076 on April 13, 1991 by the Maintenance Office, Public Works Bureau of KCG, who agreed CPC to excavate for the laying of pipelines. The Public Works Bureau of KCG abolished the foregoing permits after the gas explosion event occurred at the nighttime in Kaohsiung City on July 31, 2014. With regard to the circumstance that administrative agencies shall compensate for the loss in accordance with the laws due to the legitimate abolishment, the Company filed a petition for relief to KHAC in February 2018 in order to protect the legitimate rights and interests of the Company. In December 2019, KHAC made the judgement that the Company lost the case, and the Company filed an appeal in January 2020. Upon finding the appeal meritorious, the Supreme Administrative Court reversed the original judgement and remanded to KHAC for a new trial. KHAC made the judgement that the Company lost the case in January 2024, and the Company filed an appeal within the peremptory period in disagreement with such judgement to the Supreme Administrative Court, the Supreme Administrative Court upheld the Company’s appeal and reversed original judgement of KHAC. In January 2024, the KHAC ruled against the Company. The Company, dissatisfied with the ruling, filed an appeal within the prescribed period. The case is currently pending before the Supreme Administrative Court.

(ii) Matters related to the performance of the joint credit agreement for the land of Core Pacific Plaza

On October 30, 2019, Core Pacific Dev. Corp., a wholly owned subsidiary of the Company, signed a purchase contract with Core Pacific City Company Limited for the land of Core Pacific Plaza. To pay the purchase price of the aforementioned land, Core Pacific Dev. Corp., as the borrower, and the Company, as the joint guarantor, signed a joint credit agreement with a consortium of banks including Shin Kong Bank on October 21, 2021. Core Pacific Dev. Corp. also set the first priority maximum mortgage on the aforementioned land and existing buildings to Shin Kong Bank. Due to suspected illegal disputes related to the increased floor area reward obtained by Core Pacific City Company Limited from the Taipei City Government for the land of Core Pacific Plaza, the Taipei District Prosecutors Office (hereinafter referred to as Taipei Prosecutors Office) obtained a ruling from the Taiwan Taipei District Court (hereinafter referred to as Taipei District Court) to allow the seizure of the land of Core Pacific Plaza. On October 1, 2024, the Taipei Prosecutors Office entrusted the land administration authority to register the land as prohibited from disposal. The following is an explanation of the land seizure, suspected illegal activities involving Core Pacific Dev. Corp.’s former executives, and the performance of the bank joint credit agreement:

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) The Taipei District Court has ruled to allow the seizure of the subject land, wherein Core Pacific Dev. Corp. disagreed with the ruling and filed an interlocutory appeal to the Taiwan High Court, by which the effect of the seizure is yet to be determined as follows:

In September 2024, Taipei Prosecutors Office applied to the Taipei District Court for the seizure of the land of Core Pacific Plaza, citing that the increased floor area reward benefits were considered "criminal proceeds." On September 30, 2024, the Taipei District Court approved the seizure with the criminal ruling No. 98 of 2024 (hereinafter referred to as "the original ruling"). Subsequently, on October 1, 2024, the Taipei Prosecutors Office entrusted the land administration authority to register the land of Core Pacific Plaza as prohibited from disposal with document No. 1139100592. Due to doubts about the reasons for the original ruling, Core Pacific Dev. Corp. filed an appeal, and after further rulings by the Taipei District Court, the Taiwan High Court remanded the case for the third time. The High Court stated that Core Pacific Dev. Corp. did not obtain the subject land from Core Pacific City Company Limited through illegal means, and although the subject land received a 20% floor area reward due to the illegal actions of the suspects in the criminal case, the illegal benefit should refer to the 20% floor area reward, not the subject land itself. The original court did not explain how the subject land was considered criminal proceeds and subject to seizure, nor did it address whether seizing the entire subject land violated the principle of proportionality. The High Court also noted that whether Core Pacific Dev. Corp. has completed the floor area reward requirements for the Core Pacific Plaza redevelopment project and obtained the 20% floor area reward, and if not, whether the seizure is still permissible, affects the calculation of the illegal benefit amount and the justification for the seizure. The original court did not investigate and clarify these issues. Additionally, the first floor of the Core Pacific Plaza redevelopment project on the subject land is not yet completed, and B1 and B2 are also not fully constructed. The original court found that the project cannot currently apply for a usage license or the first ownership registration (preservation registration) due to incomplete construction. Therefore, whether the 20% floor area reward is merely an expected benefit at this stage remains to be determined. If Core Pacific Dev. Corp. changes the design, whether the floor area reward for the disputed building will still exist is also in question. These issues relate to whether the aforementioned benefit constitutes criminal proceeds under Article 38-1, Paragraph 1 of the Criminal Code and whether it can be seized under Article 133, Paragraph 2 of the Code of Criminal Procedure, which requires further investigation and clarification by the original court. The land administration authority will determine whether to cancel the aforementioned prohibition on disposal registration based on the final court ruling. This falls within the scope of the court's fact findings and legal application, and it is currently impossible to determine whether the land of Core Pacific Plaza will ultimately remain prohibited from disposal. Furthermore, whether the actions involved in this criminal case are illegal and whether the increased floor area reward obtained by Core Pacific Dev. Corp. is considered criminal proceeds must be confirmed through court trial and final judgment.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) The following are the personal illegal acts and remarks alleged by the Core Pacific Dev. Corp.’s executives during the criminal investigation procedures, which are still being decided by the court for the final and binding judgement:

Regarding the former CEO of Core Pacific Dev. Corp., Shen Qingjing, his term ended on September 30, 2024, upon which he stepped down from his position as CEO. As for the former Chairman Zhu Yahu, he resigned from his position on April 28, 2023 due to personal reasons. Although both individuals are currently under criminal detention related to the increased floor area reward for the land of Core Pacific Plaza, the criminal cases involving Shen Qingjing and others are still in the trial stage. Whether the alleged personal misconduct is indeed illegal must be confirmed through court trial and final judgment. Additionally, media reports that Zhu Yahu confessed to his actions during the criminal investigation and received a deferred prosecution pertaining to his personal conduct. It cannot be directly concluded that his personal actions have a significant relationship with Core Pacific Dev. Corp.’s purchase of the land with a 20% increased floor area reward from Core Pacific City Company Limited. This determination must await for the final court judgment.

