Chien Shing Stainless Steel Co., Ltd.

Financial Statements and Independent Auditors' Report

For the Years Ended December 31, 2025 and 2024

Company address: No.222 Industry Road, Hsiao Pyi Li,
Madou Dist., Tainan City
Company telephone: (06)570-3271

Table of Contents

Item		Page	Note
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Independent auditor’s report	3~6	-
IV.	Individual Balance Sheet	7	-
V.	Individual Statement of Comprehensive Income	8~9	-
VI.	Individual Statement of Changes in Equity	10	-
VII.	Individual Cash Flow Statements	11~12	-
VIII.	Notes to Individual Financial Statements
	(I) History of Company	13	I
	(II) Approval Date and Procedures of the Financial Statements	13	II
	(III) Application of New and Revised International Financial Reporting Standards	13~16	III
	(IV) Summary of Significant Accounting Policies	16~27	IV
	(V) Critical Accounting Judgements and Key Sources of Estimation and Uncertainty	27	V
	(VI) Summary of Significant Accounting Items	27~49, 57	VI-XXIII
	(VII) Related party transaction	49~52	XXIV
	(VIII) Pledged Assets	52	XXV
	(IX) Significant Contingent Liabilities and Unrecognized Commitments	52	XXVI
	(X) Others	52~53	XXVII
	(XI) Additional Disclosures
	1. Information about significant transactions	53, 55~56	XXVIII
	2. Information about investees	54	XXVIII
	3. Information on investments in mainland China	54	XXVIII
	(XII) Segments Information	54	XXIX
IX.	Details of Significant Accounting Items	58~72	-

CPAs' Audit Report

To Chien Shing Stainless Steel Co., Ltd.:

Audit opinion

We have audited the accompanying balance sheet of Chien Shing Stainless Steel Co., Ltd. (the “Company”) as of December 31, 2025 and 2024 and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (“FSC”).

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public 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 financial statements of the Company for the year 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We decided the key audit matters are the followings:

Valuation of Inventories

The amount of inventory of the Company is material to the financial statements. The inventory is valued at the lower of the cost of inventory and the net realizable value. Since the management judgment is involved when deciding the net realizable value parameter assumptions, the inventory valuation is listed as a key audit matter. For the uncertainty of accounting policies, significant accounting judgments, estimation, and assumptions related to the valuation of inventories, and relevant disclosures, please refer to Notes 4, 5 and 10 to the financial statements.

We have performed the main audit procedures against the said matters as below:

I. Understanding and evaluating the appropriateness of the Company's policy for losses from inventory valuation decline and internal control.

II. Obtaining the inventory valuation statement and check the accuracy and reasonableness of the net realizable value calculated by sampling.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to

issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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

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

We communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements 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
CPA Hung-Ju Liao
CPA Chi-Chen Li

The Financial Supervisory Commission
R.O.C. Approval No. for the Certification:
Jing Guang Zheng Shen Zhi No. 0990031652

The Securities and Futures Commission
Approval No. for the Certification:
Tai-Cai-Zheng-Liu-Zi No. 0920123784

March 24, 2026

Chien Shing Stainless Steel Co., Ltd
Balance Sheet
December 31, 2025 and 2024
Unit: NTD thousand

Code	Asset	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Note 4 and 6)	$ 98,100	4	$ 100,981	7
1110	Financial assets measured at FVTPL - current (Note 4 and 7)	80,273	4	82,520	5
1170	Account receivable (Note4, 9 and 18)	-	-	18,400	1
1200	Other receivables (Note 4 and 9)	100,736	5	840	-
130X	Inventories (Note4, 5 and 10)	950,748	44	646,620	42
1410	Prepayments (Note 24)	174,115	8	215,678	14
1470	Other current assets	105	-	370	-
11XX	Total current assets	1,404,077	65	1,065,409	69
Non-current assets
1517	Measured at fair value through other comprehensive income (Note 4 and 8)	247,608	11	-	-
1600	Property, plant and equipment (Note 4, 11, 24 and 25)	446,835	21	358,030	23
1760	Net investment property (Note 4, 12 and 25)	45,055	2	95,049	6
1780	Intangible assets (Note 4)	8	-	22	-
1840	Deferred tax assets (Note 4 and 20)	330	-	473	-
1915	Prepayments for equipment	16,782	1	30,953	2
1920	Refundable deposits (Note 4)	30	-	10	-
1990	Other non-current assets	752	-	-	-
15XX	Total non-current assets	757,400	35	484,537	31
1XXX	Total assets	$ 2,161,477	100	$ 1,549,946	100
Code	Liabilities and equity
Current liabilities
2100	Short-term borrowings (Note 13 and 25)	$ 688,345	32	$ -	-
2150	Note payable (Note 14)	-	-	12,265	1
2170	Accounts payable (Note 14)	609	-	36,429	3
2219	Other payables (Note 15)	27,147	1	33,968	2
2399	Other current liabilities	365	-	371	-
21XX	Total current liabilities	716,466	33	83,033	6
Non-current liabilities
2640	Net defined benefit liabilities - non-current (Note 4 and 16)	1,647	-	2,363	-
25XX	Total non-current liabilities	1,647	-	2,363	-
2XXX	Total liabilities	718,113	33	85,396	6
Equity attributable to owners of the parent company (Note 17)
3110	Ordinary share capital	1,726,605	80	1,726,605	111
3350	Deficit to be compensated	( 288,434)	( 13)	( 257,346)	( 17)
3400	Other equities	5,193	-	( 4,709)	-
3XXX	Total equity	1,443,364	67	1,464,550	94
Total liabilities and equities		$ 2,161,477	100	$ 1,549,946	100

The enclosed notes are an integral part of this financial report.

Chairman: Fu-Chuan Wei
Managerial Officer: Li-Yun Chiu
Head of Accounting: Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd.
Statement of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
Unit: NT$ thousands
Except that NT$ for the net loss per share

Code		2025		2024
		Amount	%	Amount	%
4000	Net operating revenue (Note 18 and 24)	$ 818,724	100	$ 1,058,326	100
5000	Operating cost (Note 10, 19 and 24)	1,055,512	129	1,263,276	119
5900	Operating loss	( 236,788 )	( 29 )	( 204,950 )	( 19 )
	Operating expenses (Note 19 and 24)
6100	Selling and marketing expenses	6,712	1	7,992	1
6200	Administrative expenses	39,316	5	40,907	4
6000	Total operating expenses	46,028	6	48,899	5
6500	Net other income and expenses (Note 19)	93,563	12	( 175 )	-
6900	Net operating loss	( 189,253 )	( 23 )	( 254,024 )	( 24 )
	Non-operating income and expense (Note 19 and 24)
7100	Interest income	600	-	1,433	-
7010	Other income	8,277	1	11,799	1
7020	Other gains or losses	170,530	21	( 3,115 )	-
7050	Financial costs	( 8,918 )	( 1 )	( 246 )	-
7000	Total non-operating income and expenses	170,489	21	9,871	1
7900	Net loss before tax of continuing operations	( 18,764 )	( 2 )	( 244,153 )	( 23 )
7950	Income tax expense (Note 4 and 20)	12,732	2	1,801	-
8200	Net loss for the year (Continued in the next page)	( 31,496 )	( 4 )	( 245,954 )	( 23 )

(Continued from the previous page)

Code		2025		2024
		Amount	%	Amount	%
	Other comprehensive income
	Items that will not be reclassified
	subsequently to profit or loss:
8311	Re-measurement of the defined benefit plan	$ 510	-	$ 45	-
8316	Unrealized valuation gains (losses) on investments in equity instruments as at fair value through other comprehensive income	9,902	1	5,984	-
8349	Income tax relating to items that will not be reclassified subsequently to profit or loss	(102)	-	(9)	-
8300	Other comprehensive income, net after tax	10,310	1	6,020	-
8500	Total comprehensive income	($ 21,186)	(3)	($ 239,934)	(23)
	Net loss per share (Note 21)
9750	Basic earnings per share	($ 0.18)		($ 1.42)
9810	Diluted earnings per share	($ 0.18)		($ 1.42)

The enclosed notes are an integral part of this financial report.

Chairman:Fu-Chuan Wei

Managerial Officer: Li-Yun Chiu

Head of Accounting: Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd.
Statement of Changes in Equity
For the Years Ended December 31, 2025 and 2024
Unit: NTD thousand

| Code | | Share capital | | Deficit to be compensated | Other items of equity
Unrealized valuation gain (loss) on financial assets measured at FVTOCI | Total Equity |
| --- | --- | --- | --- | --- | --- | --- |
| | | Number of shares (in thousand shares) | Amount | | | |
| A1 | Balance on January 1, 2024 | 281,167 | $ 2,811,673 | ($ 1,085,068) | ($ 22,121) | $ 1,704,484 |
| F1 | Capital reduction to offset accumulated deficits | ( 108,507) | ( 1,085,068) | 1,085,068 | - | - |
| D1 | Net loss of 2024 | - | - | ( 245,954) | - | ( 245,954) |
| D3 | Other comprehensive income of 2024 (after tax) | - | - | 36 | 5,984 | 6,020 |
| D5 | Total comprehensive income of 2024 | - | - | ( 245,918) | 5,984 | ( 239,934) |
| Q1 | Disposal of investments in equity instruments as at fair value through other comprehensive income | - | - | ( 11,428) | 11,428 | - |
| Z1 | Balance on December 31, 2024 | 172,660 | 1,726,605 | ( 257,346) | ( 4,709) | 1,464,550 |
| D1 | Net loss of 2025 | - | - | ( 31,496) | - | ( 31,496) |
| D3 | Other comprehensive income of 2025 (after tax) | - | - | 408 | 9,902 | 10,310 |
| D5 | Total comprehensive income of 2025 | - | - | ( 31,088) | 9,902 | ( 21,186) |
| Z1 | Balance on December 31, 2025 | 172,660 | $ 1,726,605 | ($ 288,434) | $ 5,193 | $ 1,443,364 |

The enclosed notes are an integral part of this financial report.

