Stock Code: 2013

China Steel Structure Co., Ltd. and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Audit Report 2025 and 2024

Address: No. 500, Zhongxing Rd., Yanchao Dist., Kaohsiung City
Telephone: (07)6168688

§Table of Contents§

Item		Page No.	Note in Financial Report
I.	COVER PAGE	1	-
II.	Table of Contents	2	-
III.	Statement on the Consolidated Financial Statements of Affiliated Enterprises	3	-
IV.	Independent Auditors' Report	4~7	-
V.	Consolidated Balance Sheet	8	-
VI.	Consolidated Statement of Comprehensive Income	9	-
VII.	Consolidated Statement of Changes in Equity	10	-
VIII.	Consolidated Cash Flow Statement	11~12	-
IX.	Notes to Consolidated Financial Report
	(I) Company history	13	1
	(II) Date and procedures of approval of the financial statements	13	2
	(III) Application of new standards, amendments, and interpretations	13~15	3
	(IV) Summary of significant accounting policies	15~29	4
	(V) Significant accounting judgments, estimates and main uncertainty assumptions	30	5
	(VI) Details of significant accounts	31~61	6~28
	(VII) Related party transactions	61~65	29
	(VIII) Pledged assets	65	30
	(IX) Significant contingent liabilities and unrecognized contractual commitments	66	31
	(X) Significant Disaster Loss	-	-
	(XI) Significant events after the balance sheet date	-	-
	(XII) Significant assets and liabilities denominated in foreign currencies	66	32
	(XIII) Supplementary disclosures
	1. Information on significant transactions	66	33
	2. Related information on investees	66	33
	3. Information on Investments in Mainland China	66	33
	(XIV) Segment information	66~69	34

Statement on the Consolidated Financial Statements of Affiliated Enterprises

For the year of 2025 (January 1 to December 31, 2025), affiliated businesses of this Company that shall be included according to the rules prescribed by the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" were the same as those companies that shall be included into the parent and subsidiary consolidated financial statement as prescribed by the International Financial Reporting Standards No. 10. All information to be disclosed in the consolidated financial statements of affiliated enterprises have already been disclosed in the consolidated financial statement of the parent company and subsidiaries. Hence, consolidated financial statements of affiliated enterprises were therefore not generated separately.

It is hereby declared.

China Steel Structure Co., Ltd.
February 24, 2026

Independent Auditors' Report

To China Steel Structure Co., Ltd.:

Audit Opinion

We have audited the accompanying consolidated financial statements of China Steel Structure Co., Ltd. (the Corporation) and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the "consolidated financial statements").

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation and its subsidiaries as of December 31, 2025 and 2024, and their consolidated financial performance and their consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers as well as International Financial Reporting Standards (IFRSs), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC), and Standard Interpretations Committee (SIC) and their announcements recognized and announced by Financial Supervisory Commission.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Corporation and its subsidiaries in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other

ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

Key audit matters of the Corporation and its subsidiaries consolidated financial statements for the year ended December 31, 2025 are stated as follows:

Assessment of the estimated total project cost

The Corporation and its subsidiaries have signed many construction contracts, and it recognized construction revenue based on the percentage of completion in the contract period. The degree of construction completion is determined based on the actual construction cost that has occurred for each contract as a percentage of the total cost of the construction. As the aforementioned total estimated construction cost involves significant accounting estimates and affects the recognition of construction completion progress and revenue, we considered the total estimated construction cost as a key audit matter. Please refer to Notes 4 and 5 of the consolidated financial statements for the disclosure of accounting policies, significant accounting estimates and judgments.

Our main auditing procedures for evaluating the estimated total project cost are as follows:

I. We understood the internal control procedures for estimating and evaluating the total project cost and evaluated the consistency of the implementation of the evaluation, preparation, and control procedures.

II. We conducted sample inspections of the certification documents for the evaluation and preparation of the total project cost for new and additional or cancelled projects in the current year.

III. We reviewed the projects, on a sampling basis, and examined whether the differences between the actual and estimated total project cost have significant abnormality; we evaluated the reasonableness of estimated total project cost. We also reviewed, on a sampling basis, the estimate of total project cost in subsequent period and confirmed the reasonableness of the percentage of completion and any change in the estimated project cost from the balance sheet date.

Other Items

We have also audited the standalone financial statements of China Steel Structure Co., Ltd. as of and for the years ended December 31, 2025 and 2024, on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for 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 as well as International Financial Reporting Standards (IFRSs), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC), and Standard Interpretations Committee (SIC) and their announcements recognized and announced by Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Corporation and its subsidiaries' financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

I. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material mistake resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

II. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation and its subsidiaries' internal control.

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

IV. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation and its subsidiaries' ability to continue as a going concern. If we

conclude that material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Corporation and its subsidiaries to cease to continue as a going concern.

V. Evaluate the overall presentation, structure, and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

VI. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Corporation and its subsidiaries to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Deloitte & Touche

February 24, 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. This translation has not been reviewed by CPA. 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 Structure Co., Ltd. and Subsidiaries
Consolidated Balance Sheet
December 31, 2025 and 2024

Unit: thousand NTD

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Note 4 and 6)	$ 1,258,240	8	$ 467,748	3
1120	Financial assets at fair value through other comprehensive income - current (Note 4 and 7)	212,464	1	219,733	2
1140	Contract assets - current (Note 4, 5, and 23)	5,401,540	38	6,048,000	41
1150	Notes receivable (Note 8)	104,079	1	209,918	2
1170	Accounts receivable, net (Note 5 and 8)	1,577,143	11	1,666,945	11
1180	Accounts receivable - related parties (Note 5, 8, and 29)	175,728	1	160,763	1
1200	Other receivables (Note 8 and 29)	27,753	-	6,194	-
1220	Current income tax assets (Note 25)	96	-	171	-
130X	Inventory (Note 4, 9 and 30)	1,661,196	11	1,579,342	11
1410	Advance payments (Note 29)	60,749	-	66,182	-
1478	Refundable deposits (Note 30)	69,122	-	3,830	-
11XX	Total current assets	10,548,110	71	10,428,826	71
Non-current assets
1550	Investments accounted for using equity method (Note 4 and 11)	1,224,412	8	1,271,964	10
1600	Property, plant, and equipment (Note 4 and 13)	1,741,480	12	1,687,438	11
1755	Right-of-use assets (Note 4 and 14)	635,298	4	640,057	4
1760	Investment properties (Note 4 and 15)	378,078	3	349,845	2
1780	Intangible assets (Note 4)	3,628	-	7,835	-
1840	Deferred tax assets (Note 4 and 25)	193,639	1	194,321	1
1915	Prepayments for equipment	925	-	20,177	-
1920	Refundable deposits (Note 30)	39,546	-	26,439	-
1975	Net defined benefit assets (Note 4 and 20)	171,672	1	137,698	1
1980	Other financial assets - non-current (Note 30)	22,977	-	22,604	-
15XX	Total non-current assets	4,411,655	29	4,358,378	29
1XXX	Total assets	$ 14,959,765	100	$ 14,787,204	100
Code	Liabilities and equity
Current liabilities
2100	Short-term borrowing (Note 16)	$ -	-	$ 1,847,525	12
2110	Short-term bills payable (Note 16)	1,928,532	13	1,808,709	12
2130	Contract liabilities - current (Note 4 and 23)	2,373,605	16	1,330,550	9
2150	Notes payable (Note 17)	7,209	-	7,224	-
2170	Accounts payable (Note 17)	2,404,702	16	2,472,361	17
2180	Accounts payable - related parties (Note 17 and 29)	482,690	3	125,817	1
2200	Other payables (Note 18 and 29)	750,522	5	690,790	5
2230	Current tax liabilities (Note 25)	24,647	-	57,700	-
2250	Liability provision - current (Note 4 and 19)	586,171	4	382,671	3
2280	Lease liabilities - current (Note 4 and 14)	27,627	-	11,380	-
2300	Other current liabilities	15,393	-	15,731	-
21XX	Total current liabilities	8,601,098	57	8,750,458	59
Non-current liabilities
2570	Deferred tax liabilities (Note 4 and 25)	34,375	-	27,623	-
2580	Lease liabilities - non-current (Note 4 and 14)	446,485	4	455,867	3
2645	Guarantee deposits received	201,030	1	124,732	1
25XX	Total non-current liabilities	681,890	5	608,222	4
2XXX	Total liabilities	9,282,988	62	9,358,680	63
Equity attributable to owners of the Company (Note 22)
3110	Ordinary share capital	2,000,000	13	2,000,000	14
3200	Capital surplus	1,383,331	9	1,375,913	9
Retained earnings
3310	Legal reserve	908,082	6	849,589	5
3320	Special surplus reserve	158,453	1	158,453	1
3350	Undistributed earnings	1,390,636	9	1,181,086	8

10 -

Code	Liabilities and equity	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
3300	Total retained earnings	$ 2,457,171	16	$ 2,189,128	14
3400	Other equity	(163,725)	-	(136,517)	-
31XX	Total equity	5,676,777	38	5,428,524	37
	Total liabilities and equity	$ 14,959,765	100	$ 14,787,204	100

The notes included below are part of the Consolidated Financial Statements.

China Steel Structure Co., Ltd. and Subsidiaries
Consolidated Statement of Comprehensive Income
January 1 to December 31, 2025 and 2024

Unit: thousand NTD, except NTD for earnings per share

	2025		2024
Code	Amount	%	Amount	%
4000 Operating revenue (Note 4, 23, 29)	$ 20,948,280	100	$ 19,695,058	100
5000 Operating costs (Note 9, 20, 24, and 29)	19,963,338	95	18,635,059	95
5900 Gross profit	984,942	5	1,059,999	5
Operating expenses (Note 20, 24, and 29)
6100 Selling and marketing expenses	123,775	1	115,458	1
6200 General and administrative expenses	238,903	1	225,245	1
6300 Research and development expenses	21,674	-	19,028	-
6000 Total operating expenses	384,352	2	359,731	2
6900 Net operating profit	600,590	3	700,268	3
Non-operating income and expenses (Note 11 and 24)
7100 Interest income	5,997	-	1,644	-
7010 Other income	78,250	-	18,451	-
7020 Other gains and losses	(23,792)	-	(83,453)	-
7050 Finance costs	(63,586)	-	(86,923)	-
7060 Share of profit/loss of associates	111,310	-	101,017	-
7000 Total non-operating income and expenses	108,179	-	(49,264)	-
7900 Net profit before income tax	708,769	3	651,004	3
7950 Income tax expenses (Note 4 and 25)	70,368	-	111,525	-
8200 Net profit for the year	638,401	3	539,479	3
Other comprehensive income (Note 20, 22 and 25)
8310 Items that will not be reclassified subsequently to profit or loss
8311 Remeasurement of defined benefit plans	32,501	-	47,133	-
8316 Unrealized gains and losses on investments in equity instruments at fair value through other comprehensive income	(7,269)	-	(82,190)	-
8320 Share of other comprehensive income/losses of associates	(9,928)	-	(84,578)	-
8349 Income tax expense relating to items that will not be reclassified subsequently to profit or loss	(6,500)	-	(9,427)	-
8360 Items that may be reclassified subsequently to profit or loss
8370 Share of other comprehensive income/losses of associates	(6,370)	-	1,599	-
8300 Other comprehensive annual income (net income after-tax)	2,434	-	(127,463)	-
8500 Total comprehensive income for the year	$ 640,835	3	$ 412,016	3
8600 Net profit attributable to:
8610 Owners of the Company	$ 638,401	3	$ 539,479	3
8700 Comprehensive income attributable to:
8710 Owners of the Company	$ 640,835	3	$ 412,016	3
Earnings per share (Note 26)
9710 Basic	$ 3.19		$ 2.70
9810 Diluted	$ 3.18		$ 2.69

The notes included below are part of the Consolidated Financial Statements.

