China Steel Corporation and Subsidiaries

Consolidated Financial Statements for the
Three Months Ended March 31, 2026 and 2025 and
Independent Auditors’ Review Report

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders

China Steel Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of China Steel Corporation (the "Corporation") and its subsidiaries as of March 31, 2026 and 2025, and the consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements"). 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

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of 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 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.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Corporation and its subsidiaries as of March 31, 2026 and 2025, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2026 and 2025 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.

The engagement partners on the reviews resulting in this independent auditors’ review report are Lee-Yuan Kuo and Jr-Shian Ke.

Deloitte & Touche
Taipei, Taiwan
Republic of China
May 8, 2026

Notice to Readers

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

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

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

	March 31, 2026		December 31, 2025		March 31, 2025
	Amount	%	Amount	%	Amount	%
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 19,561,453	3	$ 19,079,435	3	$ 17,917,153	3
Financial assets at fair value through profit or loss - current (Note 7)	4,382,044	1	4,504,660	1	4,558,134	1
Financial assets at fair value through other comprehensive income - current (Note 8)	11,565,630	2	9,765,902	1	8,285,749	1
Financial assets for hedging - current (Note 9)	1,207,683	-	1,230,149	-	2,668,415	-
Contract assets - current (Note 24)	6,489,191	1	6,900,605	1	8,604,564	1
Notes receivable (Note 10)	1,167,342	-	1,237,316	-	1,500,500	-
Accounts receivable, net (Note 10)	13,614,093	2	13,128,149	2	15,167,516	2
Accounts receivable - related parties (Notes 10 and 30)	165,181	-	152,375	-	49,516	-
Other receivables (Note 30)	2,760,674	-	3,326,064	-	1,881,487	-
Current tax assets	96,196	-	95,137	-	105,290	-
Inventories (Notes 11 and 31)	94,999,467	14	92,490,887	14	108,446,199	16
Non-current assets held for sale	216,246	-	216,246	-	-	-
Other financial assets - current (Notes 13 and 31)	21,455,401	3	21,367,277	3	19,130,404	3
Other current assets	4,475,148	1	4,280,675	1	4,960,351	1
Total current assets	182,155,729	27	177,774,877	26	193,275,278	28
NONCURRENT ASSETS
Financial assets at fair value through profit or loss - noncurrent (Note 7)	554,124	-	560,685	-	838,678	-
Financial assets at fair value through other comprehensive income - noncurrent (Note 8)	48,204,850	7	47,759,250	7	46,446,608	7
Financial assets at amortized cost - noncurrent	20,000	-	20,000	-	20,000	-
Financial assets for hedging - noncurrent (Note 9)	1,197,502	-	998,930	-	978,401	-
Investments accounted for using the equity method (Note 12)	13,335,213	2	12,813,331	2	14,568,445	2
Property, plant and equipment (Notes 14 and 31)	387,195,748	57	390,532,916	58	399,083,217	57
Right-of-use assets (Notes 15 and 31)	12,303,441	2	12,406,540	2	12,461,611	2
Investment properties (Notes 16 and 31)	9,777,869	2	9,787,924	2	10,306,519	2
Intangible assets	1,176,219	-	1,092,791	-	1,118,103	-
Deferred tax assets	14,241,877	2	14,545,801	2	12,080,136	2
Refundable deposits	565,860	-	631,876	-	692,083	-
Other financial assets - noncurrent (Notes 13 and 31)	2,657,015	1	2,566,437	1	2,929,362	-
Other noncurrent assets	2,407,168	-	2,355,615	-	2,432,666	-
Total noncurrent assets	493,636,886	73	496,072,096	74	503,955,829	72
TOTAL	$ 675,792,615	100	$ 673,846,973	100	$ 697,231,107	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings and bank overdraft (Notes 17 and 31)	$ 27,960,343	4	$ 30,933,146	5	$ 40,715,233	6
Short-term bills payable (Note 17)	51,655,630	8	25,120,388	4	26,047,261	4
Financial liabilities at fair value through profit or loss - current (Note 7)	7,361	-	3,595	-	2,958	-
Financial liabilities for hedging - current (Note 9)	405,073	-	93,931	-	1,082,917	-
Contract liabilities - current (Note 24)	6,637,757	1	7,259,724	1	5,541,625	1
Notes payable	543,718	-	512,524	-	650,576	-
Accounts payable (Note 19)	15,918,130	2	13,875,654	2	16,364,733	2
Accounts payable - related parties (Notes 19 and 30)	78,950	-	178,019	-	226,454	-
Other payables (Notes 20 and 30)	17,595,063	3	19,113,843	3	24,111,521	3
Current tax liabilities	1,406,630	-	1,115,018	-	1,627,384	-
Provisions - current (Note 21)	5,431,740	1	6,253,896	1	4,391,246	1
Lease liabilities - current (Note 15)	1,002,729	-	1,022,925	-	1,014,668	-
Current portion of bonds payable (Note 18)	18,918,460	3	16,217,949	2	11,536,841	2
Current portion of long-term bank borrowings (Notes 17 and 31)	4,336,214	1	4,708,193	1	4,377,765	1
Refund liabilities - current	1,273,118	-	1,056,397	-	1,149,544	-
Other current liabilities	1,481,916	-	1,483,261	-	1,645,457	-
Total current liabilities	154,652,832	23	128,948,463	19	140,486,183	20
NONCURRENT LIABILITIES
Financial liabilities for hedging - noncurrent (Note 9)	681,456	-	684,217	-	-	-
Contract liabilities - noncurrent (Note 24)	1,581,194	-	41,565	-	44,854	-
Bonds payable (Note 18)	62,603,546	9	55,011,160	8	57,633,420	8
Long-term bank borrowings (Notes 17 and 31)	93,161,390	14	85,270,954	13	78,715,408	11
Long-term bills payable (Note 17)	-	-	42,464,031	6	45,240,810	7
Provisions - noncurrent (Note 21)	1,639,690	-	1,670,498	-	1,635,917	-
Deferred tax liabilities	15,431,337	2	15,243,773	2	15,144,079	2
Lease liabilities - noncurrent (Note 15)	9,766,367	2	9,838,913	2	9,691,045	2
Net defined benefit liabilities	3,442,221	1	3,469,973	1	4,078,523	1
Other noncurrent liabilities	1,225,898	-	1,284,421	-	1,180,606	-
Total noncurrent liabilities	189,533,099	28	214,979,505	32	213,364,662	31
Total liabilities	344,185,931	51	343,927,968	51	353,850,845	51
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 23)
Share capital
Ordinary shares	157,348,610	23	157,348,610	23	157,348,610	23
Preference shares	382,680	-	382,680	-	382,680	-
Total share capital	157,731,290	23	157,731,290	23	157,731,290	23
Capital surplus	41,197,212	6	41,189,617	6	41,091,378	6
Retained earnings
Legal reserve	75,163,029	11	75,163,029	11	74,847,259	11
Special reserve	29,343,715	4	29,343,767	4	26,912,116	4
Unappropriated earnings	2,327,930	1	4,330,829	1	17,711,472	2
Total retained earnings	106,834,674	16	108,837,625	16	119,470,847	17
Other equity	736,287	-	(2,006,778)	-	(3,012,149)	(1)
Treasury shares	(13,118,233)	(2)	(13,118,233)	(2)	(12,923,473)	(2)
Total equity attributable to owners of the Corporation	293,381,230	43	292,633,521	43	302,357,893	43
NON-CONTROLING INTERESTS
Total equity	38,225,454	6	37,285,484	6	41,022,369	6
TOTAL	$ 675,792,615	100	$ 673,846,973	100	$ 697,231,107	100

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

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

	For the Three Months Ended March 31
	2026		2025
	Amount	%	Amount	%
OPERATING REVENUES (Notes 24, 30 and 35)	$ 79,161,889	100	$ 83,170,223	100
OPERATING COSTS (Notes 11, 25 and 30)	76,524,791	97	78,566,251	94
GROSS PROFIT	2,637,098	3	4,603,972	6
OPERATING EXPENSES
Selling and marketing expenses	1,030,670	1	954,455	1
General and administrative expenses	1,685,470	2	1,740,464	2
Research and development expenses	540,895	1	542,166	1
Expected credit loss recognized (reversed)	606	-	(4,892)	-
Total operating expenses	3,257,641	4	3,232,193	4
PROFIT (LOSS) FROM OPERATIONS	(620,543)	(1)	1,371,779	2
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 25)	218,217	-	258,288	-
Other income (Notes 25 and 30)	451,233	1	396,869	-
Other gains and losses (Note 25)	(54,041)	-	279,814	-
Finance costs (Note 25)	(1,227,672)	(1)	(1,246,002)	(1)
Share of the profit of associates	265,878	-	57,478	-
Total non-operating income and expenses	(346,385)	-	(253,553)	(1)
PROFIT (LOSS) BEFORE INCOME TAX	(966,928)	(1)	1,118,226	1
INCOME TAX EXPENSE (Notes 4 and 26)	893,225	1	304,404	-
NET PROFIT (LOSS) FOR THE PERIOD	(1,860,153)	(2)	813,822	1
OTHER COMPREHENSIVE INCOME (Notes 23 and 26)
Items that will not be reclassified subsequently to profit or loss
Unrealized gains and losses on investments in equity instruments designated as at fair value through other comprehensive income	1,836,696	3	(89,831)	-
Gains and losses on hedging instruments	11,039	-	111,317	-
				(Continued)

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

	For the Three Months Ended March 31
	2026		2025
	Amount	%	Amount	%
Share of the other comprehensive income of associates	$ 97,810	-	$ 112,404	-
Income tax benefit (expense) relating to items that will not be reclassified subsequently to profit or loss	25,150	-	(17,619)	-
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations	1,693,566	2	1,105,327	1
Unrealized gains and losses on investments in debt instruments designated as at fair value through other comprehensive income	(1,216)	-	1,942	-
Gains and losses on hedging instruments	267,189	-	(342,853)	-
Share of the other comprehensive loss of associates	(75,208)	-	(42,907)	-
Income tax expense relating to items that may be reclassified subsequently to profit or loss	(23,754)	-	(14,377)	-
Other comprehensive income for the period, net of income tax	3,831,272	5	823,403	1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$ 1,971,119	3	$ 1,637,225	2
NET PROFIT (LOSS) ATTRIBUTABLE TO:
Owners of the Corporation	$ (2,451,833)	(3)	$ 243,215	-
Non-controlling interests	591,680	1	570,607	1
	$ (1,860,153)	(2)	$ 813,822	1
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Corporation	$ 740,114	1	$ 1,049,331	1
Non-controlling interests	1,231,005	2	587,894	1
	$ 1,971,119	3	$ 1,637,225	2
EARNINGS (LOSS) PER SHARE (Note 27)
Basic	$ (0.16)		$ 0.02
Diluted	$ (0.16)		$ 0.02

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

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Corporation
	Share Capital		Capital Surplus	Retained Earnings		Exchange Differences on Translating Foreign Operations	Unrealized Gains and Losses on Financial Assets at Fair Value Through Other Comprehensive Income	Gains and Losses on Hedging Instruments	Total Other Equity	Treasury Shares	Total Equity Attributable to Owners of the Corporation	Non-controlling Interests	Total Equity
	Ordinary Shares	Preference Shares		Legal Reserve	Special Reserve
BALANCE AT JANUARY 1, 2025	$ 157,348,610	$ 382,680	$ 41,082,914	$ 74,847,259	$ 26,912,231	$ 17,127,981	$(4,813,798)	$(3,446,289)	$ 4,782,056	$(3,478,031)	$(12,923,473)	$ 301,300,171	$ 40,185,723	$ 341,485,894
Reversal of special reserve	-	-	-	-	(115)	115	-	-	-	-	-	-	-	-
Net profit for the three months ended March 31, 2025	-	-	-	-	-	243,215	-	-	-	-	-	243,215	570,607	813,822
Other comprehensive income (loss) for the three months ended March 31, 2025, net of income tax	-	-	-	-	-	70	835,981	58,462	(88,397)	806,046	-	806,116	17,287	823,403
Total comprehensive income (loss) for the three months ended March 31, 2025	-	-	-	-	-	243,285	835,981	58,462	(88,397)	806,046	-	1,049,331	587,894	1,637,225
Adjustment of non-controlling interests	-	-	-	-	-	-	-	-	-	-	-	-	248,752	248,752
Disposal of investments in equity instruments at fair value through other comprehensive income	-	-	-	-	-	340,164	-	(340,164)	-	(340,164)	-	-	-	-
Adjustment of other equity	-	-	8,464	-	-	(73)	-	-	-	-	-	8,391	-	8,391
BALANCE AT MARCH 31, 2025	$ 157,348,610	$ 382,680	$ 41,091,378	$ 74,847,259	$ 26,912,116	$ 17,711,472	$(3,977,817)	$(3,727,991)	$ 4,693,659	$(3,012,149)	$(12,923,473)	$ 302,357,893	$ 41,022,369	$ 343,380,262
BALANCE AT JANUARY 1, 2026	$ 157,348,610	$ 382,680	$ 41,189,617	$ 75,163,029	$ 29,343,767	$ 4,330,829	$(5,058,485)	$(1,605,281)	$ 4,656,988	$(2,006,778)	$(13,118,233)	$ 292,633,521	$ 37,285,484	$ 329,919,005
Reversal of special reserve	-	-	-	-	(52)	52	-	-	-	-	-	-	-	-
Net profit (loss) for the three months ended March 31, 2026	-	-	-	-	-	(2,451,833)	-	-	-	-	-	(2,451,833)	591,680	(1,860,153)
Other comprehensive income for the three months ended March 31, 2026, net of income tax	-	-	-	-	-	16	1,316,776	1,728,924	146,231	3,191,931	-	3,191,947	639,325	3,831,272
Total comprehensive income (loss) for the three months ended March 31, 2026	-	-	-	-	-	(2,451,817)	1,316,776	1,728,924	146,231	3,191,931	-	740,114	1,231,005	1,971,119
Adjustment of non-controlling interests	-	-	-	-	-	-	-	-	-	-	-	-	(291,035)	(291,035)
Disposal of investments in equity instruments at fair value through other comprehensive income	-	-	-	-	-	448,866	-	(448,866)	-	(448,866)	-	-	-	-
Adjustment of other equity	-	-	7,595	-	-	-	-	-	-	-	-	7,595	-	7,595
BALANCE AT MARCH 31, 2026	$ 157,348,610	$ 382,680	$ 41,197,212	$ 75,163,029	$ 29,343,715	$ 2,327,930	$(3,741,709)	$(325,223)	$ 4,803,219	$ 736,287	$(13,118,233)	$ 293,381,230	$ 38,225,454	$ 331,606,684

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

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before income tax	$ (966,928)	$ 1,118,226
Adjustments for:
Depreciation expense	8,099,147	8,370,398
Amortization expense	36,688	40,546
Expected credit loss recognized (reversed)	606	(4,892)
Net gain on financial assets and liabilities at fair value through profit or loss	(31,190)	(21,928)
Finance costs	1,227,672	1,246,002
Interest income	(218,217)	(258,288)
Dividends income	(260,110)	(170,684)
Share of the profit of associates	(249,245)	(39,196)
Gain on disposal of property, plant and equipment	(1,190)	(32,440)
Loss (gain) on disposal of investments	13,596	(15,593)
Reversal of write-down inventories	(324,090)	(936,404)
Recognition (reversal) of provisions	(303,519)	891,938
Others	(12,580)	(29,224)
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through profit or loss	250,967	(334,943)
Financial assets for hedging	68,836	1,128,643
Contract assets	417,204	592,672
Notes receivable	69,974	145,847
Accounts receivable	(484,671)	(1,042,294)
Accounts receivable - related parties	(12,806)	16,781
Other receivables	967,032	77,174
Inventories	(2,204,890)	139,562
Other current assets	(252,370)	179,208
Financial liabilities for hedging	334,743	(109,134)
Contract liabilities	917,662	420,470
Notes payable	31,194	41,347
Accounts payable	2,042,476	(1,824,958)
Accounts payable - related parties	(99,069)	(131,179)
Other payables	(2,256,463)	(2,399,885)
Provisions	(66,173)	(9,929)
Other current liabilities	(1,345)	135,150
Net defined benefit liabilities	(27,752)	(181,416)
Refund liabilities	216,721	(96,392)
Cash generated from operations	6,921,910	6,905,185
Income taxes paid	(334,353)	(68,399)
Net cash generated from operating activities	6,587,557	6,836,786

(Continued)

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2026	2025
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income	$ (2,662,178)	$ (1,465,820)
Proceeds from disposal of financial assets at fair value through other comprehensive income	2,228,196	2,073,255
Acquisition of financial assets at fair value through profit or loss	(628,663)	(985,892)
Proceeds from disposal of financial assets at fair value through profit or loss	566,230	1,089,145
Proceeds from disposal of investments accounted for using the equity method	2,087	6,311
Acquisition of property, plant and equipment	(3,898,526)	(9,592,041)
Proceeds from disposal of property, plant and equipment	1,512	36,691
Decrease (increase) in refundable deposits	123,913	(93,995)
Acquisition of intangible assets	(111,438)	(13,735)
Acquisition of investment properties	-	(264,391)
Increase in other financial assets	(178,702)	(742,695)
Decrease (increase) in other noncurrent assets	(22,797)	11,229
Interest received	240,441	253,722
Dividends received from associates	236,512	454,894
Dividends received from others	229,656	155,131
Net cash used in investing activities	(3,873,757)	(9,078,191)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	46,634,777	56,910,165
Repayments of short-term borrowings	(51,013,086)	(54,528,830)
Proceeds from short-term bills payable	42,749,536	23,178,197
Repayments of short-term bills payable	(32,714,294)	(22,739,169)
Proceeds from bonds payable	10,300,000	3,500,000
Repayments of bonds payable	-	(2,000,000)
Proceeds from long-term bank borrowings	36,036,812	33,149,375
Repayments of long-term bank borrowings	(28,636,278)	(32,379,318)
Proceeds from long-term bills payable	-	3,011,589
Repayments of long-term bills payable	(25,964,031)	(6,998,460)
Repayments of principal of lease liabilities	(279,953)	(289,125)
Increase (decrease) in other noncurrent liabilities	(58,523)	9,060
Dividends paid to owners of the Corporation	(1,631)	(1,733)
Partial disposal of interests in subsidiaries without loss of control	5,650	28,621
Interest paid	(1,270,021)	(1,287,630)
Increase (decrease) in non-controlling interests	(285,186)	269,885
Net cash used in financing activities	(4,496,228)	(167,373)

(Continued)

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2026	2025
EFFECT OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	$ 822,369	$ 441,401
NET DECREASE IN CASH AND CASH EQUIVALENTS	(960,059)	(1,967,377)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	16,818,790	15,065,137
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$ 15,858,731	$ 13,097,760
Reconciliation of the amounts in the consolidated statements of cash flows with the equivalent items reported in the consolidated balance sheets as of March 31, 2026 and 2025:
Cash and cash equivalents in the consolidated balance sheets	$ 19,561,433	$ 17,917,153
Bank overdraft	(3,702,702)	(4,819,393)
Cash and cash equivalents in the consolidated statements of cash flows	$ 15,858,731	$ 13,097,760

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

CHINA STEEL CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

China Steel Corporation (the "Corporation") was incorporated on December 3, 1971. It manufactures and sells steel products and engages in mechanical, communications, and electrical engineering.

The shares of the Corporation and its subsidiaries, including China Steel Structure Co., Ltd., China Steel Chemical Corporation, CHC Resources Corporation, China Ecotek Corporation and Chung Hung Steel Corporation, have been listed on the Taiwan Stock Exchange. The shares of the subsidiary Thintech Materials Technology Co., Ltd. have been traded on the Taipei Exchange. The subsidiary Dragon Steel Corporation has issued shares to the public.

As of March 31, 2026, the Ministry of Economic Affairs (MOEA), Republic of China owned 20% of the Corporation's issued shares.

The consolidated financial statements are presented in the Corporation's functional currency, the New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation's board of directors on May 8, 2026.

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

a. Initial application of new accounting policies

Liability classification of funds raised through the revolving commercial paper issuances

The subsidiaries have entered into multi-year revolving commercial paper issuance agreements with financial institutions. Under this agreements, commercial papers are reissued on a revolving basis upon maturity, with interest payments made each cycle but no principal repayment required at maturity. As the subsidiaries do not have the right at the end of the reporting period to defer settlement of these liabilities for at least twelve months after the reporting date, and as given that the substance of the transaction is the repayment of maturing commercial papers through the issuance of new ones, such liabilities shall be classified as current liabilities in accordance with the Q&A issued by the Accounting Research and Development Foundation (ARDF). In accordance with the Q&A issued by the Financial Supervisory Commission (FSC), the subsidiaries apply these requirements to commercial papers issued on a revolving basis on or after January 1, 2026. Refer to Note 17 for the details.

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

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

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

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

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

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

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

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

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

The Corporation and its subsidiaries shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
11 -

Interest and dividends received by the Corporation and its subsidiaries shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Corporation and its subsidiaries have a specific main operating activity, they shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how they classify dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

As of the date the consolidated financial statements were authorized for issue, the Corporation and its subsidiaries are continuously assessing the impacts of the above amended standards and interpretations on the Corporation and its subsidiaries' financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

For readers' convenience, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the ROC. If inconsistencies arise between the English version and the Chinese version or if differences arise in the interpretations between the two versions, the Chinese version of the consolidated financial statements shall prevail.

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" as endorsed and issued into effect by the FSC. The consolidated financial statements do not present full disclosures required for a complete set of IFRS Accounting Standards annual financial statements.

b. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e. its subsidiaries).

The consolidated entities were as follows:

Investor	Investor	Main Businesses	Percentage of Ownership (%)			Additional Descriptions
			March 31, 2026	December 31, 2025	March 31, 2025
China Steel Corporation	Dragon Steel Corporation (DSC)	Hot-rolled coils, H beams, billets, flat steels	100	100	100
	Gains Investment Corporation (GIC)	General investment	100	100	100
	China Steel Express Corporation (CSE)	Raw material shipping services and ship leasing	100	100	100
	C.S. Aluminium Corporation (CSAC)	Production and trading of aluminum products and other non-ferrous metal products	100	100	100
	China Prosperity Development Corporation (CPDC)	Development of real estate	100	100	100
	China Steel Asia Pacific Holdings Pte Ltd (CSAP)	Holding and investment	100	100	100
	Chung Hung Steel Corporation (CHS)	Manufacture and sale of steel products	41	41	41	Refer to 2) below
	China Steel Chemical Corporation (CSCC)	Manufacture of coal chemicals and specialty chemicals, and production and sale of anode materials and carbon materials	29	29	29	Refer to 1) below
	China Steel Global Trading Corporation (CSGT)	Sales agent and trading of steel products	100	100	100
	CHC Resources Corporation (CHC)	Manufacture and sale of GBFS powder and GBFS Cement, air-cooled BFS and BOFS, recycling of resources	20	20	20	Direct and indirect ownerships amounted to 36%, and refer to 1) below
InfoChamp Systems Corporation (Info Champ)	ERP system integration services	100	100	100

Investor	Investor	Main Businesses	Percentage of Ownership (%)			Additional Descriptions
			March 31, 2026	December 31, 2025	March 31, 2025
	China Steel Structure Co., Ltd. (CSSC)	Manufacture and sale of steel structures	33	33	33	Direct and indirect ownerships amounted to 38%, and refer to 1) below
	China Ecotek Corporation (CEC)	Environmental and electromechanical engineering, Operation & Maintenance (O&M)	45	45	45	Refer to 1) below
	China Steel Security Corporation (CSS)	On-site guarding and system security	100	100	100
	HJMAG Magnetic Corporation (HJMAG)	Manufacture and trading of magnetic materials, specialty chemicals and iron oxide	69	69	69	Direct and indirect ownerships amounted to 88%
	China Steel Machinery Corporation (CSMC)	Manufacture and sale of mechanical equipment, including post making equipment, rolling stock, transportation equipment, power plant equipment, etc.	74	74	74	Direct and indirect ownerships amounted to 100%
	China Steel Management Consulting Corporation (CMCC)	Corporate business management consulting	100	100	100
	Eminent Venture Capital Corporation (Eminent VC)	General Investment	-	-	-	Indirect ownerships amounted to 55%
	CSC Steel Australia Holdings Pty Ltd (CSC SAH)	General investment	100	100	100
	China Steel and Nippon Steel Vietnam Joint Stock Company (CSVC)	Manufacture and sale of steel products	56	56	56
	CSCI Steel Corporation India Pvt. Ltd. (CSCI)	Electrical sheets	100	100	100
	Kaohsiung Rapid Transit Corporation (KRTC)	Mass rapid transit system operations	44	44	44	Direct and indirect ownerships amounted to 52%
	China Steel Resources Corporation (CSRC)	Manufacture of other non-metallic mineral products	100	100	100
	CSC Solar Corporation (CSCSOLAR)	Solar power generation	55	55	55	Direct and indirect ownerships amounted to 100%
	Sing Da Marine Structure Corporation (SDMS)	Steel structure related business	100	100	47	After the investment was restructured in July 2025, the direct ownerships amounted to 100%
	China Steel Power Holding Corporation (CPHC)	General investment	51	51	51
Gains Investment Corporation	Eminence Investment Corporation (EIC)	General investment	100	100	100
	Betacera Inc. (BETACERA)	Manufacture and trading of electronic ceramics	48	48	48	Direct and indirect ownerships amounted to 52%
	Thintech Materials Technology Co., Ltd. (TTMC)	Manufacture and sale of sputtering targets	47	47	47	Direct and indirect ownerships amounted to 51%, and refer to 1) below
	Universal Exchange Inc. (UEC)	Wholesale, service of IT software and electronic information services supply	64	64	64	Direct and indirect ownerships amounted to 99%
	Mentor Consulting Corporation (MCC)	Management consulting business	100	100	100
	Winning Investment Corporation (WIC)	General investment	49	49	49	Direct and indirect ownerships amounted to 79%
	Pro-Accenteh Investment Corporation (PAIC)	General investment	5	5	5	Direct and indirect ownerships amounted to 61%
Eminence Investment Corporation	Shin Mau Investment Corporation (SMIC)	General investment	30	30	30	Direct and indirect ownerships amounted to 100%
	Ding Du Investment Corporation (DDIC)	General investment	30	30	30	Direct and indirect ownerships amounted to 100%
	Gua Ruxi Investment Corporation (GRIC)	General investment	25	25	25	Direct and indirect ownerships amounted to 100%
	Chian Yu Investment Corporation (CYIC)	General investment	25	25	25	Direct and indirect ownerships amounted to 100%

Investor	Investor	Main Businesses	Percentage of Ownership (%)			Additional Descriptions
			March 31, 2026	December 31, 2025	March 31, 2025
Shin Mau Investment Corporation	Hung-Chuan Investment Corporation (HCIC)	General investment	5	5	5	Direct and indirect ownerships amounted to 100%
	Chi-Yi Investment Corporation (CYIIC)	General investment	5	5	5	Direct and indirect ownerships amounted to 100%
Ding Da Investment Corporation	Jing-Cherng-Fa Investment Corporation (JCFIC)	General investment	4	4	4	Direct and indirect ownerships amounted to 100%
Gao Ruei Investment Corporation	Sheng Lih Dar Investment Corporation (SLDIC)	General investment	4	4	4	Direct and indirect ownerships amounted to 100%
	Li-Ching-Long Investment Corporation (LCLIC)	General investment	5	5	5	Direct and indirect ownerships amounted to 100%
Betacera Inc.	Lefkara Ltd. (Lefkara)	Holding and Investment	100	100	100
Lefkara Ltd.	Betacera (Su Zhou) Co., Ltd. (BSZ)	Manufacture and trading of electronic ceramics	100	100	100
	Shanghai Nike Ceramic Electronic Co., Ltd. (SHXCE)	Manufacture and trading of electronic ceramics	100	100	100
	Suzhou Betacera Technology Co., Ltd. (SBTC)	Manufacture and trading of life-saving equipment for shipping and aviation	100	100	100
Thintech Materials Technology Co., Ltd.	Thintech Global Limited (TTGL)	Holding and investment	-	-	100	End of settlement in October 2025
	Changzhou China Steel Precision Materials Co., Ltd. (CSPM)	Production and sale of titanium and titanium alloys, nickel and nickel alloys	70	70	35	After the investment was restructured in May 2024, the direct and indirect ownerships amounted to 70%; After the investment was restructured in October 2025, the direct ownerships amounted to 70%
	OmniGains Investment Corporation (OG)	Holding and investment	-	-	100	End of settlement in October 2025
China Steel Express Corporation	CSC Transport Corporation (CSTP)	Dry bulk shipping business	100	100	100
	Transglory Investment Corporation (TIC)	General investment	48	48	48	Direct and indirect ownerships amounted to 100%
	Kasport Stevedoring Corporation (KPC)	Ship stevedoring	66	66	66
China Prosperity Development Corporation	CK Japan Co., Ltd. (CKJCL)	Leasing of real estate	80	80	80	Direct and indirect ownerships amounted to 100%
	China Prosperity Construction Corporation (CPCC)	Development of real estate	60	60	60	Direct and indirect ownerships amounted to 100%
China Steel Asia Pacific Holdings Pte Ltd	CSC Steel Holdings Berhad (CSHB)	General investment	46	46	46	Refer to 2) below
CSC Steel Holdings Berhad	CSC Steel Sdn. Bhd. (CSCM)	Manufacture and sale of steel products	100	100	100
CSC Steel Sdn. Bhd.	Constant Mode Sdn. Bhd. (CMSB)	General investment	100	100	100
Chang Hung Steel Corporation	Hung Kao Investment Corporation (HKIC)	General investment	100	100	100
China Steel Chemical Corporation	Ever Wealthy International Corporation (EWIC)	General investment	100	100	100
Ever Wealthy International Corporation	Changzhou China Steel New Materials Technology Co., Ltd. (CSNCMT)	Processing and sale of green mesophase powder	100	100	100
China Steel Global Trading Corporation	Chang Mao Trading (Samoa) Corporation (SAMOA)	Holding and investment	100	100	100
	Wabo Global Trading Corporation (WABO)	Sales agent and trading of steel products	44	44	44	Direct and indirect ownerships amounted to 50%
	CSGT (Singapore) Pte. Ltd. (CSGTSNG)	Sales agent and trading of steel products	100	100	100
	CSGT International Corporation (CIC)	Holding and investment	100	100	100
	CSGT (Shenzhen) Co., Ltd. (SZH)	Sales agent and trading of steel products	65	65	65
	China Steel Precision Metals Kunshan Co., Ltd. (CSPK)	Cutting and processing of steel products	100	100	100
China Steel Precision Metals Qingdao Co., Ltd. (CSMQ)	Cutting and processing of steel products	70	70	70
Chang Mao Trading (Samoa) Corporation	CSGT (Shanghai) Co., Ltd. (CSGTPRC)	Sales agent and trading of steel products	100	100	100

