Stock Code: 2013

China Steel Structure Co., Ltd.

Standalone Financial Statements and Independent Auditors' Review Report for 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.	Independent Auditors' Report	3~6	-
IV.	Standalone Balance Sheet	7	-
V.	Standalone Statement of Comprehensive Income	8~9	-
VI.	Standalone Statement of Changes in Equity	10	-
VII.	Standalone Cash Flow Statement	11~12	-
VIII.	Notes to Standalone 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	29~30	5
	(VI) Details of significant accounts	30~58	6~26
	(VII) Related party transactions	59~62	27
	(VIII) Pledged assets	63	28
	(IX) Significant contingent liabilities and unrecognized contractual commitments	63	29
	(X) Significant Disaster Loss	-	-
	(XI) Significant events after the balance sheet date	-	-
	(XII) Significant assets and liabilities denominated in foreign currencies	63	30
	(XIII) Supplementary disclosures
	1. Information on significant transactions	63~64	31
	2. Related information on investees	63~64	31
	3. Information on Investments in Mainland China	64	31
	(XIV) Segment information	64	32
IX.	The contents of statements of major accounts items	65~85	-

Independent Auditors' Report

To China Steel Structure Co., Ltd.:

Audit Opinion

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

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

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing 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 Standalone Financial Statements section of our report. We are independent of the Corporation 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 standalone financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the

standalone financial statements, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters of the Corporation's standalone financial statements for the year ended December 31, 2025 are stated as follows:

Assessment of the estimated total project cost

The Corporation has 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 total estimated construction cost involves significant accounting estimates and affects the recognition of construction completion progress and construction revenue, we considered the total estimated construction cost as a key audit matter. Please refer to Notes 4 and 5 of the standalone 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.

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

Management is responsible for the preparation and fair presentation of the standalone financial statements in accordance with the Regulations Governing the Preparation of

Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of the Corporation's standalone financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Corporation's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation 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's financial reporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken based on 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 are also:

I. Identify and assess the risks of material mistake of the standalone 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's 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's 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 standalone 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 to cease to continue as a going concern.

V. Evaluate the overall presentation, structure, and content of the standalone financial statements, including the disclosures, and whether the standalone 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 to express an opinion on the standalone 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 standalone financial statements for the year ended December 31, 2025 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 standalone financial statements are intended only to present the standalone 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 audit such standalone financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' report and the accompanying standalone 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' report and standalone financial statements shall prevail.

China Steel Structure Co., Ltd.
Standalone 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)	$ 423,644	3	$ 41,206	-
1120	Financial assets at fair value through other comprehensive income - current (Note 4 and 7)	141,301	1	146,135	2
1140	Contract assets - current (Note 4, 5, and 21)	4,231,066	34	4,398,663	34
1150	Notes receivable (Note 5 and 8)	104,079	1	209,918	2
1170	Accounts receivable, net (Note 5 and 8)	1,517,311	12	1,666,945	13
1180	Accounts receivable - related parties (Note 5, 8, and 27)	37,679	-	47,552	-
1200	Other receivables (Note 8 and 27)	26,986	-	2,767	-
130X	Inventory (Note 4 and 9)	1,313,853	10	1,335,367	10
1410	Advance payments	45,663	-	51,551	-
1478	Refundable deposits (Note 28)	319	-	270	-
11XX	Total current assets	7,841,901	61	7,900,374	61
Non-current assets
1550	Investments accounted for using equity method (Note 4 and 10)	2,136,512	17	2,147,483	17
1600	Property, plant, and equipment (Note 4 and 11)	1,585,029	12	1,539,094	12
1755	Right-of-use assets (Note 4 and 12)	630,024	5	632,958	5
1760	Investment properties (Note 4 and 13)	378,078	3	349,845	3
1780	Intangible assets (Note 4)	1,738	-	3,612	-
1840	Deferred tax assets (Note 4 and 23)	101,842	1	81,722	1
1915	Prepayments for equipment	925	-	20,072	-
1920	Refundable deposits (Note 28)	21,451	-	10,404	-
1975	Net defined benefit assets (Note 4 and 18)	147,347	1	123,779	1
1980	Other financial assets - non-current (Note 28)	3,275	-	3,223	-
15XX	Total non-current assets	5,006,221	39	4,912,192	39
1XXX	Total assets	$ 12,848,122	100	$ 12,812,566	100
Code	Liabilities and equity
Current liabilities
2100	Short-term borrowing (Note 14)	$ -	-	$ 1,697,525	13
2110	Short-term bills payable (Note 14)	1,928,532	15	1,808,709	14
2130	Contract liabilities - current (Note 4 and 21)	1,587,975	12	837,026	7
2170	Accounts payable (Note 15)	1,712,831	13	1,540,633	12
2180	Accounts payable - related parties (Note 15 and 27)	382,807	3	90,496	1
2200	Other payables (Note 16 and 27)	566,636	4	493,109	4
2230	Current tax liabilities (Note 23)	12,737	-	57,700	-
2250	Liability provision - current (Note 4 and 17)	446,029	3	338,608	3
2280	Lease liabilities - current (Note 4 and 12)	25,732	-	9,561	-
2300	Other current liabilities	9,574	-	10,056	-
21XX	Total current liabilities	6,672,853	50	6,883,423	54
Non-current liabilities
2570	Deferred tax liabilities (Note 4 and 23)	29,510	-	24,839	-
2580	Lease liabilities - non-current (Note 4 and 12)	444,723	4	452,398	4
2645	Guarantee deposits received	24,259	-	23,382	-
25XX	Total non-current liabilities	498,492	4	500,619	4
2XXX	Total liabilities	7,171,345	54	7,384,042	58
Equity (Note 20)
3110	Ordinary share capital	2,000,000	16	2,000,000	16
3200	Capital surplus	1,383,331	11	1,375,913	11
Retained earnings
3310	Legal reserve	908,082	7	849,589	7
3320	Special surplus reserve	158,453	1	158,453	1
3350	Undistributed earnings	1,390,636	11	1,181,086	9
3300	Total retained earnings	2,457,171	19	2,189,128	17
3400	Other equity	(163,725)	-	(136,517)	(2)
31XX	Total equity	5,676,777	46	5,428,524	42
Total liabilities and equity		$ 12,848,122	100	$ 12,812,566	100

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

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

Unit: thousand NTD, except NTD for earnings per share

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenue (Note 4, 21, 27)	$ 15,500,058	100	$ 13,608,497	100
5000	Operating costs (Note 9, 18, 22, and 27)	14,777,338	95	12,800,013	94
5900	Gross profit	722,720	5	808,484	6
	Operating expenses (Note 18, 22, and 27)
6100	Selling and marketing expenses	89,799	1	85,794	1
6200	General and administrative expenses	163,298	1	157,200	1
6300	Research and development expenses	21,674	-	19,028	-
6000	Total operating expenses	274,771	2	262,022	2
6900	Net operating profit	447,949	3	546,462	4
	Non-operating income and expenses (Note 10 and 22)
7100	Interest income	395	-	456	-
7010	Other income	53,528	-	8,438	-
7020	Other gains and losses	(9,221)	-	(70,312)	-
7050	Finance costs	(63,318)	-	(70,497)	-
7060	Share of profit/loss of associates	246,008	2	211,096	2
7000	Total non-operating income and expenses	227,392	2	79,181	2
7900	Net profit before income tax	675,341	5	625,643	6
7950	Income tax expenses (Note 4 and 23)	36,940	-	86,164	1
8200	Net profit for the year	638,401	5	539,479	5

Code		2025		2024
		Amount	%	Amount	%
	Other comprehensive income (Note 18, 20, and 23)
8310	Items that will not be reclassified subsequently to profit or loss
8311	Remeasurement of defined $benefit plans	$23,269	-$	38,164	-
8316	Unrealized gains and losses on investments in equity instruments at fair value through other comprehensive income	(4,834)	-	(54,661)	-
8330	Share of the other comprehensive income of associates	(4,977)	-	(104,932)	-
8349	Income tax expense relating to items that will not be reclassified subsequently to profit or loss	(4,654)	-	(7,633)	-
8360	Items that may be reclassified subsequently to profit or loss
8380	Share of the other comprehensive income of associates	(6,370)	-	1,599	-
8300	Other comprehensive income (loss) for the year, net of income tax	2,434	-	(127,463)	-
8500	Total comprehensive income for $the year	$640,835	5$	$412,016	5
	Earnings per share (Note 24)
9710	Basic	$3.19		$2.70
9810	Diluted	$3.18		$2.69