China Steel Structure Co., Ltd. and Subsidiaries

Consolidated Statement of Changes in Equity

January 1 to December 31, 2025 and 2024

Unit: thousand NTD

Code		Equity attributable to owners of the Company
		Ordinary share capital	Capital surplus	Retained earnings				Other Equity			Total equity
				Statutory surplus reserve	Special surplus reserve	Undistributed earnings	Total	Exchange differences on translating foreign operations	Unrealized gains and losses on financial assets at fair values through other comprehensive income	Gain (loss) on hedging instruments
A1	Balance on January 1, 2024	$ 2,000,000	$ 1,376,649	$ 795,842	$ 158,453	$ 1,029,900	$ 1,984,195	$ (3,245)	$ 39,863	$ (4)	$ 36,614
	Appropriation of 2023 earnings (Note 22)
B1	Legal reserve	-	-	53,747	-	(53,747)	-	-	-	-	-
B5	Cash dividends	-	-	-	-	(380,000)	(380,000)	-	-	-	(380,000)
		-	-	53,747	-	(433,747)	(380,000)	-	-	-	(380,000)
C7	Changes in associates	-	(775)	-	-	(214)	(214)	-	-	-	(989)
C17	Other changes in capital surplus	-	39	-	-	-	-	-	-	-	39
D1	Net profit for the year ended December 31, 2024	-	-	-	-	539,479	539,479	-	-	-	539,479
D3	Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	-	40,262	40,262	1,595	(169,324)	4	(167,725)
D5	Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	579,741	579,741	1,595	(169,324)	4	(167,725)
Q1	Disposals of investments in equity instruments at fair value through other comprehensive income by associates	-	-	-	-	5,406	5,406	-	(5,406)	-	(5,406)
Z1	Balance at December 31, 2024	2,000,000	1,375,913	849,589	158,453	1,181,086	2,189,128	(1,650)	(134,867)	-	(136,517)
	Appropriation of 2024 earnings (Note 22)
B1	Legal reserve	-	-	58,493	-	(58,493)	-	-	-	-	-
B5	Cash dividends	-	-	-	-	(400,000)	(400,000)	-	-	-	(400,000)
		-	-	58,493	-	(458,493)	(400,000)	-	-	-	(400,000)
C7	Changes in associates	-	(267)	-	-	-	-	-	-	-	(267)
C17	Other changes in capital surplus	-	35	-	-	-	-	-	-	-	35
D1	Net profit for the year ended December 31, 2025	-	-	-	-	638,401	638,401	-	-	-	638,401
D3	Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	25,650	25,650	(6,381)	(16,846)	11	(23,216)

13 -

Equity attributable to owners of the Company
			Retained earnings				Other Equity
							Exchange differences on translating foreign operations	Unrealized gains and losses on financial assets at fair values through other comprehensive income	Gain (loss) on hedging instruments	Total	Total equity
D5	Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	664,051	664,051	(6,381)	(16,846)	11	(23,216)
Q1	Disposals of investments in equity instruments at fair value through other comprehensive income by associates	-	-	-	-	3,992	3,992	-	(3,992)	-	(3,992)
T1	Difference between the fair value consideration and book value of associates during acquisition or disposal (Note 29)	-	7,650	-	-	-	-	-	-	-	7,650
Z1	Balance at December 31, 2025	$ 2,000,000	$ 1,383,331	$ 908,082	$ 158,453	$ 1,390,636	$ 2,457,171	$ (8,031)	$ (155,705)	$ 11	$ (163,725)

The notes included below are part of the Consolidated Financial Statements.

China Steel Structure Co., Ltd.
Consolidated Cash Flow Statement
January 1 to December 31, 2025 and 2024

Unit: thousand NTD

Code	Cash Flows from Operating Activities	2025	2024
A10000	Profit before income tax	$ 708,769	$ 651,004
A20010	Adjustments for:
A20100	Depreciation expense	185,415	164,923
A20200	Amortization expense	5,727	6,041
A20900	Finance costs	63,586	86,923
A21200	Interest income	(5,997)	(1,644)
A21300	Dividend income	(3,690)	(3,914)
A22300	Share of the profit of subsidiaries and associates	(111,310)	(101,017)
A22500	Loss on disposal of property, plant and equipment	539	59,879
A23700	Loss (reversal) of inventories	(3,485)	4,359
A23800	Reversal of Impairment on investment properties	(13,128)	-
A29900	Loss on unrealized construction costs	194,552	34,091
A29900	(Reversal) loss of provisions	13,057	7,129
A30000	Changes in operating assets and liabilities
A31125	Contract assets	646,460	1,204,250
A31130	Notes receivable	105,839	(167,795)
A31150	Accounts receivable	89,802	(1,203,171)
A31160	Accounts receivable - related parties	(14,965)	252,165
A31180	Other receivables	(23,167)	9,010
A31200	Inventories	(78,334)	(411,835)
A31230	Prepayments	5,433	18,794
A31990	Net defined benefit assets	(1,473)	(222)
A32125	Contract liabilities	1,043,055	203,781
A32130	Notes payable	(15)	(42,942)
A32150	Accounts payable	(67,659)	304,098
A32160	Accounts payable - related parties	356,873	62,642
A32180	Other payables	71,287	84,263
A32200	Provisions	(4,109)	-
A32230	Other current liabilities	(338)	383
A33000	Cash generated from operations	3,162,724	1,221,195
A33500	Income taxes paid	(102,412)	(121,707)
AAAA	Net cash generated from operating activities	3,060,312	1,099,488

15 -

Code		2025	2024
Cash Flows from Investing Activities
B01900	Disposal of investments accounted for using equity method	$ 41,600	$ -
B02300	Disposal of subsidiaries	-	24,882
B02700	Acquisition of property, plant, and equipment	(188,720)	(137,996)
B02800	Proceeds from disposal of property, plant, and equipment	259	413
B03800	Decrease (increase) in refundable deposits	(78,399)	15,200
B04500	Acquisition of intangible assets	(1,520)	(3,402)
B05400	Acquisition of investment properties	(15,488)	-
B06600	Decrease (increase) in other financial assets	(373)	4,695
B07500	Interest received	7,605	1,482
B07600	Dividends received from subsidiaries and associates	108,347	83,595
B07600	Dividends received from others	3,690	3,914
BBBB	Net cash outflow from investing activities	(122,999)	(7,217)
Cash flow from financing activities
C00100	Increase (decrease) in short-term loans	(1,847,525)	777,309
C00500	Increase (decrease) in short-term bills	120,000	(519,958)
C01900	Decrease in long-term loans	-	(500,000)
C03000	Increase (decrease) in guarantee deposits received	76,298	(42,370)
C04020	Repayments of principal of lease liabilities	(29,814)	(13,093)
C04500	Distribution of cash dividends	(400,000)	(380,000)
C05600	Interest paid	(65,815)	(86,374)
C09900	Return of overdue uncollected dividends	35	39
CCCC	Net cash outflow from financing activities	(2,146,821)	(764,447)
EEEE	Net increase in cash and cash equivalents	790,492	327,824
E00100	Cash and cash equivalents of the beginning of the period	467,748	139,924
E00200	Cash and cash equivalents of the end of the period	$ 1,258,240	$ 467,748

The notes included below are part of the Consolidated Financial Statements.

China Steel Structure Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Report
January 1 to December 31, 2025 and 2024
(In thousands of New Taiwan Dollars unless otherwise specified)

I. Company history

China Steel Structure Co., Ltd. (the "Corporation") was incorporated in February 1978, and its Kaohsiung factory was located within China Steel Corporation's (the "Ultimate parent entity") factory area. The Corporation built its Guantian factory in 1989 and relocated its Kaohsiung factory to Yenchao District in May 2012. It engages in designing, processing, manufacturing, assembling and selling steel built-up sections, providing technical services for the construction of steel structures, importing and exporting metal and construction materials and real estate leasing.

China Steel Corporation ("CSC") is the parent entity and has substantive control over the Company. CSC owns 33.24% of the voting shares of the Company as at December 31, 2025 and 2024.

The Corporation's shares are listed on the Taiwan Stock Exchange.

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

II. Date and procedures of approval of the financial statements

The consolidated financial statements were approved by the board of directors and authorized for issue on February 24, 2026.

III. Application of new standards, amendments, and interpretations

(I) Initial application of the amendments to 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 Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Group's

17 -

accounting policies.

(II) The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Revised or Amended Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Involving Nature-Dependent Electricity”	January 1, 2026
Annual Improvement to IFRS Accounting Standards – Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including amendments in 2020 and 2021)	January 1, 2023

As of the date the consolidated financial statements were reported to the board of directors for issue, the Group is in the process of assessing the impact of the impending initial application of other standards and the amendments to interpretations on the financial position and results of operations.

(III) New IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Revised or Amended 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
Amendments to IAS 18 “Presentation and Disclosures in Financial Statements”	January 1, 2027 (Note 2)
Amendments to IAS 19 “Subsidiaries without Public Accountability Disclosures”	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

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

Note 2: On September 25, 2025, FSC announced that companies should adopt IFRS 18 from January 1, 2028. Companies may also choose to adopt IFRS 18 earlier if the FSC approves it.

18 -

Amendments to IAS 18 “Presentation and Disclosures in Financial Statements”

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discounted operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing 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, 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 others 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 Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities.

Except for the above impact, as of the date the consolidated financial statements were reported to the board of directors for issue, the Group is in the process of assessing the impact of the impending initial application of other standards and the amendments to interpretations on the financial position and results of operations. Disclosures will be provided after a detailed review of the impact has been completed.

IV. Summary of significant accounting policies

(I) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis except for financial instruments that are measured at fair value and net defined benefit assets which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
20 -

(3) Level 3 inputs are unobservable inputs for the asset or liability.

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

Current assets include:

(1) Assets held primarily for the purpose of trading;
(2) Assets expected to be realized within 12 months after the balance sheet date; and
(3) Cash and cash equivalents unless the asset is restricted from being used for an exchange or used to settle a liability for more than 12 months after the balance sheet date.

Current liabilities include:

(1) Liabilities held primarily for the purpose of trading;
(2) Liabilities to be settled within 12 months after the balance sheet date; and
(3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting date.

Assets and liabilities that are not classified as current are classified as non-current.

The Steel structure construction and construction engineering business of the Group has a business cycle of more than 1 year. Therefore, assets and liabilities related to the steel structure construction business are classified as current or non-current based on the normal business cycle.

(IV) 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 Statement of Comprehensive Income includes the operating income of the acquired or disposed subsidiary from the date of acquisition to the date of disposal in the current year. The financial statements of subsidiaries have been reorganized to ensure consistency with the accounting policies adopted by the Group. In the preparation of the Consolidated Financial Report, all transactions, account balances, income and expenses between the entities have been written off. Total comprehensive income of subsidiaries is attributed to the owners of the parent company.

21 -

Any change in ownership interest that does not cause the Group to lose control of the subsidiary is accounted for under the equity method. The book value of assets of the Group has been adjusted to reflect the relative changes in the equity of the subsidiaries.

When the Group loses control over a subsidiary, the profit or loss on disposal is the difference between the two following items: (1) the sum of the fair value of consideration received and the fair value of the remaining investment in the former subsidiary as of the date of the loss of control; and (2) the sum of assets (including goodwill) and liabilities of the former subsidiary based on the book value as of the date of the loss of control. The Group's accounting practices for the amounts of the subsidiary shown in other comprehensive profit or loss account shall follow the same basis as that followed by the Group for direct disposal of related assets or liabilities.

Please refer to Note 10 and Appendix 4 for the details, shareholding ratio, and business items of subsidiaries.

(V) Foreign currencies

In preparing the standalone financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are recognized in profit or loss for the period except for exchange difference arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also

22 -

recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in foreign currency are not retranslated.

For the purposes of presenting standalone financial statements, the investments of the Group's foreign operations (including subsidiaries and associates operating in other countries or using currencies different from the Group's currencies) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; income and expense items are translated at the average exchange rates for the year. The resulting currency translation differences are recognized in other comprehensive income.

If the Group disposes of all equities in a foreign operation or disposes of parts of the equities of a subsidiary of a foreign operation but loses control, all accumulated currency translation differences related to the foreign operation shall be reclassified as profit or loss.

(VI) Inventory

Inventories are raw materials, land for construction, construction in progress, and prepaid land payments. Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost.

The costs of buildings construction are calculated by each different construction project. The expenditure on land before acquiring land ownership is recorded as "Prepayments for land". When the land is actively developed after the ownership is obtained, the cost of various projects and other costs are transferred to "construction in progress" and will be transferred to "held for sale" after the completion.