3) Status of the $14,900,000 thousand syndicated loan agreement is as follows:

As previously explained, after the original ruling allowing the seizure of the land of Core Pacific Plaza was overturned by the Taiwan High Court, the Taipei District Court issued a new ruling still allowing the seizure of the land. However, this ruling was revoked and remanded to the Taipei District Court for further handling after Core Pacific Dev. Corp. filed an appeal. Therefore, whether the subsequent seizure or prohibition of disposal of the land of Core Pacific Plaza constitutes a breach of the joint credit agreement is still uncertain and should be determined after the final court ruling. Furthermore, since the Company, Core Pacific Dev. Corp., and Shin Kong Bank Consortium (hereinafter referred to as "the bank consortium"), have signed the joint credit agreement, obtaining a loan of $14.9 billion, Core Pacific Dev. Corp. has consistently made repayments on time without delay. Shin Kong Bank publicly explained this at the shareholders’ extraordinary meeting on October 9, 2024. However, after the Taipei Prosecutors Office entrusted the land administration authority to register the prohibition on disposal, the Company and Core Pacific Dev. Corp. held consultation meetings with the bank consortium to communicate. Subsequently, in November 2024, the bank consortium agreed to waive the potential breach of contract caused by the criminal ruling of the Taipei District Court seizing the land of Core Pacific Plaza. On November 27, 2024, the Company’s Board of Directors resolved to sign the second supplemental agreement to the syndicated loan facility with the bank consortium, adjusting the total credit limit from $14.9 billion to $13.38 billion. Core Pacific Dev. Corp. has gradually repaid part of the borrowings, with the remaining syndicated loan balance of $7.38 billion being amended under the fourth supplemental agreement signed on November 5, 2025, which stipulates the loan payment can be made in an installment basis before November 5, 2026, with the approval of the boards of both the Company and Core Pacific Dev. Corp.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

4) The following is explanation for the 20% floor area incentives of Core Pacific Plaza:

Regarding the case where the Criminal Division of the Taipei District Court ruled to allow the seizure of the land of Core Pacific Plaza, the main point of contention is the 20% floor area reward included in the current 840% floor area ratio of Core Pacific Plaza obtained through urban planning. Initially, this 20% floor area reward was applied for by Core Pacific City Company Limited to the Taipei City Government and was approved at the 783rd meeting of the Taipei City Urban Planning Committee on September 9, 2021. It was subsequently announced and approved by the Taipei City Government on November 1, 2021, under document No. 11030520111, as part of the detailed plan for the "Amendment to the Land Use Zoning Control Regulations for the Third Commercial Zone (Special) of Lot 156, Subsection 3, Xisong Section, Songshan District, Taipei City", wherein Core Pacific Dev. Corp. signed an agreement with the Taipei City Government on October 6, 2022, stating that upon completing the three urban contribution rewards for Resilient City, Smart City, and Livable City, and paying the full amount of the required deposit, Core Pacific Dev. Corp. would obtain a total of 20% floor area reward. In summary, the aforementioned 20% floor area reward was legally and remuneratively obtained based on relevant announcements and laws of the Taipei City Government and by fulfilling the obligations stipulated in the agreement. Additionally, on October 24, 2024, the Taipei City Government held a meeting with Core Pacific Dev. Corp. to discuss the public safety issues during the construction period of the new construction project No. 9999 of Core Pacific Plaza, in which Core Pacific Dev. Corp. agreed to cooperate with the meeting conclusions and temporarily suspend the construction of the 20% floor area reward obtained legally through the disputed urban planning case, without abandoning the 20% floor area reward. They will promptly handle the design change of the construction permit and, after the court confirms the legality of the 20% floor area reward for Core Pacific Plaza, revert to the original construction permit (i.e., No.9999). In line with the above meeting discussions, Core Pacific Development Corporation submitted a design change application for the original construction permit to the Taipei City Government in April 2025, specifically concerning the 20% floor area bonus. To clarify its position and ensure transparency for investors, the Company issued a material information announcement on April 27, 2025. The suspension of the 20% bonus construction was initiated by a letter sent to the Taipei City Government in January 2025. Subsequently, in coordination with the competent authority, Core Pacific Dev. Corp. voluntarily withdrew its applications for the 4% Resilient City, 8% Smart City, and 8% Livable City bonuses on April 9, 2025, and initiated the relevant design change procedures. Core Pacific Dev. Corp. will comply with the final court ruling regarding the legitimacy of the 20% floor area bonus.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

5) The Company and Core Pacific Dev. Corp.’s former and current management personnel are under investigation by the judicial authorities for suspected misconduct. The transaction amount of $37.2 billion, in which Core Pacific Dev. Corp. acquired the Core Pacific Plaza land from Core Pacific City Co., Ltd., allegedly constituted an irregular activity in violation against the Securities and Exchange Act, prompting the Investigation Bureau of the Ministry of Justice to conduct an investigation on both the Company and Core Pacific Dev. Corp., wherein the former and current senior managers were being interviewed in May 2025, and the related personnel were scheduled for re-interviews in November 2025. As the judicial investigation remains ongoing, no individuals have been formally indicted or convicted as of the reporting date.