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

China Steel Structure Co., Ltd.
Standalone Statement of Changes in Equity
January 1 to December 31, 2025 and 2024
Unit: thousand NTD

Code		Ordinary share capital	Capital surplus	Retained earnings				Other Equity			Total	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	$ 5,397,458
	Appropriation of 2023 earnings (Note 20)
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)	(127,463)
D5	Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	579,741	579,741	1,595	(169,324)	4	(167,725)	412,016
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)	5,428,524
	Appropriation of 2024 earnings (Note 20)
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)	2,434
D5	Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	664,051	664,051	(6,381)	(16,846)	11	(23,216)	640,835

Code		Ordinary share capital	Capital surplus	Retained earnings				Other Equity			Total	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
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 27)	-	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)	$ 5,676,777

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

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

Unit: thousand NTD

Code		2025	2024
	Cash Flows from Operating Activities
A10000	Profit before income tax	$ 675,341	$ 625,643
A20010	Adjustments for:
A20100	Depreciation expense	177,899	160,288
A20200	Amortization expense	2,419	2,379
A20900	Finance costs	63,318	70,497
A21200	Interest income	(395)	(456)
A21300	Dividend income	(2,454)	(2,603)
A22300	Share of the profit of subsidiaries and associates	(246,008)	(211,096)
A22500	Loss on disposal of property, plant and equipment	531	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	99,152	62,510
A29900	(Reversal) loss of provisions	8,269	5,022
A30000	Changes in operating assets and liabilities
A31125	Contract assets	167,597	555,676
A31130	Notes receivable	105,839	(167,795)
A31150	Accounts receivable	149,634	(1,203,878)
A31160	Accounts receivable - related parties	9,873	135,691
A31180	Other receivables	(24,219)	413
A31200	Inventories	24,999	(371,078)
A31230	Prepayments	5,888	9,808
A31990	Net defined benefit assets	(299)	(723)
A32125	Contract liabilities	750,949	274,875
A32130	Notes payable	-	(891)
A32150	Accounts payable	172,198	262,428
A32160	Accounts payable - related parties	292,311	41,034
A32180	Other payables	84,970	28,196
A32230	Other current liabilities	(482)	403
A33000	Cash generated from operations	2,500,717	340,581
A33500	Income taxes paid	(102,006)	(121,644)
AAAA	Net cash generated from operating activities	2,398,711	218,937

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Code		2025	2024
Cash Flows from Investing Activities
B01900	Disposal of investments accounted for using equity method	$ 41,600	$ -
B02700	Acquisition for property, plant and equipment	(175,251)	(126,728)
B02800	Proceeds from disposal of property, plant and equipment	259	413
B03800	Decrease (increase) in refundable deposits	(11,096)	2,883
B04500	Acquisition for intangible assets	(545)	(2,009)
B05400	Acquisition of investment properties	(15,488)	-
B06500	Increase in other financial assets	(52)	(47)
B07500	Interest received	395	455
B07600	Dividends received from associates	211,415	142,916
B07600	Dividends received from others	2,454	2,603
BBBB	Net cash generated from investing activities	53,691	20,486
Cash flow from financing activities
C00200	Increase (decrease) in short-term borrowings	(1,697,525)	1,127,309
C00500	Increase (decrease) in short-term bills payable	120,000	(420,000)
C01900	Repayments of long-term borrowings	-	(500,000)
C03000	Increase (decrease) in guarantee deposits	877	(2,915)
C04020	Repayments of principal of lease liabilities	(27,951)	(11,211)
C04500	Dividends paid	(400,000)	(380,000)
C05600	Interest paid	(65,400)	(69,074)
C09900	Unclaimed overdue dividend	35	39
CCCC	Net cash used in financing activities	(2,069,964)	(255,852)
EEEE	Net increase (decrease) in cash and cash equivalents	382,438	(16,429)
E00100	Cash and cash equivalents of the beginning of the period	41,206	57,635
E00200	Cash and cash equivalents of the end of the period	$ 423,644	$ 41,206

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

China Steel Structure Co., Ltd.
Notes to Standalone 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 "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 standalone 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 standalone 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

15 -

Corporation's 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 standalone financial statements were reported to the board of directors for issue, the Corporation 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.

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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.

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

(II) Basis of preparation

Standalone financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair value and net defined benefit liabilities 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;
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(2) 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

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

The subsidiaries and associates are incorporated in the standalone financial statements under the equity method. To make net profit for the year, other comprehensive income and equity in the standalone financial statements equal to those attributed to owners of the Corporation on consolidated financial statements, the effect of the differences between basis of standalone and basis of consolidation are adjusted in the investments accounted for using investments accounted for using equity method, the related share of the profit or loss, the related share of other comprehensive income of subsidiaries, associates and joint ventures and related equity.

(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 Corporation 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 Corporation's steel structure construction business 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

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on the normal business cycle.

(IV) Foreign currencies

In preparing the standalone financial statements of the Corporation, transactions in currencies other than the Corporation'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 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 Corporation's foreign operations (including subsidiaries and associates operating in other countries or using currencies different from the Corporation'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.

(V) Inventory

Inventories are raw materials. Inventories are stated at the lower of cost or

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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.

(VI) Investment in subsidiaries

The Corporation uses the equity method to account for its investments in subsidiaries.

The subsidiary is an entity that is controlled by the Corporation.

Under the equity method, an investment is initially recognized at cost and adjusted thereafter to recognize the Corporation's share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the share of other subsidiaries.

Changes in the Corporation's ownership interests in subsidiaries that do not result in the Corporation losing control over the subsidiaries are accounted for as equity transaction. Differences between the carrying amounts of the investment and the fair value of consideration paid or received are directly recognized in equity.

Any excess of the cost of acquisition over the Corporation's share of the net fair value of the identifiable assets and liabilities of a subsidiary recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

The Corporation assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee's financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Corporation recognizes reversal of the impairment loss; the adjusted post-reversal carrying

21 -

amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Corporation loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Corporation had directly disposed of the related assets or liabilities.

Unrealized profits or losses on downstream transactions with subsidiaries are eliminated in the standalone financial statements. Profits and losses on transactions with subsidiaries other than downstream are recognized in standalone financial statements only to the extent of interests in the subsidiary that are not related to the Corporation.

(VII) Investment in associates

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

The Corporation 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 Corporation's share of the profit or loss and other comprehensive income of the associate. The Corporation also recognizes the changes in the share of equity of associates.

When the Corporation subscribes for additional new shares of the associate, at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Corporation's proportionate interest in the associate. The Corporation records

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such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Corporation's ownership interest is reduced due to non-subscription of the new shares of 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 capital surplus recognized from investments accounted for using equity method is insufficient, the shortage is debited to retained earnings.

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

When impairment loss is evaluated, the entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with it carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment has subsequently increased.

When the Corporation ceases to have significant influence over the associate, the Corporation will measure the retained investment at fair value at that date. The difference between the previous carrying amount 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 Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would

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be required if that associate had directly disposed of the related assets or liabilities.

When the Corporation 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 Corporation.

(VIII) 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. Samples produced when testing whether an item of property, plant and equipment is functioning properly before that asset reaches its intended use are measured at the lower of cost or net realizable value, and any proceeds from selling those samples and the cost of those samples are recognized in profit or loss. 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 (including assets held under finance leases) is recognized using the straight-line method. Each significant part is depreciated separately. An item of property, plant and equipment is depreciated over its lease term if its lease term is shorter than its useful life. 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 carrying amount of the asset is recognized in profit or loss.

(IX) Investment properties

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

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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 carrying amount of the asset is included in profit or loss.

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(X) 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 proceeds and the carrying amount of the asset is recognized in profit or loss.