23 -

Before the registration of land on which active development or construction work has been carried out and the construction work is completed, the land payment paid and the cost of construction in progress (including construction land and construction cost) are capitalized and recorded as land cost or construction cost.

(VII) Investment in associates

An associate is an entity over which the Group have significant influence over and that is neither a subsidiary nor an interest in a joint venture.

The Group uses equity methods to account for investment in associates. Under the equity method, an investment is initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the share of equity of associates.

The net fair value of the number of shares of identifiable assets and liabilities in the affiliate enterprise by the Group on the acquisition date will be considered as goodwill. Goodwill is included in the carryover amount of the investment and may not be amortized. The shares of the net fair value of identifiable assets and liabilities in the affiliate enterprise by the Group on the acquisition date that exceeds the acquisition cost will be shown as profit or loss in the current year.

When the Group subscribes for additional new shares of the associate, at a percentage different from its existing ownership percentage, the resulting book value of the investment differs from the amount of the Group's proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Group's ownership interest is reduced due to non-subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the

24 -

capital surplus recognized from investments accounted for using equity method is insufficient, the shortage is debited to retained earnings.

When the Group's share of losses of an associate equal or exceeds its interest in that associate (which includes any book value of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group's net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

When impairment loss is evaluated, the entire book value of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its book value. The impairment losses recognized are not amortized to any assets that form part of the book value of the investment, including goodwill.

When the Group ceases to have significant influence over the associate, the Group will measure the retained investment at fair value at that date. The difference between the previous book value of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities.

When the Group transacts with its associates, profits or losses on these transactions are recognized in the standalone financial statements only to the extent of interests in the associate that are not related to the Group.

(VIII) Joint operations

A joint operation is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.

25 -

Any acquisition of an interest in a joint operation in which the activity of the joint operation constitutes a business should be treated as a business combination, except when the parties sharing joint control are under the common control of the same ultimate controlling party or parties both before and after the acquisition and that control is not transitory.

The Group recognizes the following items in relation to their interests in joint operation:

The assets, including their share of any assets held jointly;
The liabilities, including their share of any liabilities incurred jointly;
The revenue from the sale of their share of the output arising from the joint operation;
The share of the revenue from the sale of the output of the joint operation; and
The expenses, including their share of any expenses incurred jointly.

The Group account for the assets, liabilities, revenue, and expenses relating to their interests in a joint operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenue, and expenses.

When the Group sell or contribute assets to their joint operation, they recognize gains and losses resulting from such a transaction only to the extent of the other parties' interests in the joint operation. When the Group purchase assets from its joint operation, they do not recognize their share of the gain or loss until they resell those assets to a third party.

(IX) Property, plant, and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation.

Property, plant, and equipment in the course of construction are carried out at cost. Cost includes professional fees and borrowing costs eligible for capitalization. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use and depreciated accordingly.

Depreciation on property, plant and equipment is recognized using the

26 -

straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the book value of the asset is recognized in profit or loss.

(X) Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for currently undetermined future use.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment losses. Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the book value of the asset is included in profit or loss.

(XI) Intangible assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Intangible assets with indefinite useful lives are measured at costless accumulated impairment loss.

On derecognition of an intangible asset, the difference between the net disposal proceedings and the book value of the asset is recognized in profit or loss.

(XII) Impairment of property, plant and equipment, right-of-use assets, investment properties, and intangible assets

27 -

At each balance sheet date, the Group reviews the book values of its property, plant and equipment, right-of-use assets, investment properties, and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to the individual cash-generating units; otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its book value, the book value of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the book value of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the book value that would have been determined had for the asset or cash-generating (net of amortization and depreciation) had no impairment loss been recognized in prior years.

A reveal of an impairment loss is recognized in profit or loss.

(XIII) Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instruments.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to

28 -

the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets

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

(1) Measurement category

Financial assets are classified into the following categories: Financial assets at amortized cost, and equity instruments at FVTOCI.

A. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

a. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of the principal and interest on the principal outstanding amount.

Financial assets at amortized cost. (including cash and cash equivalents, notes and accounts receivable (including related parties), other receivables, refundable deposits and other financial assets) are measured at amortized cost, which equals the gross book value determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross book value of such a financial asset, except for:

a. Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
b. Financial assets that are not credit impaired on purchase or

29 -

origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

a. Significant financial difficulty of the issuer or the borrower
b. Breach of contract, such as a default.
c. It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
d. The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include commercial paper, and bonds with repurchase agreements with original maturities within 3 months, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

B. Investments in equity instruments at FVTOCI

The Group may designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the

30 -

dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

(2) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), as well as contract assets.

The Group always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

Expected credit losses reflect the weighted average of credit losses with the respective risks of Corporation default occurring as the weights. 12-month ECLs represent the portion of lifetime ECLs that are expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In contrast, lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

For internal credit risk management purposes, the Group determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Group):

A. Internal or external information shows that the debtor is unlikely to pay its creditors.

B. When a financial asset is more than 365 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

All financial assets with a corresponding adjustment to their book

31 -

value through a loss allowance account.

(3) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flow from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's book value and the sum of the consideration received, and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Equity instruments

Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

Financial liabilities

(a) Subsequent measurement

Financial liabilities are measured at amortized cost using the effective interest method.

(b) Derecognition of financial liabilities

When the Group derecognized financial liabilities, the difference between the book value of the financial liability and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

(XIV) Provisions

Provisions are measured at the best estimate discounted cash flows of the consideration required to settle the present obligation at the end of the reporting date, taking into account the risks and uncertainties surrounding the obligation. Provision is measured using the present value of the cash flows which is estimated to settle the present obligation.

32 -

(1) Onerous contracts

Onerous contracts are those in which the Group’s unavoidable costs of meeting the contractual obligations exceed the economic benefits expected to be received from the contract. The present obligation arising under onerous contracts is recognized and measured as provisions. The cost of fulfilling a contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts.

(2) Warranties

Including those arising from the contractual obligation specified in the warranty period after completing contract. The Group recognized provisions that are likely to be paid during the warranty period after completing construction. Actual payments are first made against the provisions and then as current expenses if the amount of provision is insufficient.

(XV) Revenue recognition

The Group identifies the contract with the customers, allocates the transaction price to the performance obligations, and recognizes revenue when performance obligations are satisfied.

(1) Revenue from sale of goods

Revenue from the sale of goods is recognized when the goods committed are delivered from the Group to customers to satisfy performance obligation as follows: domestic sales - when products are moved out of the Group’s premises for delivery to customers; exports - when products are loaded onto vessels. Revenue is recognized because the earning process is accomplished, and revenue is realized or realizable.

Revenue is measured at fair value, which is the discounted present value of the price (net of commercial discounts and quantity discounts) agreed to by the Group with customers. But if the related receivable is due within one year, the difference between its present value and undiscounted amount is immaterial and sales transactions are frequent,

33 -

the fair value of the receivable is equivalent to the nominal amount of cash to be received. The transaction price received is recognized as a contract liability until performance obligations are satisfied.

(2) Construction income

As property is being constructed and construction is in progress, the Group recognizes revenue from construction contract over time. The Group measures progress on the basis of costs incurred relative to the total expected costs. A contract asset is recognized during the construction and is reclassified to accounts receivable at the point at which it is invoiced to the customer. If the invoiced amount exceeds the revenue recognized to date, then the Group recognizes a contract liability for the difference. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligations.

(3) Providing services

Service revenue is recognized according to the contract and the percentage of completion of the services.

(XVI) Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Rental payments from operating leases are recognized on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in negotiation and arranging operating leases are added to the book values of the leased assets and amortized on a straight-line basis over the lease terms.

When a lease includes both land and building elements, the Group

34 -

assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets, which comprise the initial measurement of lease liabilities, are initially measured at cost and subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the standalone balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee's incremental borrowing

35 -

rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the book value of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the standalone balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

(XVII) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets is substantially ready for their intended use or sale.

Investment in the income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all borrowing costs are recognized in profit or loss in the year in which they are incurred.

(XVIII) Employee benefits

Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Retirement benefits

Payment to defined contribution retirement benefit plans is recognized as an expense when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are

36 -

determined using the projected unit credit method. Service costs (including current service costs and net interest on the net defined benefit assets) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit assets represent the actual balance in the Group's defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plan except that remeasurement is recognized in profit or loss.

(XIX) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current income tax

The Group determines the income (loss) for the current year based on the rates/laws that have been enacted for each jurisdiction and calculates the income tax expected to be paid to (recovered from) taxation authorities.

Tax on unappropriated earnings is provided for as income tax in the year the shareholders approve to retain the earnings.

Adjustments to income tax payable from previous years are recognized in the income tax of the current year.

Deferred tax

Deferred tax is recognized on temporary differences between the book values of assets and liabilities in the standalone financial statements and

37 -

the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences or unused loss carry forward to the extent that it is probable that taxable profits will be available against which those deductible differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences, and they are expected to reverse in the foreseeable future.

The book value of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at each balance sheet date and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the book value of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when

38 -

they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

V. Significant accounting judgments, estimates and main uncertainty assumptions

In the application of the Group's accounting policies, management is required to make judgments, estimates and assumptions about carrying out amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

(I) Critical accounting judgments

Judgments with significant impact on affiliates - where the investor holds less than 20% of the shares of the investee but has significant influence.

As described in Note 11, the Group holds less than 20% of the voting rights in certain companies but retains significant influence due to joint shareholding with affiliates of the CSC Group.

(II) Estimates and assumptions uncertainty

Estimated impairment of financial assets and contract assets

The estimated loss of impairment on accounts receivable and contract assets are based on the Group's assumptions regarding the default rate and expected loss rate. The Group considers experience, current market conditions, and prospective information for the adoption of assumption and selection of input in evaluating impairment. Significant impairment loss may occur if actual future cash flows are lower than the Group's forecast.

Construction contracts

The Group recognizes revenues from construction contracts under the percentage of completion method by calculating construction revenues based on the actual construction cost incurred as a percentage of the total estimated cost of the construction. Variable considerations such as contractual incentives and compensation payments are included in contractual income only if it is

39 -

highly probable that there will not be a significant reversal in the cumulative revenues when related uncertainties are subsequently eliminated.

As the management evaluates and determines the estimated total cost and contract items based on the nature of different construction projects, estimated subcontracting amount, construction period, project construction, and construction methodology, if such estimates are changed due to future construction conditions, they may have material influence on the calculation of the completion percentage and profit and loss of the project.

40 -

VI. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 3,760	$ 3,440
Checking accounts and demand deposits	154,882	224,590
Cash equivalents
Commercial paper	799,950	239,718
Bonds with repurchase agreements	299,648	-
	$ 1,258,240	$ 467,748

VII. Financial assets at fair value through other comprehensive incomes

	December 31, 2025	December 31, 2024
Domestic investments
Listed shares	$212,464	$219,733

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 Group's strategy of holding these investments for long-term purposes.

VIII. Notes and accounts receivable (including related parties) and other receivables

	December 31, 2025	December 31, 2024
Notes receivable
Arising from operations	$ 104,079	$ 209,918
Accounts receivable
Non-related parties	$ 1,700,670	$ 1,790,472
Minus: Loss provisions	123,527	123,527
	$ 1,577,143	$ 1,666,945
Accounts receivable - related parties	$ 175,728	$ 160,763
Other receivables	$ 27,753	$ 6,194

(I) Receivables

The Group’s notes and accounts receivable are financial assets at amortized cost.

The credit period for the sale of goods was from 30 to 90 days and billings for construction and services were made based on the progress of the contract. To minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group applies the simplified approach to providing for expected credit losses, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix 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 direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been classified as overdue receivables, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables and overdue receivables based on the Group’s provision matrix.