(iii) Dispute Regarding the Sale of Land at Lot 3, Subsection 2, Xiande Section

1) The land located at Lot 3, Subsection 2, Xiande Section, Qianzhen District, Kaohsiung City (hereinafter referred to as the “Disputed Land”) was publicly tendered at a base price by Cushman & Wakefield Taiwan on behalf of the Company on August 22, 2024.

2) On the bid opening date, Yuan Cheng Corporation (hereinafter referred to as “Yuan Cheng”) was awarded the bid and signed a bid confirmation letter. However, Yuan Cheng subsequently refused, without justification, to execute the real estate sale and purchase agreement for the Disputed Land. Accordingly, on October 14, 2024, the Company issued a statutory notice to terminate Yuan Cheng’s bid award and forfeit the bid deposit in the amount of $66 million.

3) In January 2025, Yuan Cheng contested the forfeiture and filed a lawsuit to the Taipei District Court, seeking the return of the bid deposit. The case is currently under judicial review.

(d) Contingent liabilities

Dispute from the senior managers - the Case of Disclosure of Secrets

Due to the involvement of former senior managers in violations of the Trade Secrets Act, a criminal complaint was filed. In February 2024, the Taiwan Miaoli District Court sentenced the former general manager and former employees for attempted breach of trust, and one former employee of violating Article 13-1, Paragraph 1, Subparagraph 2 of the Trade Secrets Act. In the civil lawsuit, the former employee was ordered to compensate the Company the amount of $13.77 million, plus interest. The case is currently under second-instance review by the Intellectual Property and Commercial Court. Additionally, a separate lawsuit for damages due to trade secret infringement has been filed against the former senior managers in the Taiwan Taipei District Court. In January 2025, the court ruled that the former general manager and former employees shall be jointly and severally liable to compensate the Company in the amount of $13.34 million, plus interest, and that the former employee shall additionally compensate the Company the amount of $13.77 million, plus interest. For details on the deposit guarantee, please refer to Note 8.

(10) Losses Due to Major Disasters: None

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(11) Subsequent Events:

(a) The Boards of Directors of the Company and its significant subsidiary, Core Pacific Development Corp., resolved to approve the execution of a supplemental agreement between Core Pacific Dev. Corp. and the syndicated financial institutions under the syndicated loan facility on November 5, 2025. For details, please refer to Note 6(m).

(b) To meet the Company’s strategic transformation needs and enhance the overall resource allocation efficiency, the Board of Directors resolved on November 13, 2025, to cease the production of caprolactam Line 2 and nylon pellet at the plant located in Toufen. Other product lines, which are subject to market conditions, will be optimized and adjusted in alignment with the future plans for the Toufen factory.

(c) The Group entered into an agreement to transfer 100% equity interest in Changzhou Weicai Co., Ltd. on October 15, 2025.

To implement the repayment plan under the syndicated loan agreement, the Company resolved in July 2025, through a resolution of its Board, to proceed with a major asset disposal. For details, please refer to Note 6(n).

(12) Other:

(a) The nature of operating costs and expenses were as follows:

By Item	For the three months ended September 30, 2025						For the three months ended September 30, 2024
	Operating cost		Operating expense		Total		Operating cost		Operating expense		Total
	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations
Employee benefits
Salary	173,626	1,331	87,945	691	261,571	2,022	126,823	10,364	94,128	13,270	220,951	23,634
Labor and health insurance	18,187	123	8,974	867	27,161	990	20,448	769	10,674	20	31,122	789
Pension	8,417	71	4,146	-	12,563	71	9,371	373	4,961	-	14,332	373
Others	9,823	61	7,905	278	17,728	339	10,945	1,033	6,539	558	17,484	1,591
Depreciation	251,039	2,096	56,281	11,210	307,320	13,306	287,987	8,272	42,485	26,918	330,472	35,190
Depletion	119	-	1,451	471	1,570	471	199	-	2,120	530	2,319	530
By Item	For the nine months ended September 30, 2025						For the nine months ended September 30, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---
	Operating cost		Operating expense		Total		Operating cost		Operating expense		Total
	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations	Continuing operations	Discontinued operations
Employee benefits
Salary	554,692	8,565	285,134	5,747	839,826	14,312	521,575	31,340	300,252	42,430	821,827	73,770
Labor and health insurance	59,656	643	28,910	2,754	88,566	3,397	63,523	2,319	33,952	42	97,475	2,361
Pension	27,024	367	13,365	-	40,389	367	29,256	1,154	15,973	-	45,229	1,154
Others	31,748	327	24,623	601	56,371	928	33,091	3,206	22,404	2,250	55,495	5,456
Depreciation	779,580	6,315	175,168	47,075	954,748	53,390	868,652	24,912	126,884	78,468	995,536	103,380
Depletion	583	-	5,224	1,498	5,807	1,498	585	-	5,729	1,566	6,314	1,566