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

At each balance sheet date, the Corporation reviews the carrying amounts of its property, plant and equipment, right-of use assets, investment properties, intangible assets and contract 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 Corporation 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 it carrying amount, the carrying amount 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 carrying amount

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of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount 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. Reveal of an impairment loss is recognized in profit or loss.

(XII) Financial instruments

Financial assets and financial liabilities are recognized when the Corporation 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 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

27 -

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 carrying amount 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 carrying amount 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 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 time deposits with original maturities within 3 months from the bonds with repurchase agreements, 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

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short-term cash commitments.

B. Investments in equity instruments at FVTOCI

The Corporation 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 Corporation's right to receive the 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 Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), as well as contract assets.

The Corporation always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Corporation 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 Corporation 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

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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 Corporation determines that the following situations indicate that a financial asset is in default (without considering any collateral held by the Corporation):

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 Corporation has reasonable and corroborative information to support a more lagged default criterion.

All financial assets with a corresponding adjustment to their carrying amount through a loss allowance account.

(3) Derecognition of financial assets

The Corporation 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 carrying amount 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 Corporation are recognized at the

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proceeds received, net of direct issue costs.

Financial liabilities

(1) Subsequent measurement

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

(2) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

(XIII) Provisions

Provisions are measured at the best estimate discount cash flows of the consideration required to settle the present obligation at the end of the reporting date, considering 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.

Onerous contracts

Onerous contracts are those in which the Corporation'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.

Warranties

Including those arising from the contractual obligation specified in the warranty period after completing contract. The Corporation 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.

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(XIV) Revenue recognition

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

Revenue from sale of goods

Revenue from the sale of goods is recognized when the committed goods are delivered from the Corporation to customers to satisfy performance obligation as follows: domestic sales - when products are moved out of the Corporation'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 the fair value, which is the discounted present value of the price (net of commercial discounts and quantity discounts) agreed to by the Corporation 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, 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.

Construction income

As property is being constructed and construction is in progress, the Corporation recognizes revenue from construction contract over time. The Corporation measures the progress based on 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 Corporation 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 Corporation adequately completes all its contractual obligations. Such retention

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receivables are recognized as contract assets until the Corporation satisfies its performance obligations.

Providing services

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

(XV) Leases

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

The Corporation 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 carrying amounts 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 Corporation 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 both elements are operating leases; in which case, the entire lease is classified as an operating lease.

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The Corporation as lessee

The Corporation 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 Corporation uses the lessee's incremental borrowing 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 Corporation remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount 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.

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(XVI) 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.

(XVII) 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 determined using the projected unit credit method. Service costs (including current service costs and net interest on the net defined benefit liabilities) 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 deficit in the Corporation's defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or

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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.

(XVIII) Taxation

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

Current tax

Current tax is the amount of tax at statutory rate calculated on the taxable profit at the balance sheet date. According to the Income Tax Law, an additional tax on unappropriated earnings is provided for as income tax in the year the shareholders approve to retain the earnings.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and 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 to the extent that it is probable that taxable profits will be available against 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 Corporation 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

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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 carrying amount 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 way the Corporation expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when 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 Corporation's accounting policies, management is required to make judgments, estimates and assumptions about the carrying 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.

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(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 10, the Corporation 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 impairment loss on accounts receivable and contract assets are based on the Corporation's assumptions regarding the default rate and expected loss rate. The Corporation 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 Corporation's forecast.

Construction contracts

The Corporation 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 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.

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VI. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 70	$ 70
Checking accounts and demand deposits	123,926	41,136
Cash equivalents
Bonds with repurchase agreements	299,648	-
	$ 423,644	$ 41,206

VII. Financial assets at fair value through other comprehensive incomes

	December 31, 2025	December 31, 2024
Domestic investments
Listed shares	$141,301	$146,135

These investments in equity instruments are not held for trading; instead, they are held for medium-to-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Corporation'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
Notes receivable - operating	$ 104,079	$ 209,918
Accounts receivable - non-related parties	$ 1,517,311	$ 1,666,945
Accounts receivable - related parties	$ 37,679	$ 47,552
Other receivables	$ 26,986	$ 2,767

(I) Receivables

The Corporation'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. In order to minimize credit risk, the management of the Corporation 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 Corporation 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 Corporation's credit risk was significantly reduced.

The Corporation 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 Corporation'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 Corporation's different customer base.

The Corporation 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 Corporation 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 Corporation's provision matrix.

40 -

December 31, 2025

	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 $ Loss allowance (Lifetime ECL)	$ 1,659,069	$ -	$ -	$ -	$ -	$ -	$ -	$ 1,659,069
Amortized cost	$ 1,659,069	$ -	$ -	$ -	$ -	$ -	$ -	$ 1,659,069

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 $ Loss allowance (Lifetime ECL)	$ 1,924,415	$ -	$ -	$ -	$ -	$ -	$ -	$ 1,924,415
Amortized cost	$ 1,924,415	$ -	$ -	$ -	$ -	$ -	$ -	$ 1,924,415

(II) Other receivables

The Corporation 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	289,453	76,754
	$ 1,313,853	$ 1,335,367

The cost of inventories recognized as cost of goods sold and construction for the years ended December 31, 2025 and 2024 was NT$14,247,259 thousand and NT$12,268,174 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. Investments accounted for using equity method

	December 31, 2025	December 31, 2024
Investments in subsidiaries	$ 1,408,992	$ 1,378,104
Investments in associates	727,520	769,379
	$ 2,136,512	$ 2,147,483

(I) Investments in subsidiaries

	December 31, 2025		December 31, 2024
	Amount	% of Ownership	Amount	% of Ownership
Unlisted companies
United Steel Engineering and Construction Corporation (USEC)	$ 1,408,908	100	$ 1,377,982	100
China Steel Structure Holding Co., Ltd. (CSSHCL)	84	100	122	100
	$ 1,408,992		$ 1,378,104

(II) Investments in associates

	December 31, 2025	December 31, 2024
Material associates
CHC Resources Corporation (CHC)	$ 615,239	$ 598,421
Associates that are not individually material	112,281	170,958
	$ 727,520	$ 769,379

Material associates are as follows:

Name of Associate	Percentage of Ownership Interests and Voting Rights (%)
	December 31, 2025	December 31, 2024
CHC (%)	9	9

The Corporation 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:

CHC	December 31, 2025	December 31, 2024
	$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 Corporation 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 year	$ 1,254,123	$ 1,183,189
Other comprehensive income (loss)	(67,489)	(56,452)
Total comprehensive income for the year	$ 1,186,634	$ 1,126,737

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

	2025	2024
The Corporation’s share of (loss)
Profit from continuing operations	$ (17,440)	$ (19,908)
Other comprehensive (loss) income	(2,187)	(7,152)
Total comprehensive (loss) income for the year	$ (19,627)	$ (27,060)

The Corporation sold the entire equity of Sing Da Marine Structure Corporation to the related party in July 2025. For details, please refer to Note 27.