Investor	Investor	Main Businesses	Percentage of Ownership (%)			Additional Descriptions
			March 31, 2026	December 31, 2025	March 31, 2025
Wabo Global Trading Corporation	CSGT Japan Co., Ltd. (CSGTJPN)	Sales agent and trading of steel products	100	100	100
CSGT International Corporation	CSGT Metals Vietnam Joint Stock Company (CSGT-VTM)	Cutting and processing of steel products	60	60	60
	CSGT Trading India Private Limited (CSGTIN)	Sales agent and trading of steel products	99	99	99	Direct and indirect ownerships amounted to 100%
CHC Resources Corporation	Union Steel Development Corporation (USDC)	Manufacture and sale of iron powder, contract manufacturing and sale of refractory materials, trading and labor dispatching	93	93	93
	Pao Good Industrial Co., Ltd. (PG)	Trading of fly ash, production and sale of dry-mix mortar and trading business	51	51	51
	Yu Cheng Lime Corporation (YCC)	Real estate leasing and tally service of raw materials	90	90	90
	CHC Resources Vietnam Co., Ltd (CHCV)	Manufacture and sales of ground granulated BFS and sale of water-quenched slag	85	85	85
InfoChamp Systems Corporation	Info-Champ System (B.V.J) Corporation (ICSCB)	Holding and investment	100	100	100
Info-Champ System (B.V.J) Corporation	Wuhan InfoChamp I.T. Co., Ltd. (WICIT)	ERP system integration services	100	100	100
China Steel Structure Co., Ltd.	United Steel Engineering & Construction Corporation (USEC)	Contracting and management of civil engineering construction, etc.	100	100	100
	China Steel Structure Holding Co., Ltd. (CSSHCL)	Holding and investment	-	100	100	End of settlement in March 2026
China Ecotek Corporation	CEC International Corporation (CECIC)	General investment	100	100	100
	CEC Development Corporation (CDC)	General investment	100	100	100
	China Ecotek India Private Limited (CECI)	Construction engineering	-	-	-	Under settlement in March 2026
CEC International Corporation	China Ecotek India Private Limited (CECI)	Construction engineering	-	100	100	Under settlement in March 2026
CEC Development Corporation	China Ecotek Vietnam Company Limited (CEVC)	Construction engineering	100	100	100
	Xiamen Ecotek PRC Company Limited (XEP)	Sales agency for import and export of equipment and materials	100	100	100
China Steel Security Corporation	Steel Castle Technology Corporation (SCTC)	Installation of fire protection equipment	100	100	100
	China Steel Management And Maintenance For Buildings Corporation (CSMM)	Management and maintenance for buildings	100	100	100
HIMAG Magnetic Corporation	MagnPower Corporation (MPC)	Powder metallurgy	100	100	100
CSC Steel Australia Holdings Pty Ltd	CSC Sonoma Pty Ltd (CSC Sonoma)	Mining investment	100	100	100
Kaohsiung Rapid Transit Corporation	Taiwan Intelligent Transportation Co., Ltd. (TITC)	Technical services	100	100	100
China Steel Power Holding Corporation	China Steel Power Corporation (ZN)	Offshore Wind Power Generation	100	100	100

1) Explanations for subsidiaries which are less than $50\%$ owned but included in the consolidated entities are as follows:

a) The chairman and general manager of CEC, CSCC, CHC, CSSC and TTMC are designated by the Corporation and other subsidiaries in order to lead its finance, operation, and human resources. Therefore, the Corporation had control-in-substance over aforementioned subsidiaries and included them in the consolidated entities.
b) The actual operations of CHS and CSHB are controlled by the respective board of directors. The Corporation or with other subsidiaries jointly had more than half of the seats in the board of directors of CHS and CSHB. Therefore, the Corporation had control-in-substance over the aforementioned entities and included them in the consolidated entities.

2) The Corporation had no subsidiary with material non-controlling interests.

c. Other material accounting policies

Except for the following, refer to the summary of material accounting policies in the consolidated financial statements for the year ended December 31, 2025.

1) Derecognition of financial liabilities

Financial liabilities are derecognized on the settlement date, which is the date on which the liability is extinguished because the Corporation and its subsidiaries' obligations are discharged, cancelled or have expired, or the liability is substantially modified or exchanged for a debt instrument with substantially different terms. The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

2) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

3) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated on an interim period's pre-tax income by applying to the tax rate that would be applicable to expected total annual earnings.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The same material accounting judgments and key sources of estimation uncertainty of consolidated financial statements have been followed in these consolidated financial statements as those applied in the preparation of the consolidated financial statements for the year ended December 31, 2025.

CASH AND CASH EQUIVALENTS

	March 31, 2026	December 31, 2025	March 31, 2025
Cash on hand	$ 38,479	$ 42,927	$ 38,504
Checking accounts and demand deposits	15,098,563	12,425,744	12,032,220
Cash equivalents (investments with original maturities of less than 3 months)
Time deposits and negotiable certificates of deposit	1,522,316	2,488,537	3,217,918
Commercial papers	2,892,087	3,507,580	2,628,511
Bonds with repurchase agreements	9,988	614,647	-
	$ 19,561,433	$ 19,079,435	$ 17,917,153

Cash and cash equivalents shown in the consolidated statements of cash flows can be reconciled to the related items in the consolidated balance sheets. The reconciliation information as of March 31, 2026 and 2025 was shown in the consolidated statements of cash flows; the reconciliation information as of December 31, 2025 was as follows:

December 31, 2025

Cash and cash equivalents
Bank overdraft

$ 19,079,435
(2,260,645)

$ 16,818,790

FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	March 31, 2026	December 31, 2025	March 31, 2025
Financial assets at FVTPL - current
Financial assets mandatorily classified as at FVTPL
Mutual funds	$ 4,292,378	$ 4,428,098	$ 4,120,815
Listed shares	74,919	35,527	87,610
Emerging market shares	3,432	3,827	34,383
Corporate bonds	10,027	10,155	17,081
Convertibles bonds	1,288	27,053	238,056
Subordinated debt	-	-	50,000
Exchange traded notes	-	-	10,189
	$ 4,382,044	$ 4,504,660	$ 4,558,134
Financial assets at FVTPL - noncurrent
Financial assets mandatorily classified as at FVTPL
Unlisted shares	$ 517,323	$ 518,301	$ 802,211
Emerging market shares	17,049	24,291	23,647
Mutual funds	19,752	18,093	12,820
	$ 554,124	$ 560,685	$ 838,678
Financial liabilities at FVTPL - current
Financial liabilities held for trading
Foreign exchange forward contracts (a)	$ 3,077	$ 985	$ 2,958
Foreign exchange swap contracts (a)	4,284	2,610	-
	$ 7,361	$ 3,595	$ 2,958

a. The subsidiaries entered into foreign exchange forward contracts and foreign exchange swap contracts to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities. The outstanding foreign exchange forward contracts and foreign exchange swap contracts not under hedge accounting of the subsidiaries at the end of the reporting period were as follows:

18 -

	Currency	Maturity Date	Contract Amount (In Thousands)
March 31, 2026
Foreign exchange forward contracts - sell	USD/NTD	2026.04-2026.06	USD3,200/NTD98,777
Foreign exchange swap contracts	CNY/NTD	2026.09	CNY12,000/NTD51,245
December 31, 2025
Foreign exchange forward contracts - sell	USD/NTD	2026.06	USD3,000/NTD92,400
Foreign exchange swap contracts	CNY/NTD	2026.09	CNY12,000/NTD51,245
March 31, 2025
Foreign exchange forward contracts - sell	USD/NTD	2025.04-2025.06	USD3,200/NTD102,587

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	March 31, 2026	December 31, 2025	March 31, 2025
Current
Domestic investments
Listed shares	$ 11,373,729	$ 9,588,508	$ 8,171,013
Emerging market shares and unlisted shares	35,121	34,089	31,100
	11,408,850	9,622,597	8,202,113
Foreign investments
Listed shares	60,773	46,481	-
Subordinated debt	45,772	46,211	48,013
Corporate bonds	50,235	50,613	35,623
	156,780	143,305	83,636
	$ 11,565,630	$ 9,765,902	$ 8,285,749
Noncurrent
Domestic investments
Listed shares	$ 9,148,542	$ 9,489,320	$ 9,388,575
Emerging market shares and unlisted shares	3,175,899	3,191,858	3,044,193
	12,324,441	12,681,178	12,432,768

	March 31, 2026	December 31, 2025	March 31, 2025
Foreign investments
Unlisted shares	$ 32,101,358	$ 31,255,856	$ 30,203,853
Listed shares	2,946,640	3,022,671	2,813,653
Certificate of entitlement	832,411	799,545	996,334
	35,880,409	35,078,072	34,013,840
	$ 48,204,850	$ 47,759,250	$ 46,446,608

These investments in equity instruments are not held for trading; instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Corporation and its subsidiaries' strategy of holding these investments for long-term purposes.

9. FINANCIAL INSTRUMENTS FOR HEDGING

	March 31, 2026	December 31, 2025	March 31, 2025
Financial assets for hedging - current
Hedging foreign currency deposits	$ 795,877	$ 831,313	$ 2,328,542
Foreign exchange forward contracts	70,336	62,063	106,642
Interest rate swap contracts	341,470	278,711	221,059
Futures contracts	-	58,062	12,172
	$ 1,207,683	$ 1,230,149	$ 2,668,415
Financial assets for hedging - noncurrent
Foreign exchange forward contracts	$ 5,124	$ 4,449	$ 9,988
Interest rate swap contracts	1,192,378	994,481	968,413
	$ 1,197,502	$ 998,930	$ 978,401
Financial liabilities for hedging - current
Bank loans (Note 17)	$ -	$ -	$ 1,001,593
Material borrowing contracts	400,143	83,420	76,412
Foreign exchange forward contracts	4,930	5,242	4,912
Interest rate swap contracts	-	5,269	-
	$ 405,073	$ 93,931	$ 1,082,917
Financial liabilities for hedging - noncurrent
Bank loans (Note 17)	$ 678,993	$ 680,009	$ -
Foreign exchange forward contracts	2,463	2,944	-
Interest rate swap contracts	-	1,264	-
	$ 681,456	$ 684,217	$ -

Refer to Note 29 for information relating to financial instruments for hedging.

10. NOTES AND ACCOUNTS RECEIVABLE, NET (INCLUDING RELATED PARTIES)

	March 31, 2026	December 31, 2025	March 31, 2025
Notes receivable
Operating	$ 1,167,342	$ 1,237,316	$ 1,500,500
Accounts receivable	$ 13,973,152	$ 13,473,851	$ 15,381,722
Less: Allowance for impairment loss	193,878	193,327	164,690
	$ 13,779,274	$ 13,280,524	$ 15,217,032

The Corporation and its subsidiaries make prudent assessment of their customers. The counterparties are creditworthy companies; as a result, the significant credit risk is unexpected. The Corporation and its subsidiaries did transactions with a large number of unrelated customers and no concentration of credit risk was observed. The Corporation and its subsidiaries continue to manage the financial condition and entire credit risk of their customers and obtain sufficient collateral if needed to mitigate the risk of financial loss from late payment.

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

The Corporation and its subsidiaries continue to monitor the collection of receivables to ensure that proper actions are made to collect past due receivables. Additionally, the Corporation and its subsidiaries review the recoverable amount of receivables one by one at the balance sheet date to ensure that proper allowances are recognized for unrecoverable receivables.

The following table details the loss allowance of notes and accounts receivable based on the impaired aging analysis.

March 31, 2026

	Not Past Due	1 to 30 Days	31 to 60 Days	61 to 365 Days	Over 365 Days	Total
Gross carrying amount	$ 14,322,376	$ 448,423	$ 58,580	$ 24,253	$ 286,862	$ 15,140,494
Loss allowance (Lifetime ECL)	(22,662)	(16)	(20,643)	(7,539)	(143,018)	(193,878)
Amortized cost	$ 14,299,714	$ 448,407	$ 37,937	$ 16,714	$ 143,844	$ 14,946,616

December 31, 2025

	Not Past Due	1 to 30 Days	31 to 60 Days	61 to 365 Days	Over 365 Days	Total
Gross carrying amount	$ 14,124,066	$ 242,613	$ 45,844	$ 15,086	$ 283,558	$ 14,711,167
Loss allowance (Lifetime ECL)	(5,665)	(3)	(33,867)	(11,099)	(142,693)	(193,327)
Amortized cost	$ 14,118,401	$ 242,610	$ 11,977	$ 3,987	$ 140,865	$ 14,517,840

March 31, 2025

	Not Past Due	1 to 30 Days	31 to 60 Days	61 to 365 Days	Over 365 Days	Total
Gross carrying amount	$ 16,257,404	$ 268,804	$ 43,157	$ 32,193	$ 280,664	$ 16,882,222
Loss allowance (Lifetime ECL)	(9,722)	(1,489)	(13,737)	(896)	(138,846)	(164,690)
Amortized cost	$ 16,247,682	$ 267,315	$ 29,420	$ 31,297	$ 141,818	$ 16,717,532

The movements of the loss allowance of accounts receivable were as follows:

	For the Three Months Ended March 31
	2026	2025
Balance, beginning of period	$ 193,327	$ 169,519
Recognition (reversal)	606	(4,892)
Effect of foreign currency exchange differences	(55)	63
Balance, end of period	$ 193,878	$ 164,690

The Corporation and its subsidiary CHS entered into accounts receivable factoring agreements (without recourse) with Mega Bank and other financial institutions. Under the agreements, the Corporation and its subsidiary are empowered to sell accounts receivable to the banks upon the delivery of products to customers and are required to complete related formalities at the next banking day.

For the three months ended March 31, 2026 and 2025, the related information for the Corporation and its subsidiary CHS's sale of accounts receivable was as follows:

Counterparty	Advances Received at Period - Beginning	Receivables Sold	Amounts Collected by Bank	Advances Received at Period - End	Interest Rate on Advances Received (%)	Credit Line
For the Three Months Ended March 31, 2026
Mega Bank	$ 769,482	$ 645,889	$ 607,714	$ 807,657	2.16-2.71	NT$9 billion
Bank of Taiwan	342,361	188,200	247,998	282,563	2.16-2.71	NT$2.1 billion
Bank of Taiwan	224,102	163,852	251,309	136,645	5.23-5.70	USD130,000 thousand
Taishin Bank	1,304,634	1,608,278	1,773,444	1,139,468	4.80-5.21	USD250,000 thousand
CTBC Bank	607,170	558,637	265,534	900,273	4.60-4.71	USD60,000 thousand
Mizuho Bank	56,325	281,346	279,435	58,236	4.40-5.00	USD10,000 thousand
Mega Bank	125,110	77,246	89,768	112,588	2.23	NT$408,000 thousand
	$ 3,429,184	$ 3,523,448	$ 3,515,202	$ 3,437,430
For the Three Months Ended March 31, 2025
Mega Bank	$ 793,739	$ 781,667	$ 564,313	$ 1,011,093	2.18-2.73	NT$9 billion
Bank of Taiwan	401,855	315,201	320,648	396,408	2.18-2.73	NT$2.1 billion
Bank of Taiwan	235,668	322,045	370,518	187,195	5.45-6.70	USD130,000 thousand
Taishin Bank	2,392,118	1,269,221	1,489,216	2,172,123	5.24-5.86	USD250,000 thousand
CTBC Bank	1,121,942	892,486	459,109	1,555,319	5.31-5.83	USD60,000 thousand
Mizuho Bank	14,708	121,368	118,036	18,040	5.45-6.15	USD10,000 thousand
Mega Bank	161,929	82,871	82,688	162,112	2.23	NT$485,000 thousand
	$ 5,121,959	$ 3,784,859	$ 3,404,528	$ 5,502,290

The subsidiary CSAC entered into accounts receivable factoring agreements with the bank. Under the agreements, if the accounts receivable cannot be received when due, the bank is empowered to demand payment of outstanding balances from CSAC. Therefore, the material risks and rewards of the accounts receivable have not been transferred from CSAC. All accounts receivable continue to be recognized and the transferred accounts receivable are used as collateral for borrowings. Refer to Note 31 for information relating to accounts receivable pledged as collateral.

The subsidiary CSPM entered into notes receivable discounting agreements with the bank. Under the agreements, if the notes receivable cannot be received when due, the bank is empowered to demand payment of outstanding balances from CSPM. Therefore, the material risks and rewards of the notes receivable have not been transferred from CSPM. All notes receivable continue to be recognized and the transferred notes receivable are used as collateral for borrowings. Refer to Note 31 for information relating to notes receivable pledged as collateral.

As of March 31, 2026, December 31, 2025 and March 31, 2025, the carrying amount of these accounts receivable and notes receivable that have been transferred but not derecognized were NT$118,908 thousand, NT$190,332 thousand and NT$218,472 thousand, respectively, and the carrying amount of the related short-term borrowings were NT$118,908 thousand, NT$190,332 thousand and NT$218,472 thousand, respectively.

11. INVENTORIES

	March 31, 2026	December 31, 2025	March 31, 2025
Work in progress	$ 22,526,797	$ 24,791,029	$ 31,433,908
Finished goods	24,757,146	22,547,695	25,211,633
Raw materials	20,496,897	21,948,232	26,673,623
Supplies	12,514,774	12,585,639	12,794,342
Inventory in transit	13,208,260	9,195,278	10,999,277
Buildings and lands for sale and under construction	605,147	518,341	367,937
Others	890,446	904,673	965,479
	$ 94,999,467	$ 92,490,887	$ 108,446,199

The costs of inventories recognized as operating costs for the three months ended March 31, 2026 and 2025 were NT$63,424,681 thousand and NT$64,401,122 thousand, respectively, including reversal of loss on inventories of NT$324,090 thousand and NT$936,404 thousand, respectively. Reversal of loss on inventory was due to the disappearance of the factors that previously caused the net realizable value of inventories to be lower than the cost.

Refer to Note 31 for information relating to the subsidiaries' buildings and lands under construction pledged as collateral.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	March 31, 2026	December 31, 2025	March 31, 2025
Material associate
9404-5515 Québec Inc.	$ 7,353,668	$ 6,995,406	$ 8,679,270
Associates that are not individually material	5,981,545	5,817,925	5,889,175
	$ 13,335,213	$ 12,813,331	$ 14,568,445

a. Material associate

Name of Associate	Nature of Activities	Principal Place of Business	Percentage of Ownership and Voting Rights (%)
			March 31, 2026	December 31, 2025	March 31, 2025
9404-5515 Québec Inc.	Mineral Investment	Canada	25	25	25

The summarized financial information below represents amounts shown in the financial statements of 9404-5515 Québec Inc., which have been prepared in accordance with the IFRS Accounting Standards, and converted to the functional currency and adjusted for the purposes of applying the equity method.

	March 31, 2026	December 31, 2025	March 31, 2025
Current assets	$ 1,305,123	$ 1,050,648	$ 531,948
Noncurrent assets	29,804,121	29,278,046	36,524,880
Current liabilities	(1,143,198)	(1,822,558)	(1,688,978)
Equity	$ 29,966,046	$ 28,506,136	$ 35,367,850
Equity attributable to the Corporation and its subsidiaries (carrying amount of the investment)	$ 7,353,668	$ 6,995,406	$ 8,679,270
		For the Three Months Ended March 31
		2026	2025
Net profit for the period		$ 986,647	$ 300,165
Total comprehensive income for the period		$ 527,669	$ 4,921
Dividends received from 9404-5515 Québec Inc.		$ 236,512	$ 429,071
Comprehensive income attributable to the Corporation and its subsidiaries		$ 129,490	$ 1,208

b. Information about associates that are not individually material was as follows:

	For the Three Months Ended March 31
	2026	2025
The Corporation and its subsidiaries’ share of Net profit (loss) for the period	$ 7,122	$ (34,465)
Other comprehensive income	135,236	141,950
Total comprehensive income	$ 142,358	$ 107,485

Refer to Table 7 “Information on Investees” for the nature of main business, principal place of business and countries of incorporation of associates that are not individually material.

13. OTHER FINANCIAL ASSETS

	March 31, 2026	December 31, 2025	March 31, 2025
Current
Time deposits with original maturities of more than 3 months	$ 13,389,562	$ 13,320,402	$ 12,052,500
Pledged time deposits (Note 31)	6,800,253	6,753,262	6,703,014
Pledged demand deposits(Note 31)	1,209,882	1,209,882	300,000
Deposits for projects	55,704	83,731	74,890
	$ 21,455,401	$ 21,367,277	$ 19,130,404
Noncurrent
Pledged receivables (Note 31)	$ 2,000,000	$ 2,000,000	$ 2,000,000
Pledged time deposits (Note 31)	285,310	285,749	286,838
Time deposits	361,045	259,990	631,999
Deposits for projects	10,660	20,698	10,525
	$ 2,657,015	$ 2,566,437	$ 2,929,362

Refer to Note 31 for information relating to other financial assets pledged as collateral.

14. PROPERTY, PLANT AND EQUIPMENT

Refer to Table 9 for the movements of property, plant and equipment for the three months ended March 31, 2026 and 2025.

Items of property, plant and equipment are depreciated on a straight-line basis over the following useful lives:

Land improvements 20-40 years
Buildings
Main structure 3-60 years
Others 3-40 years

Machinery and equipment
Power equipment	3-40 years
Process equipment	5-25 years
Lifting equipment	5-25 years
Others	2-40 years
Transportation equipment
Ship equipment	18 years
Others	2-20 years
Other equipment	2-35 years

Refer to Note 31 for the carrying amount of property, plant and equipment that had been pledged by the Corporation and its subsidiaries to secure borrowings.

15. LEASE ARRANGEMENTS

a. Right-of-use assets

	March 31, 2026	December 31, 2025	March 31, 2025
Carrying amounts
Land	$ 11,415,154	$ 11,478,636	$ 11,503,650
Land improvements	86,378	100,046	141,051
Buildings	718,448	715,650	671,991
Machinery	228	22,001	37,094
Transportation equipment	79,370	86,085	103,923
Office equipment	2,241	2,470	2,158
Others	1,622	1,652	1,744
	$ 12,303,441	$ 12,406,540	$ 12,461,611
		For the Three Months Ended March 31
		2026	2025
Additions to right-of-use assets		$ 338,322	$ 155,852
Depreciation charge for right-of-use assets
Land		$ 212,064	$ 220,073
Land improvements		13,668	13,669
Buildings		69,450	74,705
Machinery		5,435	1,704
Transportation equipment		14,116	14,360
Office equipment		229	1,484
Others		30	30
		$ 314,992	$ 326,025

b. Lease liabilities

	March 31, 2026	December 31, 2025	March 31, 2025
Carrying amounts
Current	$ 1,002,729	$ 1,022,925	$ 1,014,668
Non-current	9,766,367	9,838,913	9,691,045
	$ 10,769,096	$ 10,861,838	$ 10,705,713

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

	March 31, 2026	December 31, 2025	March 31, 2025
Land	0.59-2.70	0.59-2.21	0.59-2.21
Land improvements	1.31-1.69	1.31-1.69	1.31-1.69
Buildings	0.57-5.04	0.56-5.04	0.56-5.04
Machinery	1.78	0.59-1.80	0.59-1.80
Transportation equipment	0.59-2.04	0.59-2.08	0.59-2.08
Office equipment	1.92	0.86-1.92	0.59-0.95
Others	2.00-2.01	2.00-2.01	2.00-2.01

c. Material lease activities and terms

The Corporation leases land with a total of 261,207.62 square meter from Taiwan International Ports Corporation, Ltd. The rent is calculated by an annual rate of 5% based on the announced land value. The lease term started from January 2008 to December 2027.

The Corporation leases No. 101 berth in Kaohsiung Harbor from Taiwan International Ports Corporation, Ltd. for the use of cargo handling of raw materials, including coal and iron ore, as well as GBFS with a lease term started from December 2016 to December 2027.

Since January 2026, the Corporation has leased state-owned land in Qieding District of Kaohsiung City from the Energy Administration, Ministry of Economic Affairs. The lease term is set to expire in May 2038, and the Corporation retains the right to request a renewal upon the expiration of the lease.

The subsidiary DSC leases industrial land and port land from Taiwan International Ports Corporation, Ltd. Taichung branch for the use of cargo handling with a lease term started from December 2004 to November 2054. The rent is calculated based on leased portion of land times announced land value and tax rate of land value.

To expand its operation in central Taiwan, the subsidiary CHC rented land from Taiwan International Ports Corporation, Ltd. Taichung branch for 20 years, which is from January 1, 2007 to December 31, 2026. Rental cost consists of rent and fixed as well as floating operating royalties during operating period. Rental duration may be extended when due. Each extension is limited to no more than 20 years until such extension is not permitted. The conditions of the extension shall be negotiated when extended.

To expand storage of GBFS and mid to long-term utilization, the subsidiary CHC continued to rent several pieces of land in Taichung Port Industrial Zone from Taiwan International Ports Corporation, Ltd. Taichung branch with a lease period due on various dates through 2036. Rental duration may be extended when expired, with conditions of the extension to be negotiated.

Refer to Note 31 for the carrying amount of right-of-use assets that had been pledged by the Corporation and its subsidiaries to secure borrowings.

d. Other lease information

	For the Three Months Ended March 31
	2026	2025
Expenses relating to short-term leases and low-value asset leases	$ 34,364	$ 64,868
Expenses relating to variable leases payments not included in the measurement of lease liabilities	$ 228	$ 358
Total cash outflow for leases	$ 365,782	$ 403,580

For land, buildings and some transportation equipment which qualify as short-term leases and office equipment which qualify as low-value asset leases, the Corporation and its subsidiaries have elected to apply the recognition exemption and thus did not recognize right-of-use assets and lease liabilities for these leases.

16. INVESTMENT PROPERTIES

For the three months ended March 31, 2026

	Land	Buildings	Total
Cost
Balance at January 1, 2026	$ 8,515,081	$ 2,595,661	$ 11,110,742
Effect of foreign currency exchange differences	(170)	415	245
Balance at March 31, 2026	$ 8,514,911	$ 2,596,076	$ 11,110,987
Accumulated depreciation and impairment
Balance at January 1, 2026	$ 28,907	$ 1,293,911	$ 1,322,818
Depreciation	-	9,301	9,301
Effect of foreign currency exchange differences	-	999	999
Balance at March 31, 2026	$ 28,907	$ 1,304,211	$ 1,333,118
Carrying amount at December 31, 2025	$ 8,486,174	$ 1,301,750	$ 9,787,924
Carrying amount at March 31, 2026	$ 8,486,004	$ 1,291,865	$ 9,777,869
For the three months ended March 31, 2025
	Land	Buildings	Total
Cost
Balance at January 1, 2025	$ 8,520,250	$ 2,897,813	$ 11,418,063
Additions	264,391	-	264,391
Effect of foreign currency exchange differences	7,271	16,449	23,720
Balance at March 31, 2025	$ 8,791,912	$ 2,914,262	$ 11,706,174

	Land	Buildings	Total
Accumulated depreciation and impairment
Balance at January 1, 2025	$ 42,034	$ 1,340,130	$ 1,382,164
Depreciation	-	11,658	11,658
Effect of foreign currency exchange differences	-	5,833	5,833
Balance at March 31, 2025	$ 42,034	$ 1,357,621	$ 1,399,655
Carrying amount at March 31, 2025	$ 8,749,878	$ 1,556,641	$ 10,306,519

The above items of investment properties are depreciated on a straight-line basis over the following useful lives:

Buildings

7-60 years

The determination of fair value was performed by independent qualified professional valuers or the management of the Corporation and its subsidiaries, which used the valuation model that market participants would use in determining the fair value, and the fair value was measured using Level 3 inputs. The valuation was measured under the comparative approach, income approach, cost approach and land developing analysis approach similar to the transaction price of the real estate market. The significant unobservable inputs used include discount rates and depreciation rates. The fair value as appraised was as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Fair value	$ 30,646,522	$ 30,748,740	$ 29,489,512

All of the Corporation and its subsidiaries' investment properties are held under freehold interests. Refer to Note 31 for the carrying amount of the investment properties that had been pledged by the Corporation and its subsidiaries to secure borrowings.