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) On March 22, 2019, Kaohsiung Urban Planning Commission (KUPC) announced that Dashe Industrial Park (DIP), where the Company’s plant is located, will be categorized from Special Zone to Zone B. In light of the above matter, all the companies involved in this case are making their best effort to negotiate and compromise with KUPC, requesting KUPC to change DIP’s status to Zone A instead of Zone B. On November 10, 2020, the Company had received the minutes of the meeting with regards to the changes on the urban planning case of DIP concerning its execution, which prompted KUPC to suggest to the Bureau of Industry, MOEA to invite the Kaohsiung City Government (KCG) and all relevant parties to clarify the appeals and suggestions made by the companies involved. Thereafter, KCG will explicitly indicate the details in the urban planning documentation to all concerned parties in order to preclude the disputes. Conclusion of the meeting of the Task Force on "The Impact of the Transformation of DIP into Industrial Zone B on the Petrochemical Industry" held by the Bureau of Industrial Parks, Ministry of Economic Affairs on March 27, 2024: First, the Industrial Development will continue to inquire about the needs of manufacturers in the Taishe Park and provide guidance on relevant application matters. Second, if manufacturers in Taishe Park have relevant needs, please submit a project plan based on the principles for review and approval by the KCG. Third, if there are relevant requirements for the license period, manufacturers are requested to specify the relevant content in the plan, and then the Industrial Development Administration Ministry of Economic Affairs and the Bureau of Industrial Parks, Ministry of Economic Affairs will assist in discussing and handling the case with the KCG. As of the date of this report, KCG has yet to proceed on the procedures of the downgrading of the zone mentioned above.

(c) To meet its future working capital requirements and enhance its overall resource utilization, the Company has formulated an asset disposal/activation plan and is actively raising funds to materialize the said plan, with the board's approval on the following:

(i) The Board of Directors approved the disposal of the Qiaotou plant on May 14, 2025.

(ii) The Board of Directors approved the disposal of the Toufen plant on July 8, 2025.

(iii) The Board of Directors approved the base price for the disposal of certain investment property located in Kaohsiung City on July 8, 2025.

The public bidding process for the above asset disposal plans has been completed, and price negotiations are currently underway.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

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

(i) Loans to other parties:

(In Thousands of New Taiwan Dollars)

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 ratio during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits	Maximum limit of fund financing
													Item	Value
1	Weiming	Weiming Construction	Other receivables	Yes	19,224	19,224	19,224	3.50 %	2	-	Operating	-		-	527,818	791,728
2	Weihua	Weicai	Other receivables	Yes	29,904	-	-	5.50 %	2	-	Operating	-		-	109,268	109,268
3	TSCIC	Weicai	Other receivables	Yes	42,648	-	-	5.00 %	2	-	Operating	-		-	165,185	165,185
4	LDL	Weicai	Other receivables	Yes	42,720	34,176	34,176	1.650 %	2	-	Operating	-		-	69,295	69,295
5	CPDC GT	Weicai	Other receivables	Yes	42,720	42,720	-	1.725 %	2	-	Operating	-		-	44,380	44,380

Note 1: Numbering nature of borrowing as follows:
Transaction for business between two parties – 1
Short-term financing – 2

Note 2: The financing limit for total and individual were 15% and 10% of net value of Jiangsu Weiming New Material Co., Ltd.

Note 3: The financing limit was 20% of net value of Weihua (Radong) Trade Co., Ltd.

Note 4: The financing limit was 20% of net value of Tsou Seen Chemical Industries Corporation.

Note 5: The financing limit was 1% of net value of Usichem Development Limited.

Note 6: The financing limit was 30% of net value of CPDC Green Technology Corp.

Note 7: The amounts of the transaction and the ending balance had been offset in the consolidated financial statements.

(ii) Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No.	Name of guarantee	Counter-party of guarantee and endorsements		Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for 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	Parent company endorsements/guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0	The Company	Core Pacific Dev. Corp.	2	45,575,179	12,815,000	9,000,000	8,530,000	1,431,725	11.85 %	75,958,633	Y	N
0	The Company	Weicai	2	45,575,179	783,255	473,040	302,160	322,795	0.62 %	75,958,633	Y	N
0	The Company	Weining	2	45,575,179	548,280	512,640	427,200	-	0.67 %	75,958,633	Y	N
0	The Company	Shiny Chemical Industrial Co., Ltd.	5	45,575,179	78,086	78,086	78,086	-	0.10 %	75,958,633	N	N
0	The Company	Lushan Warehouse Co., Ltd.	5	45,575,179	55,366	55,366	55,366	-	0.07 %	75,958,633	N	N
0	The Company	China General Terminal & Distribution Corporation	5	45,575,179	14,903	14,903	14,903	-	0.02 %	75,958,633	N	N
1	Core Pacific Dev. Corp.	The Company	3	20,542,808	4,920,000	4,920,000	1,900,000	-	6.48 %	41,085,616	N	Y
2	Weiming	Weigung	4	527,818	213,600	128,160	110,602	-	0.17 %	791,728	N	N
3	Weihua	Weiming	4	1,365,850	1,114,992	1,114,992	1,104,227	427,200	1.47 %	1,365,850	N	N
4	Weiming Construction	Weiming	4	143,318	127,733	127,733	127,733	127,733	0.17 %	143,318	N	N

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Note 1: The information of guarantees and endorsements for other parties of the Company and its subsidiaries are disclosed separately and numbering as follows:

Parent company—0

Subsidiary starts from 1

Note 2: The relationship between the guarantee and the guarantor are as follows:

Transactions between the companies.
The Company directly or indirectly holds more than 50% voting right.
When other companies directly or indirectly hold more than 50% voting rights of the Company.
The Company directly or indirectly holds more than 90% voting right.
A company that is mutually protected under contractual requirements based on the needs of the contractor.
A company that is endorsed by all the contributing shareholders in accordance with their shareholding ratio due to joint investment relationship.
Under the Consumer Protection Act, performance guarantees for pre-sale contracts for companies in the same industry.

