CHUNG TAI RESOURCE TECHNOLOGY CORP. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

CHUNG TAI RESOURCE TECHNOLOGY CORP.

AKELA, CHENG
Chairman

March 6, 2026

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
CHUNG TAI RESOURCE TECHNOLOGY CORP.

Opinion

We have audited the accompanying consolidated financial statements of CHUNG TAI RESOURCE TECHNOLOGY CORP. and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").

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

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the 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 consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter for the Group’s consolidated financial statements for the year ended December 31, 2025 was stated as follows:

Timing of Service Revenue Recognition

For accounting policies and the details of revenue, refer to Notes 4(m) and 21 of the consolidated financial statements.

Operating revenue is one of the material matters in the consolidated financial statements. The Group is engaged in the waste disposal treatments services. Due to the large number of customer entrustments for waste disposal treatments, there are various quantities entrusted, calculation for billing, and sales terms, which involve manual procedures when processing and calculating the relevant reporting information. Furthermore, there is a higher risk of revenue cut-off, which may have significant impact on the consolidated financial statements. Therefore, under our assessment, risk of the revenue being recognized in an incorrect accounting period is identified as a key audit matter for this year.

The main audit procedures that have been performed by us in order to address the risk above were as follows:

We obtained understanding of the business processes, assessed and tested whether the relevant documents for related internal controls, including the weighbridge records, records of proper clearance, and the statements of calculation and judgment for the completion of performance obligations, have been properly reviewed.
We verified the accuracy and completeness of the statements used by the management to calculate and assess the completion of performance obligations by sampling the weighbridge records and records of proper clearance.

Other Matter

We have also audited the parent company only financial statements of CHUNG TAI RESOURCE TECHNOLOGY CORP. as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, 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.

In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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.
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 Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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 Group'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 Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 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.

The engagement partners on the audit resulting in this independent auditors' report are Yung-Ming Chiu and Chin-Chuan Shih.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 12, 2026

Notice to Readers

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

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

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
	Amount	%	Amount	%
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 78,447	2	$ 592,101	14
Financial assets at amortized cost - current (Notes 4, 8 and 28)	36,475	1	15,005	-
Contract assets - current (Notes 4 and 21)	172,019	4	273,147	6
Notes and trade receivables (Notes 4, 9, 21 and 27)	191,221	5	183,236	4
Inventories (Notes 4 and 10)	52,291	1	21,971	1
Prepayments	11,487	-	10,699	-
Other current assets	55	-	2,655	-
Total current assets	541,995	13	1,098,814	25
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 7)	194,378	5	201,636	5
Financial assets at amortized cost - non-current (Notes 4, 8 and 28)	-	-	14,100	-
Investments accounted for using the equity method (Notes 4 and 11)	81,288	2	18,808	1
Contract assets - non-current (Notes 4 and 21)	-	-	32,606	1
Property, plant and equipment (Notes 4, 12, 22, 27 and 28)	3,279,896	79	3,027,490	68
Right-of-use assets (Notes 4 and 13)	6,521	-	5,673	-
Computer software, net (Notes 4 and 14)	494	-	690	-
Deferred tax assets (Notes 4 and 23)	1,202	-	1,536	-
Refundable deposits (Note 4)	19,635	1	18,785	-
Costs to fulfil a contract - non-current (Notes 4 and 21)	426	-	434	-
Net defined benefit assets - non-current (Notes 4 and 19)	6,457	-	5,322	-
Total non-current assets	3,590,297	87	3,327,080	75
TOTAL	$ 4,132,292	100	$ 4,425,894	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 15 and 28)	$ 20,000	1	$ -	-
Contract liabilities - current (Note 21)	32,332	1	16,787	-
Notes and trade payables (Note 16)	83,649	2	144,431	3
Trade payables to related parties (Note 27)	16,960	-	8,796	-
Other payables (Notes 17 and 27)	127,431	3	116,486	3
Current tax liabilities (Notes 4 and 23)	33,615	1	68,405	2
Lease liabilities - current (Notes 4 and 13)	1,416	-	744	-
Current portion of long-term borrowings (Notes 15 and 28)	170,200	4	171,887	4
Other current liabilities (Note 4)	1,707	-	1,911	-
Total current liabilities	487,310	12	529,447	12
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 15 and 28)	1,026,686	25	1,139,132	26
Deferred tax liabilities (Notes 4 and 23)	1,332	-	1,147	-
Lease liabilities - non-current (Notes 4 and 13)	5,918	-	5,496	-
Deferred revenue - non-current (Notes 4 and 18)	13,434	-	14,494	-
Total non-current liabilities	1,047,370	25	1,160,269	26
Total liabilities	1,534,680	37	1,689,716	38
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 4 and 20)
Ordinary shares	914,880	22	918,880	21
Capital surplus	1,218,081	30	1,268,992	29
Retained earnings
Legal reserve	189,525	5	148,561	3
Special reserve	22,808	-	7,000	-
Unappropriated earnings	295,759	7	415,553	10
Total retained earnings	508,092	12	571,114	13
Other equity
Exchange differences on translating foreign operations (Note 4)	731	-	606	-
Unrealized gain or loss on financial assets at fair value through other comprehensive income (Note 4)	(44,172)	(1)	(23,414)	(1)
Total other equity	(43,441)	(1)	(22,808)	(1)
Total equity attributable to owners of the Company	2,597,612	63	2,736,178	62
NON-CONTROLLING INTERESTS
Total equity	2,597,612	63	2,736,178	62
TOTAL	$ 4,132,292	100	$ 4,425,894	100