17. BORROWINGS

a. Short-term borrowings and bank overdraft

	March 31, 2026	December 31, 2025	March 31, 2025
Unsecured loans	$ 23,254,200	$ 26,959,903	$ 33,024,286
Bank overdraft (Note 31)	3,702,702	2,260,645	4,819,393
Letters of credit and export bill loans	884,533	1,522,266	2,403,083
Secured loans (Note 31)	118,908	190,332	468,471
	$ 27,960,343	$ 30,933,146	$ 40,715,233
Range of interest rate (%)	0.00-8.00	0.00-7.05	0.00-5.45

b. Short-term bills payable

	March 31, 2026	December 31, 2025	March 31, 2025
Commercial paper	$ 35,193,600	$ 25,150,600	$ 26,081,000
Commercial paper - revolving issuances	16,500,000	-	-
Less: Unamortized discounts	37,970	30,212	33,739
	$ 51,655,630	$ 25,120,388	$ 26,047,261
Range of interest rate (%)	1.55-3.08	1.52-2.88	1.63-2.68

The above commercial paper was secured by Ta Ching Bills Finance Corporation, China Bills Finance Corporation, Taiwan Finance Corporation, Mega Bills Finance Corporation, Grand Bills Finance Corporation, Dah Chung Bills Finance Corporation, Union Bank of Taiwan and Mizuho Bank, Ltd.

c. Long-term borrowings

	March 31, 2026	December 31, 2025	March 31, 2025
Syndicated bank loans	$ 44,873,764	$ 44,792,966	$ 44,554,147
Mortgage loans (Note 31)	3,927,877	4,189,131	5,160,999
Unsecured loans	49,374,956	41,677,059	34,379,620
	98,176,597	90,659,156	84,094,766
Less: Current portion	4,336,214	4,708,193	4,377,765
Financial liabilities for hedging - current	-	-	1,001,593
Financial liabilities for hedging - non-current	678,993	680,009	-
	$ 93,161,390	$ 85,270,954	$ 78,715,408
Range of interest rate (%)	1.43-9.20	0.95-9.20	0.86-6.28

1) The subsidiary CSCI entered into a syndicated credit facility agreement with financial institutions for a US$75,000 thousand of credit line. Under the agreement, the Corporation should meet certain financial ratios and criteria based on its reviewed consolidated financial statements for the six months ended June 30 and audited consolidated annual financial statements. The Corporation was in compliance with the syndicated credit facility agreement based on its audited consolidated financial statements for the years ended December 31, 2025 and 2024.

2) The subsidiary ZN entered into a syndicated credit facility agreement with financial institutions for a NT$45.55 billion and EUR$40,000 thousand of credit line. Under the agreement, the Corporation and certain investors should hold ownerships directly and indirectly amounted to 51% and maintain more than half the total number of directors. As of March 31, 2026, the Corporation was in compliance with the syndicated credit facility agreement.

3) The subsidiary CHS entered into a syndicated credit facility agreement with financial institutions for a NT$ 6 billion of credit line. Under the agreement, CHS should meet certain financial ratios and criteria based on its audited consolidated annual financial statements. The subsidiary CHS was in compliance with the syndicated credit facility agreement based on its audited consolidated financial statements for the year ended December 31, 2024. The subsidiary CHS wasn't in compliance with the syndicated credit facility agreement based on its audited consolidated financial statements for the year ended December 31, 2025; however, all of syndicated credit banks agreed to

waive the financial ratio covenant for this year in December 2025. Consequently, the loans were still classified as non-current liabilities.

The above unsecured loans included those obtained by the Corporation in JPY to hedge the exchange rate fluctuations on long-term investments, which were reclassified to financial liabilities for hedging (including current and noncurrent).

d. Long-term bills payable

	March 31, 2026	December 31, 2025	March 31, 2025
Commercial paper	$ -	$ 42,500,000	$ 45,270,000
Less: Unamortized discounts	-	35,969	29,190
	$ -	$ 42,464,031	$ 45,240,810
Range of interest rate (%)	-	1.48-1.92	1.68-1.96

The Corporation and its subsidiaries entered into commercial paper contracts revolving issuance and guaranteed underwriting purchase with financial institutions. The duration of the contracts is two to five years. Under these agreements, commercial papers are issued with maturities of 20 to 60 days and are reissued on a revolving basis upon maturity. In accordance with the Q&A "Transition Requirements of the ARDF Q&A - Liability Classification of Funds Raised Through The Revolving Issuance of Commercial Papers" issued by the FSC on August 15, 2025, the issuances on or after January 1, 2026, are classified as current liabilities in accordance with the prescribed standards.

The above commercial paper was secured by Mega Bank.

18. BONDS PAYABLE

	March 31, 2026	December 31, 2025	March 31, 2025
Unsecured domestic bonds	$ 81,570,000	$ 71,270,000	$ 69,207,500
Less: Issuance cost of bonds payable	47,994	40,891	37,239
Current portion	18,918,460	16,217,949	11,536,841
	$ 62,603,546	$ 55,011,160	$ 57,633,420

a. The major terms of unsecured domestic bonds are as follows:

Issuer	Issuance Period	Total Amount	Coupon Rate (%)	Repayment and Interest Payment
The Corporation	May 2018 to May 2025	$ 6,000,000	0.95	Repayable in May 2024 and May 2025; interest payable annually
The Corporation	October 2018 to October 2025	4,150,000	0.90	Repayable 25% in October 2024 and 75% in October 2025; interest payable annually
The Corporation	December 2020 to December 2025	1,600,000	0.39	Repayable in December 2024 and December 2025; interest payable annually
The Corporation	July 2023 to July 2026	7,200,000	1.50	Repayable in July 2026; interest payable annually

Issuer	Issuance Period	Total Amount	Coupon Rate (%)	Repayment and Interest Payment
The Corporation	December 2020 to December 2027	$ 4,200,000	0.43	Repayable 70% in December 2026 and 30% in December 2027; interest payable annually
The Corporation	July 2023 to July 2028	3,800,000	1.57	Repayable in July 2027 and July 2028; interest payable annually
The Corporation	July 2013 to July 2028	3,600,000	1.88	Repayable 30% in July 2026, 30% in July 2027 and 40% in July 2028; interest payable annually
The Corporation	August 2018 to August 2028	5,600,000	1.10	Repayable in August 2027 and August 2028; interest payable annually
The Corporation	October 2018 to October 2028	2,250,000	1.05	Repayable in October 2027 and October 2028; interest payable annually
The Corporation	January 2014 to January 2029	9,000,000	2.15	Repayable 30% in January 2027, 30% in January 2028 and 40% in January 2029; interest payable annually
The Corporation	May 2024 to May 2029	1,570,000	1.84	Repayable in May 2029; interest payable annually
The Corporation	April 2025 to April 2030	5,800,000	2.06	Repayable in April 2030; interest payable annually
The Corporation	September 2025 to September 2030	7,800,000	1.89	Repayable in September 2029 and September 2030; interest payable annually
The Corporation	January 2026 to January 2031	7,600,000	1.79	Repayable in January 2031; interest payable annually
The Corporation	January 2026 to January 2033	2,700,000	1.82	Repayable in January 2033; interest payable annually
DSC	June 2018 to June 2025	2,250,000	1.00	Repayable in June 2024 and June 2025; interest payable annually
DSC	June 2020 to June 2025	5,000,000	0.73	Repayable in June 2024 and June 2025; interest payable annually
DSC	June 2023 to June 2026	5,000,000	1.55	Repayable in June 2026; interest payable annually
DSC	December 2023 to December 2028	4,500,000	1.79	Repayable in December 2027 and December 2028; interest payable annually
DSC	April 2024 to April 2029	4,400,000	1.72	Repayable in April 2028 and April 2029; interest payable annually
DSC	August 2024 to August 2029	3,050,000	2.25	Repayable in August 2028 and August 2029; interest payable annually
DSC	January 2025 to January 2030	3,500,000	2.19	Repayable in January 2029 and January 2030; interest payable annually
CHS	September 2020 to September 2025	1,000,000	0.65	Repayable in September 2025; interest payable annually

19. ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

Accounts payable includes advances received on construction contracts. Advances received on construction contracts bears no interests and are expected to be paid until the satisfaction of conditions specified in each contract for the payment of such amounts during retention periods, which were within the normal operating cycle of the Corporation and its subsidiaries, usually more than twelve months.

20. OTHER PAYABLES

	March 31, 2026	December 31, 2025	March 31, 2025
Salaries and bonus	$ 4,502,963	$ 6,789,261	$ 4,474,609
Purchase of equipment	1,931,690	1,804,446	8,968,157
Interest payable	872,101	753,837	725,807
Outsourced repair and construction	837,632	802,642	846,145
Dividends payable	661,299	372,649	370,654
Compensation of employees and remuneration of directors	280,901	230,701	413,822
Others	8,508,477	8,360,307	8,312,327
	$ 17,595,063	$ 19,113,843	$ 24,111,521

Starting from 2025, the Corporation and its subsidiaries recognize carbon fee liabilities in accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC. The Corporation and its subsidiaries obtained the approval for their self-determined reduction plan from the competent authority in 2026, and assessed that they are able to achieve the designated targets of 2025. The Corporation and its subsidiaries submit the implementation progress report of the self-determined reduction plan for 2025 in accordance with the regulations before April 30, 2026; therefore, the carbon fee liabilities are calculated based on the preferential rate.

21. PROVISIONS

	March 31, 2026	December 31, 2025	March 31, 2025
Current
Onerous contracts (a)	$ 3,895,144	$ 3,707,896	$ 2,869,286
Construction warranties (b)	1,536,596	2,546,000	1,521,960
	$ 5,431,740	$ 6,253,896	$ 4,391,246
Noncurrent
Provision for stabilization funds (c)	$ 531,053	$ 530,600	$ 524,212
Provision for decommissioning obligations (d)	646,337	642,943	632,867
Others	462,300	496,955	478,838
	$ 1,639,690	$ 1,670,498	$ 1,635,917
	Onerous Contracts	Construction Warranties	Provision for Stabilization Funds
Balance at January 1, 2026	$ 3,707,896	$ 2,546,000	$ 530,600
Recognized (reversal)	186,777	(504,854)	453
Paid	-	(14,847)	-
Reclassifications	-	(489,703)	-
Effect of foreign currency exchange differences	471	-	-
Balance at March 31, 2026	$ 3,895,144	$ 1,536,596	$ 531,053

32 -

33 -

	Onerous Contracts	Construction Warranties	Provision for Stabilization Funds	Provision for Decommissioning Obligations	Others	Total
Balance at January 1, 2025	$ 2,359,280	$ 1,146,208	$ 519,856	$ 629,543	$ 480,295	$ 5,135,182
Recognized (reversal)	509,431	384,788	4,553	3,324	(2,281)	899,815
Paid	-	(9,036)	(197)	-	(696)	(9,929)
Effect of foreign currency exchange differences	575	-	-	-	1,520	2,095
Balance at March 31, 2025	$ 2,869,286	$ 1,521,960	$ 524,212	$ 632,867	$ 478,838	$ 6,027,163

a. The provision for onerous contracts of the Corporation and its subsidiaries comes from the non-cancellable purchase contracts of which the provision amounts are measured using the difference between the unavoidable costs of meeting the contractual obligations and the economic benefits expected to be received from the contracts; and the non-cancellable construction contracts of which the provision amounts are measured using the difference between the expected unavoidable costs of meeting the contractual obligations and the economic benefits expected to be received from the contracts.

b. The provision for construction warranties represents the present value of management's best estimate of the future outflow of economic benefits that will be required under the Corporation and its subsidiaries' obligations for warranties. The estimate had been made on the basis of historical warranty trends.

c. The provision for stabilization funds represents the provision recognized in accordance with the build-operate-transfer contract by the subsidiary KRTC. The provision was used for capital demand due to force majeure, exceptional events, operating deficits, etc. The provision for stabilization funds was recognized based on increase in stabilization funds.

d. The provision for decommissioning obligations represents the subsidiary ZN's obligation to restore the offshore land used for the construction and operation of its offshore wind farm in the waters off the coast of Changhua. This provision was recognized on the present value of the best estimate of the future outflow of economic benefits. The estimate will be reviewed regularly and adjusted according to the relevant regulations for the use of offshore land.

22. RETIREMENT BENEFIT PLANS

Employee benefit expenses in respect of the Corporation and its subsidiaries' defined benefit retirement plans were calculated using the actuarially determined pension cost rate as of December 31, 2025 and 2024. An analysis by function of the amounts is as follows:

	For the Three Months Ended March 31
	2026	2025
Operating costs	$ 31,177	$ 33,797
Operating expenses	32,909	39,106
Others	44	116
	$ 64,130	$ 73,019

34 -

23. EQUITY

a. Share capital

	March 31, 2026	December 31, 2025	March 31, 2025
Number of shares authorized (in thousands)	17,000,000	17,000,000	17,000,000
Shares authorized	$ 170,000,000	$ 170,000,000	$ 170,000,000
Number of shares issued and fully paid (in thousands)
Ordinary shares (in thousands)	15,734,861	15,734,861	15,734,861
Preference shares (in thousands)	38,268	38,268	38,268
	15,773,129	15,773,129	15,773,129
Shares issued
Ordinary shares	$ 157,348,610	$ 157,348,610	$ 157,348,610
Preference shares	382,680	382,680	382,680
	$ 157,731,290	$ 157,731,290	$ 157,731,290

1) Ordinary shares

Fully paid ordinary shares, which have a par value of NT$10, carry one vote per share and the right to dividends.

2) Preference shares

The Corporation’s Articles of preference shareholders have the following entitlements or rights:

a) 14% annual dividends, with dividend payments ahead of those to ordinary shareholders;

b) Preference over ordinary shares in future payment of dividends in arrears;

c) The sequence and percentage of appropriation of residual property are the same with ordinary shares;

d) The same rights as ordinary shareholders, except the right to vote for directors; and

e) Redeemable by the Corporation and convertible to ordinary shares by preference shareholders with the ratio of 1:1.

3) Overseas depositary receipts

In May 1992, February 1997, October 2003 and August 2011, the Corporation issued 126,512,550 units of GDR in the Europe, U.S., and Asia. The depositary receipts then increased by 6,924,354 units resulting from the capital increase out of retained earnings. Each unit represents 20 shares of the Corporation’s ordinary shares and the issued GDRs account for the Corporation’s ordinary shares totaling 2,668,738,370 shares (including 290 fractional shares). Under relevant regulations, the GDR holders may also request the conversion to the shares represented by the GDR. The foreign investors may also request the reissuance of such depositary receipts within the originally approved units. As of March 31, 2026, December 31, 2025 and March 31, 2025, the outstanding depositary receipts were 343,411 units, 388,627 units and 402,934 units, equivalent to 6,868,530

ordinary shares (including 310 fractional shares), 7,772,850 ordinary shares (including 310 fractional shares) and 8,058,990 ordinary shares (including 310 fractional shares), which represented 0.04%, 0.04% and 0.05% of all the outstanding ordinary shares, respectively.

b. Capital surplus

	March 31, 2026	December 31, 2025	March 31, 2025
May be used to offset deficits, distribute cash or transfer to share capital (see 1 below)
Additional paid-in capital	$ 31,154,766	$ 31,154,766	$ 31,154,766
Treasury share transactions	8,880,133	8,880,133	8,766,830
Others	13,626	13,626	44,523
	40,048,525	40,048,525	39,966,119
May be used to offset deficits only
Share of change in equity of subsidiaries (see 2 below)	930,189	924,905	909,077
Share of change in equity of associates	218,498	216,187	216,182
	1,148,687	1,141,092	1,125,259
	$ 41,197,212	$ 41,189,617	$ 41,091,378

1) The capital surplus could be used to offset a deficit and distribute as cash dividends or transfer to capital when the Corporation has no deficit (limited to a certain percentage of the Corporation's paid-in capital and once a year).

2) The capital surplus included the share of change in equity of subsidiaries recognized without any actual acquisition or disposal of subsidiaries' share by the Corporation or the adjustments to capital surplus of subsidiaries under equity method.

c. Retained earnings and dividend policy

The Corporation's Articles of Incorporation provide that the annual net income, less any deficit, should be appropriated in the following order:

1) 10% as legal reserve;

2) Preference share dividends at 14% of par value;

3) Ordinary share dividends at no more than 14% of par value; and

4) The remainder, if any, as additional dividends divided equally between the holders of preference and ordinary shares.

The board of directors should propose the appropriation of earnings. If necessary, it may, after appropriating for preference shares dividends, propose to appropriate a special reserve or to retain certain earnings. These proposals should be submitted to the shareholders' meeting for approval.

The Corporation's steel business is in a phase of stable growth; thus, 75% or more of the appropriation for dividends should be in cash and 25% or less in shares.

Appropriation of earnings to legal reserve could be made until the legal reserve equals the Corporation's paid-in capital. Legal reserve may be used to offset deficit. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation's paid-in capital, the excess may be

35 -

transferred to capital or distributed in cash.

Under Rule issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards”, the Corporation should appropriate or reverse a special reserve. In addition, if the market price of the Corporation’s ordinary shares held by subsidiaries is lower than the carrying value of the Corporation’s shares held by subsidiaries, the Corporation should appropriate a special reserve equal to the difference between market price and carrying value multiplied by the percentage of ownership. Any special reserve appropriated may be reversed to the extent of the increase in valuation.

The appropriations of earnings for 2025 and 2024 had been proposed by the board of directors in February 2026 and approved in the shareholders’ meeting in June 2025, respectively. The appropriations and dividends per share were as follows:

	Appropriation of Earnings		Dividend Per Share (NT$)
	For the Year Ended December 31
	2025	2024	2025	2024
Legal reserve	$ -	$ 315,770
Statutory appropriation of special reserve	267,449	2,431,770
Reversal of special reserve	(1,558,486)	-
Preference shares
Cash dividends	53,575	53,575	$ 1.40	$ 1.40
Ordinary shares
Cash dividends	2,337,729	5,143,004	$ 0.15	$ 0.33

The appropriations of earnings for 2025 are subject to the resolution of the shareholder’s meeting to be held in May 2026.

d. Special reserves

	For the Three Months Ended March 31
	2026	2025
Balance, beginning of the period	$ 29,343,767	$ 26,912,231
Reversal in respect of Disposal of property, plant and equipment	(52)	(115)
Balance, end of the period	$ 29,343,715	$ 26,912,116

e. Other equity items

1) Exchange differences on translating foreign operations

	For the Three Months Ended March 31
	2026	2025
Balance, beginning of the period	$ (5,058,485)	$ (4,813,798)

	For the Three Months Ended March 31
	2026	2025
Recognized during the period
Exchange differences on translating the net assets of foreign operations	$ 1,412,538	$ 892,840
Income tax relating to exchange differences arising on translating the net assets of foreign operations	(19,852)	(13,136)
Share from accounted for using the equity method	(75,910)	(43,723)
Other comprehensive income recognized in the period	1,316,776	835,981
Balance, end of the period	$ (3,741,709)	$ (3,977,817)

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

	For the Three Months Ended March 31
	2026	2025
Balance, beginning of the period	$ (1,605,281)	$ (3,446,289)
Recognized during the period
Unrealized gains and losses - equity instruments	1,642,886	(74,247)
Unrealized gains and losses - debt instruments	(362)	578
Income tax relating to unrealized gains and losses	26,035	11,644
Share from accounted for using the equity method	60,365	120,487
Other comprehensive income recognized in the period	1,728,924	58,462
Cumulative unrealized gain or loss of equity instruments transferred to retained earnings due to disposal	(448,866)	(340,164)
Balance, end of the period	$ (325,223)	$ (3,727,991)

3) Gains and losses on hedging instrument

	Cash Flow Hedges	Fair Value Hedges	Hedges of Net Investments in Foreign Operations	Total
Balance on January 1, 2026	$ 664,825	$ 203,377	$ 3,788,786	$ 4,656,988
Increase in the period	145,867	364	-	146,231
Balance on March 31, 2026	$ 810,692	$ 203,741	$ 3,788,786	$ 4,803,219
Balance on January 1, 2025	$ 800,940	$ 192,330	$ 3,788,786	$ 4,782,056
Decrease in the period	(72,858)	(15,539)	-	(88,397)
Balance on March 31, 2025	$ 728,082	$ 176,791	$ 3,788,786	$ 4,693,659

a) Cash flow hedges

	For the Three Months Ended March 31
	2026	2025
Balance, beginning of the period	$ 664,825	$ 800,940
Recognized during the period
Foreign currency risk - foreign exchange forward contracts and hedging foreign currency deposits	8,926	75,773
Interest rate risk - interest rate swap contracts	111,985	(206,472)
Share from accounted for using the equity method	(907)	(3,416)
Income tax effect	(528)	(16,564)
Reclassification adjustment
Foreign currency risk - hedging foreign currency deposits	2,637	57,755
Interest rate risk-interest rate swap contracts	24,281	31,617
Income tax effect	(527)	(11,551)
Other comprehensive income (loss) recognized in the period	145,867	(72,858)
Balance, end of the period	$ 810,692	$ 728,082

b) Fair value hedges

	For the Three Months Ended March 31
	2026	2025
Balance, beginning of the period	$ 203,377	$ 192,330
Recognized during the period
Foreign currency risk - foreign currency bank loans	364	(15,539)
Balance, end of the period	$ 203,741	$ 176,791

c) Hedges of net investments in foreign operations

	For the Three Months Ended March 31
	2026	2025
Balance, beginning / end of the period	$ 3,788,786	$ 3,788,786

f. Treasury shares

Purpose of Treasury Shares	Thousand Shares			March 31
	Beginning of the Period	Additions	Reduction	Thousand Shares	Book Value
For the three months ended March 31, 2026
Shares transferred to employees	150,000	-	-	150,000	$ 3,898,320
Shares held by subsidiaries reclassified from investments accounted for using the equity method to treasury shares	343,123	-	-	343,123	9,219,913
	493,123	-	-	493,123	$ 13,118,233
For the three months ended March 31, 2025
Shares transferred to employees	150,000	-	-	150,000	$ 3,898,320
Shares held by subsidiaries reclassified from investments accounted for using the equity method to treasury shares	335,468	-	-	335,468	9,025,153
	485,468	-	-	485,468	$ 12,923,473

The Corporation's shares held by subsidiaries for the purpose of investment are accounted for as treasury shares (subsidiaries recorded those shares as financial assets at fair value through other comprehensive income - current and financial assets at fair value through other comprehensive income - noncurrent) based on the percentage of ownership held by the Corporation. The Corporation's shares held by more than 50%-owned subsidiaries are not allowed to participate in the Corporation's capital increase in cash and have no voting rights; other rights are the same as other ordinary shareholders.

Refer to Table 3 for the Corporation's shares held by subsidiaries as of March 31, 2026 were 524,286 thousand shares regardless of the percentage of ownership held by the Corporation. As of March 31, 2026, December 31, 2025 and March 31, 2025, the market values of the treasury shares calculated by combined holding percentage were NT$6,486,383 thousand, NT$6,520,694 thousand and NT$7,515,676 thousand, respectively.

In November 2023, the Corporation's Board of Directors resolved to buy back 150,000 thousand shares of ordinary shares from the open market for transfer to employees. At the end of the exercise period, the actual buy back shares amounted to 150,000 thousand shares, with a payment of NT$3,898,320 thousand, which had not yet been transferred to employees.

Under the Securities and Exchange Act, the number of shares bought back may not exceed 10% of the total number of issued and outstanding shares of the Corporation. The total amount of the shares bought back may not exceed the amount of retained earnings plus premium on capital stock plus realized capital reserve. The shares bought back to transfer to employees shall be transferred within five years from the date of buyback. The shares not transferred within the announced time limit shall be deemed as not issued by the Corporation, and amendment registration shall be processed.

The shares bought back for transfer to employees shall not be pledged and have no rights to vote and receive dividends.

g. Non-controlling interests

	For the Three Months Ended March 31
	2026	2025
Balance, beginning of the period	$ 37,285,484	$ 40,185,723
Attributable to non-controlling interests:
Share of net profit for the period	591,680	570,607
Other comprehensive income (loss) in the period
Exchange differences on translating foreign operations	281,028	212,487
Income tax relating to exchange differences on translating foreign operations	(3,902)	(1,241)
Unrealized gains and losses on financial assets at fair value through other comprehensive income	192,956	(14,220)
Gains and losses on hedging instrument	130,035	(174,670)
Income tax relating to gains and losses on hedging instrument	170	(1,148)
Share of other comprehensive income (loss) of associates accounted for using the equity method	39,038	(3,921)
Non-controlling interests arising from capital increase of subsidiaries	-	300,860
Dividend distributed by subsidiaries	(285,186)	(30,975)
Partial disposal of subsidiaries	1,967	8,016
Others	(7,816)	(29,149)
Balance, end of the period	$ 38,225,454	$ 41,022,369

OPERATING REVENUE

a. Contract balances

	March 31, 2026	December 31, 2025	March 31, 2025	January 1, 2025
Notes and accounts receivable (Note 10)	$ 14,946,616	$ 14,517,840	$ 16,717,532	$ 15,829,837
Contract assets
Construction contracts	$ 4,987,315	$ 5,456,008	$ 7,578,358	$ 8,071,872
Retentions receivable	1,389,385	1,334,654	926,620	1,002,982
Others	112,491	109,943	99,586	106,051
	$ 6,489,191	$ 6,900,605	$ 8,604,564	$ 9,180,905
Contract liabilities
Construction contracts	$ 4,632,637	$ 4,291,438	$ 3,335,587	$ 2,848,223
Sale of goods	3,400,949	2,827,245	2,171,746	2,225,877
Others	185,365	182,606	79,146	91,909
	$ 8,218,951	$ 7,301,289	$ 5,586,479	$ 5,166,009

b. Disaggregation of revenue

For the three months ended March 31, 2026

	Steel Department	Others	Total
Type of goods or services
Revenue from the sale of goods	$ 57,207,321	$ 12,611,191	$ 69,818,512
Construction contract, service and other revenue	989,035	8,354,342	9,343,377
	$ 58,196,356	$ 20,965,533	$ 79,161,889
For the three months ended March 31, 2025
	Steel Department	Others	Total
Type of goods or services
Revenue from the sale of goods	$ 61,430,962	$ 11,773,928	$ 73,204,890
Construction contract, service and other revenue	1,249,217	8,716,116	9,965,333
	$ 62,680,179	$ 20,490,044	$ 83,170,223

PROFIT (LOSS) BEFORE TAX

a. Interest income

	For the Three Months Ended March 31
	2026	2025
Bank deposits	$ 183,280	$ 210,954
Others	34,937	47,334
	$ 218,217	$ 258,288

b. Other income

	For the Three Months Ended March 31
	2026	2025
Dividend income	$ 230,251	$ 149,661
Rental income	44,584	45,699
Others	176,398	201,509
	$ 451,233	$ 396,869

c. Other gains and losses

	For the Three Months Ended March 31
	2026	2025
Net foreign exchange gain	$ 68,079	$ 310,269
Lease modification gain	7,027	184
Gain arising from financial assets at fair value through profit or loss	4,133	33,255
Gain on disposal of property, plant and equipment	1,190	32,440
Gain (loss) on disposal of investments	(16,498)	5,635
Others	(117,972)	(101,969)
	$ (54,041)	$ 279,814

The components of net foreign exchange gain were as follows:

	For the Three Months Ended March 31
	2026	2025
Foreign exchange gain	$ 497,158	$ 551,033
Foreign exchange loss	(429,079)	(240,764)
Net foreign exchange gain	$ 68,079	$ 310,269

d. Finance costs

	For the Three Months Ended March 31
	2026	2025
Total interest expense	$ 1,393,148	$ 1,393,908
Less: Amounts included in the cost of qualifying assets	165,476	147,906
	$ 1,227,672	$ 1,246,002

Information about capitalized interest was as follows:

	For the Three Months Ended March 31
	2026	2025
Capitalized amounts	$ 165,476	$ 147,906
Capitalized annual rates (%)	1.39-3.09	1.53-3.09

e. Depreciation and amortization

	For the Three Months Ended March 31
	2026	2025
Property, plant and equipment	$ 7,774,854	$ 8,032,715
Right-of-use assets	314,992	326,025
Investment properties	9,301	11,658
Intangible assets	28,131	32,273
Others	8,557	8,273
	$ 8,135,835	$ 8,410,944
Analysis of depreciation by function
Operating costs	$ 7,786,646	$ 8,046,743
Operating expenses	300,214	309,403
Others	12,287	14,252
	$ 8,099,147	$ 8,370,398
Analysis of amortization by function
Operating costs	$ 14,501	$ 16,817
Operating expenses	22,171	23,729
Others	16	-
	$ 36,688	$ 40,546

f. Employee benefits

	For the Three Months Ended March 31
	2026	2025
Short-term employee benefits
Salaries	$ 7,380,416	$ 7,482,886
Labor and health insurance	645,159	636,939
Others	326,079	337,772
	8,351,654	8,457,597
Post-employment benefits
Defined contribution plans	329,990	315,693
Defined benefit plans (Note 22)	64,130	73,019
	394,120	388,712
Termination benefits	17,258	19,103
	$ 8,763,032	$ 8,865,412
Analysis of employee benefits by function
Operating costs	$ 7,066,487	$ 7,126,720
Operating expenses	1,535,458	1,582,488
Others	161,087	156,204
	$ 8,763,032	$ 8,865,412

g. Compensation of employees and remuneration of directors

According to the Articles of Incorporation, the article stipulates the Corporation distributed compensation of employees and remuneration of directors at the rates no less than 0.1% and no higher than 0.15%, respectively, of the pre-tax profit prior to deducting compensation of employees and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Corporation resolved the amendments to the Articles of Incorporation at their 2025 regular meeting. The amendments explicitly stipulate the allocation of 30% to 50% of the compensation of employees as compensation distributions for non-executive employees.