Note 3: The Company endorsed the operation method for the total amount of guarantees and the limit for endorsement of a single enterprise:

The total amount of guarantee for endorsement shall not exceed 100% of the Company’s net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.
The guarantee amount for a single enterprise endorsement shall not exceed 60% of the Company’s net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

Note 4: Core Pacific Dev. Corp. endorsed the operation method for the total amount of guarantees and the limit for endorsement of a single enterprise:

The total amount of guarantee for endorsement shall not exceed 100% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.
The guarantee amount for a single enterprise endorsement shall not exceed 50% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

Note 5: Jiangsu Weiming New Material Co., Ltd. (Weiming) endorsed the operation method for the total amount of guarantees and the limit for endorsement of a single enterprise:

The total amount of guarantee for endorsement shall not exceed 15% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.
The guarantee amount for a Companies with business dealings endorsement shall not exceed 10% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

Note 6: Weihua (Rudong) Trade Co., Ltd. (Weihua) endorsed the operation method for the total amount of guarantees and the limit for endorsement of a single enterprise:

The total amount of guarantee for endorsement shall not exceed 250% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.
The guarantee amount for a Companies with business dealings endorsement shall not exceed 250% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

Note 7: Weiming (Rudong) Construction Co., Ltd. (Weiming Construction) endorsed the operation method for the total amount of guarantees and the limit for endorsement of a single enterprise:

The total amount of guarantee for endorsement shall not exceed 110% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.
The guarantee amount for a Companies with business dealings endorsement shall not exceed 110% of its net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

(iii) Securities held as of September 30, 2025 (excluding investment in subsidiaries, associates and joint ventures):

(In Thousands of New Taiwan Dollars)

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance
				Shares/Units	Carrying value	Percentage of ownership (%)	Fair value
The Company	Yuanta Financial Holding Co., Ltd.	-	Current financial assets designated at fair value through profit or loss	6,400,000	223,040	0.05	223,040
"	Core Pacific City Co., Ltd.	Substantive related party	Non-current financial assets designated at fair value through profit or loss	3,832,966	20,324	38.22	20,324
"	Taiwan Business Bank, Ltd.	-	Current financial assets at fair value through other comprehensive income	1,226,340	19,315	0.01	19,315
"	KGI Financial Holding Co., Ltd.	-	Non-current financial assets at fair value through other comprehensive income	35,000,000	523,250	0.19	523,250
"	Handy Chemical Corporation Ltd.	The Company is a supervisor of the investee company	"	386,000	26,437	4.57	26,437
"	Overseas Investment & Development Corp.	"	"	2,600,000	26,000	2.89	26,000
"	Linde Taiwan Technologies Limited	The Company is a director of the investee company	"	6,368,177	310,682	33.00	310,682
"	ZOWIE Technology Corporation	-	"	8,815	358	0.03	358

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance
				Shares/Units	Carrying value	Percentage of ownership (%)	Fair value
The Company	Aetas Technology Inc.	-	Non-current financial assets at fair value through other comprehensive income	287,961	-	0.58	-
TSCIC	ioNetworks Inc.	-	Current financial assets designated at fair value through profit or loss	106,509	14,820	1.78	14,820
	Taiwan Tea Corporation	-	Non-current financial assets at fair value through other comprehensive income	4,031,000	56,636	0.51	56,636
TSCIC	Good Company	-	Current financial assets at fair value through other comprehensive income	750,000	-	2.08	-
	TaiRx, Inc.	-	Current financial assets at fair value through other comprehensive income	722,500	14,652	0.65	14,652

(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of $100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details				Transactions with terms different from others		Notes/Accounts receivable (payable)		Note
			Purchase/Sale	Amount	Percentage of total purchases/ (sales)	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company	KMC	The inventor company evaluated under the equity method of accounting	Sales	(563,275)	(4.89)%	Credit for 30 days	-	OA 30 days	68,537	3.54%
	Chain Yarn	Other related parties	Sales	(253,507)	(2.20)%	Credit for 60 days	-	OA 60 days	-	-%	Note 1
	TSCIC	Subsidiary	Sales	(456,394)	(3.96)%	OA 90 days	-	OA 90 days	70,145	3.62%	Note
	Weiming	Subsidiary	Sales	(102,408)	(0.89)%	Base on contract	-	Base on contract	71,669	3.70%	"
Weiming	Weihua	Same parent company	Sales	(159,983)	(3.58)%	Base on contract	-	Base on contract	-	-%	"
Weiming	Weiqiang	Same parent company	Sales	(597,482)	(13.36)%	Base on contract	-	Base on contract	-	-%	"
Weiqiang	Weiming	Same parent company	Sales	(600,981)	(57.97)%	Base on contract	-	Base on contract	130,211	100.00%	"
Weihua	Weiming	Same parent company	Sales	(163,234)	(69.31)%	Base on contract	-	Base on contract	127,532	91.65%	"

Note: The amounts of the transaction and the ending balance had been offset in the consolidated financial statements.
Note1: In April 2025, the Group disposed its entire shareholding and relinquished its corporate director seat. As a result, the entity has ceased to be a related party.