42 -

43 -

December 31, 2024	Transaction counterparty shows no signs of default						Transaction counterparty shows signs of default	Total
	Not overdue	Overdue for 1 to 30 days	Overdue for 31 to 60 days	Overdue for 61 to 180 days	Overdue for 181 to 365 days	Overdue for more than 365 days
Expected credit loss rate (%)	-	-	-	-	-	5	100
Gross book value	$ 1,856,950	$ -	$ -	$ -	$ -	$ -	$ 123,527	$ 1,980,477
Loss allowance (Lifetime ECL)	-	-	-	-	-	-	(123,527)	(123,527)
Amortized cost	$ 1,856,950	$ -	$ -	$ -	$ -	$ -	$ -	$ 1,856,950
December 31, 2024	Transaction counterparty shows no signs of default						Transaction counterparty shows signs of default	Total
---	---	---	---	---	---	---	---	---
	Not overdue	Overdue for 1 to 30 days	Overdue for 31 to 60 days	Overdue for 61 to 180 days	Overdue for 181 to 365 days	Overdue for more than 365 days
Expected credit loss rate (%)	-	-	-	-	-	5	100
Gross book value	$ 2,037,626	$ -	$ -	$ -	$ -	$ -	$ 123,527	$ 2,161,153
Loss allowance (Lifetime ECL)	-	-	-	-	-	-	(123,527)	(123,527)
Amortized cost	$ 2,037,626	$ -	$ -	$ -	$ -	$ -	$ -	$ 2,037,626

The movement of the loss allowance of accounts receivable (including related parties) was as follows:

	2025	2024
Opening balance	$ 123,527	$ 123,527
Recognition in current year	-	-
Closing balance	$ 123,527	$ 123,527

(II) Other receivables

The Group assessed allowance for impairment loss under historical experience and current financial condition. There was no allowance for impairment loss recognized as of December 31, 2025 and 2024.

IX. Inventory

	December 31, 2025	December 31, 2024
Raw materials	$ 1,024,400	$ 1,258,613
Raw materials in transit	289,520	76,754
Construction in progress (Note 12 and 30)	256,250	152,949
Land for construction	91,026	-
Prepaid land payments	-	91,026
	$ 1,661,196	$ 1,579,342

The cost of inventories recognized as cost of goods sold and construction for the years ended December 31, 2025 and 2024 was NT$19,433,259 thousand and NT$18,103,220 thousand, respectively. The cost of goods sold included reversal of loss on inventories of NT$3,485 thousand and loss on inventories of NT$4,359 thousand, respectively. The reversal of loss on inventory was due to market price fluctuations.

X. Subsidiary

The entities of the Consolidated Financial Report are as follows:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)
			December 31, 2025	December 31, 2024
The Company	United Steel Engineering & Construction Corp. (USEC)	Contracting for civil engineering and management	100	100
	China Steel Structure Holding Co., Ltd. (CSSHCL)	Investment holding	100	100

XI. Investments recognized under the equity method

	December 31, 2025	December 31, 2024
Material affiliate enterprises
CHC Resources Corporation (CHC)	$ 615,239	$ 598,421
Individual immaterial affiliate enterprises	609,173	673,543
	$ 1,224,412	$ 1,271,964

(I) Material affiliate enterprises are as follows:

Company name	Shareholding and voting rights ratio
	December 31, 2025	December 31, 2024
CHC (%)	9	9

The Group is able to exercise significant influence over the above affiliates with less than 20% voting rights after considering the consolidated holding

shares with CSC Group. It is therefore accounted based on the equity method. Please refer to the Table 4 "Information on Investees" for information on the nature of its business, its area of operations, and country of registry of the above affiliates.

Fair values (level 1) of investments in associates with available published price quotation are summarized as follows:

Company name	December 31, 2025	December 31, 2024
CHC	$1,629,746	$1,555,562

The summarized financial information below represents amounts shown in the associates' financial statements prepared in accordance with IFRS Accounting Standards adjusted by the Group for equity accounting purposes.

CHC

	December 31, 2025	December 31, 2024
Current assets	$ 2,942,569	$ 2,846,985
Non-current assets	8,553,801	8,956,289
Current liabilities	(2,262,486)	(2,358,328)
Non-current liabilities	(2,406,906)	(2,790,903)
Equity	6,826,978	6,654,043
Non-controlling interests	(232,771)	(240,103)
	$ 6,594,207	$ 6,413,940
Proportion of the Corporation's ownership (%)	9	9
Equity attributable to the Corporation	$ 615,239	$ 598,421
Book value	$ 615,239	$ 598,421
	2025	2024
Operating revenue	$ 13,991,384	$ 13,290,553
Net profit for the period	$ 1,254,123	$ 1,183,189
Other comprehensive income (loss)	(67,489)	(56,452)
Total comprehensive income for the period	$ 1,186,634	$ 1,126,737

(II) Summary of individual immaterial affiliate enterprises

46 -

Share attributable to the Group
Gain (loss) from continuing operations
Other comprehensive (loss) income
Total comprehensive (loss) income for the year

2025
$ (3,714)
(16,298)
$ (20,012)

2024
$ (7,112)
(77,740)
$ (84,852)

The company sold the entire equity of Sing Da Marine Structure Corporation to the related party in July 2025. For details, please refer to Note 29.

XII. Joint operations

In November 2022, the board of directors of the subsidiary USEC decided to build the residential construction with China Prosperity Construction Corporation by each one invested in 50%. The related expenses of its construction, sales shall be paid by above fund contribution ratio, and the assets, liabilities, income, and costs related to this operation shall also be recorded by the ratio. China Prosperity Construction Corporation shall be the main operator of the building.

The assets, liabilities, income, and costs of joint operations, which were recognized in Consolidated Financial Reports as below:

Assets

	December 31, 2025	December 31, 2024
Inventory	$256,250	$152,949

XIII. Property, plant, and equipment

2025

Cost	Land	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Construction in Progress and Equipment to be Inspected	Total
Balance at January 1, 2025	$463,954	$1,813,798	$1,739,739	$9,381	$136,766	$15,395	$4,179,033
Additions	-	41,286	97,349	8,510	20,340	30,949	198,434
Disposals	-	(2,869)	(100,182)	(150)	(5,616)	-	(108,817)
Balance at December 31, 2025	$463,954	$1,852,215	$1,736,906	$17,741	$151,490	$46,344	$4,268,650
Land	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Construction in Progress and	Total
---	---	---	---	---	---	---

Accumulated depreciation						Equipment to be Inspected
Balance at January 1, 2025	$
Depreciation expense	-	$ 1,231,301	$ 1,135,149	$ 6,811	$ 118,334	$ -	$ 2,491,595
Disposals	-	47,581	89,168	786	6,059	-	143,594
Balance at December 31, 2025	$	(2,681)	(99,582)	(142)	(5,614)	-	(108,019)
Net amount as of December 31, 2024	$	$ 1,276,201	$ 1,124,735	$ 7,455	$ 118,779	$ -	$ 2,527,170
Accumulated depreciation
Balance at January 1, 2024	$
Additions	-	9,046	158,345	857	7,512	(51,550)	124,210
Disposals	-	-	(90,652)	-	(3,055)	-	(93,707)
Balance at December 31, 2024	$	463,954	$ 1,813,798	$ 1,739,739	$ 9,381	$ 136,766	$ 4,179,033
Accumulated depreciation
Balance at January 1, 2024	$	$ 1,185,264	$ 1,079,833	$ 6,328	$ 115,521	$ -	$ 2,386,946
Depreciation expense	-	46,037	85,688	483	5,856	-	138,064
Disposals	-	-	(30,372)	-	(3,043)	-	(33,415)
Balance at December 31, 2024	$	$ 1,231,301	$ 1,135,149	$ 6,811	$ 118,334	$ -	$ 2,491,595
Net amount as of December 31, 2024	$	$ 463,954	$ 582,497	$ 604,590	$ 2,570	$ 18,432	$ 15,395

The following items of property, plant and equipment are depreciated on a straight-line basis over the following useful life:

	Self-use
Buildings
Houses and buildings	28 to 60 years
Building auxiliary equipment	2 to 50 years
Machinery and equipment
Mobile crane equipment	5 to 15 years
Cutting machine equipment	3 to 15 years
Arc welding equipment	2 to 15 years
Substation equipment	10 to 15 years
Transportation equipment
Transportation and communication equipment	2 to 5. years
Transportation equipment for production	5 to 10 years
Other equipment

Computer equipment 3 to 5 years
Fire safety equipment 5 years
Other equipment 2 to 15 years

XIV. Lease agreements

(I) Right-of-use assets

	December 31, 2025	December 31, 2024
Book value of right-of-use assets
Land	$ 613,627	$ 640,057
Transportation equipment	21,671	-
	$ 635,298	$ 640,057
	2025	2024
Additions to right-of-use assets	$ 40,284	$ 8,926
Depreciation expenses of right-of-use assets
Land	$ 25,710	$ 26,514
Machinery and equipment	15,728	-
Transportation equipment	-	345
	$ 41,438	$ 26,859

Except for the addition and recognition of depreciation expenses listed above, the Group's right-of-use assets did not undergo significant sub - lease and impairment for the years ended December 31, 2025 and 2024.

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Book value of lease liabilities
Current	$ 27,627	$ 11,380
Non-current	$ 446,485	$ 455,867

The range of discount rates for lease liabilities was as follows:

	December 31, 2025	December 31, 2024
Land(%)	0.8~1.605	0.8~1.605
Machinery and equipment(%)	1.8	-

(III) Material lease activities and terms

The Group has chartered a factory located at Yenchao which was leased from Taiwan Sugar Corporation. The lease contract is for 30 years from October 2010 to October 2040. The agreed upon rentals are 10% of the current land price set by the government. The Group does not have a bargain purchase option to acquire any of the above leased land at the expiry of the leases but has priority renewal options.

(IV) Other lease information

	2025	2024
Expenses relating to short-term leases and low-value asset leases	$ 13,057	$ 31,923
Total cash outflow for leases	$ 50,814	$ 52,591

For land and buildings which qualify as short-term leases and several other equipment which qualify as low-value asset leases, the Group has elected to apply the recognition exemption and, thus, did not recognize right-of-use assets and lease liabilities for these leases.

Lease arrangements under operating leases for the leasing out of investment properties were set out in Note 15.

XV. Investment properties

2025	Land	Buildings	Total
Cost
Balance at January 1, 2025	$ 378,489	$ 184,164	$ 562,653
Additions	-	15,488	15,488
Balance at December 31, 2025	378,489	199,652	578,141

	Land	Buildings	Total
Accumulated depreciation
Balance at January 1, 2025	$ -	$ 170,775	$ 170,775
Depreciation expense	-	383	383
Balance at December 31, 2025	-	171,158	171,158
Accumulated impairment
Balance at January 1, 2025	42,033	-	42,033
Reversal of impairment losses	(13,128)	-	(13,128)
Balance at December 31, 2025	28,905	-	28,905
Net amount as of December 31, 2025	$ 349,584	$ 28,494	$ 378,078
2024
Cost
Balance at January 1, 2024 and balance at December 31, 2024	$ 378,489	$ 184,164	$ 562,653
Accumulated depreciation
Balance at January 1, 2024 and balance at December 31, 2024	-	170,775	170,775
Accumulated impairment
Balance at January 1, 2024 and balance at December 31, 2024	$ 42,033	$ -	$ 42,033
Net amount as of December 31, 2024	$ 336,456	$ 13,389	$ 349,845

Operating leases relate to the investment properties owned by the Group with rental periods between 2 and 7 years. All operating lease contracts contain market review clauses in the event that the lessee exercises its option to renew. The lessee does not have a bargain purchase option to acquire the related properties at the expiry of the lease period.

The future rentals to be received under operating leases for the leasing out of investment properties are as follows:

51 -

	December 31, 2025	December 31, 2024
1st year	$ 13,038	$ 11,525
2nd year	11,707	9,926
3rd year	6,559	8,674
4th year	2,942	5,329
5th year	2,571	2,942
Over 5 years	21,970	24,541
	$ 58,787	$ 62,937

The investment properties are depreciated on a straight-line basis over 25 years useful life.

As of December 31, 2025 and 2024, the fair values of the investment properties were NT$637,576 thousand and NT$563,366 thousand, respectively, according to independent appraisers' reports dated on December 31, 2025 and 2023. The fair value was measured using Level 3 inputs. The valuation was arrived at by reference to market evidence of transaction prices for similar properties. The significant unobservable inputs used include the income approach and cost approach.

All the Group's investment properties are held under freehold interests.