The compensation of employees (including non-executive employees) and remuneration of directors for the three months ended March 31, 2026 and 2025 were as follows:

	For the Three Months Ended March 31
	2026	2025
Compensation of employees	$ -	$ 60,212
Remuneration of directors	-	1,129

No compensation of employees and remuneration of directors was estimated due to the loss before income tax for the three months ended March 31, 2026.

The appropriations of compensation of employees and remuneration of directors (all in cash) for 2025 and 2024 which had been approved by the Corporation’s board of directors in February 2026 and 2025, respectively, were as follows:

	For the Year Ended December 31
	2025	2024
Compensation of employees	$ -	$ 2,853
Remuneration of directors	-	-

There is no difference between the amounts of compensation of employees and remuneration of directors approved in the board of directors and the amounts recognized in the financial statements for the years ended December 31, 2025 and 2024.

Information on the compensation of employees and remuneration of directors resolved by the board of directors are available on the Market Observation Post System website of the Taiwan Stock Exchange.

INCOME TAX

a. Income tax recognized in profit or loss

	For the Three Months Ended March 31
	2026	2025
Current tax
In respect of the current period	$ 396,528	$ 586,429
In respect of prior years	2,954	(10,507)
Deferred tax
In respect of the current period	(37,127)	(265,977)
In respect of prior years	530,870	(5,541)
	$ 893,225	$ 304,404

b. Income tax recognized directly in equity

	For the Three Months Ended March 31
	2026	2025
Current tax
Reversal of special reserve due to disposal of property, plant and equipment	$ 16	$ 36
Deferred tax
Reversal of special reserve due to disposal of property, plant and equipment	(16)	(36)
	$ -	$ -

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

	For the Three Months Ended March 31
	2026	2025
Deferred tax
Current - translation of foreign operations	$ (23,754)	$ (14,377)
Current - unrealized gains and losses on financial assets at fair value through other comprehensive income	26,035	11,644
Current - fair value changes of cash flow hedges	(488)	(16,966)
Fair value changes of hedging instruments in cash flow hedges transferred to adjust carrying amounts of hedged items	(397)	(12,297)
	$ 1,396	$ (31,996)

d. Income tax assessments

The Corporation's income tax returns through 2024 and the subsidiaries' income tax returns through 2022 to 2024 have been assessed by the tax authorities, except for the Corporation's income tax return of 2022 which has not yet been approved.

EARNINGS (LOSS) PER SHARE

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

Net profit (loss) for the period

	For the Three Months Ended March 31
	2026	2025
Net profit (loss) for the period attributable to owners of the Corporation	$ (2,451,833)	$ 243,215
Less: Dividends on preference shares	13,394	13,394

46 -

	For the Three Months Ended March 31
	2026	2025
Net profit (loss) used in computation of basic earnings (loss) per share	$ (2,465,227)	$ 229,821
Add: Dividends on preference shares	-	-
Net profit (loss) used in computation of diluted earnings (loss) per share	$ (2,465,227)	$ 229,821
Number of shares (in thousand shares)
	For the Three Months Ended March 31
	2026	2025
Weighted average number of ordinary shares used in computation of basic earnings (loss) per share	15,241,738	15,249,393
Effect of dilutive potential ordinary shares:
Compensation of employees	-	2,765
Convertible preference shares	-	-
Weighted average number of ordinary shares used in computation of diluted earnings (loss) per share	15,241,738	15,252,158

Preference shares were not included in the calculation of diluted earnings (loss) per share for the three months ended March 31, 2026 and 2025 because of their anti-dilutive effect.

Since the Corporation offered to settle the compensation paid to employees in cash or shares, the Corporation assumed the entire amount of the compensation will be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

28. CAPITAL MANAGEMENT

The management of the Corporation and its subsidiaries optimized the balances of working capital, debt and equity as well as the related cost through monitoring the Corporation and its subsidiaries' capital structure and capital demand by reviewing quantitative data and considering industry characteristics, domestic and international economic environment, interest rate fluctuation, strategies for development, etc.

29. FINANCIAL INSTRUMENTS

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

The Corporation and its subsidiaries believe the carrying amounts of financial instruments, including cash and cash equivalents, receivables and payables recognized in the consolidated financial statements approximated their fair values.

b. Fair value of financial instruments that are measured at fair value on a recurring basis

1) Fair value hierarchy

	Level 1	Level 2	Level 3	Total
March 31, 2026
Financial assets at fair value through profit or loss
Mutual funds	$ 4,292,378	$ -	$ 19,752	$ 4,312,130
Unlisted shares	-	-	517,323	517,323
Emerging market shares	-	-	20,481	20,481
Listed shares	74,919	-	-	74,919
Corporate bonds	10,027	-	-	10,027
Convertible bonds	1,288	-	-	1,288
	$ 4,378,612	$ -	$ 557,556	$ 4,936,168
Financial liabilities at fair value through profit or loss
Foreign exchange forward contracts	$ -	$ 3,077	$ -	$ 3,077
Foreign exchange swap contracts	-	4,284	-	4,284
	$ -	$ 7,361	$ -	$ 7,361
Financial assets at fair value through other comprehensive income
Foreign unlisted shares and certificate of entitlement	$ -	$ -	$ 32,933,769	$ 32,933,769
Domestic listed shares	20,522,271	-	-	20,522,271
Domestic emerging market shares and unlisted shares	-	-	3,211,020	3,211,020
Foreign listed shares	3,007,413	-	-	3,007,413
Corporate bonds	50,235	-	-	50,235
Subordinated debt	45,772	-	-	45,772
	$ 23,625,691	$ -	$ 36,144,789	$ 59,770,480
Financial assets for hedging
Interest rate swap contracts	$ -	$ 1,533,848	$ -	$ 1,533,848
Foreign exchange forward contracts	-	75,460	-	75,460
	$ -	$ 1,609,308	$ -	$ 1,609,308
Financial liabilities for hedging
Interest rate swap contracts	$ -	$ -	$ -	$ -
Foreign exchange forward contracts	-	7,393	-	7,393
	$ -	$ 7,393	$ -	$ 7,393

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Mutual funds	$ 4,428,098	$ -	$ 18,093	$ 4,446,191
Unlisted shares	-	-	518,301	518,301
Emerging market shares	-	-	28,118	28,118
Listed shares	35,527	-	-	35,527
Corporate bonds	10,155	-	-	10,155
Convertible bonds	27,053	-	-	27,053
	$ 4,500,833	$ -	$ 564,512	$ 5,065,345
Financial liabilities at fair value through profit or loss
Foreign exchange forward contracts	$ -	$ 985	$ -	$ 985
Foreign exchange swap contracts	-	2,610	-	2,610
	$ -	$ 3,595	$ -	$ 3,595
Financial assets at fair value through other comprehensive income
Foreign unlisted shares and certificate of entitlement	$ -	$ -	$ 32,055,401	$ 32,055,401
Domestic listed shares	19,077,828	-	-	19,077,828
Domestic emerging market shares and unlisted shares	-	-	3,225,947	3,225,947
Foreign listed shares	3,069,152	-	-	3,069,152
Corporate bonds	50,613	-	-	50,613
Subordinated debt	46,211	-	-	46,211
	$ 22,243,804	$ -	$ 35,281,348	$ 57,525,152
Financial assets for hedging
Interest rate swap contracts	$ -	$ 1,273,192	$ -	$ 1,273,192
Foreign exchange forward contracts	-	66,512	-	66,512
Futures contracts	-	58,062	-	58,062
	$ -	$ 1,397,766	$ -	$ 1,397,766
Financial liabilities for hedging
Interest rate swap contracts	$ -	$ 6,533	$ -	$ 6,533
Foreign exchange forward contracts	-	8,186	-	8,186
	$ -	$ 14,719	$ -	$ 14,719

48 -

	Level 1	Level 2	Level 3	Total
March 31, 2025
Financial assets at fair value through profit or loss
Mutual funds	$ 4,120,815	$ -	$ 12,820	$ 4,133,635
Unlisted shares	-	-	802,211	802,211
Emerging market shares	-	-	58,030	58,030
Listed shares	87,610	-	-	87,610
Corporate bonds	17,081	-	-	17,081
Convertible bonds	238,056	-	-	238,056
Subordinated debt	50,000	-	-	50,000
Exchange traded notes	10,189	-	-	10,189
	$ 4,523,751	$ -	$ 873,061	$ 5,396,812
Financial liabilities at fair value through profit or loss
Foreign exchange forward contracts	$ -	$ 2,958	$ -	$ 2,958
Financial assets at fair value through other comprehensive income
Foreign unlisted shares and certificate of entitlement	$ -	$ -	$ 31,200,187	$ 31,200,187
Domestic listed shares	17,559,588	-	-	17,559,588
Domestic emerging market shares and unlisted shares	-	-	3,075,293	3,075,293
Foreign listed shares	2,813,653	-	-	2,813,653
Corporate bonds	35,623	-	-	35,623
Subordinated debt	48,013	-	-	48,013
	$ 20,456,877	$ -	$ 34,275,480	$ 54,732,357
Financial assets for hedging
Interest rate swap contracts	$ -	$ 1,189,472	$ -	$ 1,189,472
Foreign exchange forward contracts	-	116,630	-	116,630
Future contracts	-	12,172	-	12,172
	$ -	$ 1,318,274	$ -	$ 1,318,274
Financial liabilities for hedging
Foreign exchange forward contracts	$ -	$ 4,912	$ -	$ 4,912

There was no transfer between Level 1 and Level 2 for the three months ended March 31, 2026 and 2025.

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

For the three months ended March 31, 2026

	Financial Assets at Fair Value Through Profit or Loss	Financial Assets at Fair Value Through Other Comprehensive Income	Total
Financial Assets
Balance, beginning of the period	$ 564,512	$ 35,281,348	$ 35,845,860
Recognized in profit or loss	(6,956)	-	(6,956)
Recognized in other comprehensive income	-	688,992	688,992
Purchases	-	54,885	54,885
Transfer out of Level 3	-	(98,208)	(98,208)
Disposals	-	(13,601)	(13,601)
Effect of foreign currency exchange differences	-	231,373	231,373
Balance, end of the period	$ 557,556	$ 36,144,789	$ 36,702,345
For the three months ended March 31, 2025
	Financial Assets at Fair Value Through Profit or Loss	Financial Assets at Fair Value Through Other Comprehensive Income	Total
Financial Assets
Balance, beginning of the period	$ 856,533	$ 34,248,834	$ 35,105,367
Recognized in profit or loss	49,852	-	49,852
Recognized in other comprehensive income	-	22,475	22,475
Purchases	3,829	25,912	29,741
Transfer out of Level 3	-	(72,522)	(72,522)
Disposals	(37,153)	(57,645)	(94,798)
Effect of foreign currency exchange differences	-	108,426	108,426
Balance, end of the period	$ 873,061	$ 34,275,480	$ 35,148,541

50 -

3) Valuation techniques and inputs applied for the purpose of measuring Level 2 fair value measurement

Financial Instrument

Valuation Techniques and Inputs

Derivative instruments

For non-option derivatives, a discounted cash flow analysis was performed by using the applicable yield curve for the duration of the instruments, or each foreign exchange contract was individually calculated based on the foreign exchange rate displayed by correspondent banks’ quotation systems on its respective maturity date. For option derivatives, option pricing models were used. The estimates and assumptions used by the Corporation and its subsidiaries were consistent with those that market participants would use in setting a price for the financial instrument.

4) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement

a) For emerging market shares, fair values were estimated on the basis of the closing price and liquidity.

b) For domestic unlisted shares, some foreign unlisted shares and certificate of entitlement, fair values were measured using the market approach. The determination was based on industry types or valuations of similar companies and operations.

c) For other foreign unlisted shares, fair values were measured under income approach and calculated by the present value of the expected returns by using a discounted cash flow model. Significant unobservable inputs were as follows; if the long-term pre-tax operating income rate increased or discount rate decreased, the fair value of the investments would increase.

	March 31, 2026	December 31, 2025	March 31, 2025
Long-term pre-tax operating income rate (%)	14.14	13.90	12.52
Discount rate (%)	10.02	10.02	10.82

If the below input to the valuation model was changed to reflect reasonably possible alternative assumptions while all other variables were held constant, the fair value of the equity investment would increase (decrease) as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Long-term pre-tax operating income rate
Increase 1%	$ 203,385	$ 194,185	$ 222,719
Decrease 1%	$ (203,385)	$ (194,185)	$ (222,719)

52 -

	March 31, 2026	December 31, 2025	March 31, 2025
Discount rate
Increase 1%	$ (340,603)	$ (329,743)	$ (283,203)
Decrease 1%	$ 438,593	$ 425,029	$ 357,605

d) For parts of foreign unlisted shares, their fair values were measured under the market approach. In particular significant unobservable inputs included discount for lack of marketability and discount for minority interest. If discount for lack of marketability or discount for minority interest decreased, the fair values of the investments would increase.

e) For parts of mutual funds, their fair values were estimated on the carrying amount of the company's net assets.

c. Categories of financial instruments

	March 31, 2026	December 31, 2025	March 31, 2025
Financial assets
Financial assets at fair value through profit or loss	$ 4,936,168	$ 5,065,345	$ 5,396,812
Financial assets for hedging	2,405,185	2,229,079	3,646,816
Financial assets at amortized cost 1)	62,044,208	61,644,035	59,329,375
Financial assets at fair value through other comprehensive income	59,770,480	57,525,152	54,732,357
Financial liabilities
Financial liabilities at fair value through profit or loss	7,361	3,595	2,958
Financial liabilities for hedging	1,086,529	778,148	1,082,917
Financial liabilities at amortized cost 2)	294,105,262	294,872,073	307,084,997

1) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes and accounts receivable (including related parties), other receivables, financial assets at amortized cost - noncurrent, refundable deposits and other financial assets.

2) The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings and bank overdraft, short-term bills payable, notes and accounts payable (including related parties), other payables, refund liabilities, bonds payable, long-term bank borrowings, long-term bills payable and deposits received.

d. Financial risk management objectives and policies

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

The significant financial activities of the Corporation and its subsidiaries are reviewed by the board of directors in accordance with relevant regulations and internal controls. The finance department follows the accountability and related financial risk control procedures required by the Corporation and its

subsidiaries for executing financial projects. Compliance with policies and exposure limits is continually reviewed by the internal auditors. The Corporation and its subsidiaries did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

1) Market risk

a) Foreign currency risk

The Corporation and its subsidiaries were exposed to foreign currency risk due to sales, purchases, capital expenditures and equity investments denominated in foreign currencies. Exchange rate exposures were managed within approved policy parameters utilizing foreign exchange forward contracts, foreign deposits or foreign borrowings.

The carrying amounts of the significant non-functional currency monetary assets and liabilities (including those eliminated on consolidation) at the balance sheet date were referred to Note 33.

The Corporation and its subsidiaries were mainly exposed to the currencies USD and CNY. The following table details the sensitivity to a 1% increase in the functional currencies against the relevant foreign currencies.

	USD Impact		CNY Impact
	For the Three Months Ended March 31		For the Three Months Ended March 31
	2026	2025	2026	2025
Pre-tax profit or loss	$ 67,207	$ 68,002 i	$ (1,766)	$ (2,724) i
Equity	(649)	(1,933) ii	(1,366)	(2,975) ii

i. These were mainly attributable to the exposure of bank deposits, receivables, payables and borrowings which were not hedged at the balance sheet date.

ii. These were attributable to changes in the fair value of financial assets for hedging that were designated as hedging instruments in cash flow hedges.

In management's opinion, the sensitivity analysis was unrepresentative of the inherent foreign exchange risk because the exposure at the balance sheet date did not reflect the exposure during the period.

Hedge accounting

The Corporation and its subsidiaries' hedging strategies were as follows:

i. The Corporation and its subsidiaries' hedging strategy is to enter into foreign exchange forward contracts and purchase foreign currency to hedge. Those transactions are designated as cash flow hedges.

ii. The Corporation has designated certain long term foreign currency borrowing as a hedge to manage its foreign currency risk:

i) Currency risks on foreign equity investments are accounted for as fair value hedge. Changes in the fair value of hedging instruments are recognized, based on the nature of hedged items, either in other gains or losses or other comprehensive income. The Corporation performs assessment of hedging effectiveness and it expects that the value of foreign currency borrowing and the value of the foreign equity investment will systematically change in opposite direction in response to movements in the underlying exchange rates.

53 -

ii) Foreign currency risk on investments in foreign operations is managed by using foreign currency borrowing as a hedge instrument to hedge the investments.

The following tables summarize the information relating to the hedges of foreign currency risk.

March 31, 2026

Hedging Instruments/Hedged Items	Line Item in Balance Sheet	Carrying Amount
		Asset	Liability
Cash flow hedge
Foreign exchange forward contracts/Forecast purchases, construction contracts and raw materials	Financial assets/liabilities for hedging	$ 71,029	$ 7,393
Hedging foreign currency deposits/Forecast purchases, construction contracts and raw materials	Financial assets for hedging	795,877	-
Fair value hedge
Foreign exchange forward contracts/Payables for raw materials	Financial assets for hedging	4,431	-
Foreign currency bank borrowings/Financial assets at FVTOCI	Financial liabilities for hedging	-	243,407
Foreign currency bank borrowings/Financial assets at FVTPL	Financial liabilities for hedging	-	435,586
Net investment hedge in foreign operations
Foreign currency bank borrowings/Investment in foreign operations	-	-	-
Hedging Instruments/Hedged Items	Change in Fair Value of Hedging Instruments Used for Calculating Hedge Ineffectiveness	Change in Fair Value of Hedged Items Used for Calculating Hedge Ineffectiveness	Balance in Other Equity
---	---	---	---
			Continuing Hedges
Cash flow hedge
Foreign exchange forward contracts/Forecast purchases, construction contracts and raw materials	$ 5,310	$ (5,310)	$ 63,636
Hedging foreign currency deposits/Forecast purchases, construction contracts and raw materials	5,365	(5,365)	(67,999)

55 -

Hedging Instruments/Hedged Items	Change in Fair Value of Hedging Instruments Used for Calculating Hedge Ineffectiveness	Change in Fair Value of Hedged Items Used for Calculating Hedge Ineffectiveness	Balance in Other Equity		Fair Value Hedge - Hedged Items' Carrying Amount Asset	Fair Value Hedge - Accumulated Amount of Fair Value Hedge Adjustments Asset
			Continuing Hedges	Discontinuing Hedges
Fair value hedge
Foreign exchange forward contracts/Payables for raw materials	$ 5,528	$ (5,528)	NA	NA	$ -	$ -
Foreign currency bank borrowings/Financial assets at FVTOCI	364	(360)	$ 114,821	$ 88,920	558,192	(104,830)
Foreign currency bank borrowings/Financial assets at FVTPL	652	(667)	NA	NA	411,406	(233,352)
Net investment hedge in foreign operations
Foreign currency bank borrowings/Investment in foreign operations	-	-	-	3,788,786	NA	NA

March 31, 2025

Hedging Instruments/Hedged Items	Line Item in Balance Sheet	Carrying Amount
		Asset	Liability
Cash flow hedge
Foreign exchange forward contracts/Forecast purchases, construction contracts and raw materials	Financial assets/liabilities for hedging	$ 116,630	$ 1,925
Hedging foreign currency deposits/Forecast purchases, construction contracts and raw materials	Financial assets for hedging	2,328,542	-
Fair value hedge
Foreign exchange forward contracts/Payables for raw materials	Financial liabilities for hedging	-	2,987
Foreign currency bank borrowings/Financial assets at FVTOCI	Financial liabilities for hedging	-	270,358
Foreign currency bank borrowings/Financial assets at FVTPL	Financial liabilities for hedging	-	731,235
Net investment hedge in foreign operations
Foreign currency bank borrowings/Investment in foreign operations	-	-	-

56 -

Hedging Instruments/Hedged Items	Change in Fair Value of Hedging Instruments Used for Calculating Hedge Ineffectiveness	Change in Fair Value of Hedged Items Used for Calculating Hedge Ineffectiveness	Balance in Other Equity		Fair Value Hedge - Hedged Items' Carrying Amount Asset	Fair Value Hedge - Accumulated Amount of Fair Value Hedge Adjustments Asset
			Continuing Hedges	Discontinuing Hedges
Cash flow hedge
Foreign exchange forward contracts/Forecast purchases, construction contracts and raw materials	$ (8,795)	$ 8,795	$ 114,705	$ -	NA	NA
Hedging foreign currency deposits/Forecast purchases, construction contracts and raw materials	135,651	(135,651)	33,869	-	NA	NA
Fair value hedge
Foreign exchange forward contracts/Payables for raw materials	(1,723)	1,723	NA	NA	$ -	$ -
Foreign currency bank borrowings/Financial assets at FVTOCI	(15,539)	15,386	87,871	88,920	496,176	(78,146)
Foreign currency bank borrowings/Financial assets at FVTPL	(42,029)	42,662	NA	NA	689,200	(276,035)
Net investment hedge in foreign operations
Foreign currency bank borrowings/Investment in foreign operations	-	-	-	3,788,786	NA	NA

For the three months ended March 31, 2026

Effect on Comprehensive Income (Loss)	Hedging Gains (Losses) Recognized in OCI	Amount of Hedge Ineffectiveness Recognized in P/L	Line Item in Which Hedge Ineffectiveness is Included	Amount Reclassified to P/L and the Adjusted Line Item
				Due to Hedged Item Affecting P/L	Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge	$ 10,675	$ -	-	$ -	$ -

For the three months ended March 31, 2025

Effect on Comprehensive Income (Loss)	Hedging Gains (Losses) Recognized in OCI	Amount of Hedge Ineffectiveness Recognized in P/L	Line Item in Which Hedge Ineffectiveness is Included	Amount Reclassified to P/L and the Adjusted Line Item
				Due to Hedged Item Affecting P/L	Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge	$ 126,856	$ -	-	$ -	$ -

The outstanding foreign exchange forward contracts of the Corporation and its subsidiaries at the balance sheet date were as follows:

	Currency	Period for Generating Cash Flows and Maturity Date	Contract Amount (In Thousands)
March 31, 2026
Buy	NTD/USD	2026.04-2027.07	NTD466,198/USD15,312
Buy	NTD/JPY	2026.06-2027.09	NTD177,813/JPY852,333
Buy	NTD/EUR	2026.04-2026.07	NTD52,914/EUR1,484
Buy	NTD/CNY	2026.04-2027.02	NTD293,893/CNY68,212
Buy	INR/USD	2026.04-2026.06	INR742,715/USD7,956
December 31, 2025
Buy	NTD/USD	2026.01-2027.05	NTD574,154/USD18,871
Buy	NTD/JPY	2026.06-2027.09	NTD177,813/JPY852,333
Buy	NTD/EUR	2026.01-2026.08	NTD69,743/EUR2,063
Buy	NTD/CNY	2026.01-2026.12	NTD297,537/CNY69,843
March 31, 2025
Buy	NTD/USD	2025.04-2026.08	NTD502,066/USD17,147
Buy	NTD/JPY	2025.04-2025.12	NTD25,446/JPY115,371
Buy	NTD/EUR	2025.04-2026.08	NTD859,444/EUR25,402
Buy	NTD/CNY	2025.04-2026.01	NTD255,644/CNY56,811
Buy	INR/USD	2025.04	INR636,327/USD7,348
Sell	USD/NTD	2025.07	USD63/NTD1,963

b) Interest rate risk

The Corporation and its subsidiaries were exposed to interest rate risk because the Corporation and its subsidiaries borrowed funds at both fixed and floating interest rates. The risk is managed by the Corporation and its subsidiaries by maintaining an appropriate mix of fixed and floating rate borrowings and using interest rate swap contracts.

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

	March 31, 2026	December 31, 2025	March 31, 2025
Fair value interest rate risk
Financial liabilities	$ 143,946,732	$ 107,211,335	$ 105,923,235
Cash flow interest rate risk
Financial liabilities	126,136,940	164,056,333	170,050,809

If interest rates had been 1% higher/lower and all other variables were held constant, the Corporation and its subsidiaries' pre-tax loss for the three months ended March 31, 2026 would have been higher/lower by NT$315,342 thousand, and pre-tax profit for the three months ended March 31, 2025 would have been lower/higher by NT$425,127 thousand.

Hedge accounting

A subsidiary entered into interest rate swap contracts to mitigate the risk of changes in interest rates on cash flow exposure related to its outstanding variable rate debt. Interest rate swaps are settled on a quarterly basis. The floating rate on interest rate swaps is the local interbank rate of Taipei. The subsidiary will settle the difference between the fixed and floating interest rates on a net basis.

The following tables summarize the information relating to the hedges for interest rate risk:

March 31, 2026

Hedging Instrument/ Hedged Item	Notional Amount	Maturity	Range of Interest Rates Paid (%)	Range of Interest Rates Received (%)
Cash flow hedge
Interest rate swap contracts/Expected bank interest	$ 39,783,719	2027.3-2031.12	0.994-1.81	1.68
Hedging Instrument/ Hedged Item	Line Item in Balance Sheet	Carrying Amount
			Asset	Liability
Cash flow hedge
Interest rate swap contracts/Expected bank interest	Financial assets for hedging		$ 1,533,848	$ -
	Change in Fair Value of Hedging Instruments Used for Calculating Hedge Ineffectiveness	Change in Fair Value of Hedged Items Used for Calculating Hedge Ineffectiveness	Balance in Other Equity
Hedging Instrument/ Hedged Item			Continuing Hedges	Discontinuing Hedges
Cash flow hedge
Interest rate swap contracts/Expected bank interest	$ 267,189	$ (267,189)	$ 1,533,848	$ -
March 31, 2025
Hedging Instrument/ Hedged Item	Notional Amount	Maturity	Range of Interest Rates Paid (%)	Range of Interest Rates Received (%)
Cash flow hedge
Interest rate swap contracts/Expected bank interest	$ 41,250,000	2031.12	0.994	1.68

58 -

59 -

Hedging Instrument/Hedged Item	Line Item in Balance Sheet	Carrying Amount
		Asset	Liability
Cash flow hedge
Interest rate swap contracts/Expected bank interest	Financial assets for hedging	$ 1,189,472	$ -
Hedging Instrument/Hedged Item	Change in Fair Value of Hedging Instruments Used for Calculating Hedge Ineffectiveness	Change in Fair Value of Hedged Items Used for Calculating Hedge Ineffectiveness	Balance in Other Equity
			Continuing Hedges Discontinuing Hedges
Cash flow hedge Interest rate swap contracts/Expected bank interest	$ (342,853)	$ 342,853	$ 1,189,472

c) Other price risk

The Corporation and its subsidiaries were exposed to equity price risk through their investments in mutual funds and listed shares.

If equity prices had been 1% lower/higher, the pre-tax profit or loss for the three months ended March 31, 2026 and 2025 would have been lower/higher by NT$43,673 thousand and NT$42,084 thousand, respectively, as a result of the fair value changes of financial assets at fair value through profit or loss, and the other comprehensive income for the three months ended March 31, 2026 and 2025 would have been lower/higher by NT$235,297 thousand and NT$203,732 thousand, respectively, as a result of the changes in fair value of financial assets at fair value through other comprehensive income.

Hedge accounting

A subsidiary minimizes its fair value exposures of financial liabilities to price fluctuations of precious metals by entering into precious metals borrowing contracts and minimizes its fair value of inventory exposures to price fluctuations of precious metals by entering into precious metals futures contracts. The fair value of the precious metals borrowing transactions at the end of the reporting period is determined by the price of the precious metals. The fair value of the precious metals futures transactions at the end of the reporting period is estimated based on the spot position of the underlying assets linked to the held derivative instruments.

The terms of the precious metals borrowing contracts and precious metals futures contracts matched the terms of financial liabilities. The subsidiary performs a qualitative assessment of effectiveness and it expects that the value of the precious metals borrowing contracts and precious metals futures contracts and the value of the corresponding hedged items will systematically change in the opposite direction in response to movements in the underlying prices. The source of hedge ineffectiveness in these hedge relationships is the effect of the counterparty and the subsidiary's own credit risk on the fair value of the precious metals borrowing contracts and precious metals futures contracts, which is not reflected in the fair value of the hedged item attributable to the change in prices. No other sources of ineffectiveness are expected to emerge from these hedging relationships.