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

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4, 21 and 27)	$ 1,155,508	100	$ 1,716,745	100
OPERATING COSTS (Notes 10, 19, 21, 22 and 27)	712,524	62	1,116,782	65
GROSS PROFIT	442,984	38	599,963	35
OPERATING EXPENSES (Notes 9, 19 and 22)
Selling and marketing expenses	6,407	1	7,854	1
General and administrative expenses	79,962	7	83,528	5
Research and development expenses	6,113	-	5,145	-
Expected credit loss	137	-	46	-
Total operating expenses	92,619	8	96,573	6
OTHER OPERATING INCOME AND EXPENSES
(Notes 18 and 22)	7,267	1	11,149	1
PROFIT FROM OPERATIONS	357,632	31	514,539	30
NON-OPERATING INCOME AND EXPENSES
(Notes 4, 11, 22 and 27)
Interest income	9,004	1	10,620	1
Other gains and losses	(15,431)	(1)	14,777	1
Share of profit in associates and joint ventures
accounted for using under the equity method	19,319	2	4,063	-
Finance costs	(27,856)	(3)	(33,726)	(2)
Total non-operating income and expenses	(14,964)	(1)	(4,266)	-
PROFIT BEFORE INCOME TAX	342,668	30	510,273	30
INCOME TAX EXPENSE (Notes 4 and 23)	64,721	6	101,318	6
NET PROFIT FOR THE YEAR	277,947	24	408,955	24

(Continued)

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans (Notes 4 and 19)	$ 710	-	$ 852	-
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Note 4)	(20,758)	(2)	(15,914)	(1)
Income tax related to items that will not be reclassified subsequently to profit or loss (Notes 4 and 23)	(142)	-	(170)	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations (Note 4)	(68)	-	106	-
Share of exchange differences on translation of foreign operations of associates accounted for using the equity method (Note 4)	193	-	-	-
Other comprehensive income (loss) for the year, net of income tax	(20,065)	(2)	(15,126)	(1)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 257,882	22	$ 393,829	23
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 277,947	24	$ 408,955	24
Non-controlling interests	-	-	-	-
	$ 277,947	24	$ 408,955	24
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 257,882	22	$ 393,829	23
Non-controlling interests	-	-	-	-
	$ 257,882	22	$ 393,829	23
EARNINGS PER SHARE (Note 24)
Basic	$ 3.03		$ 4.80
Diluted	$ 3.03		$ 4.79