XVI. Borrowings

(I) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured loans	$ -	$ 1,510,000
Letters of credit	-	337,525
	$ -	$ 1,847,525
Annual interest rate (%)	-	1.77~1.95

(II) Short-term bills payable

	December 31, 2025	December 31, 2024
Commercial paper	$ 1,930,000	$ 1,810,000
Less: Unamortized discounts	1,468	1,291
	$ 1,928,532	$ 1,808,709
Annual interest rate (%)	1.59~1.63	1.74~1.89

As of December 31, 2025 and 2024, all commercial papers were unsecured commercial papers.

XVII. Notes and accounts payable (including related parties)

	December 31, 2025	December 31, 2024
Notes payable- Operating	$ 7,209	$ 7,224
Accounts payable	$ 2,404,702	$ 2,472,361
Accounts payable - related parties	$ 482,690	$ 125,817

(I) Notes payable

The note payable was paid for purchase raw materials, payable on construction contracts (except retentions), and the rent of Guantian factory. The debt period was from 30 to 60 days. The Group has financial risk management policies to ensure that all payables are paid within the pre-agreed credit terms, therefore no interest was recognized.

(II) Accounts payable

The amount of retentions payable on construction contracts was included in the accounts payable. Such retentions payable bear no interest and are expected to be paid after the warranty periods, which are within the normal operating cycle of the Group, usually more than 12 months after the reporting period.

XVIII. Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses	$ 523,569	$ 483,605
Sales tax payable	77,653	66,533
Compensation of employees and remuneration of directors	40,597	34,042
Payables for machine use	15,723	12,377
Insurance premiums payable	15,108	14,531
Miscellaneous shipping payables	9,984	12,324
Equipment Payables	2,826	13,170
Others (including outsourcing and employee benefits)	65,062	54,208
	$ 750,522	$ 690,790

XIX. Liability provision - current

	December 31, 2025	December 31, 2024
Current
Warranty (I)	$ 93,997	$ 85,049
Onerous contract - losses on construction contracts (II)	492,174	297,622
	$ 586,171	$ 382,671
	Warranty	Onerous contract - losses on construction contracts
---	---	---
Balance as of January 1, 2025	$ 85,049	$ 297,622
Additions	13,057	194,552
Paid	(4,109)	-
Balance as of December 31, 2025	$ 93,997	$ 492,174
Balance as of January 1, 2024	$ 77,920	$ 263,531
Additions	7,129	34,091
Balance as of December 31, 2024	$ 85,049	$ 297,622

(I) The Corporation recognized provision for construction warranties during the warranty period based on historical experience and adjusted for factors such as scale of project and construction complexity.

(II) The Group recognized the provision for onerous contract as a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The estimate may change due to future construction.

XX. Retirement benefit plan

(I) Defined contribution plans

The Corporation and its domestic subsidiaries adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Based on the LPA, the Corporation and its domestic subsidiaries make monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

(II) Defined benefit plans

Some of the employees in the Corporation and its domestic subsidiaries adopted the defined benefit plan under the Labor Standards Act, under which pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Corporation and its domestic subsidiaries make contributions, equal to a certain percentage of total monthly salaries, to a pension fund, which is deposited in the Bank of Taiwan in the name of and administered by the pension fund monitoring committee. Before the end of each year, the Corporation and its domestic subsidiaries assess the balance in the pension fund. If the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation and its domestic subsidiaries are required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the Bureau).

54 -

The Corporation and the subsidiary USEC did not make monthly contributions until June 2026 and March 2026, respectively, with the approval of Department of Labor.

The amounts of defined benefit plans included in the consolidated balance sheets were as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 397,053	$ 450,516
Fair value of plan assets	(568,725)	(588,214)
Net defined benefit assets	$ (171,672)	$ (137,698)

Movements of net defined benefit assets were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
January 1, 2025	$ 450,516	$ (588,214)	$ (137,698)
Service cost
Current service cost	2,031	-	2,031
Net interest expense (income)	5,941	(7,852)	(1,911)
Recognized in profit or loss	7,972	(7,852)	120
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(43,217)	(43,217)
Actuarial loss - changes in financial assumptions	2,630	-	2,630
Actuarial loss - experience adjustments	8,086	-	8,086
Recognized in other comprehensive income	10,716	(43,217)	(32,501)
Contributions from the employer	-	-	-
Benefits paid	(72,151)	70,558	(1,593)
	(72,151)	70,558	(1,593)
December 31, 2025	$ 397,053	$ (568,725)	$ (171,672)
January 1, 2024	$ 467,533	$ (557,876)	$ (90,343)

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
Service cost
Current service cost	$ 2,053	-	$ 2,053
Net interest expense (income)	5,751	(6,885)	(1,134)
Recognized in profit or loss	7,804	(6,885)	919
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(50,520)	(50,520)
Actuarial gain - changes in financial assumptions	(2,294)	-	(2,294)
Actuarial loss - experience adjustments	5,681	-	5,681
Recognized in other comprehensive income	3,387	(50,520)	(47,133)
Contributions from the employer	-	-	-
Benefits paid	(28,208)	27,067	(1,141)
	(28,208)	27,067	(1,141)
December 31, 2024	$ 450,516	$(588,214)	$(137,698)

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

	2025	2024
Operating costs	$ 96	$ 743
Operating expenses	24	176
	$ 120	$ 919

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

(1) Investment risk

The plan assets are invested in domestic and foreign equity, debt securities, and bank deposits, etc. The investment is conducted at the discretion of the Bureau of Labor Funds, Ministry of Labor or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for

a 2-year time deposit with local banks.

(2) Interest risk

A decrease in the government and corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.

(3) Salary risk

The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principle assumptions used for the purposes of the actuarial valuations were as follows:

	December 31, 2025	December 31, 2024
Discount rate (%)	1.25~1.38	1.375~1.500
Expected rate of salary increase (%)	2.25~3.00	2.25~3.00

If a possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

	December 31, 2025	December 31, 2024
Discount rate
0.25% increase	($ 5,228)	($ 6,071)
0.25% decrease	$ 5,360	$ 6,228
Expected rate of salary increase
0.25% increase	$ 5,214	$ 6,065
0.25% decrease	($ 5,112)	($ 5,943)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is

57 -

unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31, 2025	December 31, 2024
The expected contributions to the plan for the next year	$ -	$ -
The average duration of the defined benefit obligation	4.4~7.5 years	4.6~7.7 years

XXI. Maturity analysis of assets and liabilities

The Group classified the assets and liabilities of the construction operations as current and non-current according to the operating cycle. A maturity analysis of the related assets and liabilities was as follows:

	Within 12 months	After 12 months	Total
December 31, 2025
Assets
Contract assets-current	$ 5,296,028	$ 105,512	$ 5,401,540
Notes and accounts receivable (including related parties)	1,856,950	-	1,856,950
Inventories	1,353,396	307,800	1,661,196
Refundable construction deposits	68,234	888	69,122
	$ 8,574,608	$ 414,200	$ 8,988,808
Liabilities
Contract liabilities-current	$ 2,373,605	$ -	$ 2,373,605
Notes and accounts payable (including related parties)	2,796,424	98,177	2,894,601
Provision-current	268,144	318,027	586,171
	$ 5,438,173	$ 416,204	$ 5,854,377
December 31, 2024
Assets
Contract assets-current	$ 5,956,550	$ 91,450	$ 6,048,000
Notes and accounts receivable (including related parties)	2,037,626	-	2,037,626
Inventories	1,426,393	152,949	1,579,342
Refundable construction deposits	3,525	305	3,830
	$ 9,424,094	$ 244,704	$ 9,668,798
Liabilities
Contract liabilities-current	$ 1,330,550	$ -	$ 1,330,550

Notes and accounts payable (including related parties) 2,551,785 53,617 2,605,402
Provision-current 265,232 117,439 382,671
$ 4,147,567 $ 171,056 $ 4,318,623

XXII. Equity

(I) Ordinary share capital

	December 31, 2025	December 31, 2024
Number of shares authorized (in thousands)	250,000	250,000
Shares authorized	$2,500,000	$2,500,000
Number of shares issued and fully paid (in thousands)	200,000	200,000
Shares issued	$2,000,000	$2,000,000

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

(II) Capital surplus

	December 31, 2025	December 31, 2024
May be used to offset deficits, distributed as cash, or transferred to share capital (Note)
Issuance of ordinary shares	$ 1,077,666	$ 1,070,016
Treasury share transactions	292,353	292,353
Arising from donations	26	26
May be used to offset deficits only
Equity changes of associates accounted for using the equity method	$ 11,740	$ 12,007
Other	1,546	1,511
	$ 1,383,331	$ 1,375,913

Note: The capital surplus could be used to offset a deficit, distributed as cash dividends or transferred to share capital when the Corporation has no deficit (limited to a certain percentage of the Corporation capital surplus and once a year).

59 -

(III) Retained earnings and dividend policy

Under the Corporation's dividend policy, where the Corporation made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit (an appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation's paid in capital), setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation's board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for distribution of dividends to shareholders.

The Corporation is in a challenging industry, and the life cycle is in a mature stage. When the board of directors are formulating dividend policy, the Corporation maintains a stable dividend policy. Except when there is a need for capital, a dividend will be distributed at a rate not less than 50% of the earnings available for distribution, of which not less than 50% will be cash dividends unless there is a need for cash for the Corporation's operations.

The legal reserve may be used to offset the 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 transferred to capital or distributed in cash.

Under the directive titled "Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards", the Corporation should appropriate to or reverse from special reserve.

The appropriations of earnings for 2024 and 2023 were approved by the shareholders' meetings in May 2025 and 2024, respectively, The appropriations and dividends per share were as follows:

	Appropriation of Earnings		Dividend Per Share (NT$)
	2024	2023	2024	2023
Legal reserve	$ 58,493	$ 53,747
Cash dividends	400,000	380,000	$ 2.0	$ 1.9

60 -

The appropriation of earnings for 2025 was proposed in the board of directors' meeting held in February 2026. The appropriations and dividends per share were as follows:

	Appropriation of Earnings	Dividend Per Share (NT Dollars)
Legal reserve	$ 66,804
Special surplus reserve	5,272
Cash dividends	480,000	$ 2.4

The appropriations of earnings for 2025 will be resolved by the shareholders in their meeting scheduled to be held in May 2026.

(IV) Other equity items

(1) Exchange differences on translating the financial statements of foreign operations

	2025	2024
Opening balance	$ (1,650)	$ (3,245)
Difference in the translation of profits on equity-accounted affiliate enterprises	(6,381)	1,595
Closing balance	$ (8,031)	$ (1,650)

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

	2025	2024
Opening balance	$ (134,867)	$ 39,863
Recognized during the year
Unrealized gains and losses - equity instruments	(7,269)	(82,190)
Share from associates accounted for using the equity method	(9,577)	(87,134)
Other comprehensive income recognized in the year	(16,846)	(169,324)
Cumulative unrealized gain or loss of equity instruments transferred to retained earnings due to disposal	(3,992)	(5,406)

Closing balance $ (155,705) $ (134,867)

(3) Gain (Loss) on hedging instruments

	2025	2024
Opening balance	$ -	$ (4)
Share from associates accounted for using the equity method	11	4
Closing balance	$ 11	$ -

XXIII. Revenues

	2025	2024
Revenue from contracts with customers
Construction revenue	$ 19,497,971	$ 17,988,097
Sales revenue	899,506	1,145,643
Service revenue	532,114	539,232
	20,929,591	19,672,972
Other operating revenue	18,689	22,086
	$ 20,948,280	$ 19,695,058

(I) Contact balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and accounts receivable (including related parties)	$ 1,856,950	$ 2,037,626	$ 918,825
Contract assets
Construction contracts	$ 3,811,426	$ 4,762,826	$ 6,096,792
Retentions receivable	1,590,114	1,285,174	1,155,458
	$ 5,401,540	$ 6,048,000	$ 7,252,250
Contract liabilities
Construction contracts	$ 2,371,624	$ 1,324,846	$ 1,125,649
Sale of goods	1,981	5,704	1,120
	$ 2,373,605	$ 1,330,550	$ 1,126,769

The changes in the balance of contract assets and contract liabilities primarily resulted from the timing difference between the Group's performance and the respective customers' payment; there are no significant changes in contract assets and liabilities for 2025 and 2024.