The following tables summarize the information relating to the hedges of other price risk.

March 31, 2026

Hedging Instruments	Contract Amount	Maturity	Line Item in Balance Sheet	Carrying Amount Asset/Liability	Change in Fair Value of Hedging Instruments Used for Calculating Hedge Ineffectiveness
Fair value hedge
Precious metals borrowing contracts	$ 412,636	-	Financial liabilities for hedging	$ 400,143	$ 12,493
Sell futures contracts - Silver	139,141	2026.01-2026.02	Financial assets for hedging	-	3,462

		Carrying Amount	Accumulated Amount of Fair Value Hedge Adjustments	Change in Fair Value of Hedged Items Used for Calculating Hedge Ineffectiveness
Hedged Items		Asset	Asset
Fair value hedge
Inventory - borrowings contracts	$ 400,143		$ (12,493)		$ (12,493)

March 31, 2025

Hedging Instruments	Contract Amount	Maturity	Line Item in Balance Sheet	Carrying Amount Asset/Liability	Change in Fair Value of Hedging Instruments Used for Calculating Hedge Ineffectiveness
Fair value hedge
Precious metals borrowing contracts	$ 76,412	-	Financial liabilities for hedging	$ 76,412	$ -
Sell futures contracts - Silver	54,705	2025.05	Financial assets for hedging	12,172	(4,065)
Sell futures contracts - Silver	54,600	2025.02	Financial assets for hedging	-	393

		Carrying Amount	Accumulated Amount of Fair Value Hedge Adjustments	Change in Fair Value of Hedged Items Used for Calculating Hedge Ineffectiveness
Hedged Items		Asset	Asset
Fair value hedge
Inventory - borrowings contracts	$ 76,412		$ -		$ -
Inventory - futures contracts	52,918		5,362		5,362

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Corporation and its subsidiaries. As at the balance sheet date, the Corporation and its subsidiaries' maximum exposure to credit risk is the carrying amount of the financial assets on the consolidated balance sheets and the amount of contingent liabilities in relation to financial guarantee issued by the Corporation and its subsidiaries.

The Corporation and its subsidiaries do not expect significant credit risk because the counterparties are creditworthy financial institutions and companies.

Counterparties of accounts receivable consisted of a large number of different customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the customers' financial condition.

The Corporation and its subsidiaries did not have significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The Corporation and its subsidiaries define counterparties as having similar characteristics if they are related entities.

As of March 31, 2026, December 31, 2025 and March 31, 2025, the maximum credit risk of off-balance-sheet guarantees provided to related party for procurement and construction contract compliance was NT$862,061 thousand, NT$908,543 thousand and NT$1,067,964 thousand, respectively.

3) Liquidity risk

The management of the Corporation and its subsidiaries continuously monitors the movement of cash flows, net cash position, significant capital expenditures and the utilization of bank loan commitments to control proportion of the long-term and short-term bank loans or issue bonds payable, and ensures compliance with loan covenants.

The following table details the undiscounted cash flows of the Corporation and its subsidiaries' remaining contractual maturity for its non-derivative financial liabilities from the earliest date on which they can be required to pay. The tables included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time span regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates or financial guarantee periods.

The table below summarized the maturity profile of the Corporation and its subsidiaries' financial liabilities based on contractual undiscounted payments:

	Less Than 1 Year	1-5 Years	Over 5 Years	Total
March 31, 2026
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 33,113,782	$ 149,978	$ -	$ 33,263,760
Lease liabilities	1,172,960	2,244,796	10,328,756	13,746,512
Variable interest rate liabilities	35,071,061	73,822,654	30,858,451	139,752,166
Fixed interest rate liabilities	72,418,666	62,554,674	2,787,106	137,760,446
Refund liabilities	1,273,118	-	-	1,273,118

	Less Than 1 Year	1-5 Years	Over 5 Years	Total
Financial guarantee liabilities	$ 146,248	$ 715,813	$ -	$ 862,061
	$ 143,195,835	$ 139,487,915	$ 43,974,313	$ 326,658,063
December 31, 2025
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 32,731,219	$ 194,984	$ -	$ 32,926,203
Lease liabilities	1,190,999	2,356,328	10,296,326	13,843,653
Variable interest rate liabilities	38,226,241	108,634,423	31,099,881	177,960,545
Fixed interest rate liabilities	42,982,287	57,199,065	-	100,181,352
Refund liabilities	1,056,397	-	-	1,056,397
Financial guarantee liabilities	143,764	764,779	-	908,543
	$ 116,330,907	$ 169,149,579	$ 41,396,207	$ 326,876,693
March 31, 2025
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 40,395,861	$ 231,616	$ -	$ 40,627,477
Lease liabilities	1,159,188	2,457,052	10,022,478	13,638,718
Variable interest rate liabilities	48,421,592	103,402,381	33,476,623	185,300,596
Fixed interest rate liabilities	38,939,778	59,591,544	-	98,531,322
Refund liabilities	1,149,544	-	-	1,149,544
Financial guarantee liabilities	-	472,327	595,637	1,067,964
	$ 130,065,963	$ 166,154,920	$ 44,094,738	$ 340,315,621

The amounts included above for financial guarantee liabilities were the maximum amounts the Corporation and its subsidiaries could be required to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the balance sheet date, the Corporation and its subsidiaries considered that it is more likely than not that none of the amount will be payable under the arrangement.

30. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Corporation and its subsidiaries and other related parties were disclosed below:

a. The name of the company and its relationship with the Corporation and its subsidiaries

Company	Relationship
TaiAn Technologies Corporation	Associate
Fukuta Electric & Machinery Co., Ltd.	Associate
Hsin Hsin Cement Enterprise Corporation	Associate
Eminent III Venture Capital Corporation	Associate
Nikken & CSSC Metal Products Co., Ltd.	Associate
Eminent II Venture Capital Corporation	Associate
Honley Auto. Parts Co., Ltd.	Associate
Taiwan Rolling Stock Co., Ltd.	Associate
Kaohsiung Arena Development Corporation	Associate
Overseas Investment & Development Corporation	Associate
Chateau International Development Co., Ltd.	Associate
HC&C Auto Parts Co., Ltd.	Associate
TSK Steel Company Limited	Associate
Taiwan High Speed Rail Corporation	The Corporation as key management of other related parties
Rechi Precision Co., Ltd.	The Corporation as key management of other related parties
TIWTC CORP. LTD.	The Corporation as key management of other related parties
Tang Eng Iron Works Co., Ltd.	The Corporation as key management of other related parties
East Asia United Steel Corporation	The Corporation as key management of other related parties
Sakura Ferroalloys Sdn. Bhd.	The Corporation as key management of other related parties
Rechi Precision (Qingdao) Electric Machinery Limited	The Corporation as key management of parent company
Ministry of Economic Affairs, R.O.C.	Director of the Corporation
CSC Labor Union	Director of the Corporation
CSC Educational Foundation	Other related parties
Formosa Ha Tinh Steel Corporation	Other related parties
Formosa Ha Tinh (Cayman) Limited	Other related parties

b. Operating revenues

Account Items	Related Parties Types	For the Three Months Ended March 31
		2026	2025
Revenue from sales of goods	Associates	$ 187,478	$ 185,000
	Other related parties	101,209	-
	The Corporation as key management of parent company	17,386	23,283

64 -

Account Items	Related Parties Types	For the Three Months Ended March 31
		2026	2025
	Others	$ 68	$ -
		$ 306,141	$ 208,283
Construction contract revenue	The Corporation as key management of other related parties	$ 11,398	$ 80
	Associates	2,516	4,866
	Other related parties	2,061	391
		$ 15,975	$ 5,337

Sales to related parties were made at arm’s length. The construction contracts undertaken by the Corporation and its subsidiaries with related parties were different from those with unrelated parties; therefore, the prices were not comparable while the collection terms have no material differences.

c. Purchase of goods

Related Parties Types	For the Three Months Ended March 31
	2026	2025
Other related parties	$ 1,606,133	$ 1,738,631
The Corporation as key management of other related parties	217,202	376,086
Others	43,011	54,695
	$ 1,866,346	$ 2,169,412

Purchases from related parties were made at arm’s length.

d. Receivables from related parties

Account Items	Related Parties Types	March 31, 2026	December 31, 2025	March 31, 2025
Notes and accounts receivable	The Corporation as key management of other related parties	$ 94,066	$ 129,358	$ 14,506
Other related parties	64,833	22,202	24,306
The Corporation as key management of parent company	5,768	-	10,243
Others	514	815	461
	$ 165,181	$ 152,375	$ 49,516
Other receivables	Other related parties	$ 33,342	$ 14,147	$ 24,468
The Corporation as key management of other related parties	1,907	6	5,841
Associates	1,393	1,723	984
	$ 36,642	$ 15,876	$ 31,293

e. Payables to related parties

Account Items	Related Parties Types	March 31, 2026	December 31, 2025	March 31, 2025
Accounts payable	The Corporation as key management of other related parties	$ 58,717	$ 85,685	$ 51,355
	Associates	15,280	30,596	30,402
	Other related parties	4,953	61,738	144,697
		$ 78,950	$ 178,019	$ 226,454
Other payables	Other related parties	$ 4,070	$ 851	$ 4,240
	The Corporation as key management of other related parties	197	787	197
	Director of the Corporation	-	-	565
		$ 4,267	$ 1,638	$ 5,002

The outstanding payables to related parties were unsecured.

f. Others

Classified as operating and non-operating income by nature:

Account Items	Related Parties Types	For the Three Months Ended March 31
		2026	2025
Service and other revenues and other income - other	Other related parties	$ 61,769	$ 73,391
	The Corporation as key management of other related parties	59,224	44,168
	Others	3,717	3,183
		$ 124,710	$ 120,742

g. Endorsements and guarantees provided by the Corporation and its subsidiaries

Related Parties Types/Names	March 31, 2026	December 31, 2025	March 31, 2025
The Corporation as key management of other related parties - Sakura
Amount endorsed	$ 1,058,515	$ 1,037,068	$ 1,364,257
Amount utilized	(715,813)	(764,779)	(922,762)
	$ 342,702	$ 272,289	$ 441,495

Endorsements and guarantees above are provided to investee by the percentage of shareholdings under joint venture agreements.

h. Compensation of key management personnel

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

	For the Three Months Ended March 31
	2026	2025
Short-term employee benefits	$ 12,471	$ 15,474
Post-employment benefits	486	385
	$ 12,957	$ 15,859

31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The Corporation and its subsidiaries' assets mortgaged or pledged as collateral for long-term borrowings, short-term borrowings and bank overdraft, performance guarantees and bankers' acceptance bills, etc. were as follows (listed based on their carrying amounts):

	March 31, 2026	December 31, 2025	March 31, 2025
Net property, plant and equipment	$ 61,105,908	$ 61,785,338	$ 68,195,802
Shares (a.)	23,283,242	22,897,493	28,085,083
Time deposits	7,085,563	7,039,011	6,989,852
Pledged receivables (b.)	2,000,000	2,000,000	2,000,000
Demand deposits	1,209,882	1,209,882	300,000
Net investment properties	963,706	965,678	1,005,872
Trade receivable - sales and notes discounted	118,908	190,332	218,472
Right-of-use assets - land	120,101	119,264	133,233
Buildings and lands under construction	518,061	478,299	300,009
	$ 96,405,371	$ 96,685,297	$ 107,228,323

a. The Corporation pledged the shares of the subsidiary CPHC and ZN, and the subsidiary CPHC pledged the shares of the subsidiary ZN as collateral for the subsidiary ZN's long-term borrowings and financing facilities. Shares of the Corporation which were pledged by WIC and TIC were recorded as treasury shares in the consolidated financial statements.

b. In accordance with revised agreements of build-operate-transfer contract in 2013, the subsidiary KRTC reclassified NT$2,000,000 thousand including arbitration receivable - Kaohsiung City Government and part of the consideration of transferred assets to operating performance guarantees.

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant commitments and contingencies of the Corporation and its subsidiaries as of March 31, 2026 were as follows:

a. The Corporation and its subsidiaries provided letters of credits for NT$9.8 billion guaranteed by financial institutions for several constructions, lease contracts and payment. Guarantee notes for NT$6.1 billion were provided to owners for purchase agreements, performance of the contract and warranties.

b. Unused letters of credit for importation of materials and machinery amounted to NT$5.2 billion.

c. Property purchase and construction contracts for NT$7.1 billion were signed but not yet recorded.

d. The Corporation and its subsidiaries entered into raw material purchase contracts with suppliers in Australia, Brazil, Canada, China, Japan, Philippines, Vietnam, Indonesia and domestic companies with contract terms of 1 to 3 years. Contracted annual purchases of 8,650,000 metric tons of coal, 19,060,000 metric tons of iron ore, and 2,740,000 metric tons of limestone are at prices negotiable with the counterparties. Purchase commitments as of March 31, 2026 were US$4.4 billion (including 10,260,000 metric tons of coal and 24,130,000 metric tons of iron ore).

e. Refer to Table 2 for information relating to endorsements/guarantees provided.

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the Corporation and its subsidiaries and the exchange rates between foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

	Foreign Currencies (In Thousands)	Exchange Rate		Carrying Amount (In Thousands of New Taiwan Dollars)
March 31, 2026
Monetary foreign assets
USD	$ 157,011	31.9950	(USD:NTD)	$ 5,023,551
VND	1,494,508,741	0.00004	(VND:USD)	1,785,938
Non-monetary foreign assets
Financial assets at fair value through other comprehensive income
USD	794,820	31.9950	(USD:NTD)	25,430,273
JPY	11,135,739	0.2005	(JPY:NTD)	2,232,716
MYR	291,558	7.6525	(MYR:NTD)	2,231,144
Associates accounted for using the equity method
USD	330,665	31.9950	(USD:NTD)	10,579,595
AUD	1,093,604	21.9600	(AUD:NTD)	24,015,546
Monetary foreign liabilities
USD	281,122	31.9950	(USD:NTD)	8,994,490
USD	105,285	93.7720	(USD:INR)	3,368,598
December 31, 2025
Monetary foreign assets
USD	210,458	31.4300	(USD:NTD)	6,614,694
AUD	67,870	21.0100	(AUD:NTD)	1,425,945
JPY	6,383,651	0.20080	(JPY:NTD)	1,281,837
VND	1,222,969,493	0.00004	(VND:USD)	1,436,989

	Foreign Currencies (In Thousands)	Exchange Rate		Carrying Amount (In Thousands of New Taiwan Dollars)
Non-monetary foreign assets
Financial assets at fair value through other comprehensive income
USD	$ 795,405	31.4300	(USD:NTD)	$ 24,999,566
JPY	11,428,000	0.2008	(JPY:NTD)	2,294,743
MYR	271,698	7.4805	(MYR:NTD)	2,032,440
Associates accounted for using the equity method
USD	333,391	31.4300	(USD:NTD)	10,478,411
AUD	1,078,095	21.0100	(AUD:NTD)	22,650,773
Monetary foreign liabilities
USD	262,564	31.4300	(USD:NTD)	8,252,374
JPY	5,471,844	0.2008	(JPY:NTD)	1,098,746
USD	97,617	90.0186	(USD:INR)	3,068,113
VND	1,043,351,855	0.00004	(VND:USD)	1,225,938
March 31, 2025
Monetary foreign assets
USD	140,458	33.2050	(USD:NTD)	4,663,905
JPY	10,378,144	0.2227	(JPY:NTD)	2,311,213
VND	1,030,784,827	0.00004	(VND:USD)	1,314,251
Non-monetary foreign assets
Financial assets at fair value through other comprehensive income
USD	717,468	33.2050	(USD:NTD)	23,823,534
JPY	8,884,000	0.2227	(JPY:NTD)	1,978,466
MYR	315,689	7.2195	(MYR:NTD)	2,279,118
Associates accounted for using the equity method
USD	357,882	33.2050	(USD:NTD)	11,883,329
AUD	1,221,139	20.8100	(AUD:NTD)	25,411,899
Monetary foreign liabilities
USD	247,480	33.2050	(USD:NTD)	8,217,579
JPY	6,285,743	0.2227	(JPY:NTD)	1,399,835
USD	121,731	85.4918	(USD:INR)	4,042,091
VND	1,217,147,516	0.00004	(VND:USD)	1,551,863

It is impractical to disclose net foreign exchange gains and losses by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of each entity. Please refer to Note 25 for information relating to net foreign exchange gains and losses.

69 -

34. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and b. investees:

1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Significant marketable securities held (excluding investments in subsidiaries and associates) (Table 3)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
6) Intercompany relationships and significant intercompany transactions (Table 6)
7) Information on investees (Table 7)

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, investment income (loss), carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 8)

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms and unrealized gains and losses:

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period (Table 4)
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period (Table 4)
c) The amount of property transactions and the amount of the resultant gains or losses (None)
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes (Table 2)
e) The highest balance, the end of period balance and the interest rate range, and total current period interest with respect to financing of funds (Table 1)
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services (None)

35. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance. Since the actual resource allocation focuses on the steel business, the resource investment in non-steel business is mainly decided by each company, and it is mainly the demand

for the extension of the steel business. Reported segments of the Corporation and its subsidiaries were as follows:

Steel department - manufacture and sell steel products, including the Corporation, DSC, CHS, CSCM, CSVC and CSCI.
Non-steel department - extension or support of the manufacture of steel products, analysis by function, including engineering, industrial materials, green power, shipping, trading, investing, etc.

a. Segment revenue and operating results

The following is an analysis of the Corporation and its subsidiaries' revenues and results of operations by reportable segment.

	Steel Department	Non-Steel Department	Adjustment and Elimination	Total
For the three months ended March 31, 2026
Revenue from external customers	$ 58,196,356	$ 20,965,533	$ -	$ 79,161,889
Inter-segment revenue	10,518,883	11,675,616	(22,194,499)	-
Segment revenue	$ 68,715,239	$ 32,641,149	$ (22,194,499)	$ 79,161,889
Segment profit (loss)	$ (3,732,294)	$ 3,084,514	$ 27,237	$ (620,543)
Interest income	46,068	184,946	(12,797)	218,217
Financial costs	(723,364)	(547,741)	43,433	(1,227,672)
Share of the profit (loss) of associates	(837,026)	1,397,169	(294,265)	265,878
Other non-operating income and expenses	302,237	289,430	(194,475)	397,192
Profit (loss) before income tax	(4,944,379)	4,408,318	(430,867)	(966,928)
Income tax expense	361,774	551,148	(19,697)	893,225
Net profit (loss) for the period	$ (5,306,153)	$ 3,857,170	$ (411,170)	$ (1,860,153)
For the three months ended March 31, 2025
Revenue from external customers	$ 62,680,179	$ 20,490,044	$ -	$ 83,170,223
Inter-segment revenue	11,807,203	12,664,431	(24,471,634)	-
Segment revenue	$ 74,487,382	$ 33,154,475	$ (24,471,634)	$ 83,170,223
Segment profit (loss)	$ (1,270,734)	$ 2,772,368	$ (129,855)	$ 1,371,779
Interest income	75,375	208,849	(25,936)	258,288
Financial costs	(724,217)	(574,623)	52,838	(1,246,002)
Share of the profit (loss) of associates	(652,891)	1,085,675	(375,306)	57,478
Other non-operating income and expenses	487,591	366,222	(177,130)	676,683
Profit (loss) before income tax	(2,084,876)	3,858,491	(655,389)	1,118,226
Income tax expense (benefit)	(210,003)	562,600	(48,193)	304,404
Net profit (loss) for the period	$ (1,874,873)	$ 3,295,891	$ (607,196)	$ 813,822

Inter-segment revenue was accounted for according to market price or cost-plus pricing.

b. Segment total assets and liabilities

	March 31, 2026	December 31, 2025	March 31, 2025
Segment assets
Steel department	$ 652,008,859	$ 652,682,624	$ 677,415,333
Non - steel department	294,455,183	289,159,794	307,802,750
Adjustment and elimination	(270,671,427)	(267,995,445)	(287,986,976)
Consolidated total assets	$ 675,792,615	$ 673,846,973	$ 697,231,107
Segment liabilities
Steel department	$ 249,916,759	$ 248,460,283	$ 254,004,672
Non - steel department	117,417,162	117,374,454	123,444,585
Adjustment and elimination	(23,147,990)	(21,906,769)	(23,598,412)
Consolidated total liabilities	$ 344,185,931	$ 343,927,968	$ 353,850,845

71 -

TABLE 1

CHINA STEEL CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE PERIOD ENDED MARCH 31, 2026

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

No.	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Interest Rate	Nature for Financing (Note 1)	Transaction Amounts	Reason for Financing	Allowance for Bad Debt	Collateral		Financing Limits for Each Borrowing Company	Financing Company's Total Financing Amount Limits	Note
													Item	Value
0	China Steel Corporation	C.S.Aluminium Corporation	Other receivables	Yes	1,800,000	1,600,000	600,000	1.77%-1.79%	2	-	Operating capital	-	-	-	29,338,122	58,676,245	Note 2
0	China Steel Corporation	China Steel Resources Corporation	Other receivables	Yes	700,000	700,000	650,000	1.77%-1.80%	2	-	Operating capital	-	-	-	29,338,122	58,676,245	Note 2
0	China Steel Corporation	HIMAG Magnetic Corporation	Other receivables	Yes	200,000	-	-	1.77%-1.80%	2	-	Operating capital	-	-	-	29,338,122	58,676,245	Note 2
0	China Steel Corporation	Sing Du Marine Structure Corporation	Other receivables	Yes	500,000	50,000	-	N/A	2	-	Operating capital	-	-	-	29,338,122	58,676,245	Note 2
0	China Steel Corporation	Kaohsiung Rapid Transit Corporation	Other receivables	Yes	900,000	900,000	400,000	1.72%-1.75%	2	-	Operating capital	-	-	-	29,338,122	58,676,245	Note 2
0	China Steel Corporation	Chang Hung Steel Corporation	Other receivables	Yes	1,200,000	1,000,000	-	N/A	2	-	Operating capital	-	-	-	29,338,122	58,676,245	Note 2
1	China Steel Security Corporation	Steel Castle Technology Corporation	Other receivables	Yes	-	-	-	N/A	2	-	Operating capital	-	-	-	211,559	211,559	Note 3
2	China Prosperity Development Corporation	China Prosperity Construction Corporation	Other receivables	Yes	100,000	100,000	73,000	1.68%-1.70%	2	-	Operating capital	-	-	-	2,520,595	2,520,595	Note 4
2	China Prosperity Development Corporation	China Steel Corporation	Other receivables	Yes	850,000	800,000	800,000	1.67%-1.70%	2	-	Operating capital	-	-	-	2,520,595	2,520,595	Note 4
3	HIMAG Magnetic Corporation	MagnPower Corporation	Other receivables	Yes	170,000	170,000	170,000	2.41%	2	-	Operating capital	-	-	-	230,982	230,982	Note 5
4	Ever Wealthy International Corporation	Changzhou China Steel New Materials Technology Co., Ltd.	Other receivables	Yes	97,209	97,209	55,548	2.00%	2	-	Operating capital	-	-	-	330,757	496,135	Note 6
5	InfoChamp Systems Corporation	China Steel Corporation	Other receivables	Yes	120,000	120,000	120,000	1.67%-1.70%	2	-	Operating capital	-	-	-	321,409	367,325	Note 7
6	China Steel Machinery Corporation	China Steel Corporation	Other receivables	Yes	550,000	550,000	550,000	1.67%-1.70%	2	-	Operating capital	-	-	-	766,183	766,183	Note 8
7	China Steel Power Corporation	CI III Zhong Neng K/S SCSp	Other receivables	Yes	1,100,000	1,100,000	1,100,000	1.60%	2	-	Repayments of bank borrowings	-	-	-	5,282,831	5,282,831	Note 9
8	China Steel Express Corporation	China Steel Corporation	Other receivables	Yes	500,000	500,000	-	N/A	2	-	Operating capital	-	-	-	1,111,077	2,222,155	Note 10

Note 1: The nature for financing is as follows:
1) Business relationship
2) The need for short-term financing

Note 2: According to "The Process of Financing Others" established by the Corporation, the total available amount for lending to others and the total amount for lending to a company shall not exceed 20% and 10% of the net worth of the Corporation, respectively.

73 -

Note 3: According to “The Process of Financing Others” established by China Steel Security Corporation, the total available amount for lending to others and the total amount for lending to a company both shall not exceed 40% of the net worth of China Steel Security Corporation.

Note 4: According to “The Process of Financing Others” established by China Prosperity Development Corporation, the total available amount for lending to others and the total amount for lending to a company both shall not exceed 40% of the net worth of China Prosperity Development Corporation.

Note 5: According to “The Process of Financing Others” established by HIMAG Magnetic Corporation, the total available amount for lending to others and the total amount for lending to a company both shall not exceed 40% of the net worth of HIMAG Magnetic Corporation.

Note 6: According to “The Process of Financing Others” established by Ever Wealthy International Corporation, the total available amount for lending to others and the total amount for lending to a company shall not exceed 30% and 20% of the net worth of Ever Wealthy International Corporation, respectively; the financing limit amount for parent company shall not exceed 30% of the net worth of the company.

Note 7: According to “The Process of Financing Others” established by InfoChamp Systems Corporation, the total available amount for lending to others and the total amount for lending to a company shall not exceed 40% and 35% of the net worth of InfoChamp Systems Corporation, respectively.

Note 8: According to “The Process of Financing Others” established by China Steel Machinery Corporation, the total available amount for lending to others and the total amount for lending to a company both shall not exceed 40% of the net worth of China Steel Machinery Corporation.

Note 9: According to “The Process of Financing Others” established by China Steel Power Corporation, the total available amount for lending to others and the total amount for lending to a company both shall not exceed 40% of the net worth of China Steel Power Corporation.

Note 10: According to “The Process of Financing Others” established by China Steel Express Corporation, the total available amount for lending to others and the total amount for lending to a company shall not exceed 20% and 10% of the net worth of China Steel Express Corporation, respectively.

TABLE 2

CHINA STEEL CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE PERIOD ENDED MARCH 31, 2026

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

NO.	Endorsement/Guarantee Provider	Endorsement/Guarantee		Limits on Endorsement/ Guarantors Amount Provided to Each Guaranteed Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantors Collateralized by Properties	Ratio of Accumulated/ Endorsement/ Guarantors to Net Equity per Latest Financial Statements (%)	Maximum Endorsement/ Guarantor Amount Allowable	Guarantees Provided by Parent Company	Guarantees Provided by Subsidiary	Guarantees Provided to Subsidiaries in Mainland China	Note
		Name	Nature of Relationship (Note 1)
0	China Steel Corporation	Xing Du Marine Structure Corporation	2	88,014,368	1,504,065	1,504,065	1,504,065	-	1	117,352,491	Y	N	N	Notes 2 and 3
0	China Steel Corporation	China Steel Power Corporation	2	88,014,368	7,156,210	7,156,210	6,738,422	6,738,422	2	117,352,491	Y	N	N	Notes 2 and 3
0	China Steel Corporation	Sakura Ferroalloys Sdn. Bhd.	6	88,014,368	1,058,515	1,058,515	715,813	-	-	117,352,491	N	N	N	Note 3
1	HIMAG Magnetic Corporation	MagnPower Corporation	2	577,456	190,000	120,000	-	-	21	577,456	N	N	N	Note 4
2	China Steel Power Holding Corporation	China Steel Power Corporation	2	66,062,963	10,986,000	10,986,000	10,986,000	13,207,080	83	66,062,963	N	N	N	Note 5
3	InfoChamp Systems Corporation	Wuhan InfoChamp I.T. Co., Ltd.	2	275,494	49,460	49,460	3,244	-	5	459,156	N	N	Y	Note 6
3	InfoChamp Systems Corporation	Industrial Technology Research Institute	5	275,494	60,000	60,000	59,830	-	7	459,156	N	N	N	Note 6
3	InfoChamp Systems Corporation	Tang Steel International Engineering Technology Corp.	5	275,494	43,209	43,209	43,209	-	5	459,156	N	N	Y	Note 6
4	United Steel Engineering & Construction Corporation	China Prosperity Construction Corporation	5	869,611	500,000	500,000	140,000	254,583	38	19,566,263	N	N	N	Note 7
5	CSC Steel Holdings Berhad	CSC Steel Sdn. Bhd.	2	2,887,100	1,129,993	1,127,763	222,650	-	16	2,887,100	N	N	N	Note 8
6	Wuhan InfoChamp I.T. Co., Ltd.	InfoChamp Systems Corporation	3	128,637	42,686	42,686	42,686	-	166	154,364	N	N	N	Note 9
6	Wuhan InfoChamp I.T. Co., Ltd.	Tang Steel International Engineering Technology Corp.	5	128,637	43,209	43,209	43,209	-	168	154,364	N	N	Y	Note 9

Note 1: Relationships between the endorser/guarantor and the party being endorsed/guaranteed are as follows:
1) A company that the Corporation has business relationship with.
2) The Corporation owns directly or indirectly over 50% ownership of the investee company.
3) The company that owns directly or indirectly hold over 50% ownership of the Corporation.
4) In between companies that were held over 90% of voting shares directly or indirectly by an entity.
5) The Corporation is required to provide guarantees or endorsements for the construction project based on the construction contract.
6) Shareholder of the investee provides endorsements/guarantees to the company in proportion to their shareholding percentages.
7) According to Consumer Protection Act, companies in the same industry enter into collateral performance guarantees for pre-construction home sales agreements.