(v) Receivables from related parties with amounts exceeding the lower of $100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Weihua	Weiming	Same parent company	127,532	1.90	-	-	-	-
Weiqiang	Weiming	Same parent company	130,211	9.23	-	-	-	-

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(vi) Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollars)

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	The Company	TSCIC	1	Sales revenue	456,394	OA 90 days	2.88%
0	The Company	Weiming	1	Sales revenue	102,408	Base on contract	0.65%
1	Weiming	Weihua	3	Sales revenue	159,983	Base on contract	1.01%
1	Weiming	Weiqiang	3	Sales revenue	597,482	Base on contract	3.77%
2	Weihua	Weiming	3	Sales revenue	163,234	Base on contract	1.03%
3	Weiqiang	Weiming	3	Sales revenue	600,981	Base on contract	3.79%

Note 1: Company numbering as follows:
Parent company—0
Subsidiary starts from 1

Note 2: The numbering of the relationship between transaction parties as follows:
Parent company to subsidiary—1
Subsidiary to parent company—2
Subsidiary to subsidiary—3

Note 3: The amounts of the transaction and the ending balance had been offset in the consolidated financial statements.

(b) Information on investees:

The following is the information on investees for the nine months ended September 30, 2025 (excluding information on investees in Mainland China):

(In Thousands of New Taiwan Dollars)

Name of investor	Name of investor	Location	Main businesses and products	Original investment amount		Balance as of September 30, 2025			Net income (losses) of investor	Share of profit/losses of investor	Note
				Ending balance	Beginning balance	Shares	Percentage of ownership	Carrying value
The Company	KMC	Taiwan	Production and sales of Mohiy1 Methacrylate Monomer			20,000,000	40.00 %	579,108	49,287	19,715	Note 1
	CKS&S	Taiwan	Security and related services	14,400	14,400	1,440,000	24.00 %	22,900	8,840	2,122	Note 1
	Sun Pacific Development Co., Ltd.	Taiwan	Real estate construction and development and urban renewal, etc.	620,000	620,000	62,000,000	40.00 %	619,122	(1,094)	(438)	Note 1
	BES Engineering	Taiwan	Contracting of civil and construction projects, investment, construction and sales of real estate, and the development of industrial zones planned by the government	1,470,919	1,470,919	164,348,449	10.74 %	4,058,040	373,240	33,916	Note 1
	Cere Pacific Dev. Corp.	Taiwan	Entrusting construction companies to build state houses, commercial buildings, land development and other related operations and investment	42,075,000	38,460,000	4,207,500,000	100.00 %	40,995,909	(159,107)	(159,107)	Note 2&5&7
	CPDC (BVI)	British Virgin Islands	Holding company	904,946	904,946	26,580,000	100.00 %	762,820	(9,313)	(9,313)	Note 2&4&5
	TSCIC	Taiwan	Fertilizer storage, transportation, purchase and sales	10,000	160,000	21,000,000	100.00 %	627,824	(32,208)	(32,208)	Note 2&5&8
	CPDC GT	Taiwan	Mechanical engineering	50,000	100,000	10,000,000	100.00 %	82,773	(15,163)	(15,163)	Note 2&5&15
	UDL	Hong Kong	Holding company	11,095,327	10,921,147	366,240,612	100.00 %	5,942,367	(856,639)	(856,639)	Note 2&4&5&12
	Thanh Phong	Vietnam	Construction engineering, real estate management, construction-related technical consultants, leasing machinery and equipment, wholesale of building materials, etc.	27,664	52,952	-	100.00 %	3,667	(47)	(47)	Note 2&3&4&5&9
The Company	Frontier Fortune	Singapore	Holding company	474,320	2,761,596	19,375,945	100.00 %	365,274	30,202	30,202	Note 2&3&4&5&14

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of investor	Name of investor	Location	Main businesses and products	Original investment amount		Balance as of September 30, 2025			Net income (hones) of investor	Share of profit/hones of investor	Note
				Ending balance	Beginning balance	Shares	Percentage of ownership	Carrying value
CPDC (BVI)	Core Pacific Overseas Holdings Ltd.	British Virgin Islands	Holding company	806,564	806,564	26,580,000	45.19 %	757,551	(20,390)	-	Note 2&4&6
Core Pacific Dev. Corp.	Da Ying	Taiwan	Engineering, construction contracting business	30,000	60,000	-	100.00 %	23,076	(2,748)	-	Note 2&3&5&6&11
	Huading Enterprise Co., Ltd.	Taiwan	Real estate construction and development and urban renewal, etc.	49,010	49,010	4,901,000	10.00 %	48,545	(2,990)	-	Note 2&6
TSCIC	Taivex	Taiwan	Engaged in biotechnology, pharmaceutical research and development and marketing	696,720	696,720	46,224,551	65.34 %	116,488	(41,323)	-	Note 2&5&6
Frontier Fortune	Core Pacific Twin Star (Myanmar)	Myanmar	Holding company and consultancy	169,921	169,921	5,500,001	100.00 %	152,038	2,749	-	Note 2&4&5&6
	Core Pacific Twin Star (Vietnam)	Vietnam	Engineering, real estate and consultancy of construction	262,116	1,864,224	-	100.00 %	190,369	19,503	-	Note 2&3&4&5&6&10
Core Pacific TwinStar (Vietnam)	BES Engineering (Vietnam)	Vietnam	Engineering, real estate and consultancy of construction	106,446	741,866	-	40.00 %	78,286	12,513	-	Note 2&3&4&6&13
Core Pacific Twin Star (Myanmar)	Core Pacific Pioneer (Myanmar)	Myanmar	Building construction, real estate management, development and sale	24,804	24,804	800,000	80.00 %	13,377	369	-	Note 2&4&5&6