(II) Disaggregation of revenue

2025

Main products/services	CSSC	USEC	Total
Construction revenues	$ 14,049,725	$ 5,448,246	$ 19,497,971
Revenue from trading of steel products	899,506	-	899,506
Service revenues	532,114	-	532,114
Others	18,689	-	18,689
	$ 15,500,034	$ 5,448,246	$ 20,948,280

2024

Main products/services	CSSC	USEC	Total
Construction revenues	$ 11,711,079	$ 6,277,018	$ 17,988,097
Revenue from trading of steel products	1,145,643	-	1,145,643
Service revenues	539,232	-	539,232
Others	22,086	-	22,086
	$ 13,418,040	$ 6,277,018	$ 19,695,058

(III) Contracts with customers that are partially completed

As of December 31, 2025 and 2024, the transaction prices allocated to the performance obligations that are not fully satisfied are NT$31,888,598 thousand and NT$28,584,053 thousand, respectively. The Group will recognize revenue as the construction is being completed and the expected timing for recognition of revenue is on various dates through end of 2029.

XXIV. Profit before income tax

(I) Interest income

	2025	2024
Bank deposits	$ 5,925	$ 1,021
Others	72	623
	$ 5,997	$ 1,644

(II) Other revenue

	2025	2024
Dividend income	$ 3,690	$ 3,914
Revenues from claims	61,120	739
Rental income	1,138	1,594
Others	12,302	12,204
	$ 78,250	$ 18,451

(III) Other gains and losses

	2025	2024
Loss on claims	$ (12,959)	$ (6,753)
Net currency exchange gains (losses)	(1,682)	2,155
Fees and charges	(8,356)	(8,418)
Loss on disposal of property, plant and equipment	(539)	(59,879)
Others	(256)	(10,558)
	$ (23,792)	$ (83,453)

The components of net foreign exchange gain (loss) were as follows:

	2025	2024
Foreign exchange gain	$ 2,535	$ 2,843
Foreign exchange loss	(4,217)	(688)
Net exchange gain (loss)	$ (1,682)	$ 2,155

(IV) Finance costs

	2025	2024
Interest on overdrafts and loans	$ 56,484	$ 80,339
Interest on lease liabilities	7,943	7,575
Total interest expense on financial liabilities at fair value through profit or loss	64,427	87,914
Less: Amounts included in the cost of qualifying assets	841	991
	$ 63,586	$ 86,923

The information about capitalized interest was follow:

	2025	2024
Capitalized amounts	$ 841	$ 991
Capitalized annual rate (%)	1.70~1.95	1.46~1.95

(V) Impaired losses recognized on non-financial assets (reversed gain) (accounted under operating costs)

	2025	2024
Loss (reversal) of inventories	$ (3,485)	$ 4,359
Reversal of impairment loss on investment properties	(13,128)	-
	$ (16,613)	$ 4,359

(VI) Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 143,594	$ 138,064
Right-of-use assets	41,438	26,859
Investment properties	383	-
Intangible assets	5,727	6,041
	$ 191,142	$ 170,964

Analysis of depreciation by function

Operating costs	$ 168,069	$ 149,958
Operating expenses	17,346	14,965
	$ 185,415	$ 164,923

Analysis of amortization by function

Operating costs	$ 3,395	$ 4,001
Operating expenses	2,332	2,040
	$ 5,727	$ 6,041

(VII) Direct operating expenses of investment property

	2025	2024
Direct operating expenses of investment properties that generated rental income	$ 3,485	$ 2,575

(VIII) Employee benefits

	2025	2024
Short-term employee benefits
Salaries	$ 1,338,227	$ 1,248,029
Labor and health insurance	87,127	81,124
Others	68,093	61,874
	1,493,447	1,391,027
Post-employment benefits
Defined contribution plans	34,902	33,810
Defined benefit plans (Note 20)	120	919
	35,022	34,729
Termination benefits	1,438	487
	$ 1,529,907	$ 1,426,243
Analysis by function
Operating costs	$ 1,262,985	$ 1,168,160
Operating expenses	266,922	258,083
	$ 1,529,907	$ 1,426,243

According to the Articles of Incorporation the article stipulates the Corporation distributed employees' compensation and remuneration of directors at rates no less than 0.1% and no higher than 1%, respectively, of the profit before income tax prior to deducting compensation of employees and remuneration of directors. According to the amendment to the Securities and Exchange Act in August 2024, the Group plans to adopt an amendment to the Articles of Incorporation at the shareholder's Meeting in 2025, stipulating that no less than 30% of the employee compensation shall be used as compensation for grassroots employees. The compensation of employees (including compensation for grassroots employees) and remuneration of directors and supervisors for the years ended December 31, 2025 and 2024 which have been approved by the Corporation's board of directors in February 2026 and 2025, respectively, were as follows:

	Pay in cash
	2025	2024
Compensation of employees	$28,302	$24,037
Remuneration of directors	5,660	4,808

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the difference is recorded as a change in the accounting estimate.

There is no difference between the actual payment of compensation of employees and remuneration of directors and the amounts recognized in the consolidated financial statements in 2024 and 2023.

Information on the Corporation's Compensation of employees and remuneration of directors resolved by the board of directors is available on the Market Observation Post System website of the Taiwan Stock Exchange.

XXV. Income tax

(I) Income tax recognized in profit or loss

	2025	2024
Current tax
In respect of the current year	$ 73,961	$ 97,591
In respect of prior years	(4,527)	2,172
	69,434	99,763
Deferred tax
In respect of the current year	934	11,788
In respect of prior years	-	(26)
	934	11,762
	$ 70,368	$ 111,525

The reconciliation of accounting profit and income tax expenses was as follows:

	2025	2024
Profit before income tax	$ 708,769	$ 651,004
Income tax expense calculated at the statutory rate	$ 141,761	$ 128,935
Permanent differences	(43,861)	168
Tax - exempt income	(23,000)	(20,986)
Adjustments for prior years	(4,527)	2,146
Unrecognized deductible temporary differences	(5)	1,262
	$ 70,368	$ 111,525

(II) There was no income tax recognized directly in equity by the Corporation and its subsidiaries.
(III) Income tax recognized in other comprehensive income

	2025	2024
Deferred tax
Remeasurement of defined benefit plan	$ 6,500	$ 9,427

(IV) Current tax assets and liabilities

	December 31, 2025	December 31, 2024
Current tax assets
Tax refunds receivable	$ 96	$ 171
Current tax liabilities
Income tax payable	$ 24,647	$ 57,700

(V) Deferred tax assets and liabilities

Movements of deferred tax assets and liabilities were as follows:

2025

	Opening balance	Recognized in profit and loss	Recognized in other comprehensive income	Closing balance
Deferred income tax assets
Temporary difference
Provisions	$ 17,010	$ 1,789	-	$ 18,799
Unrealized loss on construction costs	59,524	38,911	-	98,435
Allowance bad debt overrun	24,232	(169)	-	24,063
Difference between tax reporting and financial reporting - depreciation method	12,757	(667)	-	12,090
Book-tax difference from revenue recognition	1,432	38,274	-	39,706
Others	1,243	(697)	-	546
	116,198	77,441	-	193,639
Losses carried forward	78,123	(78,123)	-	-
	$ 194,321	$ (682)	-	$ 193,639
Deferred income tax liabilities
Temporary difference
Net defined benefit assets	$ 27,540	$ 294	$ 6,500	$ 34,334
Other	83	(42)	-	41
	$ 27,623	$ 252	$ 6,500	$ 34,375

2024

	Opening balance	Recognized in profit and loss	Recognized in other comprehensive income	Closing balance
Deferred income tax assets
Temporary difference
Provisions	$ 15,584	$ 1,426	-	$ 17,010
Unrealized loss on construction costs	52,706	6,818	-	59,524
Allowance bad debt	23,998	234	-	24,232

70 -

overrun
Difference between tax reporting and financial reporting - depreciation method	13,424	(667)	-	12,757
Book-tax difference from revenue recognition	-	1,432	-	1,432
Others	397	846	-	1,243
	106,109	10,089	-	116,198
Losses carried forward	$ 124,153	$ (46,030)	$ -	$ 78,123
	$ 230,262	$ (35,941)	$ -	$ 194,321
Deferred income tax liabilities
Temporary difference
Book-tax difference from revenue recognition	$ 24,212	$ (24,212)	$ -	$ -
Net defined benefit assets	18,069	44	9,427	27,540
Other	94	(11)	-	83
	$ 42,375	$ (24,179)	$ 9,427	$ 27,623

(VI) Income tax assessments

The income tax returns of the Corporation and its domestic subsidiaries through 2023 have been assessed by the tax authorities.

XXVI. Earnings per share

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

	2025	2024
Net profit attributable to owners of the Company	$638,401	$539,479

Weighted average number of ordinary shares outstanding

	Unit: thousand shares
	2025	2024
Weighted average number of ordinary shares used in computation of basic earnings per share	200,000	200,000
Add: Effect of dilutive potential ordinary shares - Compensation of employees	742	547
Weighted average number of ordinary shares used in computation of diluted earnings per share	200,742	200,547

The Corporation may settle the compensation paid to employees in cash or shares, therefore, the Corporation assumes that the entire amount of the compensation would be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the effect is dilutive. Such a dilutive effect of the potential 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.

XXVII. Capital risk management

The Group manages the capital to ensure that the Corporation and its subsidiaries will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt and equity of the Group. The Group is not subject to any externally imposed capital requirements.

XXVIII. Financial instruments

(I) Fair value of financial instruments that are not measured at fair value

The management of the Group considers the carrying amounts of financial assets and liabilities not carried at fair value.

(II) Fair value of financial instruments that are measured at fair value on a recurring basis

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Equity instruments - Domestic listed shares	$212,464	$ -	$ -	$212,464
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Equity instruments - Domestic listed shares	$219,733	$ -	$ -	$219,733

There was no transfer between Level 1 and Level 2 for the years ended December 31, 2025 and 2024.

(III) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortized cost (Note 1)	$ 3,274,588	$ 2,564,441
Financial assets at fair value through other comprehensive income - equity instruments	212,464	219,733
Financial liabilities
Measured at amortized cost (Note 2)	5,774,685	7,077,158

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

Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, short-term bills payable, notes

payable, accounts payable (including related parties), other payables, and deposits received and other financial liabilities.

(IV) Financial risk management objectives and policies

The Group's major financial instruments include notes and accounts receivable, equity investments, other financial assets, notes and accounts payable, short-term borrowings, short-term bills payable, lease liabilities and long-term bills payable. The Group's financial management department provides service to the business units, coordinates domestic and international financial operations, prepares and analyzes internal risk reports to monitor and manage financial risk related to the operation of the Group. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.

1. Market risk

The main financial risks arising from operating activities are the risk of changes in interest rates (see (1) below) and the risk of other prices (see (2) below).

There had been no change to the Group's exposure to market risks or the way these risks were managed and measured.

(1) Interest rate risk

The Group was exposed to interest rate risk because the Corporation and its subsidiaries borrowed funds at variable rates. The carrying amounts of the Group's financial assets and financial liabilities with exposure to interest rates at the balance sheet date were as follows:

	December 31, 2025	December 31, 2024
Fair value interest rate risk
Financial assets	$1,101,868	$ 241,953
Financial liabilities	474,112	467,247
Cash flow interest rate risk
Financial assets	139,560	241,840
Financial liabilities	-	1,847,525

If interest rates had been 1% higher and all other variables were held constant, the Group's pre-tax profit for the years ended

73 -

December 31, 2024 would decrease by NT$18,475 thousand.

(2) Other price risk

The Group was exposed to equity price risk through their investments in listed domestic shares. The equity price of the Group was evaluated by the closing price of the monthly equity securities, measured with reference to the monthly published price quotation.

If equity prices had been 1% lower, the pre-tax other comprehensive income for the years ended December 31, 2025 and 2024 would decrease by NT$2,125 thousand and NT$2,197 thousand, respectively.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the balance sheet date, the Group's maximum exposure to credit risk will cause a financial loss to the Group due to the failure of counterparties to discharge an obligation and due to financial guarantees provided by the Group could arise from:

(a) The carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets; and
(b) The amount of contingent liabilities in relation to financial guarantees issued by the Group.