Note 2: Endorsements and guarantees provided by the Corporation to its subsidiaries.

Note 3: According to “The Process of making endorsements/quadrants” established by the Corporation, the ceilings on the amounts for any single entity or the aggregate amounts to the entities shall not exceed 30% and 40% of the net worth of the Corporation, respectively.

Note 4: According to “The Process of making endorsements/quadrants” established by HIMAG Magnetic Corporation, both the ceilings on the amounts for any single entity or the aggregate amounts to the entities shall not exceed 100% of the net worth of HIMAG Magnetic Corporation.

Note 5: According to “The Process of making endorsements/quadrants” established by China Steel Power Holding Corporation, both the ceilings on the amounts for any single entity or the aggregate amounts to the entities shall not exceed 500% of the net worth of China Steel Power Holding Corporation.

Note 6: According to “The Process of making endorsements/quadrants” established by InfoChamp Systems Corporation, the ceilings on the amounts for any single entity or the aggregate amounts to the entities shall not exceed 30% and 50% of the net worth of InfoChamp Systems Corporation, respectively.

Note 7: According to “The Process of making endorsements/quadrants” established by United Steel Engineering & Construction Corporation, the ceilings on the amounts for any single entity or the aggregate amounts to the entities shall not exceed two-thirds and 1500% of the net worth of United Steel Engineering & Construction Corporation, respectively. However, the ceilings on the amounts to China Steel Structure Co., Ltd. shall not exceed 1500% of the net worth of United Steel Engineering & Construction Corporation.

Note 8: According to “The Process of making endorsements/quadrants” established by CSC Steel Holdings Berhad, both the ceilings on the amounts for any single entity or the aggregate amounts to the entities shall not exceed 40% of the net worth of CSC Steel Holdings Berhad.

Note 9: According to “The Process of making endorsements/quadrants” established by Wuhan InfoChamp I.T. Co., Ltd., the ceilings on the amounts for any single entity or the aggregate amounts to the entities shall not exceed 500% and 600% of the net worth of Wuhan InfoChamp I.T. Co., Ltd., respectively.

75 -

TABLE 3

CHINA STEEL CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

MARCH 31, 2026

(Amounts in Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Held Company Name	Type and Name of Marketable Securities	Relationship with The Company	Financial Statement Account	MARCH 31, 2026				Note
				Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value
China Steel Corporation	Common stock	Taiwan High Speed Rail Corporation	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	242,148,000	6,380,600	4	6,380,600
China Steel Corporation	Common stock	Maruichi Steel Tube Ltd.	No relation	Financial assets at fair value through other comprehensive income - noncurrent	5,875,300	1,674,524	2	1,674,524
China Steel Corporation	Common stock	O-Bank Co., Ltd.	No relation	Financial assets at fair value through other comprehensive income - noncurrent	103,847,695	1,038,477	3	1,038,477
China Steel Corporation	Common stock	TANG ENG IRON WORKS CO., LTD.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	29,860,691	840,578	9	840,578
China Steel Corporation	Common stock	CSN Mineracao S.A.	No relation	Financial assets at fair value through other comprehensive income - noncurrent	22,366,860	684,068	-	684,068
China Steel Corporation	Common stock	RECHI PRECISION CO., LTD.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	23,002,022	601,503	5	601,503
China Steel Corporation	Common stock	YODOKO, Ltd.	No relation	Financial assets at fair value through other comprehensive income - noncurrent	2,000,000	558,192	1	558,192
China Steel Corporation	Common stock	Formosa Ha Tinh (Cayman) Limited	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	1,111,418,177	24,536,279	20	24,536,279
China Steel Corporation	Common stock	Sakura Ferroalloys Sdn. Bhd.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	207,290,000	1,753,640	15	1,753,640
China Steel Corporation	Common stock	CDIB & Partners Investment Holding Corporation	No relation	Financial assets at fair value through other comprehensive income - noncurrent	54,000,000	1,118,297	5	1,118,297
China Steel Corporation	Common stock	Taiwan Smart Electricity & Energy Co., Ltd.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	19,687,500	193,970	13	193,970
China Steel Corporation	Common stock	TIWTC CORP. LTD.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	1,500,000	16,698	15	16,698
China Steel Corporation	Preferred stock	East Asia United Steel Corporation (A)	The held company as its director	Financial assets mandatorily classified as at fair value through profit or loss - noncurrent (including measurement)	2,222	411,406	6	411,406
China Steel Corporation	Preferred stock	Sakura Ferroalloys Sdn. Bhd.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	56,443,634	477,504	19	477,504

Held Company Name	Type and Name of Marketable Securities	Relationship with The Company	Financial Statement Account	MARCH 31, 2026				Note
				Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value
Chung Hung Steel Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	34,359,239	649,390	-	649,390
Chung Hung Steel Corporation	Common stock	PACIFIC HARBOUR STEVEDORING CORP.	The held company as its supervisor	Financial assets at fair value through other comprehensive income - noncurrent	250,000	6,678	5	6,678
Hung Kao Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,003,980	18,975	-	18,975
China Steel Chemical Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	3,746,915	70,817	-	70,817
China Steel Chemical Corporation	Preferred stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	229,000	8,897	-	8,897
Ever Wealthy International Corporation	Common stock	China Steel Chemical Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	4,753,537	418,311	-	418,311
Ever Wealthy International Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - current	4,226,265	79,876	-	79,876
China Ecotek Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	1,150,000	21,735	-	21,735
China Steel Structure Co., Ltd.	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	7,436,878	140,557	-	140,557
United Steel Engineering & Construction Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - current	3,745,446	70,789	-	70,789
CHC Resources Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	10,401,806	196,594	-	196,594
Union Steel Development Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - current	423,849	8,011	-	8,011
Union Steel Development Corporation	Certificate of entitlement	Shanghai Bao Shun Steel Corporation	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	-	38,923	19	38,923
China Steel Security Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	2,349,975	44,415	-	44,415
China Prosperity Development Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	952,979	18,011	-	18,011
China Prosperity Development Corporation	Common stock	QUN XIN PROPERTIES CO., LTD.	The held company as its director	Financial assets at fair value through other comprehensive income - current	2,400,000	16,176	8	16,176
HIMAG Magnetic Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - noncurrent	325,505	6,152	-	6,152

77 -

Held Company Name	Type and Name of Marketable Securities	Relationship with The Company	Financial Statement Account	MARCH 31, 2026				Note
				Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value
InfoChamp Systems Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - noncurrent	3,834,338	72,469	-	72,469
InfoChamp Systems Corporation	Common stock	iPASS Corporation	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	3,828,188	22,172	3	22,172
Kaohsiung Rapid Transit Corporation	Common stock	iPASS Corporation	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	9,912,843	57,412	7	57,412
C.S.Aluminium Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	4,431,944	83,764	-	83,764
China Steel Express Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	8,801,555	166,349	-	166,349
Transglory Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	257,615,331	4,868,930	2	4,868,930	Note 1
Transglory Investment Corporation	Mutual fund	Fubon Money Market Fund	No relation	Financial assets mandatorily classified as at fair value through profit or loss - current (including measurement)	24,808,297	391,180	-	391,180
Gains Investment Corporation	Common stock	BRIGHTON-BEST INTERNATIONAL (TAIWAN) INC.	No relation	Financial assets at fair value through other comprehensive income - current	21,117,242	714,819	-	714,819
Gains Investment Corporation	Common stock	ENLI TECHNOLOGY CO., LTD.	No relation	Financial assets at fair value through other comprehensive income - current	881,802	595,216	-	595,216
Gains Investment Corporation	Common stock	NAN JUEN INTERNATIONAL CO., LTD.	No relation	Financial assets at fair value through other comprehensive income - current	661,000	367,516	-	367,516
Gains Investment Corporation	Common stock	CDIB & Partners Investment Holding Corporation	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	2,160,000	44,732	-	44,732
Gains Investment Corporation	Common stock	GE TECHNOLOGY INC.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	1,219,801	15,576	5	15,576
Gains Investment Corporation	Common stock	FOXCONN GLOBAL NETWORK CORPORATION	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	1,895,578	13,046	7	13,046
Winning Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	160,506,339	3,033,570	1	3,033,570	Note 2
Betacera Inc.	Common stock	HCT REGENERATIVE CO., LTD	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	1,294,153	39,279	19	39,279
Eminence Investment Corporation	Common stock	INNODISK CORPORATION	No relation	Financial assets at fair value through other comprehensive income - current	402,634	341,031	-	341,031
Shin Mau Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,433,749	27,098	-	27,098

78 -

Held Company Name	Type and Name of Marketable Securities	Relationship with The Company	Financial Statement Account	MARCH 31, 2026				Note
				Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value
Hung-Chuan Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,605,875	30,351	-	30,351
Chi-Yi Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,616,723	30,556	-	30,556
Ding Da Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,525,494	28,832	-	28,832
Jing-Cherng-Fa Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,461,875	27,629	-	27,629
Gau Ruei Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,493,318	28,224	-	28,224
Li-Ching-Long Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,605,441	30,343	-	30,343
Sheng Lih Dar Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,542,138	29,146	-	29,146
Chiun Yu Investment Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - noncurrent	1,623,289	30,680	-	30,680
China Steel Global Trading Corporation	Common stock	China Steel Corporation	Parent company	Financial assets at fair value through other comprehensive income - current	4,349,507	82,206	-	82,206
China Steel Global Trading Corporation	Common stock	Nippon Steel Thai Sumilox Co., Ltd.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	1,110	132,628	15	132,628
China Steel Global Trading Corporation	Preferred stock	Nippon Steel Thai Sumilox Co., Ltd.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	15	48,821	15	48,821
Wabo Global Trading Corporation	Common stock	China Steel Corporation	The ultimate parent company	Financial assets at fair value through other comprehensive income - current	487,367	9,211	-	9,211
Chung Mao Trading (Samoa) Corporation	Certificate of entitlement	Changshin Metal Product(Foshan) Co., Ltd.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	-	117,615	15	117,615
CSC Steel Australia Holdings Pty Ltd	Common stock	KJTC Pty Ltd	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	2,623,595	4,943,203	13	4,943,203
China Steel Asia Pacific Holdings Pte Ltd	Certificate of entitlement	Wuxi TECO Electric & Machinery Co., Ltd.	The held company as its director and supervisor	Financial assets at fair value through other comprehensive income - noncurrent	-	371,142	6	371,142
China Steel Asia Pacific Holdings Pte Ltd	Certificate of entitlement	QINGDAO TECO PRECISION MECHATRONICS CO., Ltd.	The held company as its director	Financial assets at fair value through other comprehensive income - noncurrent	-	86,387	12	86,387
CSC Steel Sdn. Bhd.	Mutual fund	UOBAM - United Money Market Fund	No relation	Financial assets mandatorily classified as at fair value through profit or loss - current (including measurement)	238,193,063	1,052,566	-	1,052,566

79 -

Held Company Name	Type and Name of Marketable Securities	Relationship with The Company	Financial Statement Account	MARCH 31, 2026				Note
				Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value
CSC Steel Sdn. Bhd.	Mutual fund	AFFINHWANG – AIIMAN MONEY MARKET FUND	No relation	Financial assets mandatorily classified as at fair value through profit or loss - current (including measurement)	158,488,031	732,738	-	732,738
CSC Steel Sdn. Bhd.	Mutual fund	RHB CASH MANAGEMENT FUND 2	No relation	Financial assets mandatorily classified as at fair value through profit or loss - current (including measurement)	46,479,973	590,568	-	590,568

Note 1: Parent company’s stocks pledged as collateral amounted to 53,500 thousand shares and NT$1,011,150 thousand.
Note 2: Parent company’s stocks pledged as collateral amounted to 123,100 thousand shares and NT$2,326,590 thousand.

80 -

TABLE 4

CHINA STEEL CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NTS100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE PERIOD ENDED MARCH 31, 2026

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

Buyer	Related Party	Relationship	Relationship				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
China Steel Corporation	China Steel and Nippon Steel Vietnam Joint Stock Company	Subsidiary	Sales	(930,356)	(2)	Accounts receivable factoring agreements /Receivables were collected within 14 days after shipment date	-		30,084	1
China Steel Corporation	China Steel Structure Co., Ltd.	Subsidiary	Sales	(790,395)	(2)	Letter of credit,/ Accounts received in advance before shipment date	-		37,507	1
China Steel Corporation	CSCI Steel Corporation India Pvt. Ltd.	Subsidiary	Sales	(558,637)	(1)	Accounts receivable factoring agreements	-		-	-
China Steel Corporation	Chung Hung Steel Corporation	Subsidiary	Sales	(538,819)	(1)	Letter of credit,/ Receivables were collected after final acceptance	-		86,822	3
China Steel Corporation	China Steel Chemical Corporation	Subsidiary	Sales	(441,801)	(1)	Letter of credit	-		186,516	6
China Steel Corporation	CSGT Metals Vietnam Joint Stock Company	Subsidiary	Sales	(318,798)	(1)	Receivables were collected within 14 days after shipment date	-		88,855	3
China Steel Corporation	CSC Steel Sdn. Bhd.	Subsidiary	Sales	(281,826)	(1)	Receivables were collected within 14 days after shipment date	-		30,565	1
China Steel Corporation	China Steel Global Trading Corporation	Subsidiary	Sales	(202,942)	(1)	Receivables were collected within 10 days after shipment date	-		16,918	1
China Steel Corporation	CHC Resources Corporation	Subsidiary	Sales	(200,482)	(1)	Letter of credit	-		18,068	1
China Steel Corporation	TSK Steel Company Limited	Associate	Sales	(169,721)	-	Letter of credit,/ Accounts received in advance before shipment date	-		-	-
China Steel Corporation	China Steel Precision Metals Kanshan Co., Ltd.	Subsidiary	Sales	(109,060)	-	Receivables were collected within 85 days after shipment date	-		115,011	4
China Steel Corporation	Dragon Steel Corporation	Subsidiary	Service revenue and other operating revenue	(203,094)	(1)	By contract terms	-		24,186	1
China Steel Corporation	Dragon Steel Corporation	Subsidiary	Purchases	1,434,431	6	Payment within 5 days after shipment date / Payment after final acceptance	-		(367,771)	(5)
China Steel Corporation	China Steel Express Corporation	Subsidiary	Purchases	1,377,824	6	Payment against copy of B/L	-	NO THIRD-PARTY COULD BE COMPARED	(315,308)	(4)

Buyer	Related Party	Relationship	Relationship				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
China Steel Corporation	C.S.Aluminium Corporation	Subsidiary	Purchases	664,588	3	Payment after final acceptance	-	-	(265,453)	(4)
China Steel Corporation	CSE Transport Corporation	Subsidiary	Purchases	423,646	2	Payment against copy of B/L	-	NO THIRD-PARTY COULD BE COMPARED	(72,596)	(1)
China Steel Corporation	China Steel Global Trading Corporation	Subsidiary	Purchases	228,247	1	Payment after final acceptance	-	-	(34,040)	-
China Steel Corporation	Sakura Ferroalloys Sdn. Bhd.	The held company as its director	Purchases	160,850	1	Payment after shipping document specified	-	-	(58,717)	(1)
Dragon Steel Corporation	Chung Hung Steel Corporation	The same parent company	Sales	(1,615,910)	(9)	Receivables were collected within 5 days after shipment date	-	-	161,375	9
Dragon Steel Corporation	China Steel and Nippon Steel Vietnam Joint Stock Company	The same parent company	Sales	(1,237,702)	(7)	Receivables were collected within 5 days after shipment date	-	-	194,411	10
Dragon Steel Corporation	China Steel Corporation	Parent company	Sales	(1,038,212)	(6)	Receivables were collected within 5 days after shipment date./'Receivables were collected after final acceptance	-	-	79,689	4
Dragon Steel Corporation	CSC Steel Sdn. Bhd.	The same parent company	Sales	(466,878)	(3)	Receivables were collected within 5 days after shipment date	-	-	-	-
Dragon Steel Corporation	China Steel Structure Co., Ltd.	The same parent company	Sales	(426,875)	(2)	Receivables were collected within 5 days after shipment date./'Letter of credit	-	-	103,684	5
Dragon Steel Corporation	China Steel Chemical Corporation	The same parent company	Sales	(188,279)	(1)	Receivables were collected within 5 days after shipment date	-	-	29,374	2
Dragon Steel Corporation	CHC Resources Corporation	The same parent company	Sales	(115,375)	(1)	Receivables were collected within 5 days after shipment date./'Letter of credit	-	-	11,402	1
Dragon Steel Corporation	China Steel Global Trading Corporation	The same parent company	Sales	(113,489)	(1)	Receivables were collected within 5 days after shipment date./'Accounts received in advance before shipment date	-	-	6,387	-
Dragon Steel Corporation	China Steel Corporation	Parent company	Other operating revenue	(396,220)	(2)	Receivables were collected after final acceptance	-	-	314,398	17
Dragon Steel Corporation	China Steel Express Corporation	The same parent company	Purchases	806,965	6	Payment against copy of B/L	-	NO THIRD-PARTY COULD BE COMPARED	(159,252)	(6)
Dragon Steel Corporation	C.S.Aluminium Corporation	The same parent company	Purchases	237,668	2	Payment after final acceptance	-	NO THIRD-PARTY COULD BE COMPARED	(133,989)	(5)
Dragon Steel Corporation	China Steel Corporation	Parent company	Purchases	153,619	1	Payment within 5 days after shipment date	-	-	(94,489)	(3)
Dragon Steel Corporation	CSE Transport Corporation	The same parent company	Purchases	142,743	1	Payment against copy of B/L	-	NO THIRD-PARTY COULD BE COMPARED	(10,855)	-

82 -

Buyer	Related Party	Relationship	Relationship				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Betacera Inc.	China Steel Corporation	The ultimate parent company	Sales	(148,609)	(18)	Receivables were collected after final acceptance	-		17,266	3
Betacera Inc.	Betacera (Su Zhou) Co., Ltd.	Subsidiary	Sales	(126,526)	(15)	Net 90-180 days from the end of the month of when invoice is issued	-		54,192	10
Betacera Inc.	Betacera (Su Zhou) Co., Ltd.	Subsidiary	Purchases	334,243	54	Net 90-180 days from the end of the month of when invoice is issued	-		(350,925)	(48)
Betacera (Su Zhou) Co., Ltd.	Betacera Inc.	Parent company	Sales	(338,425)	(91)	Net 90-180 days from the end of the month of when invoice is issued	-		351,308	93
Betacera (Su Zhou) Co., Ltd.	Betacera Inc.	Parent company	Purchases	128,940	52	Net 90-180 days from the end of the month of when invoice is issued	-		(54,252)	(35)
China Steel Express Corporation	China Steel Corporation	Parent company	Service revenue	(1,597,809)	(49)	Receivable were collected within 10 working days against copy of B/L	-		320,186	55
China Steel Express Corporation	Dragon Steel Corporation	The same parent company	Service revenue	(876,063)	(27)	Receivable were collected within 10 working days against copy of B/L	-		163,184	28
China Steel Express Corporation	CHC Resources Corporation	The same parent company	Service revenue	(179,063)	(5)	Receivable were collected within 10 working days against copy of B/L	-		72,483	12
CSE Transport Corporation	China Steel Corporation	The ultimate parent company	Service revenue	(422,828)	(46)	Receivable were collected within 10 working days against copy of B/L	-		72,596	53
CSE Transport Corporation	Dragon Steel Corporation	The same parent company	Service revenue	(143,204)	(16)	Receivable were collected within 10 working days against copy of B/L	-		10,855	8
C.S.Aluminium Corporation	China Steel Corporation	Parent company	Sales	(664,588)	(15)	Receivables were collected after final acceptance	-		265,453	29
C.S.Aluminium Corporation	Dragon Steel Corporation	The same parent company	Sales	(237,668)	(5)	Receivables were collected after final acceptance	-		133,989	15
CSC Steel Sdn. Bhd.	Dragon Steel Corporation	The same parent company	Purchases	488,954	28	Payment after shipping document specified	-		-	-
CSC Steel Sdn. Bhd.	China Steel Corporation	The ultimate parent company	Purchases	282,427	16	Payment after shipping document specified	-		(30,061)	(16)
CSC Steel Sdn. Bhd.	China Steel Global Trading Corporation	The same parent company	Purchases	259,439	15	Payment after shipping document specified	-		-	-
Chung Hung Steel Corporation	Dragon Steel Corporation	The same parent company	Purchases	1,632,740	53	Letter of credit at sight	-		-	-
Chung Hung Steel Corporation	China Steel Corporation	Parent company	Purchases	548,729	18	Letter of credit at sight / Payment after final acceptance	-		(94,080)	(70)
China Steel Chemical Corporation	Linyuan Advanced Materials Technology Co., Ltd.	Subsidiary of director of the board	Sales	(224,296)	(18)	Receivables are collected as the end of every month of when invoice is issued	-		117,507	26

83 -

Buyer	Related Party	Relationship	Relationship				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
China Steel Chemical Corporation	China Steel Corporation	Parent company	Purchases	441,801	69	Letter of credit at sight	-		(225,490)	(86)
China Steel Chemical Corporation	Dragon Steel Corporation	The same parent company	Purchases	188,279	29	Letter of credit at sight	-		-	-
China Steel Global Trading Corporation	CSC Steel Sdn. Bhd.	The same parent company	Sales	(262,422)	(12)	Receivable were collected within 7 working days against copy of B/L	-		969	1
China Steel Global Trading Corporation	China Steel Corporation	Parent company	Sales	(228,247)	(10)	Receivables were collected after final acceptance	-		34,040	19
China Steel Global Trading Corporation	Formosa Ha Tinh Steel Corporation	Other related parties	Sales	(101,209)	(5)	Receivables were collected after final acceptance	-		38,739	22
China Steel Global Trading Corporation	Formosa Ha Tinh Steel Corporation	Other related parties	Purchases	1,218,854	59	Payment from counter-party notice after shipping	-		-	-
China Steel Global Trading Corporation	China Steel Corporation	Parent company	Purchases	317,592	15	Payment within 10 days after shipment date	-		(16,893)	(15)	Note
CSGT Metals Vietnam Joint Stock Company	China Steel Corporation	The ultimate parent company	Purchases	318,846	73	Payment within 14 days after shipment date	-		(88,855)	(57)	Note
China Steel Precision Metals Kumtham Co., Ltd.	China Steel Corporation	The ultimate parent company	Purchases	109,691	86	Payment within 85 days after shipment date	-		(115,011)	(97)
CHC Resources Corporation	TAIWAN CEMENT CORPORATION	Director of the board	Sales	(204,156)	(7)	Net 60 days from the end of the month of when invoice is issued	-		146,059	12
CHC Resources Corporation	YA TUNG READY-MIXED CONCRETE CORP.	Subsidiary of director of the board	Sales	(131,640)	(4)	Net 60 days from the end of the month of when invoice is issued	-		62,931	5
CHC Resources Corporation	China Steel Corporation	Parent company	Service revenue	(683,631)	(23)	Receivables were collected after final acceptance	-		432,798	35
CHC Resources Corporation	Dragon Steel Corporation	The same parent company	Service revenue	(352,330)	(12)	Receivables were collected after final acceptance	-		143,365	12
CHC Resources Corporation	China Steel Resources Corporation	The same parent company	Service revenue	(164,047)	(6)	Receivables were collected after final acceptance	-		57,468	5
CHC Resources Corporation	China Steel Corporation	Parent company	Purchases	202,958	21	Letter of credit	-		(18,068)	(7)
CHC Resources Corporation	Dragon Steel Corporation	The same parent company	Purchases	115,358	12	Letter of credit	-		(8,725)	(3)
InfoChamp Systems Corporation	China Steel Corporation	Parent company	Service revenue	(133,215)	(35)	By contract terms	-		42,783	27
China Steel Structure Co., Ltd.	China Steel Corporation	Parent company	Service revenue	(107,766)	(3)	Contractual period	-		36,133	1
China Steel Structure Co., Ltd.	China Steel Corporation	Parent company	Purchases	790,395	47	Letter of credit / Prepaid before shipment date	-		(40,753)	(2)
China Steel Structure Co., Ltd.	Dragon Steel Corporation	The same parent company	Purchases	430,065	26	Letter of credit	-		(97,662)	(5)
United Steel Engineering & Construction Corporation	China Steel Corporation	The ultimate parent company	Construction revenue	(186,307)	(15)	Contractual period	-		44,739	22
China Ecotek Corporation	China Steel Corporation	Parent company	Construction revenue	(1,229,318)	(57)	Contractual period	-		347,326	43
China Ecotek Corporation	Dragon Steel Corporation	The same parent company	Construction revenue	(454,692)	(21)	Contractual period	-		123,107	15
Steel Castle Technology Corporation	United Steel Engineering & Construction Corporation	The same parent company	Service revenue	(264,540)	(51)	By contract terms	-		-	-
Steel Castle Technology Corporation	China Steel Corporation	The ultimate parent company	Service revenue	(169,928)	(33)	By contract terms	-		42,361	46
China Steel Machinery Corporation	China Steel Corporation	Parent company	Construction revenue	(473,127)	(56)	Receivables were collected after final acceptance	-		177,076	45

84 -

Buyer	Related Party	Relationship	Relationship				Abnormal Transaction		Notes/Accounts Receivable(Payable)		Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
China Steel Machinery Corporation	Dragon Steel Corporation	The same parent company	Construction revenue	(177,009)	(21)	Receivables were collected after final acceptance	-		142,948	36
China Steel and Nippon Steel Vietnam Joint Stock Company	NIPPON STEEL SALES VIETNAM COMPANY LIMITED	Other related parties	Sales	(296,471)	(8)	Accounts receivable, 10 days term	-		105,778	7
China Steel and Nippon Steel Vietnam Joint Stock Company	NS BlueScope (Vietnam) Limited	Other related parties	Sales	(119,788)	(3)	Accounts receivable, 60 days term	-		103,893	7
China Steel and Nippon Steel Vietnam Joint Stock Company	China Steel Corporation	Parent company	Purchases	2,221,424	66	14 days after B/L./Payment to the bank after the Corporation's shipment date	-		(49,879)	(3)	Note
China Steel and Nippon Steel Vietnam Joint Stock Company	NIPPON STEEL TRADING CORPORATION	Director of the board	Purchases	876,607	26	14 days after B/L	-		(309,481)	(20)
China Steel and Nippon Steel Vietnam Joint Stock Company	Formosa Ha Tinh Steel Corporation	Other related parties	Purchases	252,868	8	08 days after B/L	-		(4,954)	(0)
CSCI Steel Corporation India Pvt. Ltd.	China Steel Corporation	Parent company	Purchases	560,905	87	Payment to the bank after the Corporation's shipment date	-		-	-
China Steel Resources Corporation	China Steel Corporation	Parent company	Service revenue	(201,588)	(100)	Net 60 days from the end of the month of when invoice is issued	-		71,085	100

Note: Purchase amount includes the Corporation's sales commitment to Dragon Steel Corporation.

TABLE 5

CHINA STEEL CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NTS100 MILLION OR 20% OF THE PAID-IN CAPITAL
MARCH 31, 2026
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss	Note
					Amount	Actions Taken
China Steel Corporation	China Steel Resources Corporation	Subsidiary	656,031	-	-		-	-	Note
China Steel Corporation	C.S.Aluminium Corporation	Subsidiary	621,683	-	-		-	-	Note
China Steel Corporation	Kaohsiung Rapid Transit Corporation	Subsidiary	402,360	-	-		1,120	-	Note
China Steel Corporation	China Steel Chemical Corporation	Subsidiary	213,804	9	-		157,025	-
China Steel Corporation	Dragon Steel Corporation	Subsidiary	118,675	14	-		118,675	-
China Steel Corporation	China Steel Precision Metals Kunshan Co., Ltd.	Subsidiary	115,011	4	-		5,698	-
Dragon Steel Corporation	China Steel Corporation	Parent company	394,087	26	-		43,600	-
Dragon Steel Corporation	China Steel and Nippon Steel Vietnam Joint Stock Company	The same parent company	194,411	26	-		194,411	-
Dragon Steel Corporation	Chung Hung Steel Corporation	The same parent company	161,375	78	-		161,375	-
Dragon Steel Corporation	China Steel Structure Co., Ltd.	The same parent company	103,684	10	-		103,684	-
Betacera (Su Zhou) Co., Ltd.	Betacera Inc.	Parent company	352,352	4	-		143,979	-
China Steel Express Corporation	China Steel Corporation	Parent company	320,186	26	-		320,186	-
China Steel Express Corporation	Dragon Steel Corporation	The same parent company	163,184	25	-		33,117	-
C.S.Aluminium Corporation	China Steel Corporation	Parent company	265,453	13	-		-	-
C.S.Aluminium Corporation	Dragon Steel Corporation	The same parent company	133,989	7	-		-	-
China Prosperity Development Corporation	China Steel Corporation	Parent company	800,074	-	-		-	-	Note
Chung Hung Steel Corporation	China Steel Corporation	Parent company	195,515	-	-		-	-	Note
China Steel Chemical Corporation	Linyuan Advanced Materials Technology Co., Ltd.	Subsidiary of director of the board	117,507	9	-		-	-
CHC Resources Corporation	China Steel Corporation	Parent company	432,798	6	19,385	Expected to be received before the end of May 2026	14,441	-
CHC Resources Corporation	TAIWAN CEMENT CORPORATION	Director of the board	146,059	6	-		-	-
CHC Resources Corporation	Dragon Steel Corporation	The same parent company	143,365	11	-		16,991	-
InfoChamp Systems Corporation	China Steel Corporation	Parent company	120,084	-	-		-	-	Note
China Ecotek Corporation	China Steel Corporation	Parent company	347,326	15	-		291,676	-
China Ecotek Corporation	Dragon Steel Corporation	The same parent company	123,107	10	-		66,305	-
HIMAQ Magnetic Corporation	MagnPower Corporation	Subsidiary	173,124	-	-		-	-	Note
China Steel Machinery Corporation	China Steel Corporation	Parent company	556,890	-	-		-	-	Note
China Steel Machinery Corporation	China Steel Corporation	Parent company	177,076	7	-		63,250	-
China Steel Machinery Corporation	Dragon Steel Corporation	The same parent company	142,948	6	-		115,294	-
China Steel and Nippon Steel Vietnam Joint Stock Company	NIPPON STEEL SALES VIETNAM COMPANY LIMITED	Other related parties	105,778	3	-		51,560	-
China Steel and Nippon Steel Vietnam Joint Stock Company	NS BlueScope (Vietnam) Limited	Other related parties	103,893	1	-		-	-
China Steel Power Corporation	CI III Zhong Neng K/S SCSp	Other related parties	1,100,000	-	-		-	-	Note

Note: Other receivables.