XI. 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	$ 365,615	$ 1,756,523	$ 1,722,190	$ 4,299	$ 108,400	$ 5,089	$ 3,962,116
Additions	-	24,677	97,349	1,240	20,340	41,254	184,860
Disposals	-	(2,765)	(100,182)	-	(5,616)	-	(108,563)
Balance at December 31, 2025	$ 365,615	$ 1,778,435	$ 1,719,357	$ 5,539	$ 123,124	$ 46,343	$ 4,038,413
Accumulated depreciation
Balance at January 1, 2025	$ -	$ 1,208,226	$ 1,118,896	$ 3,458	$ 92,442	$ -	$ 2,423,022
Depreciation expense	-	43,936	88,738	146	5,315	-	138,135
Disposals	-	(2,577)	(99,582)	-	(5,614)	-	(107,773)
Balance at December 31, 2025	$ -	$ 1,249,585	$ 1,108,052	$ 3,604	$ 92,143	$ -	$ 2,453,384
Net amount as of December 31, 2025	$ 365,615	$ 528,850	$ 611,305	$ 1,935	$ 30,981	$ 46,343	$ 1,585,029

2024

Cost	Land	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Construction in Progress and Equipment to be Inspected	Total
Balance at January 1, 2024	$ 365,615	$ 1,747,477	$ 1,654,497	$ 4,299	$ 103,943	$ 66,945	$ 3,942,776
Additions	-	9,046	158,345	-	7,512	(61,856)	113,047
Disposals	-	-	(90,652)	-	(3,055)	-	(93,707)

	Land	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Construction in Progress and Equipment to be Inspected	Total
Balance at December 31, 2024	$ 365,615	$ 1,756,523	$ 1,722,190	$ 4,299	$ 108,400	$ 5,089	$ 3,962,116
Accumulated depreciation
Balance at January 1, 2024	$ -	$ 1,163,412	$ 1,064,060	$ 3,348	$ 90,375	$ -	$ 2,321,195
Depreciation expense	-	44,814	85,208	110	5,110	-	135,242
Disposals	-	-	(30,372)	-	(3,043)	-	(33,415)
Balance at December 31, 2024	$ -	$ 1,208,226	$ 1,118,896	$ 3,458	$ 92,442	$ -	$ 2,423,022
Net amount as of December 31, 2024	$ 365,615	$ 548,297	$ 603,294	$ 841	$ 15,958	$ 5,089	$ 1,539,094

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

Buildings
Main structures	35-55 years
Facilities	2-50 years
Machinery and equipment
Lifting equipment	5-15 years
Cutting equipment	5-15 years
Electric welding equipment	2-15 years
Substation equipment	10-15 years
Crane equipment	10 years
Transportation equipment
Transportation equipment for production	5-10 years
Other equipment
Computer equipment	3 years
Extinguishment equipment	5 years
Others	2-15 years

There were no property, plant and equipment that had been pledged or used by the Corporation to secure borrowings.

46 -

XII. Lease agreements

(I) Right-of-use assets

	December 31, 2025	December 31, 2024
Book value of right-of-use assets
Land	$ 608,353	$ 632,958
Transportation equipment	21,671	-
	$ 630,024	$ 632,958
	2025	2024
Additions to right-of-use assets	$ 40,284	$ 8,926
Depreciation expenses of right-of-use assets
Land	$ 23,653	$ 24,701
Machinery and equipment	15,728	-
Transportation equipment	-	345
	$ 39,381	$ 25,046

Except for the addition and recognition of depreciation expenses listed above, the Corporation'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	$ 25,732	$ 9,561
Non-current	$ 444,723	$ 452,398

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 Corporation 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 Corporation 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	$ 8,754	$ 18,466
Total cash outflow for leases	$ 44,557	$ 37,136

For land and buildings which qualify as short-term leases and several other equipment which qualify as low-value asset leases, the Corporation 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 13.

XIII. 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
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

	Land	Buildings	Total
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 Corporation 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:

	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 Corporation's investment properties are held under freehold interests.

XIV. Borrowings

(I) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured loans	$ -	$ 1,360,000
Letters of credit	-	337,525
	$ -	$ 1,697,525
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.

XV. Accounts payable (including related parties)

	December 31, 2025	December 31, 2024
Accounts payable	$ 1,712,831	$ 1,540,633
Accounts payable - related parties	$ 382,807	$ 90,496

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 Corporation, usually more than 12 months after the reporting period.

XVI. Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses	$ 397,936	$ 374,344
Sales tax payable	51,952	8,839
Compensation of employees and remuneration of directors	33,962	28,845
Payables for machine use	15,723	12,377
Miscellaneous shipping payables	9,984	12,324
Insurance premiums payable	9,384	8,898
Equipment Payables	2,826	13,170
Others (including outsourcing and employee benefits)	44,869	34,312
	$ 566,636	$ 493,109

XVII. Liability provision - current

	December 31, 2025	December 31, 2024
Current
Warranty (I)	$ 80,732	$ 72,463
Onerous contract - losses on construction contracts (II)	365,297	266,145
	$ 446,029	$ 338,608
	Warranty	Onerous contract - losses on construction contracts
---	---	---
Balance as of January 1, 2025	$ 72,463	$ 266,145
Additions	8,269	99,152
Balance as of December 31, 2025	$ 80,732	$ 365,297
Balance as of January 1, 2024	$ 67,441	$ 203,635
Additions	5,022	62,510
Balance as of December 31, 2024	$ 72,463	$ 266,145

(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 Corporation recognized the provision for an 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.

XVIII. Retirement benefit plan

(I) Defined contribution plans

The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Based on the LPA, the Corporation makes 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 adopted the defined benefit plan under the Labor Standards Act, under which pension benefits are calculated based on the length of service and average monthly salaries of the six months before retirement. The Corporation makes 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 assesses the balance in the pension fund. If the amount of 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 is 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).

The Corporation did not make monthly contributions until June 2026 with the approval of the Department of Labor.

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

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 322,312	$ 366,586

52 -

Fair value of plan assets	(469,659)	(490,365)
Net defined benefit assets	$ (147,347)	$ (123,779)

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 | $ 366,586 | $ (490,365) | $ (123,779) |
| Service cost | | | |
| Current service cost | 1,472 | - | 1,472 |
| Net interest expense (income) | 4,706 | (6,408) | (1,702) |
| Recognized in profit or loss | 6,178 | (6,408) | (230) |
| Remeasurement | | | |
| Return on plan assets
(excluding amounts
included in net interest) | - | (35,844) | (35,844) |
| Actuarial loss - changes in
financial assumptions | 1,932 | - | 1,932 |
| Actuarial loss - experience
adjustments | 10,643 | - | 10,643 |
| Recognized in other
comprehensive income | 12,575 | (35,844) | (23,269) |
| Contributions from the
employer | - | - | - |
| Benefits paid | (63,027) | 62,958 | (69) |
| | (63,027) | 62,958 | (69) |
| December 31, 2025 | $ 322,312 | $ (469,659) | $ (147,347) |
| January 1, 2024 | $ 377,298 | $ (462,190) | $ (84,892) |
| Service cost | | | |
| Current service cost | $ 1,483 | $ - | $ 1,483 |
| Net interest expense (income) | 4,624 | (5,689) | (1,065) |
| Recognized in profit or loss | 6,107 | (5,689) | 418 |

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(42,012)	(42,012)
Actuarial gain - changes in financial assumptions	(2,247)	-	(2,247)
Actuarial loss - experience adjustments	6,095	-	6,095
Recognized in other comprehensive income	3,848	(42,012)	(38,164)
Contributions from the employer	-	-	-
Benefits paid	(20,667)	19,526	(1,141)
	(20,667)	19,526	(1,141)
December 31, 2024	$ 366,586	$ (490,365)	$ (123,779)

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	$ (187)	$ 340
Operating expenses	(43)	78
	$ (230)	$ 418

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

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.

54 -
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.

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	1.375
Expected rate of salary increase (%)	2.25	2.25

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	($3,843)	($4,417)
0.25% decrease	$3,932	$4,519
Expected rate of salary increase
0.25% increase	$3,833	$4,409
0.25% decrease	($3,765)	($4,331)

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

The expected contributions to the plan for the next year

December 31, 2025

December 31, 2024

$ -

4.4 years

4.6 years

The average duration of the defined benefit obligation

XIX. Maturity analysis of assets and liabilities

The Corporation 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	$ 4,126,354	$ 104,712	$ 4,231,066
Notes and accounts receivable (including related parties)	1,659,069	-	1,659,069
Inventories	1,313,853	-	1,313,853
Refundable construction deposits	319	-	319
	$ 7,099,595	$ 104,712	$ 7,204,307
Liabilities
Contract liabilities-current	$ 1,587,975	$ -	$ 1,587,975
Notes and accounts payable (including related parties)	2,034,942	60,696	2,095,638
Provision-current	180,432	265,597	446,029
	$ 3,803,349	$ 326,293	$ 4,129,642
December 31, 2024
Assets
Contract assets-current	$ 4,307,913	$ 90,750	$ 4,398,663
Notes and accounts receivable (including related parties)	1,924,415	-	1,924,415
Inventories	1,335,367	-	1,335,367
Refundable construction deposits	270	-	270
	$ 7,567,965	$ 90,750	$ 7,658,715