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

(Concluded)

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Shares (In Thousand)	Ordinary Shares	Capital Surplus	Retained Earnings			Other Equity		Treasury Shares	Total	Non-controlling Interests	Total Equity
				Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Unrealized Valuation Gain or Loss on Financial Assets at Fair Value Through Other Comprehensive Income
BALANCE ON JANUARY 1, 2024	82,624	$ 826,244	$ 576,561	$ 123,188	$ 3,934	$ 273,966	$ 500	$ (7,500)	$ -	$ 1,796,893	$ -	$ 1,796,893
Appropriation of 2023 earnings
Legal reserve	-	-	-	25,373	-	(25,373)	-	-	-	-	-	-
Special reserve	-	-	-	-	3,066	(3,066)	-	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	-	(239,611)	-	-	-	(239,611)	-	(239,611)
Changes in associates accounted for using the equity method	-	-	556	-	-	-	-	-	-	556	-	556
Net profit for the year ended December 31, 2024	-	-	-	-	-	408,955	-	-	-	408,955	-	408,955
Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	682	106	(15,914)	-	(15,126)	-	(15,126)
Issuance of ordinary shares for cash	9,264	92,636	691,875	-	-	-	-	-	-	784,511	-	784,511
BALANCE ON DECEMBER 31, 2024	91,888	918,880	1,268,992	148,561	7,000	415,553	606	(23,414)	-	2,736,178	-	2,736,178
Appropriation of 2024 earnings
Legal reserve	-	-	-	40,964	-	(40,964)	-	-	-	-	-	-
Special reserve	-	-	-	-	15,808	(15,808)	-	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	-	(321,608)	-	-	-	(321,608)	-	(321,608)
Changes in associates accounted for using the equity method	-	-	353	-	-	-	-	-	-	353	-	353
Distribution of cash from capital surplus	-	-	(45,944)	-	-	-	-	-	-	(45,944)	-	(45,944)
Net profit for the year ended December 31, 2025	-	-	-	-	-	277,947	-	-	-	277,947	-	277,947
Other comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	568	125	(20,758)	-	(20,065)	-	(20,065)
Buy-back of treasury shares	-	-	-	-	-	-	-	-	(29,249)	(29,249)	-	(29,249)
Cancellation of treasury shares	(400)	(4,000)	(5,320)	-	-	(19,929)	-	-	29,249	-	-	-
BALANCE ON DECEMBER 31, 2025	91,488	$ 914,880	$ 1,218,081	$ 189,525	$ 22,808	$ 295,759	$ 731	$ (44,172)	$ -	$ 2,597,612	$ -	$ 2,597,612

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

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$ 342,668	$ 510,273
Adjustments for :
Depreciation expenses	129,322	137,627
Amortization expense	279	269
Expected credit loss	137	46
Finance costs	27,856	33,726
Interest income	(9,004)	(10,620)
Share of profit of associates and joint ventures accounted for using the equity method	(19,319)	(4,063)
Gain on disposal of property, plant and equipment	-	(268)
Property, plant and equipment transferred to expenses	1,995	-
Gain on disposal of investments	(68)	-
Amortization of deferred revenue	(1,060)	(1,051)
Loss on lease modification	13	-
Changes in operating assets and liabilities
Contract assets	133,734	(196,852)
Notes and trade receivables	(8,122)	(27,802)
Inventories	(30,320)	11,806
Prepayments	(788)	1,974
Other current assets	1,698	(278)
Costs to fulfil a contract	8	328
Net defined benefit assets	(425)	(404)
Contract liabilities	15,545	(911)
Notes and Trade payables	(60,782)	(35,607)
Trade payables to related parties	8,164	(8,180)
Other payables	3,843	1,330
Other current liabilities	(204)	(566)
Deferred revenue - non-current	-	787
Cash generated from operations	535,170	411,564
Interest received	9,456	10,168
Interest paid	(27,539)	(33,722)
Income tax paid	(99,134)	(96,044)
Net cash generated from operating activities	417,953	291,966
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	(13,500)	-
Purchase of financial assets at amortized cost	(7,370)	-
Proceeds from sale of financial assets at amortized cost	-	83,000
Purchase of investments accounted for using the equity method	(44,080)	-
Net cash outflow on disposal of a subsidiary	(436)	-
Payments for property, plant and equipment	(375,347)	(187,548)
Proceeds from disposal of property, plant and equipment	-	1,500
		(Continued)