Note1: The Company adopts the equity method to evaluate the investment company.
Note2: The Company has direct or indirect control of the invested company. If the invested company has direct or indirect control, it shall expose the relevant information of the following 2 to 10 transactions of the investee company.
Note3: Limited company expressed by the amount of capital, no shares issued.
Note4: The original investment amount is the foreign currency, at the prevailing exchange rate.
Note5: This transaction has been written off when the consolidated statement has been prepared.
Note6: In accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, only profit or loss of the Company's directly associates and joint ventures accounted for using equity method should be revealed.
Note7: The Company increased capital by 1,000,000 thousand and 2,615,000 thousand on December 25, 2024 and July 8, 2025, respectively, to Core Pacific Dev. Corp.
Note8: TSCIC approved a resolution by the Board of Directors on April 17 and August 7, 2025 to reduce capital by 100,000 thousand and 50,000 thousand in cash.
Note9: Thanh Phong's reduction of capital by 25,288 thousand in cash has been approved by the shareholders on August 25, 2025.
Note10: Frontier Fortune approved a resolution by the Board of Directors on March 10, 2025 to reduce capital by $1,602,108 thousand to Core Pacific TwinStar (Vietnam).
Note11: Da Ying's reduction of capital by 30,000 thousand in cash has been approved by the shareholders on February 10, 2025.
Note12: The Company approved a resolution by the Board of Directors on December 25, 2024, to increase $174,180 thousand in cash into Weicai through UDL.
Note13: BES Engineering (Vietnam) approved a resolution by the Board of Directors to reduce its capital by $635,420 thousand in cash, on November 29, 2024.
Note14: Frontier Fortune approved a resolution by the Board of Directors to reduce its capital by $711,081, $479,120 and $1,097,075 thousand in cash, on December 4, 2024, April 17 and June 13, 2025, respectively.
Note15: CPDC GT approved a resolution by the Board of Directors to reduce its capital by $50,000 thousand in cash on August 5, 2025.

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

(In Thousands of New Taiwan Dollars)

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	Investment flows		Accumulated outflow of investment from Taiwan as of September 30, 2025	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) in current period (Note 2)	Carrying value at the end of period	Accumulated remittance of earnings in current period
					Outflow	Inflow
Weihua	Engaged in trading of petroleum chemical products, electronic chemicals variety of industrial gases, gas mixtures and other manufacturing sub-fitted trading	763,460	(2) - (3)	763,460	-	-	763,460	(6,698)	100.00%	(6,698)	514,449	-
Weiqian	Wholesale of chemical raw materials, plastic raw materials, rubber raw materials and their products (except dangerous goods), commission agency (except auction), import and export and related supporting business	211,560	(1) - (3)	211,560	-	-	211,560	(9,882)	100.00%	(9,882)	177,630	-
Weiming	Production and sales of xylene, cyclohexanone, electricity, steam and its by-products; construction of supporting facilities for petrochemical projects	8,770,377	(1) - (2)	8,770,377	-	-	8,770,377	(666,385)	100.00%	(666,385)	5,278,152	-
Weicai	Engaged in trading of petroleum chemical products, electronic chemicals variety of industrial gases, gas mixtures and other manufacturing sub-fitted trading	1,743,762	(2)	1,324,893	174,180	-	1,499,073	(187,753)	100.00%	(187,753)	130,191	-
Weiming Construction (Invested through Weiming)	Engaged in engineering consultant services - engineering construction - engineering management and trading of petroleum chemical product	129,665	(3)	-	-	-		(1,032)	100.00%	(1,032)	123,243	-

(ii) Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of September 30, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
12,138,411	14,536,521	Note 4

Note1: There are three ways to invest as follows:
(a) The Company direct investment to China.
(b) The Company through third regional company (UDL) investment to China.
(c) Others. (The Company through subsidiary investment to China.)

Note2: The investment income or loss is recognized based on the investees' self-prepared financial statements.

Note3: The amount in this table should be presented in New Taiwan Dollar.

Note4: The cumulative investment amount or investment proportion to China cannot over the Company's net value of 60%. The Company acquired certified documents of operating headquarters issued by the Industrial Development Bureau, MOEA, hence, it is not subject to the above regulations. The validity period is extend to October 7, 2027.

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in "Information on significant transactions" and "Business relationships and significant intercompany transactions".

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(14) Segment information:

(a) General Information

The Group identifies acrylonitrile & acetic acid department and caprolactam department as reportable segments based on factors such as product types, manufacturing procedure, customer types, and operating activities.

The reportable segments of the Group are independent business units which offer different products and services. Each business unit needs different technologies, resources and marketing strategies, thus should administer separately. The operating segment has a segment manager who is directly accountable to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment.

(b) Information for each segment’s revenue / expense, asset, liability, measurement basis, and adjustment

Non-operating income and loss, income tax expense (revenue) and non-recurring gain or loss are not allocated to reportable segments. In addition, not all of the profit or loss of the reportable segments include significant non-cash items other than depreciation and amortization. Total reportable segments’ profit or loss is reconciled with the continuing operations’ profit or loss before tax.

There was no material inconsistency between the accounting policies adopted for the operating segment and the accounting policies described in note 4. The Group use the operating profit as the measurement for segment of profit and the basis of performance assessment. Operating segments’ profit and loss and total assets exclude operating expenses and assets of the corporate management.