The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group uses other publicly available financial information and its own trading records to rate its major customers. The Group's exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits annually. The Group's significant credit risk concentration of customers was those individual accounts receivable with balances higher than 10% of the Group's total

74 -

receivables, as follows:

	December 31, 2025	December 31, 2024
Customer A	$ 432,257	$ 83,179
Customer B	149,786	217,583
Customer C	88,324	204,565
Customer D	86,882	208,879
	$ 757,249	$ 714,206

3. Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants. Short-term financing which the Group has obtained is sufficient for the Group's operations in the near future and the Group is now free of liquidity risks.

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Group's available unutilized short-term bank loan facilities were NT$31,331,839 thousand and NT$26,804,916 thousand, respectively.

The table below summarizes the maturity profile of the Company's financial liabilities based on contractual undiscounted payments:

December 31, 2025

	Less Than 1 Year	1 - 5 Years	Over 5 years	Total
Non-derivative financial liabilities	$ 3,546,946	$ 299,207	$ -	$ 3,846,153
Variable interest rate instruments	1,930,000	-	-	1,930,000
Fix interest rate instruments	35,235	73,391	509,636	618,262
Lease liabilities	-	140,000	-	140,000
	$ 5,512,181	$ 512,598	$ 509,636	$ 6,534,415

Further information for maturity analysis of obligation under lease was as follows:

	Less than 1 Year	1 to 5 Years	5 to 10 Years	10 to 15 Years	15 to 20 Years	More than 20 Years
Lease liabilities	$ 35,235	$ 73,391	$ 83,598	$ 83,408	$ 82,096	$260,534

December 31, 2024

	Less Than 1 Year	1 - 5 Years	Over 5 years	Total
Non-derivative financial liabilities	$ 3,241,364	$ 178,349	-	$ 3,419,713
Variable interest rate instruments	1,852,877	-	-	1,852,877
Fix interest rate instruments	1,810,000	-	-	1,810,000
Lease liabilities	18,740	70,993	530,059	619,792
	$ 6,922,981	$ 249,342	$ 530,059	$ 7,702,382

Further information for maturity analysis of obligation under lease was as follows:

	Less than 1 Year	1 to 5 Years	5 to 10 Years	10 to 15 Years	15 to 20 Years	More than 20 Years
Lease liabilities	$ 18,740	$ 70,993	$ 84,179	$ 84,125	$ 82,813	$278,942

XXIX. Transactions with related parties

(I) The name of the Corporation and its relationship with the Group

Name of related party	Relationship with the Group
China Steel Corporation (CSC)	Parent company
China Steel Chemical Corporation	Sister companies
Dragon Steel Corporation (DSC)	Sister companies
Chung Hung Steel Corporation	Sister companies
China Ecotek Corporation	Sister companies
China Steel Security Corporation	Sister companies
China Steel Management Consulting Corporation	Sister companies
Steel Castle Technology Corporation (SCTC)	Sister companies
China Steel Machinery Corporation	Sister companies
China Prosperity Development Corporation	Sister companies
CSC Solar Corporation	Sister companies
Info Champ Systems Corporation	Sister companies
Pao Good Industrial Co., Ltd.	Sister companies
Universal Exchange Inc.	Sister companies
China Steel Resources Corporation	Sister companies
C.S. Aluminium Corporation	Sister companies
Taiwan Intelligent Transportation Co., Ltd.	Sister companies

77 -

Name of related party	Relationship with the Group
Sing Da Marine Structure Corporation	Sister companies (changed from associates to sister companies in July 2025)
China Steel Express Corporation	Sister companies
Himag Magnetic Corporation	Associates
Kaohsiung Rapid Transit Corporation	Associates
CHC Resources Corporation	Associates
Wabo Global Trading Corporation	Associates
Nikken & CSSC Metal Products Co., Ltd.	Associates
Kaohsiung Arena Development Corporation	Associates
China Prosperity Construction Corporation (CPCC)	Associates
Pro-Ascentek Investment Corporation	Associates
IHI Corporation	Directors of the Corporation
Great Grandeul Steel Co., Ltd.	Directors of the Corporation
Grace Investment Co., Ltd.	Directors of the Corporation
CSC Educational Foundation	Other related party

(II) Operating revenue

Related Party Type	2025	2024
Parent company	$ 1,396,684	$ 2,409,201
Sister companies	217,689	419,709
Associates	416,683	254,494
	$ 2,031,056	$ 3,083,404

The construction contracts of the Group contracting related parties are different, and its price cannot be compared with other non-related parties; and the payment conditions are collected within the period stipulated in the contract after the Group has issued an estimate and an invoice, which makes no major differences with regular customers.

Sales to related parties are made under normal arms-length terms. The related collection terms are 30 days after the issuance of an invoice.

(III) Procurement

Related Party Type/Name	2025	2024
Parent company	$ 3,809,988	$ 4,520,278
Sister companies
DSC	1,692,640	1,161,253
Other	28,126	5,202
Associates	10,412	4,855
	$ 5,541,166	$ 5,691,588

The purchase prices and payment terms are similar to those of normal purchases from third parties, except for purchases from the parent entity and some fellow subsidiaries which do not have available data for comparison with other parties. Most purchases have payment terms which are similar to those from third parties per quality control inspections, except purchases with the parent entity and some fellow subsidiaries which have payment terms by letters of credit or prepayment.

(IV) Receivables - related parties

Account Item	Related Party Type/Name	December 31, 2025	December 31, 2024
Accounts receivable-related parties	Parent company	$ 98,249	$ 117,181
	Sister companies
	DSC	9,599	29,426
	Other	151	24
	Associates	67,729	14,132
		$ 175,728	$ 160,763
Other receivables	Parent company	$ 11,317	$ 526
	Sister companies
	DSC	14,198	1,333
	Associates	911	875
		$ 26,426	$ 2,734

No guarantee was received for receivables from related parties. For the year ended December 31, 2025 and 2024, no impairment loss was recognized for receivables from related parties.

(V) Payables - related parties

Account Item	Related Party Type	December 31, 2025	December 31, 2024
Accounts payable - related parties	Parent company	$ 118,937	$ 51,111
	Sister companies	363,753	71,663
	Associates	-	3,043
		$ 482,690	$ 125,817
Other payables	Parent company	$ 2,092	$ 1,803
	Sister companies	3,463	8,755
	Associates	8,178	341
	Other related party	2,092	1,819
		$ 15,825	$ 12,718

The outstanding accounts payable to related parties are unsecured.

(VI) Prepayments

Account Item	Related Party Type	December 31, 2025	December 31, 2024
Prepayments	Parent company	$ -	$ 1,644
	Sister companies	-	7
		$ -	$ 1,651

(VII) Disposals of investments accounted for using equity methods

Related Party Type	Price of disposal		Gain on disposal
	2025	2024	2025	2024
Parent company	$41,600	$ -	$7,650	$ -

The Company sold the entire equity of Sing Da Marine Structure Corporation to the Parent company in July 2025. This transaction is an organizational restructuring under joint control and is treated as an equity transaction. Therefore, gain on disposal was recognized under capital surplus - issuance of ordinary shares.

(VIII) Endorsements and guarantees

Related Party Type/Name	December 31, 2025	December 31, 2024
Associates - CPCC
Guarantee amount	$ 500,000	$ 500,000
Actual amount drawn down	(140,000)	-
	$ 360,000	$ 500,000

The collateral of endorsement guarantee refers to Note 30.

(IX) Other transactions with related parties

Scrap sales

	2025	2024
DSC	$ 9,867	$11,865
CSC	6,467	-
	$16,334	$11,865

Waste sales

	2025	2024
DSC	$ 6,199	$ 7,709
CSC	4,311	-
	$10,510	$ 7,709

Outsourcing

	2025	2024
Sister companies
SCTC	$ 1,285,420	$ 426,026
Other	7,398	1,012
Associates	-	15,611
	$ 1,292,818	$ 442,649

Other expenses

	2025	2024
Parent company	$ 12,103	$ 6,825
Sister companies	50,511	62,552
Associates	29	139
Other related party	3,024	2,251
	$ 65,667	$ 71,767

(X) Compensation of key management personnel

The amounts of remuneration of directors and key executives were as follows:

	2025	2024
Short-term employee benefits	$ 32,527	$ 24,753
Post-employment benefits	(98)	(74)
	$ 32,429	$ 24,679

XXX. Pledged assets

	December 31, 2025	December 31, 2024
Inventory - construction in progress (consisting mainly of joint guarantee of financing collateral for the CPCC)	$ 256,250	$ -
Guarantee deposits paid - current (consisting mainly of rental deposit and bid bonds)	69,122	3,830
Guarantee deposits paid - non-current (consisting mainly of project warranty bonds)	39,546	26,439
Other financial assets - non-current (time deposit certificates mainly for project warranty bonds)	22,977	22,604
	$ 387,895	$ 52,873

XXXI. Significant contingent liabilities and unrecognized contractual commitments

In addition to those disclosed in other notes, significant commitments, and contingencies of the Group as of December 31, 2025 were as follows:

(I) Construction contracts were secured by the Group's refundable deposits and an amount of about NT$2,638,511 thousand was guaranteed by banks.

(II) The Group had signed agreements to buy equipment for NT$104,484 thousand, within which about NT$47,550 thousand was not yet completed.

(III) Unused letters of credit for purchases of raw materials amounted to NT$1,057,691 thousand.

XXXII. Exchange rate of assets and liabilities denominated in foreign currencies

The Group has no significant assets and liabilities denominated in foreign currencies as of December 31, 2025.

XXXIII. Supplementary disclosures

(I) Information about significant transactions of December 31, 2025 and (II) Investees

Financing provided to others: None.
Endorsements/guarantees provided: Appendix 1.
Marketable securities held: None of the marketable securities held by the
81 -

Group at the end of the period met the materiality criteria.

Total purchases from or sales to related parties, amounting to at least NT$100 million or 20% of the paid-in capital: Appendix 2.
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
Others: Business relationship and significant transactions between the parent company and subsidiaries and between subsidiaries: Refer to Appendix 3.
Information on investees: Appendix 4.

(III) Information on investments in mainland China: None.

XXXIV. Segment information

The information is provided to the main business decision-maker to allocate resources and assess the performance of each department and focus on the type of product or service delivered or provided. The Group's reportable segments are as follows:

The Company (CSSC) - steel and iron products and steel structure engineering industry
USEC - refers to the explanation in Note 10 for information on main business operations.

(I) Segment revenue and operations

The analysis of the Group's revenue and business performance for reportable segments is as follows:

2025	CSSC	USEC	Others	Adjustment and offsetting	Consolidated
Revenue from customers other than the parent company and consolidated subsidiaries	$ 15,500,034	$ 5,448,246	$ -	$ -	$ 20,948,280
Revenue from the parent company and consolidated subsidiaries	24	15,324	-	(15,348)	-
Total revenue	$ 15,500,058	$ 5,463,570	$ -	$ (15,348)	$ 20,948,280

	CSSC	USEC	Others	Adjustment and offsetting	Consolidated
Segment gains (losses)	$ 447,949	$ 152,191	$(30)	$ 480	$ 600,590
Interest income	395	5,602	-	-	5,997
Other income	53,528	25,202	-	(480)	78,250
Other gains and losses	(9,221)	(14,564)	(7)	-	(23,792)
Finance costs	(63,318)	(268)	-	-	(63,586)
Share of the profit of associates	246,008	13,726	-	(148,424)	111,310
Profit (loss) before income tax	675,341	181,889	(37)	(148,424)	708,769
Income tax expenses	36,940	33,428	-	-	70,368
Net profit for the period	$ 638,401	$ 148,461	$(37)	$ (148,424)	$ 638,401
2024
Revenue from customers other than the parent company and consolidated subsidiaries	$ 13,418,040	$ 6,277,018	$ -	$ -	$ 19,695,058
Revenue from the parent company and consolidated subsidiaries	190,457	9,462	-	(199,919)	-
Total revenue	$ 13,608,497	$ 6,286,480	$ -	$ (199,919)	$ 19,695,058
Segment gains (losses)	$ 546,462	$ 153,370	$(44)	$ 480	$ 700,268
Interest income	456	1,177	11	-	1,644
Other income	8,438	4,190	6,303	(480)	18,451
Other gains and losses	(70,312)	(13,182)	41	-	(83,453)
Finance costs	(70,497)	(16,426)	-	-	(86,923)
Share of the profit of associates	211,096	12,796	-	(122,875)	101,017
Profit (loss) before income tax	625,643	141,925	6,311	(122,875)	651,004
Income tax expenses	86,164	25,361	-	-	111,525
Net profit for the period	$ 539,479	$ 116,564	$ 6,311	$ (122,875)	$ 539,479

Segment income (loss) refers to the profits earned by each segment. The assessment is provided to the main business decision maker to allocate resources to segments and assess their performance.