56 -

	Within 12 months	After 12 months	Total
Liabilities
Contract liabilities-current	$ 837,026	$ -	$ 837,026
Notes and accounts payable (including related parties)	1,588,352	42,777	1,631,129
Provision-current	233,436	105,172	338,608
	$ 2,658,814	$ 147,949	$ 2,806,763

XX. 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).

(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:

57 -

58 -

	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

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

Exchange differences on translating the financial statements of foreign operations

	2025	2024
Opening balance	$ (1,650)	$ (3,245)
Share of exchange difference of associates accounted for using the equity method	(6,381)	1,595
Closing balance	$ (8,031)	$ (1,650)

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	(4,834)	(54,661)
Share from associates accounted for using the equity method	(12,012)	(114,663)

59 -

	2025	2024
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	$ -

XXI. Revenues

	2025	2024
Revenue from contracts with customers
Construction revenue	$ 14,049,749	$ 11,901,536
Sales revenue	899,506	1,145,643
Service revenue	532,114	539,232
	15,481,369	13,586,411
Other operating revenue	18,689	22,086
	$ 15,500,058	$ 13,608,497

(I) Contact balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and accounts receivable (including related parties)	$ 1,659,069	$ 1,924,415	$ 688,433

60 -

	December 31, 2025	December 31, 2024	January 1, 2024
Contract assets
Construction contracts	$ 2,912,636	$ 3,292,312	$ 3,928,942
Retentions receivable	1,318,430	1,106,351	1,025,397
	$ 4,231,066	$ 4,398,663	$ 4,954,339
Contract liabilities
Construction contracts	$ 1,585,993	$ 831,322	$ 561,031
Sale of goods	1,982	5,704	1,120
	$ 1,587,975	$ 837,026	$ 562,151

The changes in the balance of contract assets and contract liabilities primarily resulted from the timing difference between the Corporation'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

Type of goods or services	2025	2024
Construction revenue	$ 14,049,749	$ 11,901,536
Revenue from steel products production and sale	899,506	1,145,643
Service revenue	532,114	539,232
Others	18,689	22,086
	$ 15,500,058	$ 13,608,497

(III) Partially completed contracts

As of December 31, 2025 and 2024, the transaction prices, allocated to the performance obligations that are not fully satisfied are NT$20,947,320 thousand and NT$19,403,292 thousand, respectively. The Corporation 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.

XXII. Profit before income tax

(I) Interest income

	2025	2024
Bank deposits	$ 391	$ 435
Interests from bank deposits as collateral	4	21
	$ 395	$ 456

(II) Other revenue

	2025	2024
Revenues from claims	$ 44,811	$ 698
Dividend income	2,454	2,603
Others	6,263	5,137
	$ 53,528	$ 8,438

(III) Other gains and losses

	2025	2024
Loss on claims	$ (3,594)	$ (3,896)
Fees and charges	(3,248)	(3,769)
Net currency exchange gains (losses)	(1,676)	2,087
Loss on disposal of property, plant and equipment	(531)	(59,879)
Others	(172)	(4,855)
	$ (9,221)	$ (70,312)

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

	2025	2024
Foreign exchange gain	$ 2,526	$ 2,758
Foreign exchange loss	(4,202)	(671)
Net exchange gain (loss)	$ (1,676)	$ 2,087

(IV) Finance costs

	2025	2024
Interest on overdrafts and loans	$ 56,272	$ 63,420
Interest on lease liabilities	7,852	7,459
Total interest expense on financial liabilities at fair value through profit or loss	64,124	70,879

61 -

62 -

Less: Amounts included in the cost of qualifying assets

2025	2024
$ 806	$ 382
$ 63,318	$ 70,497

The information about capitalized interest was follow:

Capitalized amounts	2025	2024
Capitalized annual rate (%)	$ 1.70~1.89	$ 1.46~1.82

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

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

(VI) Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 138,135	$ 135,242
Right-of-use assets	39,381	25,046
Investment properties	383	-
Intangible assets	2,419	2,379
	$ 180,318	$ 162,667

Analysis of depreciation by function

	2025	2024
Operating costs	$ 166,384	$ 148,538
Operating expenses	11,515	11,750
	$ 177,899	$ 160,288

Analysis of amortization by function

	2025	2024
Operating costs	$ 745	$ 822
Operating expenses	1,674	1,557
	$ 2,419	$ 2,379

(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	$ 887,388	$ 825,968
Labor and health insurance	53,870	48,644
Others	49,685	44,318
	990,943	918,930
Post-employment benefits
Defined contribution plans	$ 22,478	$ 21,321
Defined benefit plans (Note 18)	(230)	418
	22,248	21,739
Termination benefits	416	-
	$ 1,013,607	$ 940,669
Analysis by function
Operating costs	$ 828,139	$ 762,384
Operating expenses	185,468	178,285
	$ 1,013,607	$ 940,669

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 Corporation 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 standalone 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.

XXIII. Income tax

(I) Income tax recognized in profit or loss

	2025	2024
Current tax
In respect of the current year	$ 61,570	$ 97,592
In respect of prior years	(4,527)	2,128
	57,043	99,720
Deferred tax
In respect of the current year	(20,103)	(13,556)
	$ 36,940	$ 86,164

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

	2025	2024
Profit before income tax	$ 675,341	$ 625,643

65 -

	2025	2024
Income tax expense calculated at the statutory rate	$ 135,068	$ 125,128
Permanent differences	(43,901)	385
Tax - exempt income	(49,700)	(41,477)
Adjustments for prior years	(4,527)	2,128
	$ 36,940	$ 86,164

(II) There was no income tax recognized directly in equity by the Corporation.

(III) Income tax recognized in other comprehensive income

	2025	2024
Deferred tax
Remeasurement of defined benefit plan	$ 4,654	$ 7,633

(IV) Current tax assets and liabilities

	December 31, 2025	December 31, 2024
Current tax liabilities
Income tax payable	$ 12,737	$ 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 tax assets
Temporary differences
Provisions	$ 14,493	$ 1,654	$ -	$ 16,147
Unrealized loss on construction costs	53,229	19,830	-	73,059
Difference between tax reporting and financial reporting - depreciation method	12,757	(667)	-	12,090
Unrealized loss on decline in inventory value	1,243	(697)	-	546
	$ 81,722	$ 20,120	$ -	$ 101,842

	Opening balance	Recognized in profit and loss	Recognized in other comprehensive income	Closing balance
Deferred tax liabilities
Temporary differences
Investment in income under equity method - foreign	$ 24	$ (7)	$ -	$ 17
Defined benefit assets	24,756	60	4,654	29,470
Unrealized exchange gain	59	(36)	-	23
	$ 24,839	$ 17	$ 4,654	$ 29,510

2024

	Opening balance	Recognized in profit and loss	Recognized in other comprehensive income	Closing balance
Deferred tax assets
Temporary differences
Provisions	$ 13,488	$ 1,005	$ -	$ 14,493
Unrealized loss on construction costs	40,727	12,502	-	53,229
Difference between tax reporting and financial reporting - depreciation method	13,425	(668)	-	12,757
Others	393	850	-	1,243
	$ 68,033	$ 13,689	$ -	$ 81,722
Deferred tax liabilities
Temporary differences
Investment in income under equity method - foreign	$ 94	$ (70)	$ -	$ 24
Defined benefit assets	16,979	144	7,633	24,756
Unrealized exchange gain	-	59	-	59
	$ 17,073	$ 133	$ 7,633	$ 24,839

(VI) Income tax assessments

The Corporation's income tax returns through 2023 have been assessed by the tax authorities.

67 -

XXIV. 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 for the year	$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.

XXV. Capital risk management

The Corporation manages its capital to ensure that the Corporation 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 Corporation consists of net debt and equity of the Corporation. The Corporation is not subject to any externally imposed capital requirements.