Chairman: Fu-Chuan Wei
Managerial Officer: Li-Yun Chiu
Head of Accounting: Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd.
Cash Flow Statements
For the Years Ended December 31, 2025 and 2024
Unit: NTD thousand

Code	Cash flow from operating activities	2025	2024
A10000	Net loss before tax for the year	($ 18,764)	($ 244,153)
A20010	Adjusted item:
A20100	Depreciation expenses	44,859	38,814
A20200	Amortization expenses	118	20
A20400	Net loss (gain) on financial assets and liabilities measured at FVTPL	234	( 1,502 )
A20900	Financial costs	8,918	246
A21200	Interest income	( 600 )	( 1,433 )
A21300	Dividend revenue	( 1,879 )	( 7,147 )
A22500	(Gains) losses on disposals of property, plant and equipment	( 93,563 )	175
A22700	Gain on disposal of investment property	( 172,982 )	-
A23700	Losses from inventory valuation decline (gains on recovery)	71,853	4,047
A24100	Unrealized foreign currency exchange loss	13	2,152
A30000	Net changes in operating assets and liabilities
A31150	Accounts receivable	18,400	( 18,400 )
A31180	Other receivables	154	( 840 )
A31200	Inventories	( 375,981 )	( 84,434 )
A31230	Prepayments	36,801	( 51,577 )
A31240	Other current assets	265	144
A32130	Note payable	( 12,265 )	3,304
A32150	Accounts payable	( 35,820 )	34,655
A32180	Other payables	( 12,860 )	9,658
A32230	Other current liabilities	( 6 )	152
A32240	Defined benefit liability	( 206 )	( 3,555 )
A32990	Other non-current assets	( 856 )	-
A33000	Cash used for operating activities	( 544,167 )	( 319,674 )
A33100	Interest received	600	1,433
A33300	Interest paid	( 8,459 )	( 246 )
A33500	Income tax paid	( 12,741 )	-
AAAA	Net cash inflows (outflows) from operating activities	( 564,767 )	( 318,487 )
B00010	Cash flow from investing activities
	Acquisition of financial assets measured at FVTOCI	( 237,706 )	-

(Continued in the next page)

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(Continued from the previous page)

Code		2025	2024
B00020	Sales of financial assets measured at FVTOCI	$ -	$ 57,558
B00100	Acquisition of financial assets measured at FVTPL	-	( 49,493 )
B00200	Sales of financial assets measured at FVTPL	2,013	240,400
B02700	Acquisition of property, plant and equipment	( 99,408 )	( 14,927 )
B02800	Disposal of property, plant and equipment	806	714
B03700	Increase in refundable deposits	( 30 )	( 10 )
B03800	Decrease in refundable deposits	10	2
B05400	Purchase of investment property	( 130 )	-
B05500	Disposal of investment property	222,176	-
B07100	Increase in prepayments for equipment	( 16,056 )	( 33,586 )
B07600	Dividends received	1,879	7,147
B09900	Share payment refunded from the capital decrease of financial assets measured at FVTPL	-	6,300
BBBB	Net cash inflow (outflow) from investing activities	( 126,446 )	214,105
	Cash flows from financing activities
C00100	Increase in short-term borrowings	2,018,399	-
C00200	Decrease in short-term borrowings	( 1,330,054 )	-
C03000	Receipt of deposits received	175	-
C03100	Decrease in deposits received	( 175 )	-
CCCC	Net cash inflow from financing activities	688,345	-
DDDD	Effect of exchange rate changes on cash and cash equivalents	( 13 )	276
EEEE	Decrease in cash and equivalents in the period	( 2,881 )	( 104,106 )
E00100	Cash and cash equivalents at the beginning of the year	100,981	205,087
E00200	Cash and cash equivalents at the end of the year	$ 98,100	$ 100,981

The enclosed notes are an integral part of this financial report.

Chairman: Fu-Chuan Wei
Managerial Officer: Li-Yun Chiu
Head of Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd.
Notes to the Financial Statements
For the Years January 1 through December 31, 2025 and 2024
(Expressed in thousands of New Taiwan dollars, unless otherwise stated)

I. Company History

Chien Hsing Stainless Steel Co., Ltd. (hereinafter referred to as “the Company”) was incorporated in May 1972. Its primary business activities include the processing, manufacturing, and trading of various stainless steel products.

The Company’s shares have been listed on the Taiwan Stock Exchange since February 1996.

Due to operational needs, the Company, through a resolution passed by the Board of Directors in October 2017, approved a simplified merger with its wholly owned subsidiaries Molimei Technology Co., Ltd., Chien Yi Investment Co., Ltd., and Chien Ying Investment Co., Ltd. The Company was the surviving entity, and the aforementioned subsidiaries were dissolved.

These financial statements are presented in the Company’s functional currency, the New Taiwan dollar (NT$).

II. Approval Date and Procedures of the Financial Statements

These financial statements were published after approval by the Board of Directors on March 10, 2026.

III. Application of New and Revised International Financial Reporting Standards

(I) First-time adoption of International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (hereinafter referred to as the “FSC-endorsed IFRSs”)

The application of the revised FSC-endorsed IFRSs does not result in any material changes to the Company’s accounting policies.

(II) FSC-endorsed IFRSs Applicable in 2026

Newly Issued / Amended / Revised Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7 – “Classification and Measurement of Financial Instruments”	January 1, 2026

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Newly Issued / Amended / Revised Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7 – “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
“Annual Improvements to IFRS Accounting Standards – Volume 11”	January 1, 2026
IFRS 17, “Insurance Contracts” (including the 2020 and 2021 amendments)	January 1, 2023

As of the approval date of the financial statements, the Company has assessed that the other amendments to standards will not have a material impact on its financial position or financial performance.

(III) IFRS Standards Issued by the IASB but Not Yet Endorsed and Promulgated by the Financial Supervisory Commission (FSC)

Newly Issued / Amended / Revised Standards and Interpretations	Effective Dates Issued by the IASB (Note 1)
Amendments to IFRS 10 and IAS 28 – “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	Not yet determined
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments)	January 1, 2027
Amendments to IAS 21, “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless otherwise specified, the above newly issued/amended/revised standards or interpretations are effective for annual reporting periods beginning on or after the respective dates.

Note 2: On September 25, 2025, the Financial Supervisory Commission (FSC) announced that companies in Taiwan are required to adopt IFRS 18 beginning January 1, 2028, with the option for early adoption following the FSC’s endorsement of IFRS 18.

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

IFRS 18 will replace IAS 1 “Presentation of Financial Statements.” The main changes under this standard include:

The Company is required to assess whether it has certain principal business activities involving investing in specific types of assets and providing financing to customers, and on that basis classify income and expense items

in the statement of comprehensive income into the following categories: operating, investing, financing, income taxes, and discontinued operations.

The income statement shall present subtotals and totals for operating profit or loss, profit or loss before financing and income tax, and total profit or loss.
Guidance is provided to strengthen aggregation and disaggregation requirements: the Company shall identify assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and aggregate them based on shared characteristics, so that each line item presented in the primary financial statements has at least one similar characteristic. Items with dissimilar characteristics shall be disaggregated in the primary financial statements and in the notes. The Company shall label such items as "other" only when no more informative label can be identified.
Enhanced disclosure of management-defined performance measures: when the Company engages in public communications outside the financial statements, and when it communicates management's perspective on an aspect of the Company's overall financial performance to users of the financial statements, it shall disclose relevant information about such management-defined performance measures in a single note. This includes a description of the measure, how it is calculated, a reconciliation to subtotals or totals specified in IFRS accounting standards, and the related income tax and non-controlling interest effects of the reconciling items.

In addition, the following conforming amendments have been made to IAS 7 "Statement of Cash Flows":

When the Company prepares cash flows from operating activities using the indirect method, operating profit or loss shall be used as the starting point for reconciliation.
Interest and dividends received by the Company shall be classified as cash flows from investing activities, while interest and dividends paid shall be classified as cash flows from financing activities. If the Company determines, upon assessment, that it has specific primary business activities, it must consider the nature of dividend income, interest income, and interest expense presented in the statement of comprehensive income in order to
15 -

determine the classification of dividends received, interest received, and interest paid in the statement of cash flows; however, each of the aforementioned cash flows may only be classified under a single activity in the statement of cash flows.

In addition to the above impacts, as of the approval date of this financial report, the Company continues to assess the effects of various standard amendments and interpretations on its financial position and performance. Related impacts will be disclosed upon completion of the assessment.

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), as endorsed and issued into effect by the Financial Supervisory Commission (FSC).

(II) Basis of Preparation

Except for financial instruments measured at fair value and net defined benefit liabilities recognized as the present value of defined benefit obligations less the fair value of plan assets, the financial statements have been prepared on a historical cost basis.

Fair value measurements are categorized into Levels 1 to 3 based on the observability and significance of the inputs used:

Level 1 inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date.
Level 2 inputs: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3 inputs: Unobservable inputs for the asset or liability.

(III) Criteria for Classification of Assets and Liabilities as Current or Non-Current

Current assets include:

Assets held primarily for trading purposes;
Assets expected to be realized within 12 months after the balance sheet date; and
Cash (excluding those restricted from being exchanged or used to settle a
16 -

liability for more than 12 months after the balance sheet date).

Current liabilities include:
1. Liabilities held primarily for trading purposes;
2. Liabilities due within 12 months after the balance sheet date; and
3. Liabilities that do not have substantial rights to defer the settlement period to at least 12 months after the balance sheet date.

Assets or liabilities not classified as current are classified as non-current.

(IV) Foreign Currency

When the Company prepares its financial reports, transactions in currencies other than the Company’s functional currency (foreign currencies) are recorded in the functional currency at the exchange rate on the transaction date.

Foreign currency monetary items are retranslated at the closing exchange rate on each balance sheet date. Exchange differences arising from the settlement or retranslation of monetary items are recognized in profit or loss in the year in which they arise.

Foreign currency non-monetary items measured at historical cost are translated at the exchange rate on the transaction date and are not retranslated.

(V) Inventories

Inventories include raw materials, supplies, work-in-progress, finished goods, and merchandise. Inventories are measured at the lower of cost and net realizable value. In comparing cost and net realizable value, individual items are used, except for inventories of the same category. Net realizable value refers to the estimated selling price in the normal course of business after deducting the estimated cost required to be completed, and the estimated cost required to complete the sale. The cost of inventories is calculated using the weighted average method.

(VI) Property, Plant, and Equipment

Property, plant, and equipment are recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Property, plant, and equipment under construction are recognized at cost less accumulated impairment losses. Cost includes professional service fees and borrowing costs that meet capitalization criteria. Such assets are measured

17 -

at the lower of cost and net realizable value before reaching the expected usable condition, and the sale price and cost are recognized in profit or loss. When such assets are completed and reach the expected usable condition, they are classified into the appropriate category of property, plant, and equipment, and depreciation begins.

Except for land held for the Company's own use, property, plant, and equipment are depreciated over their useful lives on a straight-line basis, with each significant portion being depreciated separately. The Company reviews the estimated useful lives, residual values, and depreciation methods at the end of each fiscal year at a minimum. Changes in accounting estimates are applied prospectively.

Upon derecognition of property, plant, and equipment, the difference between the net proceeds from disposal and the carrying amount of the asset is recognized in profit or loss.

(VII) Investment Property

Investment property refers to property held to earn rental income, for capital appreciation, or for both purposes. Investment property also includes land held for currently undetermined future use.

Investment property is initially measured at cost (including transaction costs), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Investment property is depreciated using the straight-line method.

Upon derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(VIII) Intangible Assets

Separately Acquired

Separately acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The Company reviews the estimated useful lives, residual values, and amortization methods at the end of each fiscal year at a minimum, and applies the effects of any changes in accounting estimates prospectively.

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Derecognition

Upon 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 for the period.

(IX) Impairment of Property, Plant and Equipment, Investment Property, and Intangible Assets

The Company assesses at each balance sheet date whether there is any indication that property, plant and equipment, investment property, and intangible assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs of disposal and value in use. If the recoverable amount of an individual asset or cash-generating unit is lower than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized in prior years (after deducting amortization or depreciation). A reversal of an impairment loss is recognized in profit or loss.

(X) Financial Instruments

Financial assets and financial liabilities are recognized in the balance sheet when the Company becomes a party to the contractual provisions of the instrument.

At initial recognition, financial assets and financial liabilities that are not measured at fair value through profit or loss are measured at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs directly attributable to the acquisition or issue of financial assets or financial liabilities measured at fair value through profit or loss are recognized immediately in profit or loss.

Financial Assets
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Regular way purchases or sales of financial assets are recognized and derecognized using trade date accounting.