10 -

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
Increase in refundable deposits	$ (7,660)	$ (8,912)
Decrease in refundable deposits	6,810	6,477
Increase in other receivables	(150,000)	-
Decrease in other receivables	150,000	-
Payments for intangible assets	(83)	(420)
Dividends received	2,400	1,200
Net cash used in investing activities	(439,266)	(104,703)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	20,000	-
Repayments of short-term borrowings	-	(133,000)
Proceeds from long-term borrowings	80,000	24,064
Repayments of long-term borrowings	(194,263)	(260,200)
Repayment of the principal portion of lease liabilities	(1,209)	(1,188)
Dividends paid to owners of the Company	(367,552)	(239,611)
Proceeds from issuance of ordinary shares	-	784,511
Payments for buy-back of treasury shares	(29,249)	-
Net cash (used in) generated from financing activities	(492,273)	174,576
Effect of exchange rate changes on cash and cash equivalents	(68)	106
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(513,654)	361,945
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	592,101	230,156
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 78,447	$ 592,101

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

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

CHUNG TAI RESOURCE TECHNOLOGY CORP. (the "Company") was incorporated under the Company Act and related laws of the Republic of China (R.O.C.) on May 9, 2001. The Company is mainly engaged in waste disposal and treatment, recycling of waste lighting sources, and recycling of waste printed circuit boards.

The Company's shares have been listed on the Taiwan Stock Exchange (TWSE) since September 25, 2024.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on March 6, 2026.

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

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

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

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts 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 to IFRS 17)	January 1, 2023

As of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group's financial position and financial performance.

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

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

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

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

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

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

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

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

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
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Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

b. Basis of preparation

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

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

c. Classification of current and non-current assets and liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the reporting period; and
Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period; and
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Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

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

d. Basis of consolidation

The basis of preparation and the basis for the consolidated financial statements

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries, including structured entities). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition.

The subsidiaries in the consolidated financial statements

The detail information of the subsidiaries at the end of reporting period was as follows:

Name of Investor	Name of Investee	Main Businesses and Products	Percentage of Ownership December 31		Note
			2025	2024
Chung Tai Resource Technology Corp.	Chung Tai Investment Co., Ltd (Chung Tai Investment)	Investment activities	100%	100%
	Ke Jiou Co., Ltd. (Ke Jiou)	Distribution of heated tobacco products and other goods	-	100%	Note

Note: Since September 2025, the Group has lost control over Ke Jiou; therefore, it was no longer included in the consolidated financial statements.

Refer to Note 31, Table 4 for other related information.

e. Foreign currencies

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

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

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

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting consolidated financial statements, the financial statements of the Company and its foreign operations (including subsidiaries in other countries) that are prepared using functional currencies which are different from the currency of the Group are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

f. Inventories

Inventories consist of raw materials, merchandise and finished goods and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date. The value of the by-products produced in the manufacturing process is not material, which are measured by the net realizable value, and deducted from the cost of the value of the main product.

g. Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence and which is not a subsidiary. A joint venture is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the net assets of the arrangement.

The Group uses the equity method to account for its investments in associates and joint ventures.