XXVI. Financial instruments

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

Management of the Corporation 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	$141,301	$ -	$ -	$141,301

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Equity instruments - Domestic listed shares	$146,135	$ -	$ -	$146,135

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

(III) Categories of financial instruments

Financial assets	December 31, 2025	December 31, 2024
Financial assets at amortized cost (Note 1)	$2,134,744	$1,982,285
Financial assets at fair value through other comprehensive income - equity instruments	141,301	146,135

December 31, 2025
December 31, 2024

Financial liabilities	December 31, 2025	December 31, 2024
Measured at amortized cost (Note 2)	$4,615,065	$5,653,854

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, long-term bills payable and deposits received and other financial liabilities.

(IV) Financial risk management objectives and policies

The Corporation’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 Corporation’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 Corporation. These risks include market risk (including exchange rate risk, 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 has been no change to the Corporation’s exposure to market risks or the way these risks were managed and measured.

69 -

(1) Interest rate risk

The Corporation was exposed to interest rate risk because the Corporation borrowed funds at variable rates. The carrying amounts of the Corporation'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	$ 301,918	$ 2,235
Financial liabilities	470,455	461,959
Cash flow interest rate risk
Financial assets	96,162	34,432
Financial liabilities	-	1,697,525

If interest rates had been 1% higher and all other variables were held constant, the Corporation's pre-tax profit for the years ended December 31, 2024 would decrease by NT$16,975 thousand.

(2) Other price risk

The Corporation was exposed to equity price risk through their investments in listed domestic shares. The equity price of the Corporation 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$1,413 thousand and NT$1,461 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 Corporation. As at the balance sheet date, the Corporation's maximum exposure to credit risk will cause a financial loss to the Corporation due to the failure of counterparties to discharge an obligation and due to financial guarantees provided by the Corporation could arise from:

70 -

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

The Corporation 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 Corporation uses other publicly available financial information and its own trading records to rate its major customers. The Corporation'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 Corporation's significant credit risk concentration of customers was those individual accounts receivable with balances higher than 10% of the Corporation's total 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
Customer E	-	180,514
	$ 757,249	$ 894,720

Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation'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 Corporation has obtained is sufficient for the Corporation's operations in the near future and the Corporation is now free of liquidity risks.

The Corporation relies on bank borrowings as a significant source of

liquidity. As of December 31, 2025 and 2024, the Corporation's available unutilized short-term bank loan facilities were NT$27,192,754 thousand and NT$21,688,991 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	$ 2,601,578	$ 84,955	-	$ 2,686,533
Fix interest rate instruments	1,930,000	-	-	1,930,000
Lease liabilities	33,340	71,628	509,636	614,604
	$ 4,564,918	$ 156,583	$ 509,636	$ 5,231,137

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	$ 33,340	$ 71,628	$ 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	$ 2,080,362	$ 66,159	-	$ 2,146,521
Variable interest rate instruments	1,702,854	-	-	1,702,854
Fix interest rate instruments	1,810,000	-	-	1,810,000
Lease liabilities	16,836	67,343	530,059	614,238
	$ 5,610,052	$ 133,502	$ 530,059	$ 6,273,613

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	$ 16,836	$ 67,343	$ 84,179	$ 84,125	$ 82,813	$278,942

XXVII. Transactions with related parties

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

Name of related party	Relationship with the Corporation
China Steel Corporation (CSC)	Parent company
United Steel Engineering and Construction Corporation	Subsidiary
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
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

73 -

74 -

(II) Operating revenue

Related Party Type/ Name	2025	2024
Parent company - CSC	$ 489,076	$ 739,769
subsidiary	24	190,457
Sister companies
DSC	102,933	284,666
Other	2,020	33,695
Associates	2,501	-
	$ 596,554	$ 1,248,587

The construction contracts of the Corporation 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 Corporation has issued an estimate and an invoice, which makes no major difference 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	27,828	5,202
Associates	651	-
	$ 5,531,107	$ 5,686,733

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	$ 28,080	$ 26,900
	Sister companies-DSC	9,599	20,652
		$ 37,679	$ 47,552
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
	Subsidiary	122	-
	Sister companies	263,748	36,342
	Associates	-	3,043
		$ 382,807	$ 90,496
Other payables	Parent company	$ 2,092	$ 1,803
	Sister companies	2,581	1,936
	Other related party	2,092	1,819
		$ 6,765	$ 5,558

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) 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
Subsidiary	$ 15,324	$ 9,462
Sister companies	7,453	15,611
	$ 22,777	$ 25,073

Other expenses

	2025	2024
Parent company	$ 11,588	$ 5,673
Sister companies	22,086	14,287
Associates	29	-
Other related party	3,023	2,251
	$ 36,726	$ 22,211

(IX) 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

XXVIII. Pledged assets

	December 31, 2025	December 31, 2024
Other financial assets
Non-current (time deposits, mainly for construction guarantee)	$ 3,275	$ 3,223
Refundable deposits
Current (mainly for lease guarantee)	319	270
Non-current (mainly for construction guarantee)	21,451	10,404
	$ 25,045	$ 13,897

XXIX. Significant contingent liabilities and unrecognized contractual commitments

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

(I) Construction contracts were secured by the Corporation's refundable deposits and an amount of about NT$1,021,596 thousand was guaranteed by banks.

(II) The Corporation 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.

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

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

XXXI. Supplementary disclosures

(I) Information about significant transactions and (II) Investees

Financing provided to others: None.
Endorsements/guarantees provided: Appendix 1.
Marketable securities held: None of the marketable securities held by the Company 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.
Information on investees: Appendix 3.

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

XXXII. Segment information

Disclosure of the segment information in standalone financial statements is waived.

78 -

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.	$959,272	$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.

79 -

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 27	($118,937)	(6)
	Dragon Steel Corporation	Sister company	Procurement	1,692,640	24	Credit letter	-	Refers to Note 27	(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
United Steel Engineering & Construction Corp.	China Steel Corporation	Ultimate parent company	Construction revenue	(907,608)	(17)	Contract period	-		70,169	35
	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

80 -

China Steel Structure Co., Ltd. and Subsidiaries

Information on Investees

January 1 to December 31, 2025

Appendix 3

Unit: thousand NTD

(Unless otherwise noted)

Name Of Investor	Name of Investor	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
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
The Corporation	China Steel Structure Holding Co., Ltd.	Samoa	Holding and investment	-	-	10	100	84	(37)	(37)
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
United Steel Engineering & Construction Corp.	China Prosperity Construction Corporation	Taiwan	Real estate development	53,550	53,550	5,355,000	40	51,726	(7,490)	(2,996)

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.	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 service	15,433	15,433	1,543,276	1	15,532	82,634	453

82 -

§The Contents of Statements of Major Accounting Items§

Item	Statement Index
Major Accounting Items In Assets, Liabilities And Equity
Statement of cash and cash equivalents	1
Statement of financial assets at fair value through other comprehensive income - current	2
Statement of contract assets	Note 21
Statement of notes receivable	3
Statement of accounts receivable - nonrelated parties	4
Statement of accounts receivable - related parties	5
Statement of inventories	6
Statement of changes in investments accounted for using the equity method	7
Statement of changes in property, plant and equipment	Note 11
Statement of changes in accumulated depreciation of property, plant and equipment	Note 11
Statement of changes in accumulated impairment of property, plant and equipment	Note 11
Statement of changes in right-of-use assets	8
Statement of changes in accumulated depreciation of right-of-use assets	8
Statement of changes in investment properties	Note 13
Statement of changes in accumulated depreciation of investment properties	Note 13
Statement of changes in accumulated impairment of investment properties	Note 13
Statement of deferred tax assets	Note 23
Statement of short-term borrowings	9
Statement of contract liabilities	Note 21
Statement of short-term bills payable	10
Statement of accounts payable - nonrelated parties	11
Statement of other payables	Note 16
Statement of provisions - current	Note 17
Statement of lease liabilities	12
Statement of deferred tax liabilities	Note 23
Major Accounting Items In Profit Or Loss
Statement of operating revenues	13
Statement of operating costs	14
Statement of operating expenses	15
Statement of other gains and losses	Note 22
Statement of finance costs	Note 22
Statement of employee benefits, depreciation and amortization	16

83 -

China Steel Structure Co., Ltd.
Statement of cash and cash equivalents
December 31, 2025

Statement 1
Unit: thousand NTD
(Unless otherwise noted)

Item	Amount
Cash on hand and working capital	$ 70
Checking accounts and demand deposits- including US$180,884.9 and JPY$22 (Note)	123,926
Cash equivalents
Bonds with repurchase agreements	299,648
	$ 423,644

Note: Exchange rates were US$1=NT$31.43 and JPY 1=NT$0.2008.