(1) Measurement Categories

The Company classifies its financial assets into the following categories: financial assets measured at fair value through profit or loss (FVTPL), financial assets measured at amortized cost, and investments in equity instruments measured at fair value through other comprehensive income (FVOCI).

A. Financial Assets Measured at Fair Value Through Profit or Loss (FVTPL)

Financial assets measured at FVTPL are mandatorily measured at fair value through profit or loss. Such assets include investments in equity instruments that are not designated to be measured at fair value through other comprehensive income.

Financial assets measured at FVTPL are measured at fair value. Dividends and interest income derived from these assets are recognized in other income and interest income, respectively. Gains or losses arising from remeasurement are recognized in other gains and losses. For the method of determining fair value, please refer to Note 23.

B. Financial Assets Measured at Amortized Cost

If the Company’s financial assets meet both of the following conditions, they are classified as financial assets measured at amortized cost:

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

Financial assets measured at amortized cost (including cash, accounts receivable, other receivables, and refundable deposits) are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less any

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impairment losses. Foreign exchange gains or losses are recognized in profit or loss.

Except under the following two circumstances, interest income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset:

a. For purchased or originated credit-impaired financial assets, interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset.

b. For financial assets that are not purchased or originated as credit-impaired but subsequently become credit-impaired, interest income is calculated by applying the effective interest rate to the amortized cost of the asset beginning in the reporting period following the recognition of credit impairment.

Credit-impaired financial assets refer to cases where the issuer or debtor is experiencing significant financial difficulty, has defaulted, is highly likely to file for bankruptcy or undergo other financial restructuring, or where the active market for the financial asset has disappeared due to financial difficulties.

C. Investments in Equity Instruments Measured at Fair Value through Other Comprehensive Income

At initial recognition, the Company may make an irrevocable election to designate investments in equity instruments that are neither held for trading nor recognized as contingent consideration in a business combination as measured at fair value through other comprehensive income.

Investments in equity instruments measured at fair value through other comprehensive income are subsequently measured at fair value. Changes in fair value are recognized in other comprehensive income and accumulated in other equity. Upon disposal of the investment, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

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Dividends from investments in equity instruments measured at fair value through other comprehensive income are recognized in profit or loss when the Company’s right to receive the payment is established, unless the dividend clearly represents a recovery of part of the cost of the investment.

(2) Impairment of Financial Assets

At each balance sheet date, the Company assesses impairment losses on financial assets measured at amortized cost (including accounts receivable) based on expected credit losses.

For accounts receivable, the allowance for impairment is recognized based on lifetime expected credit losses. For other financial assets, the Company first assesses whether credit risk has increased significantly since initial recognition. If not, an allowance is recognized based on 12-month expected credit losses. If credit risk has increased significantly, an allowance is recognized based on lifetime expected credit losses.

Expected credit losses are the probability-weighted average of credit losses based on the risk of default. Twelve-month expected credit losses represent the expected credit losses arising from possible default events within 12 months after the reporting date, while lifetime expected credit losses represent the expected credit losses arising from all possible default events over the expected life of the financial instrument.

Without taking the collateral held into consideration, the Company determines that a default has occurred for a financial asset when the following conditions are met for the purpose of internal credit risk management:

A. Internal or external information indicates that the debtor is unlikely to fulfill its debt obligations.

B. The asset is more than 90 days past due, unless there is reasonable and supportable information indicating that a more appropriate default criterion is available.

Impairment losses on all financial assets are recognized by reducing the carrying amount through an allowance account.

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However, for investments in equity instruments measured at fair value through other comprehensive income, the allowance is recognized in other comprehensive income and does not reduce the carrying amount of the asset.

(3) Derecognition of Financial Assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when the financial asset has been transferred and substantially all the risks and rewards of ownership have been transferred to another entity.

Upon derecognition of a financial asset measured at amortized cost in its entirety, the difference between the carrying amount and the consideration received is recognized in profit or loss. Upon derecognition of an investment in an equity instrument measured at fair value through other comprehensive income in its entirety, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

Financial Liabilities

(1) Subsequent Measurement

All of the Company’s financial liabilities are measured at amortized cost using the effective interest method.

(2) Derecognition of Financial Liabilities

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

(XI) Provisions

Provisions are recognized based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Provisions are measured at the present value of the estimated cash flows required to settle the obligation.

Onerous Contracts

When the Company expects that the unavoidable costs of fulfilling a

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contract exceed the expected economic benefits to be derived from it, a present obligation arising from the onerous contract is recognized as a provision. In assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling the contract and an allocation of other costs that are directly related to contract performance.

(XII) Revenue Recognition

After the Company identifies the performance obligations in the customer contract, the transaction price is allocated to each performance obligation, and revenue is recognized when each performance obligation is satisfied.

Income from product sales

Revenue from sales of goods is derived from the sale of cold-rolled stainless steel coils. Revenue and trade receivables are recognized at the point when the goods have arrived at the customer’s designated location, at which time the customer has the right to determine the price and use of the goods, bears the primary responsibility for resale, and assumes the risk of obsolescence.

In the case of processing using customer-supplied materials, as control over the processed products is not transferred, revenue is not recognized upon delivery of the materials.

(XIII) Leases

The Company assesses whether a contract is, or contains, a lease on the contract commencement date.

The Company is the lessor

When the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset to the lessee, it is classified as a finance lease. All other leases are classified as operating leases.

Under operating leases, lease payments net of any lease incentives are recognized as income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the leased asset and recognized as expenses on a straight-line basis over the lease term.

(XIV) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are capitalized as part of the cost of those assets

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until substantially all the activities necessary to prepare the asset for its intended use or sale are complete.

For specific borrowings, investment income earned on the temporary investment of those borrowings before expenditure on the qualifying asset is incurred is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(XV) Employee Benefits

Short-Term Employee Benefits

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

Post-Employment Benefits

Pension contributions under defined contribution plans are recognized as expenses in the period in which the employees provide the related services.

The defined benefit cost (including service cost, net interest, and remeasurement) of defined benefit plans is determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liability (asset) are recognized as employee benefit expenses in the period in which they occur. Remeasurements (including actuarial gains and losses and the return on plan assets, excluding interest) are recognized in other comprehensive income and included in retained earnings in the period in which they arise. These amounts are not reclassified to profit or loss in subsequent periods.

The net defined benefit liability (asset) is the deficit (surplus) of defined benefit plan obligations over plan assets. The net defined benefit asset recognized cannot exceed the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

(XVI) Income Tax

Income tax expense comprises current income tax and deferred income tax.

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Current Income Tax

The Company determines the current period’s taxable income (loss) in accordance with the laws and regulations enacted in each jurisdiction for income tax filings, and calculates the income tax payable (recoverable) accordingly.

Additional income tax on unappropriated earnings, calculated in accordance with the Income Tax Act of the Republic of China, is recognized in the year the shareholders’ meeting resolves the earnings appropriation.

Adjustments to income tax payable for prior years are recognized in current income tax.

Deferred Income Tax

Deferred income tax is calculated based on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax bases used in the computation of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences. Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences and tax loss carryforwards can be utilized.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and is reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the assets to be recovered. Deferred income tax assets previously not recognized are also reviewed at each balance sheet date and are recognized to the extent that it has become probable that future taxable income will allow the deferred income tax assets to be recovered.

Deferred income tax assets and liabilities 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 income tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company

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

Current and Deferred Income Tax

Current and deferred income tax are recognized in profit or loss, except for income tax related to items recognized in other comprehensive income or directly in equity, which are recognized in other comprehensive income or directly in equity, respectively.

V. Major Sources of Estimation Uncertainty in Critical Accounting Judgments, Estimates, and Assumptions

When applying accounting policies, and where relevant information is not readily available from other sources, management must make judgments, estimates, and assumptions based on historical experience and other relevant factors. Actual results may differ from these estimates.

In developing significant accounting estimates, the Company considers potential impacts on key areas such as projected cash flows, growth rates, discount rates, and profitability. Management continuously reviews these estimates and the underlying assumptions.

Key Sources of Estimation Uncertainty

Inventory Impairment

Net realizable value of inventories is estimated as the selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. These estimates are assessed based on current market conditions and historical sales experience of similar products. Changes in market conditions may significantly affect these estimates.

VI. Cash

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 1,488	$ 1,378
Checks and demand deposits	96,612	99,603
	$ 98,100	$ 100,981

VII. Financial Instruments at Fair Value Through Profit or Loss—Current

	December 31, 2025	December 31, 2024
Financial asset
Mandatorily measured at fair value through profit or loss
Non-derivative financial assets
TWSE/TPEx listed stocks	$ 80,273	$ 82,520

VIII. Financial Assets at Fair Value Through Other Comprehensive Income – Non-current Investments in Equity Instruments

	December 31, 2025	December 31, 2024
Domestic Investments
Listed (TWSE/TPEx) Shares	$ 247,608	$ -
– Common Stock

The Company invests in the common shares of the above-mentioned companies for mid- to long-term strategic purposes and expects to generate profits through long-term holdings. Management believes that recognizing short-term fair value fluctuations of these investments in profit or loss would not align with the Company's long-term investment strategy. Therefore, the Company has designated these investments as measured at fair value through other comprehensive income.

IX. Notes receivable, accounts receivable, and other receivables

	December 31, 2025	December 31, 2024
Accounts Receivable
Gross carrying amount measured at amortized cost — arising from operations	$ -	$ 18,400
Other receivables
Receivables from sales of equipment	$ 100,000	$ -
Others	736	840
	$ 100,736	$ 840

Accounts receivable

The Company's average credit period for sales of goods is within 90 days, and the receivables are non-interest-bearing. The Company evaluates its major customers using publicly available financial information and historical transaction records, and selects those with higher credit ratings as trading counterparties. The Company continuously monitors credit risk exposure and counterparties' credit ratings, and reviews credit limits annually to manage credit risk.

The Company recognizes a loss allowance for receivables based on lifetime expected credit losses. Lifetime expected credit losses are calculated using a provision matrix, which takes into account the customers' past default records, current financial conditions, and the economic conditions of the industry, along with GDP forecasts and industry outlook. Based on the Company's historical experience, the loss patterns across different customer groups do not significantly differ. Therefore, the provision matrix does not further classify customer groups but determines expected credit loss rates based solely on the number of days past due.

As of December 31, 2024, all accounts receivable were not past due; accordingly, no loss allowance was recognized.

X. Inventories

	December 31, 2025	December 31, 2024
Merchandise	$ 93,763	$ 129,807
Raw materials	261,812	247,568
Supplies	12,492	15,125
Work in progress	183,188	190,956
Finished good	399,493	63,164
	$ 950,748	$ 646,620

The cost of goods sold related to inventories for 2025 and 2024 amounted to NT$1,055,512 thousand and NT$1,263,276 thousand, respectively.

The cost of goods sold for 2025 and 2024 included inventory write-down losses of NT$71,853 thousand and NT$4,047 thousand, respectively.

XI. Property, Plant and Equipment

For Own Use	December 31, 2025	December 31, 2024
	$ 446,835	$ 358,030

For movements in property, plant and equipment, please refer to Table 3.