Under the equity method, investments in an associate and a joint venture are initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group's share of the equity of associates and joint ventures.

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

When the Company subscribes for additional new shares of an associate and a joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate and joint venture. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Group's ownership interest is reduced due to its additional subscription of the new shares of the associate and joint venture, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that

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associate and joint venture is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

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

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate and a joint venture. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate and joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and joint venture. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate and joint venture on the same basis as would be required had that associate directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest.

When the Group transacts with its associate and joint venture, profits and losses resulting from the transactions with the associate and joint venture are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate and joint venture that are not related to the Group.

h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Any proceeds and costs from wastes disposal services provided when testing whether an item of property, plant, and equipment is functioning properly before that asset reaches its intended use are recognized in profit or loss. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

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

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i. Intangible assets

1) Intangible assets acquired separately

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

2) Derecognition of intangible assets

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

j. Assets related to contract costs

If direct related expenditures of the waste disposal services provided by the Group and the customer’s contract will enhance future resources used to fulfill contractual obligations, the amounts within the recoverable scope shall be recognized as the costs to fulfil a contract and recognized as operating costs using the straight-line method.

k. Impairment of property, plant and equipment, right-of-use asset, intangible assets and assets related to contract costs

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset, intangible assets and assets related to contract costs to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

Before the Group recognizes an impairment loss from assets related to contract costs, any impairment loss on inventories, property, plant and equipment and intangible assets related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to the contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Group expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

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Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

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

i. Financial assets at amortized cost

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

i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, time deposit with original maturities of more than 3 months, notes receivable, trade receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and

ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost.

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

i) Significant financial difficulty of the issuer or the borrower;

ii) Breach of contract, such as a default;

iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits and securities purchased under resell agreements with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

ii. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

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

Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including notes receivable and trade receivables) and contract assets on each balance sheet date.

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

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

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

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

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ii. Financial asset is more than 120 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

c) Derecognition of financial assets

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

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

2) Equity instruments

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

The repurchase of the Company's own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company's own equity instruments.

3) Financial liabilities

a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

m. Revenue recognition

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

1) Revenue from the sale of goods

The revenue is primarily generated from the sale of precious metals, which are derived from the recycling and processing of electronic waste. The Company recognizes revenue when control of the products is transferred. The transfer of control means that the product has been delivered to the customer, the customer has full discretion over the manner of distribution and the price to sell the goods, and there are no unsatisfied performance obligations that would affect the customer's

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acceptance of the products. A delivery occurs when the goods are delivered to the customer's specific location, and the customer has the primary responsibility for sales to future customers and bears the risks of obsolescence; furthermore, the customer has accepted the product according to sales contract with acceptance condition ineffective, or there is objective evidence that all the acceptance conditions have been satisfied.

2) Waste service revenue

The Group’s waste services revenue is generated from the rendering of services and certification revenue from recycling and processing of waste lighting sources.

a) Rendering of service revenue from waste treatment and electronic wastes processing services on behalf of customers.

Wastes treatment services are recognized as revenue when waste is accepted by the factory and treated in compliance with environmental protection laws and regulations.

Electronic wastes processing services on behalf of customers are recognized as revenue when the wastes are processed in batches, related by-products are generated and packed according to the agreements with the customers.

b) Certification revenue from waste lighting source recycling and treatment is recognized when the treated waste lighting sources (which are classified as waste subject to mandatory recycling) meet the statutory resource recycling ratio and mercury recycling ratio, and are also audited and certified by the authorities.

3) Environmental construction contract

The polluted site of the environmental construction contract is controlled by the customer, and the customer will benefit from environmental improvement as the polluted site has been treated by the Group; therefore, the Company recognizes revenue as the performance obligation is gradually satisfied. The Group measures the progress on the basis of costs incurred relative to the total expected costs as there is a direct relationship between the costs incurred and the progress of satisfying the performance obligations. Contract assets are recognized during the environmental construction and are reclassified to trade receivables at the point when the customer is invoiced. If the milestone payments exceed the revenue recognized to date, then the Group recognizes contract liabilities for the difference. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligations.