84 -

China Steel Structure Co., Ltd.
Statement of financial assets at fair value through other comprehensive income - current
December 31, 2025

Statement 2

Unit: thousand NTD
(Unless otherwise noted)

Name	Shares/units	Cost	Fair Value (Note)
			Unit Price	Amount
Shares
China Steel Corporation	7,436,878	$171,282	19.00	$141,301
Plus: evaluation adjustment		( 29,981 )
		$141,301

Note: Please refer to Note 4 for market price basis.

85 -

China Steel Structure Co., Ltd.
Statement of notes receivable
December 31, 2025

Statement 3
Unit: thousand NTD

Customer Name	Amount
Company A	$ 73,972
Company B	24,464
Company C	5,643
	$ 104,079

86 -

China Steel Structure Co., Ltd.
Statement of accounts receivable - nonrelated parties
December 31, 2025

Statement 4
Unit: thousand NTD

Customer Name	Amount (Note 2)
Company A	$ 432,257
Company B	149,786
Company C	122,213
Company D	121,569
Company E	88,324
Company F	86,882
Others (Note 1)	516,280
	$ 1,517,311

Note 1: The amount of individual customers included in others does not exceed 5% of the account balance.

Note 2: There is no amount overdue for more than 1 year.

87 -

China Steel Structure Co., Ltd.
Statement of accounts receivable - related parties
December 31, 2025

Statement 5
Unit: thousand NTD

Customer Name	Amount (Note)
Parent company-CSC	$ 28,080
Sister company-DSC	9,599
	$ 37,679

Note: There is no amount overdue for more than 1 year.

88 -

China Steel Structure Co., Ltd.
Statement of inventories
December 31, 2025

Statement 6
Unit: thousand NTD

Item	Cost	Net Realizable Value (Note)
Raw materials	$ 1,027,130	$ 1,024,400
Raw materials in transit	289,453	289,453
	$ 1,316,583	1,313,853

Note: Refer to Note 4 for details of net realizable value.

89 -

China Steel Structure Co., Ltd.
Statement of changes in investments accounted for using the equity method
January 1 to December 31, 2025

Statement 7

Unit: thousand NTD
(Unless otherwise noted)

Investees	January 1, 2025		Increases in the current year		Decreases in the current year		December 31, 2025			Market Value or Net Asset Value
	Number of Shares (In Thousands)	Amount	Number of Shares (In Thousands)	Amount	Number of Shares (In Thousands)	Amount	Number of Shares (In Thousands)	% of Ownership	Amount	Unit Price (NT$)	Total Amount	Collateral
Listed Company
CHC Resources Corporation	23,182,738	$ 598,421	-	$ 115,307	-	$ 98,489	23,182,738	9	$ 615,239	$ 70.30	$ 1,629,746	None
Unlisted Companies
United Steel Engineering and Construction Corporation	80,000,000	1,377,982	-	157,092	-	126,166	80,000,000	100	1,408,908	17.61	1,408,908	None
China Steel Structure Holding Co., Ltd.	10	122	-	-	-	38	10	100	84	8,442.80	84	None
Himag Magenetic Corporation	1,116,252	14,302	-	477	-	6	1,116,252	3	14,773	13.23	14,773	None
Nikken & CSSC Metal Products Co., Ltd.	675,000	5,972	-	2,723	-	-	675,000	45	8,695	12.88	8,695	None
Li-Ching-Long Investment Corporation	600,000	9,738	-	158	-	464	600,000	30	9,432	15.72	9,432	None
Wabo Global Trading Corporation	714,000	7,398	-	958	-	1,242	714,000	6	7,114	9.96	7,114	None
Chi-Yi Investment Corporation	600,000	9,802	-	159	-	468	600,000	30	9,493	15.82	9,493	None
Chiun Yu Investment Corporation	1,046,500	18,862	-	298	-	457	1,046,500	35	18,703	17.87	18,703	None
Pro-Accentek Investment Corporation	4,000,000	48,031	-	3,223	-	7,183	4,000,000	3	44,071	11.02	44,071	None
Sing Da Marine Structure Corporation	20,000,000	56,853	-	-	20,000,000	56,853	-	-	-	-	-	-
		$ 2,147,483		$ 280,395		$ 291,366			$ 2,136,512		$ 3,151,019

Note : The increase and decrease in the current year include disposal of investments accounted for using equity method, share of profit/loss of associates and related adjustments to equity, and distribution of cash dividends.

90 -

China Steel Structure Co., Ltd.
Statement of changes in right-of-use assets
January 1 to December 31, 2025

Statement 8
Unit: thousand NTD

Item	January 1, 2025	Additions	Decrease	December 31, 2025
Cost
Land	$ 766,350	$ 2,303	$ 3,255	$ 765,398
Machinery and Equipment	-	37,981	582	37,399
	766,350	$ 40,284	$ 3,837	802,797
Accumulated depreciation
Land	133,392	$ 23,653	$ -	157,045
Machinery and Equipment	-	15,728	-	15,728
	133,392	$ 39,381	$ -	172,773
	$ 632,958			$ 630,024

91 -

China Steel Structure Co., Ltd.
Statement of short-term bills payable
December 31, 2025

Statement 9
Unit: thousand NTD
(Unless otherwise noted)

Financial Institution	Period	Interest Rates (%)	Amount of Issuance
Finance Corporation A	114.12.08~115.01.27	1.59~1.63	$ 1,780,000
Bank A	114.12.29~115.01.30	1.63	150,000
			1,930,000
Less: Unamortized discount			1,468
			$ 1,928,532

92 -

China Steel Structure Co., Ltd.
Statement of accounts payable - non-related parties
December 31, 2025

Statement 10
Unit: thousand NTD

Vendor Name	Amount
Company A	$ 125,958
Company B	90,204
Others (Note)	1,496,669
	$ 1,712,831

Note: The amount in others does not exceed 5% of the account balance.

93 -

China Steel Structure Co., Ltd.
Statement of accounts payable - related parties
December 31, 2025

Statement 11
Unit: thousand NTD

Vendor Name	Amount
Parent company-CSC	$ 118,937
Sister company-DSC	243,938
Others (Note)	19,932
	$ 382,807

Note: The amount in others does not exceed 5% of the account balance.

94 -

China Steel Structure Co., Ltd.
Statement of lease liabilities
December 31, 2025

Statement 12
Unit: thousand NTD
(Unless otherwise noted)

Item	Period	Discount Rate (%)	Balance, End of the Year
Land	99.10.21~151.08.31	0.8~1.605	$ 451,245
Machinery and Equipment	114.03.01~116.02.28	1.8	19,210
			470,455
Less: Current portion			25,732
Lease liabilities - noncurrent			$ 444,723

95 -

China Steel Structure Co., Ltd.
Statement of operating revenues
January 1 to December 31, 2025

Statement 13
Unit: thousand NTD
(Unless otherwise noted)

Item	Quantities (Ton)	Amount
Construction revenue - steel structure and assemble income	174,926	$ 14,049,749
Revenue from steel products production and sale (Note)	79,680	899,506
Service revenue		532,114
Rental revenue		18,689
		$ 15,500,058

Note: The product for sales includes scrap, steel coils and wire rods.