Depreciation expenses are calculated on a straight-line basis over the following useful lives:

Buildings
Main plant structure	35 years
Offices and other buildings	2-35 years
Machinery and equipment	2-20 years
Transport equipment	3-10 years
Office equipment	3-8 years
Other equipment	2-18 years

The Company entered into a rooftop lease agreement with another company in July 2017. The lease period extends from the commercial operation date of the solar power system to the end of 20 years. The rent is based on a floating rate calculated as a fixed percentage of actual electricity sales revenue generated by the solar power system, and is collected monthly. The Company earned rental income of NT$1,380 thousand and NT$1,292 thousand for the years 2025 and 2024, respectively, from the aforementioned lease.

For information on property, plant and equipment pledged as collateral, please refer to Note 25.

XII. Investment Property

	December 31, 2025		December 31, 2024
Land	$ 45,055		$ 85,472
Buildings	-		9,577
	$ 45,055		$ 95,049
	Land	Buildings	Total
Cost
Balance as of January 1 and December 31, 2024	$ 123,519	$ 87,203	$ 210,722
Accumulated Depreciation
Balance as of January 1, 2024	$ -	$ 41,514	$ 41,514
Depreciation Expense	-	1,744	1,744
Balance as of December 31, 2024	$ -	$ 43,258	$ 43,258
Accumulated impairment
Balance as of January 1 and December 31, 2024	$ 38,047	$ 34,368	$ 72,415
Net Book Value as of December 31, 2024	$ 85,472	$ 9,577	$ 95,049
Cost
Balance as of January 1, 2025	$ 123,519	$ 87,203	$ 210,722
Additions	-	130	130
Disposals	( 78,464)	( 87,333)	( 165,797)
Balance as of December 31, 2025	$ 45,055	$ -	$ 45,055
Accumulated Depreciation
Balance as of January 1, 2025	$ -	$ 43,258	$ 43,258
Depreciation Expense	-	930	930
Disposals	-	( 44,188)	( 44,188)
Balance as of December 31, 2025	$ -	$ -	$ -
Accumulated impairment
Balance as of January 1, 2025	$ 38,047	$ 34,368	$ 72,415

Disposals	( 38,047 )	( 34,368 )	( 72,415 )
Balance as of December 31, 2025	$ -	$ -	$ -
Net Book Value as of December 31, 2025	$ 45,055	$ -	$ 45,055

Investment property is depreciated on a straight-line basis over the following useful life:

Main building structure 16.5-50 years

The fair value of the Company's investment property is assessed by management based on market evidence of transaction prices of similar properties. Fair value is as follows:

Fair value	December 31, 2025	December 31, 2024
	$ 604,466	$ 788,802

On March 28, 2023, the Company entered into a real estate and equipment sale and purchase agreement with the buyer, selling Land Lot No. 491, Pitou Section, Madou District, Tainan City, along with the electrical room, booster station, and UHV pipelines located within the unregistered structure on the land, including in-plant equipment, external conduit assets, and associated usage rights, for a total consideration of NT$197,347 thousand. However, equipment delivery was contingent upon completion of installation of specific electrical equipment at the Company's in-plant booster station and confirmation that electricity usage would not be affected. The above transaction funds were entrusted to a bank for price trust. In May 2023, the buyer remitted the contract deposit of NT$34,735 thousand (comprising NT$9,735 thousand for land and NT$25,000 thousand for equipment) into the aforementioned real estate transaction trust account at the designated bank. In February 2025, the buyer negotiated and entered into a supplemental agreement with the Company to complete the transfer of land ownership in advance due to its business needs, and remitted the remaining land purchase price of NT$87,612 thousand into the aforementioned bank-administered real estate transaction trust account. The transfer of land ownership was completed on February 21, 2025, at which time the Company received the full land purchase price from the bank-administered real estate transaction trust account, resulting in the recognition of a gain on disposal of investment property of NT$93,195 thousand. The Company completed the transfer of equipment ownership on December 17, 2025, and received the full payment of NT$100,000 thousand for the equipment from the bank's real estate

transaction escrow account on January 12, 2026, resulting in the recognition of a gain on disposal of property, plant and equipment of NT$95,007 thousand.

On June 30, 2025, the Company entered into a disposal contract with a non-related party for land and buildings located in the North District of Tainan City, with a total contract price of NT$86,066 thousand. The ownership transfer was completed on August 4, 2025, and full payment has been received, resulting in the recognition of a gain on disposal of investment property of NT$61,877 thousand. On August 22, 2025, the Company entered into a disposal contract with a non-related party for land and buildings located in the North District of Tainan City, with a total contract price of NT$42,000 thousand. The ownership transfer was completed on September 12, 2025, and full payment has been received, resulting in the recognition of a gain on disposal of investment property of NT$17,910 thousand.

In the fourth quarter of 2004, the Company adopted net fair value as the recoverable amount for assessing its investment property—land and buildings. After appraisal, the estimated recoverable amount was lower than the carrying amount, and an impairment loss of NT$24,997 thousand was recognized for the difference. Subsequently, in the second quarter of 2014, the aforementioned investment property—land and buildings was re-evaluated based on actual transaction registration data obtained from the officially announced market price. The estimated recoverable amount of the land was higher than the carrying amount, and a reversal of NT$5,997 thousand was recognized. Later, in November 2017, as a result of the merger between the Company and its subsidiary, an accumulated impairment loss of NT$53,415 thousand related to investment property was transferred into the Company. Additionally, in June and August 2025, the Company entered into disposal contracts for land and buildings. In addition to the related costs and accumulated depreciation, accumulated impairment of NT$72,415 thousand was also reversed and written off. As a result, as of December 31, 2025 and 2024, the accumulated impairment of investment property amounted to NT$0 thousand and NT$72,415 thousand, respectively.

For information on investment property pledged as collateral, please refer to Note 25.

XIII. Short-Term Borrowings — December 31, 2025

Guaranteed borrowings (Note 25)

Amount
$ 688,345

The interest rate of the borrowings above is 2.20%~2.25%.

XIV. Notes Payable and Accounts Payable

The Company’s notes payable and accounts payable are all generated from operating activities.

The Company has established a financial risk management policy to ensure that all payables are settled within the pre-agreed credit period.

XV. Other Liabilities

	December 31, 2025	December 31, 2024
Current
Other payables
Wages and salaries payable	$ 6,856	$ 8,009
Payables for equipment	13,030	7,450
Utility fees payable	1,323	8,362
Repairs and maintenance expense payable	1,117	3,448
Payables for taxes	435	633
Others	4,386	6,066
	$ 27,147	$ 33,968

XVI. Post-Employment Benefit Plans

(I) Defined Contribution Plans

The Company’s pension plan under the Labor Pension Act is a government-administered defined contribution plan. In accordance with the Act, the Company contributes 6% of each employee’s monthly wages to the individual pension account at the Bureau of Labor Insurance.

(II) Defined Benefit Plan

The pension scheme adopted by the Company in accordance with the Labor Standards Act of the Republic of China is a government-administered defined benefit plan. Pension payments to employees are calculated based on the length of service and the average monthly salary over the six months prior to the approved date of retirement. The Company contributes an amount equal to 2% of the employees’ total monthly wages to the pension fund. Contributions are deposited into a dedicated account with the Bank of Taiwan in the name of the Labor Pension Reserve Supervisory Committee. Before year-end, if the estimated balance in the dedicated account is insufficient to cover payments to employees expected to meet retirement criteria in the following year, the Company will make a one-time contribution of the shortfall before the end of March of the following year. This dedicated account is managed by the Bureau of Labor Funds, Ministry of Labor. The Company has

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no right to influence the investment management strategy.

The amounts recognized in the balance sheet for the defined benefit plan are as follows:

	December 31, 2025	December 31, 2024
Current value of a defined benefit obligation	$ 9,613	$ 9,815
Fair value of planned assets	( 7,966 )	( 7,452 )
Defined benefit liability	$ 1,647	$ 2,363

Changes in net defined benefit liability are as follows:

	Current value of a defined benefit obligation	Fair value of planned assets	Net defined benefit liability (asset)
January 1, 2024	$ 9,386	($ 3,423)	$ 5,963
Interest expense (income)	112	( 41)	71
Recognized in profit or loss	112	( 41)	71
Remeasurements
Return on plan assets (excluding amounts included in net interest)	-	( 362)	( 362)
Actuarial gains – changes in financial assumptions	( 393)	-	( 393)
Actuarial gains – experience adjustments	710	-	710
Recognized in other comprehensive income	317	( 362)	( 45)
Employer contributions	-	( 3,626)	( 3,626)
December 31, 2024	9,815	( 7,452)	2,363
Interest expense (income)	157	( 119)	38
Recognized in profit or loss	157	( 119)	38
Remeasurements
Return on plan assets (excluding amounts included in net interest)	-	( 441)	( 441)
Actuarial gains – changes in financial assumptions	172	-	172
Actuarial gains – experience adjustments	( 241)	-	( 241)
Recognized in other comprehensive income	( 69)	( 441)	( 510)
Employer contributions	-	( 244)	( 244)
Benefit payments	( 290)	290	-
December 31, 2025	$ 9,613	($ 7,966)	$ 1,647

The amounts recognized in profit or loss for the defined benefit plan, presented by function, are as follows:

	2025		2024
Operating cost	$	31	$	59
Selling and marketing expenses		2		4
Administrative expenses		5		8
	$	38	$	71

The Company is exposed to the following risks under the defined benefit pension scheme pursuant to the Labor Standards Act:

Investment risk: The Bureau of Labor Funds, Ministry of Labor, invests the labor retirement fund through both internal management and external mandates in domestic and overseas equity securities, debt instruments, and bank deposits. However, the return on the Company's allocated plan assets is based on an amount not lower than the interest rate of a two-year time deposit with local banks.
Interest rate risk: A decline in government bond interest rates will increase the present value of the defined benefit obligation. However, the return on debt investments within the plan assets would also increase, partially offsetting the impact on the net defined benefit liability.
Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of plan members. Accordingly, an increase in the salaries of plan members will result in an increase in the present value of the defined benefit obligation.

The present value of the Company's defined benefit obligation is determined by a qualified actuary. The key actuarial assumptions on the measurement date are as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.40%	1.60%
Expected salary increase rate	3.00%	3.00%

If any significant actuarial assumptions change within a reasonably possible range, while all other assumptions remain unchanged, the resulting increase (decrease) in the present value of the defined benefit obligation would be as follows:

	December 31, 2025	December 31, 2024
Discount rate
Increase of 0.25%	($ 215)	($ 235)
Decrease of 0.25%	$ 221	$ 243
Expected salary increase rate
Increase of 0.25%	$ 194	$ 215
Decrease of 0.25%	($ 189)	($ 210)

As actuarial assumptions may be interdependent, it is unlikely that only one assumption would change in isolation. Therefore, the above sensitivity analysis may not reflect actual changes in the defined benefit obligation.

	December 31, 2025	December 31, 2024
Expected contributions within one year	$ 241	$ 251
Weighted average duration of the defined benefit obligation	10 years	10 years

XVII. Equity

(I) Share Capital Ordinary shares

	December 31, 2025	December 31, 2024
Authorized shares (in thousands)	500,000	500,000
Authorized capital	$ 5,000,000	$ 5,000,000
Issued and fully paid shares (in thousands)	172,660	172,660
Issued capital	$ 1,726,605	$ 1,726,605

Each issued common share has a par value of NT$10 and entitles the holder to one vote and the right to receive dividends.