For the three months ended September 30, 2025	Acrylonitrile & Acetic Acid	Caprolactam	Other	Adjustment and eliminations	Continuing operations	Discontinued operations	Total
Revenue
Revenues from external customers	$ 1,769,574	2,062,926	613,688	-	4,446,188	2,613	4,448,801
Intersegment revenues			16,715	(16,715)		-
Total revenue	$ 1,769,574	2,062,926	630,403	(16,715)	4,446,188	2,613	4,448,801
Reportable segment profit or loss	$ (308,010)	(316,448)	(246,380)	-	(870,838)	(36,092)	(906,930)
For the three months ended September 30, 2024	Acrylonitrile & Acetic Acid	Caprolactam	Other	Adjustment and eliminations	Continuing operations	Discontinued operations	Total
Revenue
Revenues from external customers	$ 1,879,575	3,909,914	1,338,350	-	7,127,839	197,706	7,325,545
Intersegment revenues			32,494	(32,494)		-
Total revenue	$ 1,879,575	3,909,914	1,370,844	(32,494)	7,127,839	197,706	7,325,545
Reportable segment profit or loss	$ (267,249)	72,202	(299,268)	-	(494,315)	(79,468)	(573,783)
For the nine months ended September 30, 2025	Acrylonitrile & Acetic Acid	Caprolactam	Other	Adjustment and eliminations	Continuing operations	Discontinued operations	Total
Revenue
Revenues from external customers	$ 6,435,252	7,451,865	1,964,126	-	15,851,243	36,030	15,887,273
Intersegment revenues			75,050	(75,050)		-
Total revenue	$ 6,435,252	7,451,865	2,039,176	(75,050)	15,851,243	36,030	15,887,273
Reportable segment profit or loss	$ (609,579)	(813,058)	(1,192,644)	-	(2,615,201)	(227,202)	(2,842,483)

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the nine months ended September 30, 2024	Acrylonitrile & Acetic Acid	Caprolactam	Other	Adjustment and eliminations	Continuing operations	Discontinued operations	Total
Revenue
Revenues from external customers	$ 6,434,163	12,071,824	4,853,691	-	23,359,678	650,394	24,010,072
Intersegment revenues	-	-	103,687	(103,687)	-	-	-
Total revenue	$ 6,434,163	12,071,824	4,957,378	(103,687)	23,359,678	650,394	24,010,072
Reportable segment profit or loss	$ (472,775)	480,518	52,346	-	60,089	(211,050)	(150,961)

(c) Geographical Areas

Revenues and non-current assets from domestic and overseas customers for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024 were as follows:

Region	For the three months ended September 30, 2025
	Continuing operations	Discontinued operations	Total
Revenues:
Operating revenue from domestic sales	$ 1,985,232	-	1,985,232
Asia	2,225,201	2,613	2,227,814
Other (individual area under 10%)	235,755	-	235,755
Total	$ 4,446,188	2,613	4,448,801
	For the three months ended September 30, 2024
Region	Continuing operations	Discontinued operations	Total
Revenues:
Operating revenue from domestic sales	$ 3,459,459	16,355	3,475,814
Asia	3,280,174	181,351	3,461,525
Other (individual area under 10%)	388,206	-	388,206
Total	$ 7,127,839	197,706	7,325,545
	For the nine months ended September 30, 2025
Region	Continuing operations	Discontinued operations	Total
Revenues:
Operating revenue from domestic sales	$ 6,741,053	20,274	6,761,327
Asia	8,477,026	15,756	8,492,782
Other (individual area under 10%)	633,164	-	633,164
Total	$ 15,851,243	36,030	15,887,273

(Continued)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Region	For the nine months ended September 30, 2024
	Continuing operations	Discontinued operations	Total
Revenues:
Operating revenue from domestic sales	$ 10,006,457	56,542	10,062,999
Asia	11,914,657	593,852	12,508,509
Other (individual area under 10%)	1,438,564	-	1,438,564
Total	$ 23,359,678	650,394	24,010,072
	September 30, 2025
Region	Continuing operations	Discontinued operations	Total
Non-current assets:
Taiwan	$ 54,591,077	-	54,591,077
Asia	8,388,417	992,317	9,380,734
Other (individual area under 10%)	139,383	-	139,383
Total	$ 63,118,877	992,317	64,111,194
	September 30, 2024
Region	Continuing operations	Discontinued operations	Total
Non-current assets:
Taiwan	$ 54,005,110	-	54,005,110
Asia	8,704,938	1,486,612	10,191,550
Other (individual area under 10%)	135,169	-	135,169
Total	$ 62,845,217	1,486,612	64,331,829

Non-current assets include property, plant and equipment, right-of-use assets, investment properties, intangible assets and other assets, but exclude financial instruments, deferred income tax assets, and assets for post-employment benefits.

(d) Major Customers

Customers generating over 10% of total revenue for the three months ended September 30, 2025 and 2024 were as follows:

Customers	For the three months ended September 30,
	2025	2024
32906	$ 329,718	736,468
1020	319,364	765,798

Customers generating over 10% of total revenue for the nine months ended September 30, 2025 and 2024 were as follows:

Customers	For the nine months ended September 30,
	2025	2024
32906	$ 1,168,564	2,618,932

AI assistant

CPDC — Interim / Quarterly Report 2025

51772_rns_2025-12-05_972f4b4e-b50c-418c-a11c-a703219ecb9d.pdf

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Table of contents

Independent Auditors' Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Emphasis of Matter

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2025, December 31, 2024, and September 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

(1) Company history

(2) Approval date and procedures of the consolidated financial statements:

(3) New standards, amendments and interpretations adopted:

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of Preparation

(i) Basis of measurement

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Transfer of financial assets

(e) Inventories

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Discontinued operations

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(k) Investment property

CHINA PETROCHEMICAL DEVELOPMENT CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

CPDC Interim / Quarterly Report 2025