96 -

China Steel Structure Co., Ltd.
Statement of operating cost
January 1 to December 31, 2025
Statement 14
Unit: thousand NTD

Item	Amount
Cost of steel structure and assemble
Direct material	$ 6,189,364
Direct labor	165,382
Manufacturing expenses	7,579,673
Cost of manufacturing and assemble	13,934,419
Add: Construction in progress, beginning of year	34,533,067
Profit recognized in the current year	749,016
Profit recognized based on the percentage of completion in the current year	13,300,733
Less: Construction in progress, end of year	38,587,746
Other labor cost	539,721
Finished in the current year	9,991,619
	13,398,149
Reversal of loss on construction contract	99,152
Construction warranty	8,269
Cost of steel structure and assemble	13,505,570
Cost of steel	799,519
Labor cost	539,721
Cost of rental property	3,485
Other cost adjustments
Scrap sales	(30,164)
Waste sales	(24,180)
Reversal of inventories	(3,485)
Reversal of Impairment on investment properties	(13,128)
	(70,957)
	$ 14,777,338

97 -

China Steel Structure Co., Ltd.
Statement of operating expenses
January 1 to December 31, 2025

Statement 15
Unit: thousand NTD

Item	Selling Expenses	General and Administrati ve Expenses	Research and Development Expenses	Total
Payroll expense	$ 56,725	$ 87,148	$ 16,246	$ 160,119
Depreciation expense	480	9,308	1,727	11,515
Professional fee	-	11,054	79	11,133
Freight	9,559	-	-	9,559
Other professional fee	81	7,876	17	7,974
Storage fee	6,181	-	-	6,181
Other	16,773	47,912	3,605	68,290
	$ 89,799	$ 163,298	$ 21,674	$ 274,771

98 -

China Steel Structure Co., Ltd.
Statement of employee benefits, depreciation, and amortization
January 1 to December 31, 2025 and 2024
Statement 16
Unit: thousand NTD

	2025			2024
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee benefits
Salaries	$ 727,269	$ 151,363	$ 878,632	$ 670,920	$ 144,444	$ 815,364
Labor and health insurance	45,375	8,495	53,870	40,429	8,215	48,644
Pensions	17,496	4,752	22,248	17,456	4,283	21,739
Remuneration of directors	-	8,756	8,756	-	10,604	10,604
Others	37,999	12,102	50,101	33,579	10,739	44,318
	$ 828,139	$ 185,468	$ 1,013,607	$ 762,384	$ 178,285	$ 940,669
Depreciation	$ 166,384	$ 11,515	$ 177,899	$ 148,538	$ 11,750	$ 160,288
	745	1,674	2,419	822	1,557	2,379

Amortization

Note 1: As of December 31, 2025 and 2024, the Corporation had 476 and 465 employees, respectively, including 9 and 9 directors who did not serve concurrently as employees in 2025 and 2024.

Note 2: Additional disclosures are as follows:

1) Average employee benefits for the year ended December 31, 2025 were NT$2,152 thousand (Amounts of employee benefits for the year ended December 31, 2025 less amounts of remuneration of directors for the year ended December 31, 2025 + number of employees for the year ended December 31, 2025 less number of directors not serving concurrently as employees for the year ended December 31, 2025).
Average employee benefits for the year ended December 31, 2024 was NT$2,040 thousand (Amounts of employee benefits for the year ended December 31, 2024 less amounts of remuneration of directors for the year ended December 31, 2024 + number of employees for the year ended December 31, 2024 less number of directors not serving concurrently as employees for the year ended December 31, 2024).

2) Average salaries for the year ended December 31, 2025 were NT$1,881 thousand (Amounts of salaries for the year ended December 31, 2025 + number of employees for the year ended December 31, 2025 less number of directors not serving concurrently as employees for the year ended December 31, 2025).
Average salaries for the year ended December 31, 2024 were NT$1,788 thousand (Amounts of salaries for the year ended December 31, 2024 + number of employees for the year ended December 31, 2024 less number of directors not serving concurrently as employees for the year ended December 31, 2024).

3) Adjustments in average salaries were 5.20% (Average salaries for the year ended December 31, 2025 less average salaries for the year ended December 31, 2024 ÷ average salaries for the year ended December 31, 2024).

4) The Company has no supervisor.

5) Salary and remuneration policy.

A. Remuneration of Directors Policy:

The Directors' remuneration is implemented in accordance with the regulations in the Company's Articles of Incorporation and the Remuneration Committee Charter. The Remuneration Committee proposes recommendations to the Board of Directors for resolution.

(a) Remuneration of directors: According to Article 5-1 of the Corporation's Articles of Incorporation: "If the Corporation has profit in the fiscal year, the Board of Directors shall resolve to distribute no less than 0.1% of the profit as remuneration of employees and no more than 1% as remuneration of directors. The recipients of employee remuneration of employees shall include employees of subordinate companies meeting certain criteria, and no less than 30% of the employee compensation shall be used as compensation for

grassroots employees.

(b) Remuneration of independent directors: The Corporation pays a fixed amount of remuneration each month to Independent Directors who do not receive the aforementioned remuneration of directors.

(c) Transportation allowance: Directors who do not receive the remuneration for the Corporation's Chairman or managerial officer shall receive a monthly transportation allowance from the Corporation.

B. Remuneration of Managerial Officers Policy:

The remuneration of the appointed managerial officers is determined and reviewed periodically by the Remuneration Committee, which is composed of three Independent Directors appointed by the Board of Directors. The remuneration is determined based on the performance evaluation system, evaluation results, and related salary and remuneration systems. The performance evaluation and salary and remuneration of managerial officers shall be determined based on the prevailing rates in the industry, while taking into consideration their individual achievements, the Corporation's overall performance, and the level of risks involved.

C. Remuneration of Employees Policy:

Remuneration of employees mainly includes the basic salary, bonuses, and remuneration of employees. The salary is determined by the duties and reward system, and the employee salary standards are established in accordance with market rates, the Corporation's financial conditions, and organizational structure. The bonuses and remuneration of employees are determined according to the Corporation's profitability in the current year and associated with the performance evaluations of individual employees. All employees have opportunities for raises each year after entering the Corporation and before being appointed to the designated positions based on their rank and personal performance. The scale of the raise is closely connected to their performance. In addition, the Corporation also implements annual salary adjustments based on prevailing market rates and business conditions.

100 -

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CSSC Audit Report / Information 2025

51944_rns_2026-04-27_2fa754ba-2d43-4b41-99e0-7f15bd6d7c9d.pdf

Audit Opinion

Basis for Opinion

Key Audit Matters

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

IV. Summary of significant accounting policies

(I) Statement of compliance

(II) Basis of preparation

(IV) Foreign currencies

(V) Inventory

XII. Lease agreements

(I) Right-of-use assets

(II) Lease liabilities

(III) Material lease activities and terms

(IV) Other lease information

XIII. Investment properties

XIV. Borrowings

(I) Short-term borrowings

(II) Short-term bills payable

XV. Accounts payable (including related parties)

XVIII. Retirement benefit plan

(I) Defined contribution plans

(II) Defined benefit plans

XIX. Maturity analysis of assets and liabilities

XX. Equity

(I) Ordinary share capital

(II) Capital surplus

(IV) Other equity items

3. Gain (Loss) on hedging instruments

XXI. Revenues

(I) Contact balances

XXIII. Income tax

(VI) Income tax assessments

XXIV. Earnings per share

XXV. Capital risk management

XXVI. Financial instruments

(IV) Financial risk management objectives and policies

1. Market risk

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CSSC — Audit Report / Information 2025

51944_rns_2026-04-27_2fa754ba-2d43-4b41-99e0-7f15bd6d7c9d.pdf

Audit Opinion

Basis for Opinion

Key Audit Matters

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

IV. Summary of significant accounting policies

(I) Statement of compliance

(II) Basis of preparation

(IV) Foreign currencies

(V) Inventory

XII. Lease agreements

(I) Right-of-use assets

(II) Lease liabilities

(III) Material lease activities and terms

(IV) Other lease information

XIII. Investment properties

XIV. Borrowings

(I) Short-term borrowings

(II) Short-term bills payable

XV. Accounts payable (including related parties)

XVIII. Retirement benefit plan

(I) Defined contribution plans

(II) Defined benefit plans

XIX. Maturity analysis of assets and liabilities

XX. Equity

(I) Ordinary share capital

(II) Capital surplus

(IV) Other equity items

3. Gain (Loss) on hedging instruments

XXI. Revenues

(I) Contact balances

XXIII. Income tax

(VI) Income tax assessments

XXIV. Earnings per share

XXV. Capital risk management

XXVI. Financial instruments

(IV) Financial risk management objectives and policies

1. Market risk

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