On November 6, 2024, the Company's extraordinary shareholders' meeting resolved to offset accumulated deficits by reducing capital in the amount of NT$1,085,068 thousand, by canceling 108,507 thousand issued common shares with a par value of NTD 10 per share, representing a capital reduction ratio of 38.59152208%. After the capital reduction, the paid-in capital amounted to NT$1,726,605 thousand, with 172,660 thousand shares issued. The above capital reduction was approved by the Securities and Futures Bureau, Financial Supervisory Commission, on December 3, 2024. The capital reduction record date was set for December 5, 2024, and the registration of the

change was completed on December 26, 2024.

(II) Retained Earnings and Dividend Policy

Pursuant to the Company’s Articles of Incorporation, if a surplus is generated in the annual final accounts, it shall first be used to pay taxes and offset prior years’ losses, followed by an appropriation of 10% as legal reserve and additional special reserve appropriated or reversed in accordance with relevant laws and regulations. Any remaining surplus shall be combined with unappropriated earnings from prior years, and the Board of Directors shall propose an earnings distribution plan, which shall be distributed upon resolution by the shareholders’ meeting.

For the remuneration distribution policy for employees and directors stipulated in the Company’s Articles of Incorporation, please refer to Note 19(8), “Employees’ Compensation and Directors’ Remuneration.”

The Company shall formulate an earnings distribution proposal based on the distributable surplus stated above, taking into account the economic environment in which its business operates, future capital requirements, long-term financial planning, and shareholders’ demand for cash inflows. The proposal shall be submitted to the shareholders’ meeting for resolution. Cash dividends to shareholders shall not be less than 10% of the total dividends distributed. However, if the cash dividend per share is less than NT$0.5, such dividends may be distributed in the form of stock dividends instead.

The Company held its Annual General Meetings on June 4, 2025, and June 14, 2024, respectively, and approved the deficit compensation proposals for fiscal years 2024 and 2023.

In March 2026, the Board of Directors proposed a deficit compensation plan for fiscal year 2025.

The proposal for deficit compensation for fiscal year 2025 is pending approval at the shareholders’ meeting expected to be held in June 2026.

(III) Other Equity Items

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

37 -

38 -

	2025	2024
Beginning retained earnings	($ 4,709 )	($ 22,121 )
Recognized during the period
Unrealized gains and losses
Equity instrument	9,902	5,984
Accumulated gains or losses on the disposal of equity instruments transferred to retained earnings	-	11,428
Ending balance	$ 5,193	($ 4,709 )
XVIII. Revenue
	2025	2024
Revenue from contracts with customers
Sales of goods	$ 812,397	$ 1,041,306
Others	6,327	17,020
	$ 818,724	$ 1,058,326

(I) Description of Customer Contracts

Revenue from sales of goods and rendering of services

Revenue from the sale of goods and the provision of services is recognized when the significant risks and rewards of ownership of the goods have been transferred to the buyer and the related services have been completed.

(II) Contract Balances

	December 31, 2025	December 31, 2024	January 1, 2024
Accounts receivable (refer to Note 9)	$ -	$ 18,400	$ -

(III) Breakdown of Revenue from Customer Contracts

	2025	2024
Steel coils	$ 812,397	$ 1,041,306
Processing	6,327	17,020
	$ 818,724	$ 1,058,326

XIX. Loss Before Tax

(I) Other Income and Expenses

	2025	2024
Gains (losses) on disposals of property, plant and equipment	$ 93,563	( $ 175 )

(II) Interest Income

	2025	2024
Interest on bank deposits	$ 600	$ 1,433

(III) Other Income

	2025	2024
Rent income	$ 1,463	$ 1,292
Dividend revenue	1,879	7,147
Others	4,935	3,360
	$ 8,277	$ 11,799

(IV) Other Gains and Losses

	2025	2024
Gain (loss) on financial assets
Financial assets measured at FVTPL	( $ 234 )	$ 1,502
Gain on disposal of investment property	172,982	-
Net foreign exchange gain (loss)	123	( 2,748 )
Depreciation Expense	( 930 )	( 1,744 )
Other losses	( 1,411 )	( 125 )
	$ 170,530	( $ 3,115 )

(V) Finance Costs

	2025	2024
Interest on bank borrowings	$ 8,918	$ 246

(VI) Depreciation and Amortization

	2025	2024
Depreciation expenses by function
Operating cost	$ 41,691	$ 35,730
Operating expenses	2,238	1,340
Other gains or losses	930	1,744
	$ 44,859	$ 38,814

39 -

Amortization expenses by function

Operating cost	$ 118	$ 14
Operating expenses	-	6
	$ 118	$ 20

(VII) Employee Benefit Expenses

	2025	2024
Short-term employee benefits
Salaries	$ 46,890	$ 42,027
Labor and health insurance	5,179	4,801
Remuneration to directors	793	1,183
Others	1,785	2,505
	54,647	50,516
Post-employment benefits
Defined contribution plans	2,386	2,219
Defined benefit plans (refer to Note 16)	38	71
	2,424	2,290
	$ 57,071	$ 52,806
By function
Operating cost	$ 35,014	$ 32,532
Operating expenses	22,057	20,274
	$ 57,071	$ 52,806

(VIII) Employees' Compensation and Directors' Remuneration

According to the Company's Articles of Incorporation, 2%–3% of pre-tax profit before deducting employees' compensation and directors' remuneration shall be appropriated as employees' compensation, while up to 1% shall be appropriated as directors' remuneration. Pursuant to the amendment to the Securities and Exchange Act in August 2024, the Company's general shareholders' meeting in 2025 resolved to amend its articles of incorporation to stipulate that the amount of employee compensation allocated for the current year shall be no less than 1% as remuneration for junior-level employees. As the Company incurred accumulated losses in both 2025 and 2024, the Board of Directors resolved on March 10, 2026, and March 14, 2025, respectively, not

to accrue employees' compensation and directors' remuneration.

If any changes in amounts occur after the issuance of the annual financial statements, such changes shall be treated as changes in accounting estimates and shall be adjusted in the following year.

There were no differences between the actual amounts distributed as employees' compensation and directors' remuneration and the amounts recognized in the financial statements for the years ended December 31, 2024, and 2023.

Information on the employees' compensation and directors' remuneration approved by the Board of Directors can be found on the Market Observation Post System (MOPS) of the Taiwan Stock Exchange.

XX. Income Tax

(I) Income Tax Recognized in Profit or Loss

The components of income tax expense are as follows:

	2025	2024
Current income tax
Land value increment tax	$ 12,691	$ -
Deferred income tax
Originating during the current year	41	1,801
	$ 12,732	$ 1,801

The reconciliation between accounting profit and income tax expense is as follows:

	2025		2024
Loss before tax	($ 18,764 )		($ 244,153 )
Income tax calculated at the statutory tax rate on loss before tax	($ 3,752 )		($ 48,831 )
Income not taxable and expenses not deductible for tax purposes		26		46
Tax-exempt income	( 376 )		( 1,188 )
Land value increment tax	12,691		-
Unrecognized temporary differences and loss carryforwards	4,143		51,774
	$ 12,732		$ 1,801

(II) Income Tax Recognized in Other Comprehensive Income

	2025	2024
Deferred income tax
Originating during the current year
Remeasurements of defined benefit plans	($ 102 )	($ 9 )

(III) Deferred Income Tax Assets and Liabilities

Movements in deferred income tax assets and liabilities are as follows:

2025

Deferred tax assets	Opening balance	Recognized in profit or loss	Recognized in other comprehensive income	Closing balance
Temporary differences
Defined benefit pension plans	$ 473	($ 41)	($ 102)	$ 330

2024

Deferred tax assets	Opening balance	Recognized in profit or loss	Recognized in other comprehensive income	Closing balance
Temporary differences
Defined benefit pension plans	$ 2,399	($ 1,917)	($ 9)	$ 473
Deferred tax liabilities
Temporary differences
Others	$ 116	($ 116)	$ -	$ -

(IV) Information on Unused Loss Carryforwards

As of December 31, 2025, information on unused loss carryforwards is as follows:

Unused balance	Last year for credit
$ 21,430	2026
44,293	2028
193,592	2029
310,930	2030
80,426	2032
170,715	2033
297,128	2034
19,188	2035
$ 1,137,702

43 -

(V) Status of Income Tax Assessments

The Company’s profit-seeking enterprise income tax returns up to fiscal year 2023 have been assessed by the tax authority.

XXI. Loss Per Share

The net loss and weighted average number of common shares used to calculate net loss per share are as follows:

Net loss for the year

	2025	2024
Net loss for the year	($ 31,496 )	($ 245,954 )

No. of shares

	2025	Unit: thousand shares
Weighted average number of ordinary shares used to calculate basic and diluted loss per share	172,660	172,660

If the Company may elect to distribute employee compensation in the form of shares or cash, it is assumed in calculating diluted earnings (loss) per share that employee compensation will be settled in shares. The potential ordinary shares with dilutive effect are included in the calculation of the weighted average number of outstanding shares to calculate diluted earnings (loss) per share. Before the number of shares to be distributed for employee compensation is resolved in the following year, the potential dilutive effect of such shares continues to be considered in the calculation of diluted earnings (loss) per share.

XXII. Cash Flow Information

The Company engaged in the following investing activities involving partial cash transactions in 2025 and 2024:

Acquisition of property, plant and equipment

	2025	2024
Additions to property, plant and equipment	$ 104,988	$ 15,786
Plus: Other payables at the beginning of the period	7,450	6,591
Less Other payables at the end of the period	( 13,030 )	( 7,450 )
Cash paid for acquisitions of property, plant and	$ 99,408	$ 14,927

equipment

XXIII. Financial Instruments

(I) Fair value information – Financial instruments not measured at fair value

The carrying amounts of the Company’s financial instruments that are not measured at fair value, including cash, accounts receivable, other receivables, refundable deposits, short-term borrowings, accounts payable, and other payables, approximate their fair values.

(II) Fair value information – Financial instruments measured at fair value on a recurring basis

Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets measured at FVTPL
Investments in Equity Instruments
TWSE/TPEx listed stocks	$ 80,273	$ -	$ -	$ 80,273
Financial assets measured at fair value through other comprehensive income (FVTOCI)
Investments in Equity Instruments
TPEx-listed shares	$247,608	$ -	$ -	$247,608

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets measured at FVTPL
Investments in Equity Instruments
TWSE/TPEx listed stocks	$ 82,520	$ -	$ -	$ 82,520

There were no transfers between Level 1 and Level 2 fair value measurements in 2025 and 2024.

There were no transfers into or out of Level 3 fair value measurements in 2025 and 2024.

44 -

(III) Financial Instruments

	December 31, 2025	December 31, 2024
Financial asset
Financial assets measured at fair value through profit or loss (FVTPL)
Financial assets measured at fair value through profit or loss (FVTPL)	$ 80,273	$ 82,520
Financial assets measured at amortized cost (Note 1)	198,866	120,231
Financial assets measured at fair value through other comprehensive income (FVTOCI)
Investments in Equity Instruments	247,608	-
Financial liability Measured at amortized cost (Note 2)	716,101	82,662

Note 1: The balances include financial assets measured at amortized cost, comprising cash, accounts receivable, other receivables, and refundable deposits.

Note 2: The balances also include financial liabilities measured at amortized cost, comprising short-term borrowings, accounts payable and other payables.