(II) Total assets and liabilities of segments

	December 31, 2025	December 31, 2024
Segments assets
CSSC	$ 12,848,122	$ 12,812,566
USEC	3,522,746	3,443,596
Others	84	122
Adjustment and offsetting	(1,411,187)	(1,469,080)
	$ 14,959,765	$ 14,787,204
Segment liabilities
CSSC	$ 7,171,345	$ 7,384,042
USEC	2,113,838	2,065,614
Adjustment and offsetting	(2,195)	(90,976)
	$ 9,282,988	$ 9,358,680

(III) Other segment information

	Depreciation and amortization
	2025	2024
CSSC	$ 180,318	$ 162,667
USEC	10,824	8,297
	$ 191,142	$ 170,964

(IV) Revenues from primary products and services

The revenues from primary products and services of the Group's going concern are analyzed as follows:

	2025	2024
Steel structure production and assembly	$ 14,049,725	$ 11,711,079
Construction project	5,448,246	6,277,018
Sales of goods	899,506	1,145,643
Service revenues	532,114	539,232
Rental income	18,689	22,086
	$ 20,948,280	$ 19,695,058

(V) Geographic information:

The Group mainly operates in Taiwan.

The Group's operating revenue from external customers is classified by the countries of customers and non-current assets are shown below based on the location of the assets:

	Revenue from external customer		Non-current assets
	2025	2024	December 31, 2025	December 31, 2024
Taiwan	$ 20,948,280	$ 19,695,058	$ 2,759,409	$ 2,705,352

Non-current assets do not include investments recognized under the equity method, deferred income tax assets, guarantee deposits paid, net defined benefit assets, and other financial assets.

(VI) Main customer information

Income from a single customer in 2025 and 2024 exceeded 10% of the net consolidated operating revenues of the Company and subsidiaries:

	2025		2024
	Amount	%	Amount	%
Company A	$ 4,522,193	22	$ 2,957,820	15
Company B	2,486,440	12	2,905,150	15
Company C	1,396,684	7	2,409,201	12

China Steel Structure Co., Ltd. and Subsidiaries
Provision of endorsements/guarantees to others
December 31, 2025

Appendix 1

Unit: thousand NTD

(Unless otherwise noted)

No.	Endorsement or guarantee provider	Endorsement/Guarantee		Limit on endorsements/guarantees to a single enterprise	Maximum balance for the period	Ending balance	Actual amount drawn	Amount of property as collateral	Ratio of accumulated endorsement/guarantee to net equity per latest financial statements (%)	Maximum endorsed/guaranteed amount	Endorsement/guarantees provided by the parent company	Endorsement/guarantees provided by subsidiary	Endorsement/guarantees for entities in Mainland China	Note
		Company name	Relationship
1	United Steel Engineering & Construction Corp.	China Prosperity Construction Corporation	The company that provides endorsement or guarantees for construction projects based on construction contract.	$939,272	$500,000	$500,000	$140,000	$256,250	35	$21,133,626	N	N	N	Note 1 and 2

Note 1: Bank credit line performance guarantee.
Note 2: According to the Procedures for Making Endorsements and Guarantees established by the subsidiary USEC, the maximum guarantee for a single enterprise is two thirds of its net worth, however, the maximum guarantee for the Company is 15 times its net worth.

86 -

China Steel Structure Co., Ltd. and Subsidiaries
Amount of Purchases from and Sales to Related Parties in Excess of NT$100 Million or 20% of Paid-in Capital
January 1 to December 31, 2025

Appendix 2

Unit: thousand NTD

(Unless otherwise noted)

Purchaser/seller	Transaction counterparty	Relationship	Transaction status				Differences in transaction terms compared to third party transactions and reasons		Notes/accounts receivable (payable)
			Purchase (sales)	Amount	Percentage of total purchases Percentage (sales) (%)	Credit period	Unit price	Credit period	Balance	Percentage of total notes/accounts receivable (payable) (%)
China Steel Structure Co., Ltd.	China Steel Corporation	Parent company	Procurement	$3,809,988	55	Credit letter/ Prepayment before shipment	$ -	Refers to Note 29	($118,937)	(6)
	Dragon Steel Corporation	Sister company	Procurement	1,692,640	24	Credit letter	-	Refers to Note 29	(243,937)	(12)
	China Steel Corporation	Parent company	Service revenue	(429,181)	(3)	Contract period			28,080	2
	Dragon Steel Corporation	Sister company	Service revenue	(102,933)	(1)	Contract period	-		9,599	1
	China Steel Corporation	Ultimate parent company	Construction revenue	(907,608)	(17)	Contract period	-		70,169	35
United Steel Engineering & Construction Corp.	China Prosperity Construction Corporation	Associates	Construction revenue	(232,181)	(4)	Contract period	-		16,356	8
	CHC Resources Corporation	Sister company	Construction revenue	(128,569)	(2)	Contract period	-		51,373	26

87 -

China Steel Structure Co., Ltd. and Subsidiaries
Relationships Between Parent Company and Subsidiaries and Significant Transactions
January 1 to December 31, 2025
Appendix 3
Unit: thousand NTD
(Unless otherwise noted)

No.	Company name	Counterparty	Relationship with the company	Transaction
				Item	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (%)
0	The Corporation	United Steel Engineering & Construction Corp.	Parent company to subsidiary	Construction revenues	$ 24	Determined by the contract	-
1	United Steel Engineering & Construction Corp.	The Corporation	Subsidiary to parent company	Construction revenues	15,324	Determined by the contract	-

88 -

China Steel Structure Co., Ltd. and Subsidiaries

Information on Investees

January 1 to December 31, 2025

Appendix 4

Unit: thousand NTD

(Unless otherwise noted)

Name Of Investor	Name of Investee	Location	Main Business Item	Original Investment Amount		Held at End of Period			Net Profit (Loss) of Investee Company	Investment Gains (Losses) Recognized	Note
				End of This Period	End of Previous Year	Number of Shares	Percentage (%)	Book Value
The Corporation	CHC Resources Corporation	Taiwan	Manufacture and sale of GBFS power and GBFS cement, air-cooled BFS and BOFS, recycling of resources	$ 132,715	$ 132,715	23,182,738	9	$ 615,239	$ 1,233,105	$ 115,024
The Corporation	United Steel Engineering & Construction Corp.	Taiwan	Contracting and management of civil engineering construction, etc.	410,000	410,000	80,000,000	100	1,408,908	148,461	148,461	Note
The Corporation	China Steel Structure Holding Co., Ltd.	Samoa	Holding and investment	-	-	10	100	84	(37)	(37)	Note
The Corporation	Pro-Ascentek Investment Corporation	Taiwan	General investment	40,000	40,000	4,000,000	3	44,071	22,315	747
The Corporation	Chiun Yu Investment Corporation	Taiwan	General investment	12,453	12,453	1,046,500	35	18,703	851	298
The Corporation	HIMAG Magnetic Corporation	Taiwan	Manufacture and trading of magnetic materials, specialty chemicals, and iron oxides	17,080	17,080	1,116,252	3	14,773	16,916	472
The Corporation	Chi-Yi Investment Corporation	Taiwan	General investment	6,000	6,000	600,000	30	9,493	530	159
The Corporation	Li-Ching-Long Investment Corporation	Taiwan	General investment	6,000	6,000	600,000	30	9,432	527	158
The Corporation	Nikken & CSSC Metal Products Co., Ltd.	Taiwan	Wholesale of construction materials, wholesale of pollution controlling equipment	6,750	6,750	675,000	45	8,695	6,051	2,723
The Corporation	Wabo Global Trading Corporation	Taiwan	Sales agent and trading of steel products	1,500	1,500	714,000	6	7,114	15,099	906
The Corporation	Sing Da Marine Structure Corporation	Taiwan	Steel structure related business	-	250,000	-	-	-	(635,641)	(22,903)
United Steel Engineering & Construction Corp.	Transglory Investment Corporation	Taiwan	General investment	287,500	287,500	27,503,866	3	191,927	102,354	3,303
United Steel Engineering & Construction Corp.	Kaohsiung Arena Development Corporation	Taiwan	Development of competitive and leisure sports	100,000	100,000	10,000,000	4	133,970	204,878	8,622
United Steel Engineering & Construction Corp.	Overseas investment and development company	Taiwan	General investment	44,100	44,100	4,410,000	5	59,991	45,678	2,282

89 -

Name Of Investor	Name of Investee	Location	Main Business Item	Original Investment Amount		Held at End of Period			Net Profit (Loss) of Investee Company	Investment Gains (Losses) Recognized
				End of This Period	End of Previous Year	Number of Shares	Percentage (%)	Book Value
United Steel Engineering & Construction Corp.	China Prosperity Construction Corporation	Taiwan	Development of real estate	53,550	53,550	5,355,000	40	51,726	(7,490)	(2,996)
United Steel Engineering & Construction Corp.	Pro-Ascentek Investment Corporation	Taiwan	General investment	20,000	20,000	2,000,000	2	22,101	22,315	369
United Steel Engineering & Construction Corp.	Shin Mau Investment Corporation	Taiwan	General investment	13,754	13,754	1,196,000	40	21,645	4,232	1,693
United Steel Engineering & Construction Corp.	Kaohsiung Rapid Transit Corporation	Taiwan	Mass rapid transit system operations	15,433	15,433	1,543,276	1	15,532	82,364	453

Note: All transactions were written off in the preparation of the consolidated financial statements.

AI assistant

CSSC Audit Report / Information 2025

51944_rns_2026-04-27_0953f45b-549c-4b33-80d8-842b6a9c25d0.pdf

China Steel Structure Co., Ltd. and Subsidiaries

Audit Opinion

Basis for Opinion

Key Audit Matters

Assessment of the estimated total project cost

Other Items

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

IV. Summary of significant accounting policies

(I) Statement of compliance

(II) Basis of preparation

X. Subsidiary

XI. Investments recognized under the equity method

XII. Joint operations

Assets

XIII. Property, plant, and equipment

XIV. Lease agreements

XVI. Borrowings

(I) Short-term borrowings

XXI. Maturity analysis of assets and liabilities

XXII. Equity

(I) Ordinary share capital

(II) Capital surplus

(IV) Other equity items

XXV. Income tax

XXVII. Capital risk management

XXVIII. Financial instruments

(IV) Financial risk management objectives and policies

1. Market risk

(1) Interest rate risk

3. Liquidity risk

(VI) Main customer information

AI assistant

CSSC — Audit Report / Information 2025

51944_rns_2026-04-27_0953f45b-549c-4b33-80d8-842b6a9c25d0.pdf

China Steel Structure Co., Ltd. and Subsidiaries

Audit Opinion

Basis for Opinion

Key Audit Matters

Assessment of the estimated total project cost

Other Items

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

IV. Summary of significant accounting policies

(I) Statement of compliance

(II) Basis of preparation

X. Subsidiary

XI. Investments recognized under the equity method

XII. Joint operations

Assets

XIII. Property, plant, and equipment

XIV. Lease agreements

XVI. Borrowings

(I) Short-term borrowings

XXI. Maturity analysis of assets and liabilities

XXII. Equity

(I) Ordinary share capital

(II) Capital surplus

(IV) Other equity items

XXV. Income tax

XXVII. Capital risk management

XXVIII. Financial instruments

(IV) Financial risk management objectives and policies

1. Market risk

(1) Interest rate risk

3. Liquidity risk

(VI) Main customer information

More from CSSC

CSSC Audit Report / Information 2025