TABLE 6

CHINA STEEL CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE PERIOD ENDED MARCH 31, 2026

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

No.	Investee Company	Counterparty	Relationship (Note 1)	Transaction Details			% of Total Sales or Assets
				Financial Statement Accounts	Amount	Payment Terms
0	China Steel Corporation	China Steel and Nippon Steel Vietnam Joint Stock Company	1	Sales	930,356	Accounts receivable factoring agreements / Receivables were collected within 14 days after shipment date	1
0	China Steel Corporation	China Steel Structure Co., Ltd.	1	Sales	790,395	Letter of credit / Accounts received in advance before shipment date	1
0	China Steel Corporation	CSCI Steel Corporation India Pvt. Ltd.	1	Sales	558,637	Accounts receivable factoring agreements	1
0	China Steel Corporation	Chung Hung Steel Corporation	1	Sales	538,819	Letter of credit / Receivables were collected after final acceptance	1
0	China Steel Corporation	China Steel Chemical Corporation	1	Sales	441,801	Letter of credit	1
0	China Steel Corporation	CSGT Metals Vietnam Joint Stock Company	1	Sales	318,798	Receivables were collected within 14 days after shipment date	-
0	China Steel Corporation	CSC Steel Sdn. Bhd.	1	Sales	281,826	Receivables were collected within 14 days after shipment date	-
0	China Steel Corporation	China Steel Global Trading Corporation	1	Sales	202,942	Receivables were collected within 10 days after shipment date	-
0	China Steel Corporation	CHC Resources Corporation	1	Sales	200,482	Letter of credit	-
0	China Steel Corporation	China Steel Precision Metals Kunshan Co., Ltd.	1	Sales	109,060	Receivables were collected within 85 days after shipment date	-
0	China Steel Corporation	Dragon Steel Corporation	1	Service revenue and other operating revenue	203,094	By contract terms	-
0	China Steel Corporation	Dragon Steel Corporation	1	Purchases	1,434,431	Payment within 5 days after shipment date / Payment after final acceptance	2
0	China Steel Corporation	China Steel Express Corporation	1	Purchases	1,377,824	Payment against copy of B/L	2
0	China Steel Corporation	C.S.Aluminium Corporation	1	Purchases	664,588	Payment after final acceptance	1
0	China Steel Corporation	CSE Transport Corporation	1	Purchases	423,646	Payment against copy of B/L	1
0	China Steel Corporation	China Steel Global Trading Corporation	1	Purchases	228,247	Payment after final acceptance	-
1	Dragon Steel Corporation	Chung Hung Steel Corporation	3	Sales	1,615,910	Receivables were collected within 5 days after shipment date	2
1	Dragon Steel Corporation	China Steel and Nippon Steel Vietnam Joint Stock Company	3	Sales	1,237,702	Receivables were collected within 5 days after shipment date	2

No.	Investee Company	Counterparty	Relationship (Note 1)	Transaction Details			% of Total Sales or Assets
				Financial Statement Accounts	Amount	Payment Terms
1	Dragon Steel Corporation	China Steel Corporation	2	Sales	1,038,212	Receivables were collected within 5 days after shipment date / Receivables were collected after final acceptance	1
1	Dragon Steel Corporation	CSC Steel Sdn. Bhd.	3	Sales	466,878	Receivables were collected within 5 days after shipment date	1
1	Dragon Steel Corporation	China Steel Structure Co., Ltd.	3	Sales	426,875	Receivables were collected within 5 days after shipment date / Letter of credit	1
1	Dragon Steel Corporation	China Steel Chemical Corporation	3	Sales	188,279	Receivables were collected within 5 days after shipment date	-
1	Dragon Steel Corporation	CHC Resources Corporation	3	Sales	115,375	Receivables were collected within 5 days after shipment date / Letter of credit	-
1	Dragon Steel Corporation	China Steel Global Trading Corporation	3	Sales	113,489	Receivables were collected within 5 days after shipment date / Accounts received in advance before shipment date	-
1	Dragon Steel Corporation	China Steel Corporation	2	Other operating revenue	396,220	Receivables were collected after final acceptance	1
1	Dragon Steel Corporation	China Steel Express Corporation	3	Purchases	806,965	Payment against copy of B/L	1
1	Dragon Steel Corporation	C.S.Aluminium Corporation	3	Purchases	237,668	Payment after final acceptance	-
1	Dragon Steel Corporation	China Steel Corporation	2	Purchases	153,619	Payment within 5 days after shipment date	-
1	Dragon Steel Corporation	CSE Transport Corporation	3	Purchases	142,743	Payment against copy of B/L	-
2	Betacera Inc.	China Steel Corporation	2	Sales	148,609	Receivables were collected after final acceptance	-
2	Betacera Inc.	Betacera (Su Zhou) Co., Ltd.	1	Sales	126,526	Net 90-180 days from the end of the month of when invoice is issued	-
2	Betacera Inc.	Betacera (Su Zhou) Co., Ltd.	1	Purchases	334,243	Net 90-180 days from the end of the month of when invoice is issued	-
3	Betacera (Su Zhou) Co., Ltd.	Betacera Inc.	2	Sales	338,425	Net 90-180 days from the end of the month of when invoice is issued	-
3	Betacera (Su Zhou) Co., Ltd.	Betacera Inc.	2	Purchases	128,940	Net 90-180 days from the end of the month of when invoice is issued	-
4	China Steel Express Corporation	China Steel Corporation	2	Service revenue	1,597,809	Receivable were collected within 10 working days against copy of B/L	2

88 -

No.	Investee Company	Counterparty	Relationship (Note 1)	Transaction Details			% of Total Sales or Assets
				Financial Statement Accounts	Amount	Payment Terms
4	China Steel Express Corporation	Dragon Steel Corporation	3	Service revenue	876,063	Receivable were collected within 10 working days against copy of B/L	1
4	China Steel Express Corporation	CHC Resources Corporation	3	Service revenue	179,063	Receivable were collected within 10 working days against copy of B/L	-
5	CSE Transport Corporation	China Steel Corporation	2	Service revenue	422,828	Receivable were collected within 10 working days against copy of B/L	1
5	CSE Transport Corporation	Dragon Steel Corporation	3	Service revenue	143,204	Receivable were collected within 10 working days against copy of B/L	-
6	C.S.Aluminium Corporation	China Steel Corporation	2	Sales	664,588	Receivables were collected after final acceptance	1
6	C.S.Aluminium Corporation	Dragon Steel Corporation	3	Sales	237,668	Receivables were collected after final acceptance	-
7	CSC Steel Sdn. Bhd.	Dragon Steel Corporation	3	Purchases	488,954	Payment after shipping document specified	1
7	CSC Steel Sdn. Bhd.	China Steel Corporation	2	Purchases	282,427	Payment after shipping document specified	-
7	CSC Steel Sdn. Bhd.	China Steel Global Trading Corporation	3	Purchases	259,439	Payment after shipping document specified	-
8	Chung Hung Steel Corporation	Dragon Steel Corporation	3	Purchases	1,632,740	Letter of credit at sight	2
8	Chung Hung Steel Corporation	China Steel Corporation	2	Purchases	548,729	Letter of credit at sight / Payment after final acceptance	1
9	China Steel Chemical Corporation	China Steel Corporation	2	Purchases	441,801	Letter of credit at sight	1
9	China Steel Chemical Corporation	Dragon Steel Corporation	3	Purchases	188,279	Letter of credit at sight	-
10	China Steel Global Trading Corporation	CSC Steel Sdn. Bhd.	3	Sales	262,422	Receivables were collected within 7 working days against copy of B/L	-
10	China Steel Global Trading Corporation	China Steel Corporation	2	Sales	228,247	Receivables were collected after final acceptance	-
10	China Steel Global Trading Corporation	China Steel Corporation	2	Purchases(Note2)	317,592	Payment within 10 days after shipment date	-
11	CSGT Metals Vietnam Joint Stock Company	China Steel Corporation	2	Purchases(Note2)	318,846	Payment within 14 days after shipment date	-
12	China Steel Precision Metals Kunshan Co., Ltd.	China Steel Corporation	2	Purchases	109,691	Payment within 85 days after shipment date	-
13	CHC Resources Corporation	China Steel Corporation	2	Service revenue	683,631	Receivables were collected after final acceptance	1
13	CHC Resources Corporation	Dragon Steel Corporation	3	Service revenue	352,330	Receivables were collected after final acceptance	-
13	CHC Resources Corporation	China Steel Resources Corporation	3	Service revenue	164,047	Receivables were collected after final acceptance	-
13	CHC Resources Corporation	China Steel Corporation	2	Purchases	202,958	Letter of credit	-
13	CHC Resources Corporation	Dragon Steel Corporation	3	Purchases	115,358	Letter of credit	-

89 -

No.	Investee Company	Counterparty	Relationship (Note 1)	Transaction Details			% of Total Sales or Assets
				Financial Statement Accounts	Amount	Payment Terms
14	InfoChamp Systems Corporation	China Steel Corporation	2	Service revenue	133,215	By contract terms	-
15	China Steel Structure Co., Ltd.	China Steel Corporation	2	Service revenue	107,766	Contractual period	-
15	China Steel Structure Co., Ltd.	China Steel Corporation	2	Purchases	790,395	Letter of credit / Prepaid before shipment date	1
15	China Steel Structure Co., Ltd.	Dragon Steel Corporation	3	Purchases	430,065	Letter of credit	1
16	United Steel Engineering & Construction Corporation	China Steel Corporation	2	Construction revenue	186,307	Contractual period	-
17	China Ecotek Corporation	China Steel Corporation	2	Construction revenue	1,229,318	Contractual period	2
17	China Ecotek Corporation	Dragon Steel Corporation	3	Construction revenue	454,692	Contractual period	1
18	Steel Castle Technology Corporation	United Steel Engineering & Construction Corporation	3	Service revenue	264,540	By contract terms	-
18	Steel Castle Technology Corporation	China Steel Corporation	2	Service revenue	169,928	By contract terms	-
19	China Steel Machinery Corporation	China Steel Corporation	2	Construction revenue	473,127	Receivables were collected after final acceptance	1
19	China Steel Machinery Corporation	Dragon Steel Corporation	3	Construction revenue	177,009	Receivables were collected after final acceptance	-
20	China Steel and Nippon Steel Vietnam Joint Stock Company	China Steel Corporation	2	Purchases(Note2)	2,221,424	14 days after B/L / Payment to the bank after the Corporation's shipment date	3
21	CSCI Steel Corporation India Pvt. Ltd.	China Steel Corporation	2	Purchases	560,905	Payment to the bank after the Corporation's shipment date	1
22	China Steel Resources Corporation	China Steel Corporation	2	Service revenue	201,588	Net 60 days from the end of the month of when invoice is issued	-

Note 1: The relationships with counterparties are as follows:
1) Parent to subsidiaries
2) Subsidiaries to parent
3) Subsidiaries to subsidiaries

Note 2: Purchase amount includes the Corporation's sales commitment to Dragon Steel Corporation.

TABLE 7

CHINA STEEL CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE PERIOD ENDED MARCH 31, 2026

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

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2026			Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
				March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount
China Steel Corporation	Chang Hung Steel Corporation	Republic of China	Manufacture and sale of steel products	5,539,872	5,539,872	582,673,153	41	5,343,812	(147,234)	(59,749)	Subsidiary
China Steel Corporation	China Steel Chemical Corporation	Republic of China	Manufacture of coal chemicals and specialty chemicals, and production and sale of anode materials and carbon materials	334,285	334,285	68,787,183	29	2,495,823	178,879	52,864	Subsidiary
China Steel Corporation	CHC Resources Corporation	Republic of China	Manufacture and sale of GBFS powder and GBFS cement, air-cooled HFS and BOFS, recycling of resources	261,677	261,677	49,289,597	20	1,320,315	272,804	53,910	Subsidiary
China Steel Corporation	China Steel Structure Co., Ltd.	Republic of China	Manufacture and sale of steel structures	1,024,194	1,024,194	66,487,844	33	1,240,001	132,703	26,244	Subsidiary
China Steel Corporation	China Ecotek Corporation	Republic of China	Environmental and electromechanical engineering, Operation & Maintenance (O&M)	554,268	554,268	55,393,138	45	723,467	95,213	7,790	Subsidiary
China Steel Corporation	Dragon Steel Corporation	Republic of China	Hot-rolled coils, H beams, billets, flat steels	95,779,069	95,779,069	8,612,586,123	100	77,856,107	(2,270,751)	(2,363,373)	Subsidiary
China Steel Corporation	CSC Steel Australia Holdings Pty Ltd	Australia	General investment	17,359,623	17,359,623	594,638	100	24,015,546	528,822	528,822	Subsidiary
China Steel Corporation	Guinn Investment Corporation	Republic of China	General investment	4,999,940	4,999,940	596,992,650	100	12,356,226	14,728	14,674	Subsidiary
China Steel Corporation	China Steel Express Corporation	Republic of China	Raw material shipping services and ship leasing	2,504,071	2,504,071	422,545,250	100	12,092,644	457,525	688,878	Subsidiary
China Steel Corporation	C.S. Aluminium Corporation	Republic of China	Production and trading of aluminum products and other non-ferrous metal products	3,922,801	3,922,801	840,122,049	100	8,524,147	58,943	30,347	Subsidiary
China Steel Corporation	China Steel Power Holding Corporation	Republic of China	General investment	5,605,920	5,605,920	560,592,000	51	6,738,422	582,144	296,894	Subsidiary
China Steel Corporation	China Steel and Nippon Steel Vietnam Joint Stock Company	Vietnam	Manufacture and sale of steel products	9,651,239	9,651,239	514,304,000	56	6,407,100	(267,778)	(149,956)	Subsidiary
China Steel Corporation	China Prosperity Development Corporation	Republic of China	Development of real estate	4,749,938	4,749,938	509,802,912	100	5,139,841	55,648	55,970	Subsidiary
China Steel Corporation	China Steel Asia Pacific Holdings Pte Ltd	Singapore	Holding and investment	3,857,298	3,857,298	79,766,623	100	4,172,495	46,259	46,259	Subsidiary
China Steel Corporation	China Steel Global Trading Corporation	Republic of China	Sales agent and trading of steel products	309,502	309,502	78,827,362	100	2,719,961	71,046	89,670	Subsidiary
China Steel Corporation	Kaohsiung Rapid Transit Corporation	Republic of China	Mass rapid transit system operations	4,038,501	4,038,501	122,085,874	44	1,254,849	43,820	19,206	Subsidiary
China Steel Corporation	CSC Solar Corporation	Republic of China	Solar power generation	959,200	959,200	95,920,000	55	1,158,204	27,411	15,166	Subsidiary
China Steel Corporation	China Steel Resources Corporation	Republic of China	Manufacture of other non-metallic mineral products	981,120	981,120	98,112,000	100	1,000,968	3,401	3,544	Subsidiary
China Steel Corporation	China Steel Security Corporation	Republic of China	On-site guarding and system security	149,940	149,940	25,036,986	100	541,154	17,192	17,315	Subsidiary
China Steel Corporation	China Steel Machinery Corporation	Republic of China	Manufacture and sale of mechanical equipment, including steel making equipment, rolling stock, transportation equipment, power plant equipment, etc.	591,748	591,748	100,066,400	74	427,188	13,472	(10,514)	Subsidiary
China Steel Corporation	HIMAG Magnetic Corporation	Republic of China	Manufacture and trading of magnetic materials, specialty chemicals and iron oxide	389,497	389,497	27,815,765	69	400,843	47,999	33,346	Subsidiary
China Steel Corporation	InfoChamp Systems Corporation	Republic of China	ERP system integration services	357,602	357,602	41,465,634	100	323,804	37,152	8,240	Subsidiary
China Steel Corporation	CSCI Steel Corporation India Pvt. Ltd.	India	Electrical sheets	3,795,159	3,795,159	253,567,202	100	153,441	(272,678)	(272,678)	Subsidiary
China Steel Corporation	Sing Da Marine Structure Corporation	Republic of China	Steel structure related business	4,963,074	4,963,074	74,710,458	100	36,775	15,624	17,110	Subsidiary
China Steel Corporation	China Steel Management Consulting Corporation	Republic of China	Corporate business management consulting	15,144	15,144	999,993	100	18,487	236	236	Subsidiary

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2026			Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
				March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount
China Steel Corporation	China Steel Power Corporation	Republic of China	Offshore Wind Power Generation	-	-	8	-	-	582,145	-	Subsidiary
China Steel Corporation	Taiwan Rolling Stock Co., Ltd.	Republic of China	Manufacture of railway vehicles	970,044	970,044	95,527,811	48	702,321	10,394	4,964	Associate
China Steel Corporation	Kaohsiung Arima Development Corporation	Republic of China	Development of competitive and leisure sports	450,000	450,000	45,000,000	18	610,571	53,490	9,628	Associate
China Steel Corporation	Hsin Hsin Cement Enterprise Corporation	Republic of China	Cement manufacturing, nonmetallic mining, cement and concrete mining manufacturing	320,929	320,929	28,658,729	31	435,141	9,884	3,650	Associate
China Steel Corporation	Eminent II Venture Capital Corporation	Republic of China	General investment	126,750	126,750	12,675,000	46	90,919	(492)	(227)	Associate
China Steel Corporation	Honley Auto. Parts Co., Ltd.	Republic of China	Manufacture of automotive components	591,639	591,639	35,751,427	29	86,224	(35,510)	(10,397)	Associate
China Steel Corporation	Overseas Investment & Development Corporation	Republic of China	General investment	50,000	50,000	5,000,000	6	68,079	1,023	57	Associate
China Steel Corporation	TaiAn Technologies Corporation	Republic of China	Bio-Tech consultants and management	7,629	7,629	1,666,700	17	22,731	1,192	199	Associate
Chung Hung Steel Corporation	Transglory Investment Corporation	Republic of China	General investment	2,001,152	2,001,152	337,554,151	40	2,340,799	179	-	Subsidiary
Chung Hung Steel Corporation	Pro-Ascentek Investment Corporation	Republic of China	General investment	200,000	200,000	20,000,000	17	243,849	(3,066)	-	Subsidiary
Chung Hung Steel Corporation	Hung Kao Investment Corporation	Republic of China	General investment	26,000	26,000	2,600,000	100	23,517	(27)	-	Subsidiary
China Steel Chemical Corporation	CHC Resources Corporation	Republic of China	Manufacture and sale of GBFS powder and GBFS cement, air-cooled BFS and BOFS, recycling of resources	91,338	91,338	15,019,341	6	417,170	272,804	-	Subsidiary
China Steel Chemical Corporation	China Steel Structure Co., Ltd.	Republic of China	Manufacture and sale of steel structures	13,675	13,675	600,069	-	17,453	132,703	-	Subsidiary
China Steel Chemical Corporation	Ever Wealthy International Corporation	Republic of China	General investment	300,083	300,083	107,712,232	100	1,353,113	894	-	Subsidiary
China Steel Chemical Corporation	Transglory Investment Corporation	Republic of China	General investment	450,000	450,000	75,911,726	9	526,194	179	-	Subsidiary
China Steel Chemical Corporation	CSC Solar Corporation	Republic of China	Solar power generation	261,600	261,600	26,160,000	15	314,848	27,411	-	Subsidiary
China Steel Chemical Corporation	Pro-Ascentek Investment Corporation	Republic of China	General investment	60,000	60,000	6,000,000	5	73,155	(3,066)	-	Subsidiary
China Steel Chemical Corporation	HIMAG Magnetic Corporation	Republic of China	Manufacture and trading of magnetic materials, specialty chemicals and iron oxide	47,950	47,950	3,133,744	8	45,215	47,999	-	Subsidiary
China Steel Chemical Corporation	Gau Ruci Investment Corporation	Republic of China	General investment	15,070	15,070	1,196,000	40	24,270	(99)	-	Subsidiary
China Steel Chemical Corporation	Li-Ching-Long Investment Corporation	Republic of China	General investment	7,000	7,000	700,000	35	10,946	(3)	-	Subsidiary
China Steel Chemical Corporation	Eminent Venture Capital Corporation	Republic of China	General investment	3,375	3,375	337,500	5	3,555	(1,837)	-	Subsidiary
China Steel Chemical Corporation	Eminent III Venture Capital Corporation	Republic of China	General investment	160,000	160,000	16,000,000	9	147,700	(18,513)	-	Associate
China Steel Chemical Corporation	TaiAn Technologies Corporation	Republic of China	Bio-Tech consultants and management	2,295	2,295	499,998	5	6,818	1,192	-	Associate
Ever Wealthy International Corporation	China Steel Structure Co., Ltd.	Republic of China	Manufacture and sale of steel structures	29,281	29,281	532,000	-	15,708	132,703	-	Subsidiary
Ever Wealthy International Corporation	ThinTech Materials Technology Co., Ltd.	Republic of China	Manufacture and sale of sputtering targets	33,608	34,176	4,735,748	4	92,453	28,120	-	Subsidiary
Ever Wealthy International Corporation	HIMAG Magnetic Corporation	Republic of China	Manufacture and trading of magnetic materials, specialty chemicals and iron oxide	33,015	33,015	2,297,860	6	33,146	47,999	-	Subsidiary
Ever Wealthy International Corporation	Sheng Lih Dur Investment Corporation	Republic of China	General investment	8,400	8,400	840,000	35	15,446	600	-	Subsidiary
Ever Wealthy International Corporation	Ding Du Investment Corporation	Republic of China	General investment	10,495	10,495	897,000	30	14,199	356	-	Subsidiary
Ever Wealthy International Corporation	Hung-Chuan Investment Corporation	Republic of China	General investment	9,000	9,000	900,000	45	14,074	(3)	-	Subsidiary
Ever Wealthy International Corporation	Honley Auto. Parts Co., Ltd.	Republic of China	Manufacture of automotive components	104,549	104,549	8,183,029	7	74,144	(35,510)	-	Associate
China Ecotek Corporation	CEC Development Corporation	Samoa	General investment	478,579	478,579	17,000,000	100	1,041,596	11,672	-	Subsidiary
China Ecotek Corporation	China Steel Machinery Corporation	Republic of China	Manufacture and sale of mechanical equipment, including steel making equipment, rolling stock, transportation equipment, power plant equipment, etc.	329,174	329,174	35,204,170	26	498,402	13,472	-	Subsidiary
China Ecotek Corporation	CSC Solar Corporation	Republic of China	Solar power generation	348,800	348,800	34,880,000	20	328,683	27,411	-	Subsidiary

92 -

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2026			Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
				March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount
China Ecotek Corporation	Pro-Ascentek Investment Corporation	Republic of China	General investment	60,000	60,000	6,000,000	5	73,155	(3,066)	-	Subsidiary
China Ecotek Corporation	CEC International Corporation	Samsa	General investment	30,642	30,642	10,000,000	100	28,240	(20,883)	-	Subsidiary
China Ecotek Corporation	Chian Yu Investment Corporation	Republic of China	General investment	14,233	14,233	1,196,000	40	21,327	(65)	-	Subsidiary
China Ecotek Corporation	Jing-Cheng-Fu Investment Corporation	Republic of China	General investment	8,050	8,050	805,000	35	13,073	232	-	Subsidiary
China Ecotek Corporation	Chi-Yi Investment Corporation	Republic of China	General investment	8,000	8,000	800,000	40	12,592	(3)	-	Subsidiary
China Ecotek Corporation	Hang-Chuan Investment Corporation	Republic of China	General investment	6,000	6,000	600,000	30	9,383	(3)	-	Subsidiary
China Ecotek Corporation	China Ecotek India Private Limited	India	Construction engineering	-	27	-	-	-	(483)	-	Subsidiary
China Ecotek Corporation	Eminent III Venture Capital Corporation	Republic of China	General investment	100,000	100,000	10,000,000	6	92,312	(18,513)	-	Associate
China Ecotek Corporation	Hotley Auto. Parts Co., Ltd.	Republic of China	Manufacture of automotive components	34,000	34,000	2,000,000	2	30,231	(35,510)	-	Associate
CEC International Corporation	China Ecotek India Private Limited	India	Construction engineering	-	27,070	-	-	-	(483)	-	Subsidiary
CEC Development Corporation	China Ecotek Vietnam Company Limited	Vietnam	Construction engineering	302,065	302,065	-	100	832,286	11,035	-	Subsidiary
China Steel Structure Co., Ltd.	CHC Resources Corporation	Republic of China	Manufacture and sale of GBFS powder and GBFS cement, air-cooled BFS and BOFS, recycling of resources	132,715	132,715	23,182,738	9	644,403	272,804	-	Subsidiary
China Steel Structure Co., Ltd.	United Steel Engineering & Construction Corporation	Republic of China	Contracting and management of civil engineering construction, etc.	410,000	410,000	80,000,000	100	1,304,418	37,983	-	Subsidiary
China Steel Structure Co., Ltd.	Pro-Ascentek Investment Corporation	Republic of China	General investment	40,000	40,000	4,000,000	3	48,721	(3,066)	-	Subsidiary
China Steel Structure Co., Ltd.	Chian Yu Investment Corporation	Republic of China	General investment	12,453	12,453	1,046,500	35	18,661	(65)	-	Subsidiary
China Steel Structure Co., Ltd.	HIMAG Magnetic Corporation	Republic of China	Manufacture and trading of magnetic materials, specialty chemicals and iron oxide	17,080	17,080	1,116,252	3	16,111	47,999	-	Subsidiary
China Steel Structure Co., Ltd.	Chi-Yi Investment Corporation	Republic of China	General investment	6,000	6,000	600,000	30	9,444	(3)	-	Subsidiary
China Steel Structure Co., Ltd.	Li-Ching-Long Investment Corporation	Republic of China	General investment	6,000	6,000	600,000	30	9,382	(3)	-	Subsidiary
China Steel Structure Co., Ltd.	Wabo Global Trading Corporation	Republic of China	Sales agent and trading of steel products	1,500	1,500	714,000	6	7,220	1,909	-	Subsidiary
China Steel Structure Co., Ltd.	China Steel Structure Holding Co., Ltd.	Samsa	Holding and investment	-	-	-	-	-	117	-	Subsidiary
China Steel Structure Co., Ltd.	Nikken & CSSC Metal Products Co., Ltd.	Republic of China	Building materials wholesale industry, pollution prevention equipment wholesale industry, etc.	6,750	6,750	675,000	45	9,570	1,944	-	Associate
United Steel Engineering & Construction Corporation	Transglory Investment Corporation	Republic of China	General investment	287,500	287,500	27,503,866	3	190,967	179	-	Subsidiary
United Steel Engineering & Construction Corporation	China Prosperity Construction Corporation	Republic of China	Development of real estate	53,550	53,550	5,355,000	40	51,076	(1,623)	-	Subsidiary
United Steel Engineering & Construction Corporation	Pro-Ascentek Investment Corporation	Republic of China	General investment	20,000	20,000	2,000,000	2	24,434	(3,066)	-	Subsidiary
United Steel Engineering & Construction Corporation	Shin Mau Investment Corporation	Republic of China	General investment	13,754	13,754	1,196,000	40	22,017	900	-	Subsidiary
United Steel Engineering & Construction Corporation	Kaohsiung Rapid Transit Corporation	Republic of China	Mass rapid transit system operations	15,433	15,433	1,543,276	1	15,822	43,820	-	Subsidiary
United Steel Engineering & Construction Corporation	Kaohsiung Arena Development Corporation	Republic of China	Development of competitive and leisure sports	100,000	100,000	10,000,000	4	135,472	53,490	-	Associate
United Steel Engineering & Construction Corporation	Overseas Investment & Development Corporation	Republic of China	General investment	44,100	44,100	4,410,000	5	59,997	1,023	-	Associate
CHC Resources Corporation	CHC Resources Vietnam Co., Ltd	Vietnam	Manufacture and sales of ground granulated BFS and sale of water-quenched slag	647,338	647,338	-	85	756,534	23,920	-	Subsidiary
CHC Resources Corporation	Yu Cheng Lime Corporation	Republic of China	Real estate leasing and tally service of raw materials	126,010	126,010	108,000	90	142,853	759	-	Subsidiary
CHC Resources Corporation	Union Steel Development Corporation	Republic of China	Manufacture and sale of iron powder, contract manufacturing and sale of refractory materials, trading and labor dispatching	53,345	53,345	4,668,333	93	120,007	4,473	-	Subsidiary
CHC Resources Corporation	Pao Good Industrial Co., Ltd.	Republic of China	Trading of fly ash, production and sale of dry-mix mortar and trading business	50,937	50,937	5,408,550	51	89,848	4,168	-	Subsidiary
CHC Resources Corporation	Pro-Ascentek Investment Corporation	Republic of China	General investment	30,000	30,000	3,000,000	3	36,577	(3,066)	-	Subsidiary
CHC Resources Corporation	Gau Ruci Investment Corporation	Republic of China	General investment	12,306	12,306	1,046,500	35	21,236	(99)	-	Subsidiary
CHC Resources Corporation	Ding Da Investment Corporation	Republic of China	General investment	12,516	12,516	1,196,000	40	18,932	356	-	Subsidiary