(IV) Purpose and policy of financial risk management

The Company’s primary financial instruments include equity instrument investments, receivables, payables, and borrowings. The Company’s finance department provides services to operating units, coordinates operations in domestic and foreign financial markets, and monitors and manages the financial risks related to the Company’s business activities by analyzing internal reports on the extent and scope of such risks. These risks include market risk (including exchange rate risk, interest rate risk, and other price risk), credit risk, and liquidity risk.

The Company’s significant financial activities are reviewed by the Board

45 -

of Directors in accordance with applicable laws and the Company’s internal control system. Internal auditors continue to monitor compliance with policies and exposure limits. The Company does not engage in speculative trading of financial instruments (including derivatives).

Market Risk

The Company’s operations expose it to major financial risks, including changes in foreign currency exchange rates (see (1) below), changes in interest rates (see (2) below), and other price risks (see (3) below).

(1) Exchange rate risk

The Company is exposed to exchange rate risk arising from sales and purchases denominated in foreign currencies.

Moreover, the Company has assessed that fluctuations in exchange rates would not have a material impact on pre-tax profit or loss. For the carrying amounts of monetary assets and liabilities denominated in foreign currencies as of the balance sheet date, please refer to Note 27.

(2) Interest rate risk

The Company is exposed to interest rate risk primarily due to its borrowings at fixed and floating interest rates. The Company manages this risk by maintaining an appropriate mix of fixed and floating interest rate borrowings.

The carrying amounts of financial assets and liabilities exposed to interest rate risk at the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Subject to cash
flow interest rate risk
Financial asset	$ 96,612	$ 99,599
Financial liability	688,345	-

Sensitivity analysis

For floating rate financial assets, the analysis assumes that the amount outstanding at the balance sheet date remains unchanged throughout the year. The rate of change used by the Company when

46 -

reporting interest rates internally to key management is an increase or decrease of 0.5% in the interest rate, which also represents management’s assessment of the reasonably possible range of interest rate changes.

If interest rates increase by 0.5%, with all other variables held constant, the Company’s net loss before tax for 2025 and 2024 would increase by NT$2,959 thousand and decrease by NT$498 thousand, respectively, primarily due to the Company’s exposure to cash flow interest rate risk on its net variable-rate assets.

(3) Other price risk

The Company is exposed to equity price risk due to its investments in stocks listed on the TWSE/TPEx.

Sensitivity analysis

If equity prices had increased/decreased by 5%, the pre-tax profit or loss for 2025 and 2024 would have increased/decreased by NT$4,014 thousand and NT$4,126 thousand, respectively, due to changes in the fair value of financial assets measured at fair value through profit or loss. Other comprehensive income before tax for 2025 and 2024 would have increased/decreased by NT$12,380 thousand and NT$0 thousand, respectively, due to changes in the fair value of financial assets measured at fair value through other comprehensive income.

Credit risk

Credit risk refers to the risk that the Company may incur financial losses if a counterparty fails to fulfill its contractual obligations. As of the balance sheet date, the Company’s maximum exposure to credit risk, defined as the maximum potential financial loss arising from counterparties failing to fulfill their obligations or from the Company providing financial guarantees (without taking into account any collateral, other credit enhancements, or the revocability of the exposure), primarily derives from:

(1) The carrying amounts of financial assets recognized on the balance sheet.

(2) The maximum amount the Company may be required to pay under

47 -

financial guarantees, regardless of the likelihood of such payment.

The Company's policy is to conduct transactions only with counterparties that have good credit standing and to continue monitoring their credit ratings. The Company also evaluates key customers by referring to publicly available financial information and historical transaction records.

All of the Company's trading counterparties are financial institutions or corporate entities with sound credit ratings; therefore, no significant credit risk is anticipated.

3. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to meet operational requirements and mitigate the impact of cash flow fluctuations. Management monitors the usage of banking facilities to ensure compliance with loan covenants.

Bank borrowings are an important source of liquidity for the Company. For details on the Company's unused credit facilities, please refer to (2) below.

(1) Liquidity and interest rate risk of non-derivative financial liabilities

The following table presents an aggregated analysis of the Company's financial liabilities with agreed repayment periods, based on their maturity dates and the undiscounted contractual cash flows:

	Within 1 year
December 31, 2025
Variable-rate	$ 688,804
instruments
Non-interest-bearing	27,756
g liabilities
	$ 716,560
December 31, 2024
Non-interest-bearing	$ 82,662
g liabilities

(2) Credit facilities

	December 31, 2025	December 31, 2024
Letter of credit and bank loan facilities:
- Utilized amount	$ 689,362	$ -
- Unutilized amount	660,638	1,320,000
	$ 1,350,000	$ 1,320,000

XXIV. Related Party Transactions

The transactions between the Company and its related parties are as follows:

(I) Names of Related Parties and Their Relationships

Related Party Name	Relationship to the Company
Shuo-Tang Yeh	Key management personnel of the Company before June 2024 (Note 1)
Tsai-Yun Yeh	Key management personnel of the Company before June 2024 (Note 2)
Quintain Steel Co., LTD (Quintain Steel)	Substantive related party (a corporate director of the Company is also a corporate director of this company)
Uni G Metal Co., Ltd. (Uni G Metal)	A substantive related party of the Company prior to June 2025 (Note 3)
Chateau International Development Company Limited (Chateau International)	Substantive related party (a subsidiary of the Company's substantive related party)
Da Quan Design Interior Decoration & Renovation Co., Ltd. (Da Quan)	Substantive related party (the immediate family member of the Company's Chairman serves as the Chairman of that company)
LUXE GREEN ENERGY TECHNOLOGY CO., LTD. (Luxe Green Energy)	Substantive related party (a corporate director of the Company is also a corporate director of this company)
Wuan Chuen Construction Co., Ltd. (Wuan Chuen Construction)	Related party (subsidiary of LUXE GREEN ENERGY)
Park Avenue Coworking Space Co., Ltd. (Park Avenue)	Substantive related party (a substantive related party of the Company is also a corporate director of this company)
Yongli International Architects & Associates (Yongli International)	Substantive related party (the immediate family member of the Company's responsible person serves as the Chairman of that company)

Note 1: Following the re-election of directors at the shareholders' meeting on June 14, 2024, the Chairperson of the Company stepped down; therefore, related party transaction information is disclosed only through June 14,

2024.

Note 2: From December 21, 2023 to April 16, 2024, this individual served as General Manager of the Company and stepped down as the Company's corporate director representative on July 4, 2024.

Note 3: Following the re-election of directors at the Company's general shareholders' meeting on June 4, 2025, this entity ceased to be a substantive related party of the Company; therefore, the related party transaction information is reported only through June 4, 2025.

(II) Operating Revenue

Line Item	Related Party Category / Name	2025	2024
Sales Revenue	Substantive related party UNI G METAL CO.	$ -	$ 2,157

The prices and payment terms of the Company's sales to related parties, aside from discounts for defective goods granted on a case-by-case basis, do not differ significantly from those offered to unrelated third parties.

(III) Purchases

Related Party Category / Name	2025	2024
Substantive related party UNI G METAL CO.	$ 293,263	$ 415,497

The payment terms and prices for purchases from related parties do not differ significantly from those applicable to unrelated third parties. Payment periods are determined on a case-by-case basis according to transaction terms, but generally, full payment is made prior to shipment or via a full-value letter of credit. Therefore, there is no material difference from transactions with other vendors.

(IV) Advance Payments (recorded under “Advance Payments”) – December 31, 2024

Related Party Category / Name	Amount
Substantive related party UNI G METAL CO.	$ 59,160

(V) Acquisition of Property, Plant and Equipment

Related Party Category / Name	Acquisition Price
	2025	2024
Substantive related party
Quintain Steel Co.	$ 53	$ 1,470
Da Quan	32,902	-
Wuan Chuen	1,045	-
Construction
LUXE GREEN ENERGY	5,117	-
TECHNOLOGY CO., LTD.
Yongli International	1,354	-
	$ 40,471	$ 1,470

(VI) Endorsements and Guarantees

As of June 14, 2024, a short-term loan credit line for import development purposes was jointly guaranteed by key management personnel of the Company. The guaranteed amount was NT$900,000 thousand.

(VII) Other Related Party Transactions

The Company purchased accommodation vouchers, meal vouchers, and gifts from a substantive related party for use in meetings and business entertainment purposes. Expenses recognized and paid for the years 2025 and 2024 were NT$214 thousand and NT$79 thousand, respectively, and are included under general and administrative expenses.

The Company leases its operating premises (recognized as investment property) to a substantive related party, Park Avenue, for a lease term from May 2025 to April 2035. In 2025, the Company recognized and collected rental income of NT$84 thousand, recorded under other income. However, in September 2025, the Company sold and transferred ownership of the leased building to a non-related party, resulting in early termination of the lease agreement. Consequently, the Company paid a penalty of NT$1,000 thousand, recorded under other losses.

(VIII) Remuneration to Key Management Personnel

	2025	2024
Short-term employee benefits	$ 5,427	$ 3,519

Remuneration to directors and other key management personnel is determined by the Remuneration Committee based on individual performance and prevailing market trends.

XXV. Pledged Assets

The following assets were provided as collateral for short-term credit facilities and the issuance of letters of credit for material purchases:

	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 145,181	$ 144,672
Investment Property	45,055	-
	$ 190,236	$ 144,672

XXVI. Significant Contingencies and Unrecognized Contractual Commitments

Except as otherwise disclosed in the notes, the Company's significant commitments and contingencies as of the balance sheet date are as follows:

Significant Commitments

(I) As of December 31, 2025 and 2024, the Company had unused letters of credit totaling NT$1,016 thousand and NT$44,962 thousand, respectively, issued for the purchase of raw materials.

(II) The Company's unrecognized contractual commitments are as follows:

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment	$ 53,246	$ 42,695

(III) As of December 31, 2025, the Company has issued promissory notes to First Bank and Union Bank of Taiwan in connection with credit facility agreements, in the amounts of NT$495,000 thousand and NT$900,000 thousand, respectively.

XXVII. Information on Foreign Currency Assets and Liabilities with Significant Impact

The following information is presented in foreign currencies other than the Company's functional currency. The disclosed exchange rates refer to the rates used to translate these foreign currencies into the functional currency. Significant foreign currency-denominated assets and liabilities are as follows:

Units: Foreign Currency and NT$ Thousand

December 31, 2025

Foreign Currency Assets	Foreign currency	Exchange rate	Carrying amount
Monetary Items
USD	$ 32	31.38	$ 994
Foreign Currency Liabilities
Monetary Items
USD	78	31.48	2,455

December 31, 2024

Foreign Currency Assets	Foreign currency	Exchange rate	Carrying amount
Monetary Items
USD	$ 727	32.74	$ 23,814
Foreign Currency Liabilities
Monetary Items
USD	937	32.84	30,756

Foreign exchange gain (loss) with significant impact (realized and unrealized):

	2025		2024
Foreign currency	Exchange rate	Net exchange gain (loss)	Exchange rate	Net exchange gain (loss)
USD	31.13(USD:NTD)	$ 123	32.11(USD:NTD)	($ 2,748)

XXVIII. Additional Disclosures

(I) Information about Significant Transactions

Lending of funds to others: None.
Endorsements/guarantees provided to others: None.
Holdings of significant marketable securities at the end of the period (excluding investments in subsidiaries, affiliates, and joint venture equity). (Table 1)
Purchases or sales with related parties for at least NT$100 million or 20% of the paid-in capital: (Table 2).
Receivables from related parties for at least NT$100 million or 20% of the paid-in capital: None.
Others: Business relationship and significant transactions between the Company and its subsidiaries: none.

(II) Information about Investees: None.
(III) Information on Investments in Mainland China: None.

XXIX. Segment Information

(I) Segment Income and Operating Results, Assets, and Liabilities

The Company’s operating decision-maker uses the Company’s financial information to allocate resources and evaluate segment performance. Therefore, the Company reports as a single operating segment. The segment information provided to the operating decision-maker is based on the same measurement basis as the financial statements. The segment revenue, operating results, and asset amounts for the years ended 2025 and 2024 can be referenced in the balance sheets and statements of comprehensive income for 2025 and 2024.

(II) Information by Region: The Company does not have foreign operations.
(III) Information of Major Clients

Revenue from individual external customers accounting for 10% or more of net operating revenue is as follows:

	2025		2024
	Amount	%	Amount	%
Company A	$ 132,248	16	$ (Note)
Company B	109,149	13	170,181	16
Company C	100,164	12	$ (Note)
Company D	$ (Note)		264,112	25
Company E	$ (Note)		248,589	24

Note: Revenue amounts did not reach 10% of the consolidated company’s total revenue.

Chief of the Department of Commerce and Labor

Office of the Chief of Commerce and Labor

700 1st Street, New York, NY 10036

Telephone: 212-657-1000

Telex: 212-657-1000

Office: 700 1st St., New York, NY 10036

Telex: 212-657-1000

Office: 700 1st St., New York

800 2nd Street, New York

New York, NY 10036

Telephone: 212-657-1000

Office: 700 1st St., New York

800 2nd Street, New York

New York, NY 10036

Office: 700 1st St., New York

Office: 700 1st St.

Chien Shing Stainless Steel Co., Ltd.
Purchases or sales with related parties for at least NT$100 million or 20% of the paid-in capital
January 1 through December 31, 2025

Table 2
Unit: Unless otherwise specified,
NT$ thousand

Companies engaged in purchase (sale)	Transaction counterparty	Relations	Transaction Status				The circumstances and reasons for the transaction terms and reasons for transaction terms differentiated from general transactions		Accounts receivable
			Purchase (sale) of goods	Amount	as a percentage of total purchase (sale)	Credit term	Unit price	Credit term	Balance	As a percentage of total notes and accounts receivable (payable)	Note
UNI G METAL CO.	The Company	Substantive related party (Note 2)	Procurement	$ 293,263	24	Payment before shipment	No material deviation is found.	No material deviation is found.	$ -	-	Note 1

Note 1: The transaction terms require full payment before shipment. In general, the transaction terms are either full pre-shipment payment or the issuance of a full-value letter of credit. There is no significant difference in the purchase price compared to that of other suppliers.
Note 2: Following the re-election of directors at the general shareholders' meeting on June 4, 2025, the entity ceased to be a substantive related party of the Company; therefore, the related party transaction information presented herein covers only the period through June 4, 2025.

56 -

Chief Executive Officer, Department of Commerce and Labor

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Property, Plant and Equipment

For the Years Ended December 31, 2025 and 2024

Table 3
Unit: NT$ thousands

	Land	Buildings	Machinery and equipment	Transport equipment	Office equipment	Other equipment	Construction in progress and equipment pending inspection	Total
Cost
Balance as of January 1, 2024	$ 178,237	$ 369,662	$ 3,953,650	$ 13,054	$ 9,678	$ 35,151	$ 41,615	$ 4,601,047
Additions	-	-	-	-	-	-	15,786	15,786
Disposals	-	( 1,196 )	( 15,518 )	( 2,805 )	( 874 )	( 1,098 )	-	( 21,491 )
Reclassification	-	690	15,319	2,190	1,099	5,899	( 13,467 )	11,730
Balance as of December 31, 2024	$ 178,237	$ 369,156	$ 3,953,451	$ 12,439	$ 9,903	$ 39,952	$ 43,934	$ 4,607,072
Accumulated depreciation
Balance as of January 1, 2024	$ -	$ 363,727	$ 3,815,624	$ 11,456	$ 9,383	$ 32,384	$ -	$ 4,232,574
Disposals	-	( 1,196 )	( 15,518 )	( 1,916 )	( 874 )	( 1,098 )	-	( 20,602 )
Depreciation	-	1,170	34,437	640	124 0	699	-	37,070
Balance as of December 31, 2024	$ -	$ 363,701	$ 3,834,543	$ 10,180	$ 8,633	$ 31,985	$ -	$ 4,249,042
Net Book Value as of December 31, 2024	$ 178,237	$ 5,455	$ 118,908	$ 2,259	$ 1,270	$ 7,967	$ 43,934	$ 358,030
Cost
Balance as of January 1, 2025	$ 178,237	$ 369,156	$ 3,953,451	$ 12,439	$ 9,903	$ 39,952	$ 43,934	$ 4,607,072
Additions	-	1,783	32,116	1,701	9,488	17,248	42,652	104,988
Disposals	-	( 5,296 )	( 17,024 )	( 4,291 )	( 5,037 )	( 8,558 )	( 2,250 )	( 42,456 )
Reclassification	-	-	21,092	-	-	-	9,135	30,227
Balance as of December 31, 2025	$ 178,237	$ 365,643	$ 3,989,635	$ 9,849	$ 14,354	$ 48,642	$ 93,471	$ 4,699,831
Accumulated depreciation
Balance as of January 1, 2025	$ -	$ 363,701	$ 3,834,543	$ 10,180	$ 8,633	$ 31,985	$ -	$ 4,249,042
Disposals	-	( 5,296 )	( 16,793 )	( 4,291 )	( 5,037 )	( 8,558 )	-	( 39,975 )
Depreciation	-	1,273	38,903	708	649	2,396	-	43,929
Balance as of December 31, 2025	$ -	$ 359,678	$ 3,856,653	$ 6,597	$ 4,245	$ 25,823	$ -	$ 4,252,996
Balance as of December 31, 2025	$ 178,237	$ 5,965	$ 132,982	$ 3,252	$ 10,109	$ 22,819	$ 93,471	$ 446,835

58 -

§INDEX OF SCHEDULES FOR SIGNIFICANT ACCOUNTING ITEMS§

Item	No./Index
Schedules of Assets, Liabilities, and Equity Items
Schedule of Cash	Schedule 1
Schedule of Financial Assets at Fair Value Through Profit or Loss – Current	Schedule 2
Details of other receivables	Note 9
Schedule of Inventories	Schedule 3
Schedule of Prepayments	Schedule 4
Schedule of Other Current Assets	Schedule 5
Schedule of Changes in Financial Assets at Fair Value Through Other Comprehensive Income – Non-current	Schedule 6
Schedule of Changes in Property, Plant and Equipment	Note 11
Schedule of Changes in Accumulated Depreciation of Property, Plant and Equipment	Note 11
Schedule of Changes in Investment Property	Note 12
Schedule of Deferred Income Tax Assets	Note 20
Schedule of Other Non-Current Assets	Schedule 7
Details of short-term borrowings	Schedule 8
Schedule of Accounts Payable	Schedule 9
Schedule of Other Payables	Note 15
Schedule of Other Current Liabilities	Schedule 10
Schedule of Deferred Income Tax Liabilities	Note 20
Schedules of Income and Expense Items
Schedule of Net Operating Revenue	Schedule 11
Schedule of Operating Costs	Schedule 12
Schedule of Selling Expenses	Schedule 13
Schedule of Administrative Expenses	Schedule 13
Schedule of Net Other Income and Expense	Note 19
Schedule of Finance Costs	Note 19
Functional Summary of Employee Benefits, Depreciation, and Amortization Expenses for the Period	Schedule 14

Chien Shing Stainless Steel Co., Ltd.
Schedule of Cash
December 31, 2025

Schedule 1
Unit: NT$ thousands
(Amounts in foreign currency)

Item	Amount
Cash on hand	$ 1,488
Interest on bank deposits
Check and demand (current) deposit	96,437
Foreign currency deposits (Note)	175
	96,612
	$ 98,100

Note: USD 2,194.59 (US$1 = NT$31.38), RMB 3.71 (CNY$1 = NT$4.471), EUR 2.77 (EUR$1 = NT$36.7), and JPY 532,065 (JPY$1 = NT$0.1988).

59 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Financial Assets at Fair Value Through Profit or Loss – Current
As of December 31, 2025

Schedule 2
Unit: NT$ thousands
(Unit price in NTD)

Name of securities	Units	Amount	Market price
			Unit price (NTD)	Total amount
TWSE-listed shares
Eastern Media International Corporation	955,085	$ 21,585	$ 22.60	$ 21,585
Taita Chemical Company, Limited	543,000	6,054	11.15	6,054
Hiyes International Co., Ltd.	9,293	751	80.80	751
Taiwan Business Bank	203,347	3,254	16.00	3,254
Yieh Phui Enterprise Co., Ltd.	453,482	6,825	15.05	6,825
U-Tech Media Corporation	948,000	12,845	13.55	12,845
TPEx-listed shares
YFC-BonEagle Electric Co., Ltd.	868,000	22,525	25.95	22,525
Shuang-Bang Industrial Corp.	400,000	6,140	15.35	6,140
AVID Electronics Corp.	8,066	294	36.45	294
		$ 80,273		$ 80,273

60 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Inventories
As of December 31, 2025
Schedule 3
Unit: NT$ thousands

Item	Amount
	Cost	Market Price (Note)
Merchandise	$ 93,763	$ 93,763
Raw materials	261,812	267,281
Supplies	12,492	13,330
Work in progress	183,188	183,188
Finished good	399,493	399,494
	$ 950,748	$ 957,056

Note: Market price represents net realizable value.

61 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Prepayments
As of December 31, 2025

Schedule 4
Unit: NT$ thousands

Item	Amount
Office supplies	$ 99,928
Offset against value-added tax payable	68,216
Others (Note)	5,971
	$ 174,115

Note: None of the individual balances exceeds 5% of the balance of the respective line item.

62 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Other Current Assets
As of December 31, 2025

Schedule 5
Unit: NT$ thousands

Item	Amount
Temporary debits	$ 105

63 -

Sheet1

UNIT: NTS thousands

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Financial Assets at Fair Value Through Other Comprehensive Income – Non-current

January 1 through December 31, 2025

Name	Opening balance		Increase during the year		Decrease during the year		Unrealized gain (loss) on financial instruments				Closing balance		Collateral or pledge	Note
	No. of shares	Amount	No. of shares	Amount	No. of shares	Amount		No. of shares	Shareholding Ratio (%)	Amount	Market price
Financial assets measured at fair value through other comprehensive income – non-current TWSE/TPEx unlisted shares
Ya Hsin Industrial Co., Ltd.	595,337	$ -	-	$ -	-	$ -	$ -	595,337	-	$ -	$ -	-	-	1x 1
Chien Tai Cement Co., Ltd.	44	-	-	-	-	-	-	44	-	-	-	-	-	1x 2
Taiwan Fluorescent Lamp Co., Ltd.	100,000	-	-	-	-	-	-	100,000	-	-	-	-	-	1x 2
Shin Yen Textile Co., Ltd	203,000	-	-	-	-	-	-	203,000	-	-	-	-	-	1x 2
TPEx listed shares: CONCORD INTERNATIONAL SECURITIES CO., LTD	-	-	16,290,000	237,706	-	-	9,902	16,290,000	3.58	247,608	247,608	-
Total		$ -		$ 237,706		$ -	$ 9,902			$ 247,608	$ 247,608

Note 1: Ya Hsin Enterprise Co., Ltd. completed its bankruptcy termination procedures in 2023; however, as Chien Shing has yet to complete the deregistration process with the Taiwan Depository & Clearing Corporation, the shares remain on record.
Note 2: The stocks of Chien Tai Cement Co., Ltd., Taiwan Fluorescent Lamp Co., Ltd., and Shin Yen Textile Co., Ltd. have been delisted and have no quoted prices on a public market.