93 -

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2026			Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
				March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount
CHC Resources Corporation	Sheng Lih Dar Investment Corporation	Republic of China	General investment	9,600	9,600	960,000	40	17,653	600	-	Subsidiary
CHC Resources Corporation	Shin Mau Investment Corporation	Republic of China	General investment	10,316	10,316	897,000	30	16,512	900	-	Subsidiary
CHC Resources Corporation	Jing-Cheng-Fu Investment Corporation	Republic of China	General investment	9,200	9,200	920,000	40	14,941	232	-	Subsidiary
CHC Resources Corporation	HIMAG Magnetic Corporation	Republic of China	Manufacture and trading of magnetic materials, specialty chemicals and iron oxide	10,970	10,970	716,938	2	10,336	47,999	-	Subsidiary
CHC Resources Corporation	Hsin Hsin Cement Enterprise Corporation	Republic of China	Cement manufacturing, nonmetallic mining, cement and concrete mining manufacturing	73,269	73,269	9,298,583	10	134,539	9,884	-	Associate
CHC Resources Corporation	Eminent III Venture Capital Corporation	Republic of China	General investment	30,000	30,000	3,000,000	2	27,694	(18,513 )	-	Associate
China Steel Security Corporation	Steel Castle Technology Corporation	Republic of China	Installation of fire protection equipment	31,257	31,257	13,000,000	100	296,148	10,365	-	Subsidiary
China Steel Security Corporation	Kaohsiung Rapid Transit Corporation	Republic of China	Mass rapid transit system operations	17,000	17,000	1,700,000	1	17,445	43,820	-	Subsidiary
China Steel Security Corporation	China Steel Management And Maintenance For Buildings Corporation	Republic of China	Management and maintenance for buildings	10,000	10,000	1,000,000	100	14,710	477	-	Subsidiary
China Steel Security Corporation	Eminent III Venture Capital Corporation	Republic of China	General investment	10,000	10,000	1,000,000	1	8,988	(18,513 )	-	Associate
China Prosperity Development Corporation	Chateau International Development Co., Ltd.	Republic of China	Development of leisure business	125,288	125,288	23,208,623	16	396,757	(18,264 )	-	Associate
China Prosperity Development Corporation	CK Japan Co., Ltd.	Japan	Leasing of real estate	151,526	151,526	3,840	80	178,049	5,648	-	Subsidiary
China Prosperity Development Corporation	Kaohsiung Rapid Transit Corporation	Republic of China	Mass rapid transit system operations	130,000	130,000	13,000,000	5	134,144	43,820	-	Subsidiary
China Prosperity Development Corporation	China Prosperity Construction Corporation	Republic of China	Development of real estate	92,105	92,105	8,032,500	60	76,615	(1,623 )	-	Subsidiary
China Prosperity Development Corporation	Pro-Accentek Investment Corporation	Republic of China	General investment	50,000	50,000	5,000,000	4	60,980	(3,066 )	-	Subsidiary
China Prosperity Development Corporation	Kaohsiung Arona Development Corporation	Republic of China	Development of competitive and leisure sports	175,000	175,000	17,500,000	7	237,042	53,490	-	Associate
HIMAG Magnetic Corporation	MagoPower Corporation	Republic of China	Powder metallurgy	400,208	400,208	10,000	100	(6,851)	1,327	-	Subsidiary
China Steel Power Holding Corporation	China Steel Power Corporation	Republic of China	Offshore Wind Power Generation	10,986,000	10,986,000	1,098,599,990	100	13,207,080	582,145	-	Subsidiary
CSC Solar Corporation	Pro-Accentek Investment Corporation	Republic of China	General investment	30,000	30,000	3,000,000	3	36,577	(3,066 )	-	Subsidiary
InfoChamp Systems Corporation	Universal Exchange Inc.	Republic of China	Wholesale, service of IT software and electronic information services supply	60,784	60,784	5,825,030	35	82,291	5,634	-	Subsidiary
InfoChamp Systems Corporation	Kaohsiung Rapid Transit Corporation	Republic of China	Mass rapid transit system operations	40,265	40,265	5,200,319	2	53,478	43,820	-	Subsidiary
InfoChamp Systems Corporation	Info-Champ System (B.V.I) Corporation	British Virgin Islands	Holding and investment	6,816	6,816	201,000	100	27,550	(1,841 )	-	Subsidiary
InfoChamp Systems Corporation	Majestic Solid Light Corporation	Republic of China	Manufacture and sale of UV LED	4,500	4,500	450,000	45	-	-	-	Associate
Kaohsiung Rapid Transit Corporation	Taiwan Intelligent Transportation Co., Ltd.	Republic of China	Technical services	26,000	26,000	2,600,000	100	23,910	(2,046 )	-	Subsidiary
China Steel Machinery Corporation	Overseas Investment & Development Corporation	Republic of China	General investment	95,900	95,900	9,590,000	11	130,525	1,023	-	Associate
Dragon Steel Corporation	China Steel Structure Co., Ltd.	Republic of China	Manufacture and sale of steel structures	138,375	138,375	4,217,000	2	122,728	132,703	-	Subsidiary
Dragon Steel Corporation	CSC Solar Corporation	Republic of China	Solar power generation	174,400	174,400	17,440,000	10	209,899	27,411	-	Subsidiary
Dragon Steel Corporation	Pro-Accentek Investment Corporation	Republic of China	General investment	100,000	100,000	10,000,000	8	121,924	(3,066 )	-	Subsidiary
C.S.Alaminium Corporation	Pro-Accentek Investment Corporation	Republic of China	General investment	30,000	30,000	3,000,000	3	36,577	(3,066 )	-	Subsidiary
China Steel Express Corporation	CSE Transport Corporation	Panama	Dry bulk shipping business	316	316	10	100	4,686,723	186,944	-	Subsidiary
China Steel Express Corporation	Transglory Investment Corporation	Republic of China	General investment	2,440,000	2,440,000	411,610,257	48	2,854,455	179	-	Subsidiary
China Steel Express Corporation	Kaoport Stevedoring Corporation	Republic of China	Ship stevedoring	35,013	35,013	3,275,000	66	56,013	3,123	-	Subsidiary

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2026			Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
				March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount
Transglory Investment Corporation	China Steel Structure Co., Ltd.	Republic of China	Manufacture and sale of steel structures	210,064	210,064	3,655,000	2	107,104	132,703	-	Subsidiary
Transglory Investment Corporation	Winning Investment Corporation	Republic of China	General investment	952,620	952,620	69,000,000	30	537,542	(7,565)	-	Subsidiary
Gains Investment Corporation	Fukuta Electric & Machinery Co., Ltd.	Republic of China	Motor manufacturing and selling	643,917	646,481	8,763,628	16	760,525	5,991	-	Associate
Gains Investment Corporation	ThinTech Materials Technology Co., Ltd.	Republic of China	Manufacture and sale of sputtering targets	815,856	816,723	50,813,058	47	993,019	28,120	-	Subsidiary
Gains Investment Corporation	Eminence Investment Corporation	Republic of China	General investment	1,600,000	1,600,000	150,000,000	100	2,864,837	(9,595)	-	Subsidiary
Gains Investment Corporation	Betacera Inc.	Republic of China	Manufacture and trading of electronic ceramics	150,165	150,165	20,555,253	48	1,450,634	97,675	-	Subsidiary
Gains Investment Corporation	Winning Investment Corporation	Republic of China	General investment	989,664	989,664	112,700,000	49	877,986	(7,565)	-	Subsidiary
Gains Investment Corporation	Universal Exchange Inc.	Republic of China	Wholesale, service of IT software and electronic information services supply	170,432	170,432	10,533,713	64	148,861	5,634	-	Subsidiary
Gains Investment Corporation	Pro-Ascentek Investment Corporation	Republic of China	General investment	60,000	60,000	6,000,000	5	73,155	(3,066)	-	Subsidiary
Gains Investment Corporation	Eminent Venture Capital Corporation	Republic of China	General investment	33,750	33,750	3,375,000	50	35,550	(1,837)	-	Subsidiary
Gains Investment Corporation	Mentor Consulting Corporation	Republic of China	Management consulting business	25,909	25,909	1,000,000	100	23,097	2,454	-	Subsidiary
Gains Investment Corporation	Eminent III Venture Capital Corporation	Republic of China	General investment	400,000	400,000	40,000,000	22	359,524	(18,513)	-	Associate
Gains Investment Corporation	Honley Auto. Parts Co., Ltd.	Republic of China	Manufacture of automotive components	104,246	104,246	8,642,160	7	79,671	(35,510)	-	Associate
ThinTech Materials Technology Co., Ltd.	Pro-Ascentek Investment Corporation	Republic of China	General investment	30,000	30,000	3,000,000	3	36,577	(3,066)	-	Subsidiary
Betacera Inc.	Lefkura Ltd.	British Virgin Islands	Holding and Investment	435,868	428,171	13,623,000	100	2,153,562	4,787	-	Subsidiary
Betacera Inc.	Eminent III Venture Capital Corporation	Republic of China	General investment	50,000	50,000	5,000,000	3	44,940	(18,513)	-	Associate
Universal Exchange Inc.	Pro-Ascentek Investment Corporation	Republic of China	General investment	20,000	20,000	2,000,000	2	24,385	(3,066)	-	Subsidiary
Pro-Ascentek Investment Corporation	Betacera Inc.	Republic of China	Manufacture and trading of electronic ceramics	77,278	77,278	1,608,491	4	121,951	97,675	-	Subsidiary
Eminence Investment Corporation	Fukuta Electric & Machinery Co., Ltd.	Republic of China	Motor manufacturing and selling	23,521	23,521	186,000	-	25,505	5,991	-	Associate
Eminence Investment Corporation	Shin Mau Investment Corporation	Republic of China	General investment	9,513	9,513	896,999	30	16,512	900	-	Subsidiary
Eminence Investment Corporation	Gau Ruei Investment Corporation	Republic of China	General investment	8,805	8,805	747,499	25	15,169	(99)	-	Subsidiary
Eminence Investment Corporation	Ding Da Investment Corporation	Republic of China	General investment	8,970	8,970	897,000	30	14,199	356	-	Subsidiary
Eminence Investment Corporation	Chian Yu Investment Corporation	Republic of China	General investment	7,475	7,475	747,500	25	13,330	(65)	-	Subsidiary
Eminence Investment Corporation	Li-Ching-Long Investment Corporation	Republic of China	General investment	6,262	6,262	600,000	30	9,382	(3)	-	Subsidiary
Eminence Investment Corporation	Sheng Lih Dur Investment Corporation	Republic of China	General investment	5,317	5,317	500,000	21	9,193	600	-	Subsidiary
Eminence Investment Corporation	Chi-Yi Investment Corporation	Republic of China	General investment	5,222	5,222	501,000	25	7,886	(3)	-	Subsidiary
Eminence Investment Corporation	Jiling-Cheng-Fa Investment Corporation	Republic of China	General investment	4,762	4,762	476,000	21	7,732	232	-	Subsidiary
Eminence Investment Corporation	Hang-Chuan Investment Corporation	Republic of China	General investment	4,173	4,173	400,000	20	6,255	(3)	-	Subsidiary
Shin Mau Investment Corporation	CHC Resources Corporation	Republic of China	Manufacture and sale of GBFS powder and GBFS cement, air-cooled HFS and BOFS, recycling of resources	5,454	5,454	512,685	-	14,471	272,804	-	Subsidiary
Shin Mau Investment Corporation	China Steel Structure Co., Ltd.	Republic of China	Manufacture and sale of steel structures	5,619	5,619	341,896	-	9,963	132,703	-	Subsidiary
Shin Mau Investment Corporation	Hang-Chuan Investment Corporation	Republic of China	General investment	1,000	1,000	100,000	5	1,564	(3)	-	Subsidiary
Shin Mau Investment Corporation	Chi-Yi Investment Corporation	Republic of China	General investment	990	990	99,000	5	1,558	(3)	-	Subsidiary
Ding Da Investment Corporation	China Steel Chemical Corporation	Republic of China	Manufacture of coal chemicals and specialty chemicals, and production and sale of anode materials and carbon materials	17,404	17,404	474,220	-	16,077	178,879	-	Subsidiary

95 -

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2026			Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
				March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount
Ding Du Investment Corporation	Jing-Cherng-Fa Investment Corporation	Republic of China	General investment	990	990	99,000	4	1,606	232	-	Subsidiary
Ding Du Investment Corporation	Betacera Inc.	Republic of China	Manufacture and trading of electronic ceramics	25	25	1,000	-	69	97,675	-	Subsidiary
Ding Du Investment Corporation	Universal Exchange Inc.	Republic of China	Wholesale, service of IT software and electronic information services supply	17	17	1,600	-	23	5,634	-	Subsidiary
Jing-Cherng-Fa Investment Corporation	China Ecotek Corporation	Republic of China	Environmental and electromechanical engineering, Operation & Maintenance (O&M)	7,874	7,874	302,052	-	9,408	95,213	-	Subsidiary
Gaa Ruci Investment Corporation	China Steel Chemical Corporation	Republic of China	Manufacture of coal chemicals and specialty chemicals, and production and sale of anode materials and carbon materials	17,584	17,584	474,220	-	16,077	178,879	-	Subsidiary
Gaa Ruci Investment Corporation	Sheng Lih Dar Investment Corporation	Republic of China	General investment	1,000	1,000	100,000	4	1,840	600	-	Subsidiary
Gaa Ruci Investment Corporation	Li-Ching-Long Investment Corporation	Republic of China	General investment	1,000	1,000	100,000	5	1,564	(3)	-	Subsidiary
Sheng Lih Dar Investment Corporation	CHC Resources Corporation	Republic of China	Manufacture and sale of GBFS powder and GBFS cement, air-cooled BFS and BOFS, recycling of resources	5,678	5,678	512,535	-	14,471	272,804	-	Subsidiary
Chiun Yu Investment Corporation	China Ecotek Corporation	Republic of China	Environmental and electromechanical engineering, Operation & Maintenance (O&M)	5,764	5,764	275,469	-	8,624	95,213	-	Subsidiary
Chiun Yu Investment Corporation	China Steel Structure Co., Ltd.	Republic of China	Manufacture and sale of steel structures	3,559	3,559	275,896	-	8,205	132,703	-	Subsidiary
China Steel Global Trading Corporation	CSGT International Corporation	Samoa	Holding and investment	631,983	631,983	20,740,000	100	1,074,484	29,701	-	Subsidiary
China Steel Global Trading Corporation	CSGT (Singapore) Pte. Ltd.	Singapore	Sales agent and trading of steel products	22,600	22,600	6,100,000	100	901,910	17,268	-	Subsidiary
China Steel Global Trading Corporation	Chang Mao Trading (Samoa) Corporation	Samoa	Holding and investment	2,927	2,927	3,500,000	100	160,470	53	-	Subsidiary
China Steel Global Trading Corporation	Wabo Global Trading Corporation	Republic of China	Sales agent and trading of steel products	11,000	11,000	5,236,000	44	52,945	1,909	-	Subsidiary
China Steel Global Trading Corporation	CSGT Trading India Private Limited	India	Sales agent and trading of steel products	240	240	48,000	1	235	14	-	Subsidiary
Wabo Global Trading Corporation	CK Japan Co., Ltd.	Japan	Leasing of real estate	37,488	37,488	960	20	44,512	5,648	-	Subsidiary
Wabo Global Trading Corporation	CSGT Japan Co., Ltd.	Japan	Sales agent and trading of steel products	10,160	10,160	800	100	23,144	(370)	-	Subsidiary
CSGT International Corporation	CSGT Metals Vietnam Joint Stock Company	Vietnam	Cutting and processing of steel products	276,920	272,030	13,279,770	60	483,280	39,044	-	Subsidiary
CSGT International Corporation	CSGT Trading India Private Limited	India	Sales agent and trading of steel products	24,880	24,440	4,752,000	99	23,298	14	-	Subsidiary
CSGT International Corporation	TSK Steel Company Limited	Thailand	Steel coil processing and distribution	92,405	90,773	408,000	34	240,961	13,806	-	Associate
CSGT (Singapore) Pte. Ltd.	CSGT SA	Switzerland	International trade and investment	126,532	124,746	1,876,795	49	848,228	26,204	-	Associate
CSC Steel Australia Holdings Pty Ltd	CSC Sonoma Pty Ltd	Australia	Mining investment	361,022	345,404	16,440,001	100	203,726	(3,858)	-	Subsidiary
CSC Steel Australia Holdings Pty Ltd	N404-5515 Quebec Inc.	Canada	Investments in mining industry	5,797,963	5,547,140	270,122,727	25	7,353,668	986,647	-	Associate
China Steel Asia Pacific Holdings Pte Ltd	CSC Steel Holdings Berhad	Malaysia	General investment	1,159,385	1,138,911	171,000,000	46	3,390,635	104,543	-	Subsidiary
CSC Steel Holdings Berhad	CSC Steel Sdn. Bhd.	Malaysia	Manufacture and sale of steel products	3,342,558	3,267,430	359,000,000	100	6,766,045	104,122	-	Subsidiary
CSC Steel Sdn. Bhd.	Constant Mode Sdn. Bhd.	Malaysia	General investment	5,739	5,610	750,000	100	8,621	68	-	Subsidiary

96 -

TABLE 8

CHINA STEEL CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE PERIOD ENDED MARCH 31, 2026

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

Investee Company	Main Businesses and Products	Paid-in Capital (Note 1)	Method of Investment (Note 2)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2026 (Note 1)	Remittance of Funds (Note 1)		Accumulated Outward Remittance for Investment from Taiwan as of March 31, 2026 (Note 1)	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of March 31, 2026	Accumulated Repatriation of Investment Income as of March 31, 2026	Note
					Outward	Inward
Betacera (Su Zhou) Co., Ltd.	Manufacture and trading of electronic ceramics	140,778	2	140,778	-	-	140,778	971	100	971	854,367	-	Note 3 (1)
CSGT (Shanghai) Co., Ltd.	Sales agent and trading of steel products	19,197	2	19,197	-	-	19,197	146	100	146	34,166	65,205	Note 3 (1)
Changzhou China Steel Precision Materials Co., Ltd.	Production and sale of titanium and titanium alloys, nickel and nickel alloys	1,627,906	1	1,482,543	-	-	1,482,543	(3,617)	70	(2,532)	1,198,287	94,812	Note 3 (1)
China Steel Precision Metals Qingdao Co., Ltd.	Cutting and processing of steel products	639,900	1	447,930	-	-	447,930	(7,542)	70	(5,280)	375,226	24,649	Note 3 (1)
Changzhou China Steel New Materials Technology Co., Ltd.	Processing and sale of green nonophtane powder	184,929	1	208,159	-	-	208,159	(2,459)	100	(2,459)	188,401	-	Note 3 (1)
CSGT (Shenzhen) Co., Ltd.	Sales agent and trading of steel products	25,596	1	16,637	-	-	16,637	133	65	86	18,069	7,875	Note 3 (1)
HU&C Auto Parts Co., Ltd.	Manufacture of automotive components	831,870	2	127,980	-	-	127,980	(24,479)	15	(3,765)	114,416	-	Note 3 (1)
Suzhou Betacera Technology Co., Ltd.	Manufacture and trading of life-saving equipment for shipping and aviation	479,925	2	479,925	-	-	479,925	2,788	100	2,788	753,568	-	Note 3 (1)
Shanghai Xike Ceramic Electronic Co., Ltd.	Manufacture and trading of electronic ceramics	38,394	2	38,202	-	-	38,202	519	100	516	368,089	-	Note 3 (1)
China Steel Precision Metals Kunshan Co., Ltd.	Cutting and processing of steel products	479,925	1	513,840	-	-	513,840	1,264	100	1,264	454,316	1,102	Note 3 (1)
Wuhan InfoChamp LT. Co., Ltd.	ERP system integration services	6,399	2	6,399	-	-	6,399	(1,802)	100	(1,802)	25,731	168,203	Note 3 (1)
Xiamen Ecotek PRC Company Limited	Sales agency for import and export of equipment and materials	191,970	2	191,970	-	-	191,970	524	100	524	202,969	-	Note 3 (1)
Investee Company	Accumulated Outward Remittance for Investment in Mainland China as of March 31, 2026 (Note 1)	Investment Amount Authorized by Investment Commission, MOEA (Note 1)	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 4)
---	---	---	---
China Steel Corporation	127,980	127,980	176,028,738
China Steel Chemical Corporation	208,159	208,159	4,829,965
China Ecotek Corporation	191,970	191,970	2,381,684
Thintech Materials Technology Co., Ltd.	1,482,543	1,482,543	-
Betacera Inc.	658,905	658,905	1,710,241
China Steel Global Trading Corporation	997,604	997,604	1,584,992
Infochamp Systems Corporation	6,399	6,399	528,519

Note 1: The amounts were calculated based on the foreign exchange rate as of March 31, 2026.
Note 2: Methods of investment are classified as below:

1) Direct investment.
2) Investments through a holding company registered in a third region.
3) Partial direct investment, and partial investments through a holding company registered in a third region.

Note 3: The basis for recognition of investment income (loss) is based on the following:

1) From the financial statements reviewed and attested by R.O.C. parent company’s CPA.

2) From the investee company, which had not been audited and attested by independent accountants.

Note 4: As the subsidiary ThinTech Materials Technology Co., Ltd. has obtained the certificate of qualified for operating headquarters, issued by the Industrial Development Bureau, MOEA, the limit on investment in Mainland China pursuant to “Principle of investment or Technical Cooperation in Mainland China” on August, 29, 2008, is not applicable, while other companies, investments shall not exceed 60% of their net worth.

98 -

TABLE 9

CHINA STEEL CORPORATION AND SUBSIDIARIES

MOVEMENT OF PROPERTY, PLANT AND EQUIPMENT

FOR THE PERIOD ENDED MARCH 31, 2026 AND 2025

(Amounts in Thousands of New Taiwan Dollars)

For the three months ended March 31, 2026

	Land	Land Improvements	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Spare Parts	Construction in Progress and Equipment to be Inspected	Total
Cost
Balance at January 1, 2026	$ 69,887,000	$ 6,159,903	$ 154,193,092	$ 735,243,497	$ 31,751,904	$ 20,086,932	$ 9,857,222	$ 45,782,521	$1,072,962,071
Additions	5,120	-	83,663	8,903,711	33,833	272,298	229,110	(5,374,458)	4,153,277
Disposals	-	-	(4,987)	(328,404)	(34,840)	(256,692)	(160,646)	-	(785,569)
Reclassification	-	-	(2,692)	20,558	-	406	(10,966)	8,700	16,006
Effect of foreign currency exchange differences	687	(372)	82,948	397,932	205,643	14,506	654	2,859	704,857
Balance at March 31, 2026	$ 69,892,807	$ 6,159,531	$ 154,352,024	$ 744,237,294	$ 31,956,540	$ 20,117,450	$ 9,915,374	$ 40,419,622	$1,077,050,642
Accumulated depreciation and impairment
Balance at January 1, 2026	$ 6,370	$ 5,156,104	$ 81,534,004	$ 557,772,915	$ 16,485,403	$ 17,473,091	$ 4,001,268	$ -	$ 682,429,155
Depreciation	-	19,925	1,029,828	5,763,678	473,547	258,283	229,593	-	7,774,854
Disposals	-	-	(4,987)	(328,226)	(34,805)	(256,583)	(160,646)	-	(785,247)
Reclassification	-	-	(1,252)	1,252	-	-	-	-	-
Effect of foreign currency exchange differences	-	(568)	43,538	298,986	83,015	11,161	-	-	436,132
Balance at March 31, 2026	$ 6,370	$ 5,175,461	$ 82,601,131	$ 563,508,605	$ 17,007,160	$ 17,485,952	$ 4,070,215	$ -	$ 689,854,894
Carrying amount at December 31, 2025	$ 69,880,630	$ 1,003,799	$ 72,659,088	$ 177,470,582	$ 15,266,501	$ 2,613,841	$ 5,855,954	$ 45,782,521	$ 390,532,916
Carrying amount at March 31, 2026	$ 69,886,437	$ 984,070	$ 71,750,893	$ 180,728,689	$ 14,949,380	$ 2,631,498	$ 5,845,159	$ 40,419,622	$ 387,195,748

For the three months ended March 31, 2025

Cost	Land	Land Improvements	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Spare Parts	Construction in Progress and Equipment to be Inspected	Total
Balance at January 1, 2025	$ 69,888,142	$ 6,169,969	$ 143,120,130	$ 737,739,986	$ 32,287,353	$ 19,671,954	$ 9,785,959	$ 40,575,553	$1,059,239,046
Additions	-	-	10,211,131	4,046,958	162,400	143,744	213,203	(5,625,276)	9,152,160
Disposals	-	-	(17,880)	(632,122)	(17,329)	(51,045)	(412,231)	-	(1,130,607)
Reclassification	-	-	-	31,821	-	-	(3,857)	1,250	29,214
Others	-	-	-	-	-	(9)	-	-	(9)
Effect of foreign currency exchange differences	2,095	1,622	105,356	401,094	151,801	14,931	406	779	678,084
Balance at March 31, 2025	$ 69,890,237	$ 6,171,591	$ 153,418,737	$ 741,587,737	$ 32,584,225	$ 19,779,575	$ 9,583,480	$ 34,952,306	$1,067,967,888
Accumulated depreciation and impairment
Balance at January 1, 2025	$ 6,370	$ 5,098,762	$ 77,161,525	$ 542,989,921	$ 15,224,310	$ 16,917,201	$ 4,207,459	-	$ 661,605,548
Depreciation	-	19,636	1,039,297	6,025,718	487,614	244,390	216,060	-	8,032,715
Disposals	-	-	(16,589)	(630,696)	(17,187)	(50,903)	(410,981)	-	(1,126,356)
Others	-	-	-	-	-	(9)	-	-	(9)
Effect of foreign currency exchange differences	-	1,438	46,580	260,328	51,981	12,446	-	-	372,773
Balance at March 31, 2025	$ 6,370	$ 5,119,836	$ 78,230,813	$ 548,645,271	$ 15,746,718	$ 17,123,125	$ 4,012,538	$ -	$ 668,884,671
Carrying amount at March 31, 2025	$ 69,883,867	$ 1,051,755	$ 75,187,924	$ 192,942,466	$ 16,837,507	$ 2,656,450	$ 5,570,942	$ 34,952,306	$ 399,083,217

100 -

AI assistant

CSC — Interim / Quarterly Report 2026

51937_rns_2026-05-12_609c4484-0cf1-41eb-987a-8fad01e702d2.pdf

China Steel Corporation and Subsidiaries

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Conclusion

Notice to Readers

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

CHINA STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

b. Basis of consolidation

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL INSTRUMENTS FOR HEDGING

10. NOTES AND ACCOUNTS RECEIVABLE, NET (INCLUDING RELATED PARTIES)

March 31, 2026

December 31, 2025

11. INVENTORIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. OTHER FINANCIAL ASSETS

14. PROPERTY, PLANT AND EQUIPMENT

15. LEASE ARRANGEMENTS

16. INVESTMENT PROPERTIES

17. BORROWINGS

18. BONDS PAYABLE

19. ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

20. OTHER PAYABLES

21. PROVISIONS

22. RETIREMENT BENEFIT PLANS

23. EQUITY

28. CAPITAL MANAGEMENT

29. FINANCIAL INSTRUMENTS

1) Market risk

a) Foreign currency risk

Hedge accounting

30. TRANSACTIONS WITH RELATED PARTIES

31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

34. SEPARATELY DISCLOSED ITEMS

35. SEGMENT INFORMATION

CHINA STEEL CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE PERIOD ENDED MARCH 31, 2026

CHINA STEEL CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

CHINA STEEL CORPORATION AND SUBSIDIARIES

CHINA STEEL CORPORATION AND SUBSIDIARIES

CHINA STEEL CORPORATION AND SUBSIDIARIES

CHINA STEEL CORPORATION AND SUBSIDIARIES

CHINA STEEL CORPORATION AND SUBSIDIARIES

CHINA STEEL CORPORATION AND SUBSIDIARIES

CHINA STEEL CORPORATION AND SUBSIDIARIES

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