Chien Shing Stainless Steel Co., Ltd.
Schedule of Other Non-Current Assets
As of December 31, 2025

Schedule 7
Unit: NT$ thousands

Item	Amount
Unamortized expenses	$ 752

65 -

Chien Shing Stainless Steel Co., Ltd.
Details of short-term borrowings
As of December 31, 2025

Schedule 8

Unit: NT$ thousands

Types of borrowings and creditors	Loan term	Annual interest rate (%)	Amount	Credit facilities	Pledge or guarantee
Material procurement loan
First Commercial Bank	2025.08.28~2026.04.27	2.20	$ 192,639	$ 450,000	Land, promissory note
Union Bank of Taiwan	2025.11.20~2026.06.01	2.25	125,706	900,000	Land, promissory note
			318,345
Working capital loan
First Commercial Bank	2025.07.02~2026.08.05	2.20	120,000	450,000	Land, promissory note
Union Bank of Taiwan	2025.11.27~2026.09.08	2.25	250,000	900,000	Land, promissory note
			370,000
			$ 688,345

66 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Accounts Payable
As of December 31, 2025

Schedule 9
Unit: NT$ thousands

Vendor Name	Amount
Su Jian Industrial Co., Ltd.	$ 233
Excellence International Explore Co., Ltd.	132
Lee Chung Paper Co., Ltd.	79
CHEN CHENG TRADING CO., LTD.	65
S-MORE STEEL MATERIALS CO., LTD.	45
Zimmite Taiwan Ltd.	42
Others (Note)	13
	$ 609

Note: The balance of each individual account does not exceed 5% of the total accounts payable.

67 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Other Current Liabilities
As of December 31, 2025

Schedule 10
Unit: NT$ thousands

Item	Amount
Receipts under custody	$ 365

68 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Net Operating Revenue
2025

Schedule 11
Unit: NT$ thousands

Item	Sales Volume (tons)	Amount
Sales Revenue
Stainless steel coils	15,138	$ 827,359
Processing Revenue
Stainless steel coils	995	6,327
		833,686
Less: Sales returns and allowances		14,962
		$ 818,724

69 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Operating Costs
2025

Schedule 12
Unit: NT$ thousands

Item	Amount
Raw Material Consumption
Raw materials at beginning of year	$ 247,568
Add: Purchases during the year	1,031,170
Valuation losses	4,827
Less: Raw materials at year-end	261,812
Raw Material Consumption	1,021,753
Supplies at beginning of year	15,125
Add: Purchases during the year	14,524
Less: Reclassified to manufacturing overhead	17,157
Supplies at year-end	12,492
Supplies Consumption	-
Direct labour	16,987
Production overheads	95,173
Manufacturing costs	1,133,913
Add: Work in process at beginning of year	190,956
Valuation losses	7,481
Less: Work in process at year-end	183,188
Cost of finished goods	1,149,162
Add: Finished goods at beginning of year	63,164
Less: Valuation losses	74,836
Finished goods at year-end	399,493
Costs of sales for the self-made goods	737,997
Merchandise inventory at beginning of year	129,807
Add: Purchases during the year	161,137
Less: Valuation losses	9,325
Merchandise inventory at year-end	93,763
Cost of Goods Sold	187,856
Cost of Goods Sold	925,853
Other operating costs
Inventory valuation losses	71,853
Unallocated manufacturing overhead	57,806
	$ 1,055,512

70 -

Chien Shing Stainless Steel Co., Ltd.
Schedule of Operating Expenses
2025
Schedule 13
Unit: NT$ thousands

Item	Selling and marketing expenses	Administrative expenses	Total
Salaries and bonuses	$ 2,595	$ 15,470	$ 18,065
Freight	3,322	5	3,327
Other overheads	72	5,952	6,024
Services expense	-	3,599	3,599
Depreciation	12	2,226	2,238
Taxes and dues	-	5,115	5,115
Insurance	-	2,156	2,156
Others (Note)	711	4,793	5,504
	$ 6,712	$ 39,316	$ 46,028

Note: None of the individual balances exceeds 5% of the balance of the respective line item.

71 -

Chien Shing Stainless Steel Co., Ltd.
Functional Summary of Employee Benefits, Depreciation, and Amortization Expenses for the Period
2025 and 2024
Schedule 14
Unit: NT$ thousands

	2025				2024
	Operating cost	Operating expenses	Other gains or losses	Total	Operating cost	Operating expenses	Other gains or losses	Total
Employee benefits
Salaries	$ 28,825	$ 18,065	$ -	$ 46,890	$ 26,294	$ 15,733	$ -	$ 42,027
Labor and health insurance premiums	3,423	1,756	-	5,179	3,103	1,698	-	4,801
Pension expenses	1,564	860	-	2,424	1,498	792	-	2,290
Remuneration to directors	-	793	-	793	-	1,183	-	1,183
Others	1,202	583	-	1,785	1,637	868	-	2,505
	$ 35,014	$ 22,057	$ -	$ 57,071	$ 32,532	$ 20,274	$ -	$ 52,806
Depreciation	$ 41,691	$ 2,238	$ 930	$ 44,859	$ 35,730	$ 1,340	$ 1,744	$ 38,814
Amortization	$ 118	$ -	$ -	$ 118	$ 14	$ 6	$ -	$ 20

Note: The number of employees for the current year and the prior year was 84 and 80, respectively, of which the number of directors who did not concurrently serve as employees was 6 and 7, respectively.
(1) The average employee benefit expense for the year was NT$722 thousand, calculated as: (Total employee benefit expense – Total remuneration to directors) ÷ (Number of employees – Number of directors not concurrently serving as employees). The average employee benefit expense in the previous year was NT$707 thousand, calculated as: (Total employee benefit expense – Total remuneration to directors) ÷ (Number of employees – Number of directors not concurrently serving as employees).
(2) The average employee salary expense for the year was NT$601 thousand, calculated as: Total salary expense ÷ (Number of employees – Number of directors not concurrently serving as employees). The average employee salary expense in the previous year was NT$576 thousand, calculated as: Total salary expense ÷ (Number of employees – Number of directors not concurrently serving as employees)
(3) The average employee salary expense increased by 4.34%, calculated as: (Average employee salary expense for the current year – Average employee salary expense for the previous year) ÷ Average employee salary expense for the previous year.
(4) Remuneration paid to independent directors in the current year was NT$385 thousand. Remuneration paid to independent directors in the previous year was NT$566 thousand.
(5) The Company's compensation policy (including for directors, the Audit Committee, managerial officers, and employees) is as follows:
A. Remuneration of Directors, Audit Committee Members, and Managerial Officers: The Company's remuneration is determined in accordance with the "Regulations Governing the Remuneration Committee's Powers and Duties" and is reviewed by the Remuneration Committee, with reference to industry standards. Key factors considered include time commitment, responsibilities, achievement of individual goals, performance in other roles, historical compensation for comparable positions, the Company's short- and long-term business performance, financial condition, and the alignment of individual performance with the Company's results and future risks. The Articles of Incorporation stipulate that if the Company reports a profit, up to 1% of annual profit may be allocated as directors' remuneration.
B. Employee Compensation: The Company's employee compensation policy (including base salary, allowances, job premiums, overtime pay, and bonuses) is determined based on prevailing market standards, job functions, rank, education, work experience, professional capability, and responsibilities. Bonuses and adjustments are contingent upon the Company's profitability and the achievement of departmental and individual goals. The Articles of Incorporation stipulate that if the Company reports a profit, 2% to 3% shall be distributed as employee remuneration.

AI assistant

CSSSC Audit Report / Information 2026

51952_rns_2026-05-22_bf349985-afce-4293-8e76-6668e9282ac3.pdf

Audit opinion

Basis for Opinion

Key Audit Matters

Valuation of Inventories

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

Auditors' Responsibilities for the Audit of the Financial Statements

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

(II) Basis of Preparation

(III) Criteria for Classification of Assets and Liabilities as Current or Non-Current

(1) Measurement Categories

A. Financial Assets Measured at Fair Value Through Profit or Loss (FVTPL)

B. Financial Assets Measured at Amortized Cost

(2) Impairment of Financial Assets

XVII. Equity

(II) Retained Earnings and Dividend Policy

(III) Other Equity Items

XX. Income Tax

(I) Income Tax Recognized in Profit or Loss

(V) Status of Income Tax Assessments

XXI. Loss Per Share

XXII. Cash Flow Information

3. Liquidity risk

XXV. Pledged Assets

XXVI. Significant Contingencies and Unrecognized Contractual Commitments

Significant Commitments

XXVII. Information on Foreign Currency Assets and Liabilities with Significant Impact

XXVIII. Additional Disclosures

XXIX. Segment Information

(I) Segment Income and Operating Results, Assets, and Liabilities

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Property, Plant and Equipment

§INDEX OF SCHEDULES FOR SIGNIFICANT ACCOUNTING ITEMS§

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Financial Assets at Fair Value Through Other Comprehensive Income – Non-current

AI assistant

CSSSC — Audit Report / Information 2026

51952_rns_2026-05-22_bf349985-afce-4293-8e76-6668e9282ac3.pdf

Audit opinion

Basis for Opinion

Key Audit Matters

Valuation of Inventories

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

Auditors' Responsibilities for the Audit of the Financial Statements

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

(II) Basis of Preparation

(III) Criteria for Classification of Assets and Liabilities as Current or Non-Current

(1) Measurement Categories

A. Financial Assets Measured at Fair Value Through Profit or Loss (FVTPL)

B. Financial Assets Measured at Amortized Cost

(2) Impairment of Financial Assets

XVII. Equity

(II) Retained Earnings and Dividend Policy

(III) Other Equity Items

XX. Income Tax

(I) Income Tax Recognized in Profit or Loss

(V) Status of Income Tax Assessments

XXI. Loss Per Share

XXII. Cash Flow Information

3. Liquidity risk

XXV. Pledged Assets

XXVI. Significant Contingencies and Unrecognized Contractual Commitments

Significant Commitments

XXVII. Information on Foreign Currency Assets and Liabilities with Significant Impact

XXVIII. Additional Disclosures

XXIX. Segment Information

(I) Segment Income and Operating Results, Assets, and Liabilities

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Property, Plant and Equipment

§INDEX OF SCHEDULES FOR SIGNIFICANT ACCOUNTING ITEMS§

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Financial Assets at Fair Value Through Other Comprehensive Income – Non-current

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CSSSC Audit Report / Information 2026