If circumstances change, the estimates of revenue, costs and percentage of completion will be revised, and the changes will be reflected in profit or loss during the period when management becomes aware of the changed circumstances and makes the corrections.

n. Leases

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

The Group as lessee

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

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Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

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

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

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

o. Borrowing costs

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

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

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

p. Government grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and recognized in profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they are received.

q. Employee benefits

1) Short-term employee benefits

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

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2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost, past service cost, as well as gains and losses on settlements) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur or when the settlement occurs. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

r. Taxation

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

1) Current tax

Income tax payable is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction. According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

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

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

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

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

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

Management will continue to review the estimates and underlying assumptions. If the revision of the estimate only affects the current period, it is recognized in the revision period; if the revision of the accounting estimate affects both the current period and the future period, it is recognized in the revision period and the future period.

CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 595	$ 533
Checking accounts and demand deposits	77,852	59,608
Cash equivalents
Time deposits with original maturities of 3 months or less	-	531,960
	$ 78,447	$ 592,101

The market rate interval for time deposits with original maturities of 3 months or less at the end of the reporting period were as follows:

	December 31
	2025	2024
Time deposits with original maturities of 3 months or less	-	1.40%-4.65%

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7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2025	2024
Non-current
Domestic investments
Unlisted shares
Da Yuan Company Limited (Da Yuan)(*)	$ 194,378	$ 201,636

Formerly named Cleanaway Energy Company Limited., which was renamed as Da Yuan in September 2025 has completed its registration in October 2025.

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

In 2025, the Group participated in a capital increase for Da Yuan under original percentage amounting to $13,500 thousand in cash.

In March 2024, the Taoyuan City Government revoked the consent letter of park entry for Taoyuan development project of Da Yuan due to non-qualification. Da Yuan filed an administrative appeal to the Ministry of Economic Affairs in April 2024 due to disagreement. In June 2024, the Ministry of Economic Affairs has revoked the administrative sanction of the Taoyuan City Government and restored park entry. Subsequently, in August 2024, Da Yuan received a formal letter from the Taoyuan City Government to revoke the consent letter of park entry for renewable energy industry projects. Da Yuan further filed a an administrative appeal to the Ministry of Economic Affairs due to disagreement. Upon review of the final administrative appeal decision from the Ministry of Economic Affairs in December 2024, the administrative sanction of Taoyuan Municipal Government to revoke the consent letter of park entry of Da Yuan which occurred in August 2024 was revoked. The Taoyuan development project of Da Yuan is in progress; in addition, the Group is monitoring closely to respond to the changes in relevant laws and regulations in time.

8. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

	December 31
	2025	2024
Current
Time deposits with original maturities of more than 3 months	$ 36,475	$ 15,005
Non-current
Time deposits with original maturity date of more than 1 year	$ -	$ 14,100

The allowance for losses for financial assets measured at amortized cost as of December 31, 2025 and 2024 was both $0. The amortized cost and the carrying amount are consistent.

The debt instrument investment policy adopted by the Group serves only invests in debt instruments with low credit risk issued by reputable financial institutions in the form of time deposit certificates. The Group pays regular attention to the credit ratings of partner financial institutions and related financial news to evaluate whether there is a significant increase in credit risks of investments in debt instruments after their original recognition.

The financial institutions that conduct business transactions with the Group have normal credit ratings and exhibit no signs of irregularities or defaults. As the financial institutions that conduct business transactions with the Company have low credit risks and have sufficient capacity to repay contractual cash flows, the expected credit loss basis was based on an expected 12-month credit impairment evaluation and the expected credit loss rate was 0%. The credit risks in both 2025 and 2024 have remained unchanged.

The market rate intervals of financial assets at amortized cost at the end of the reporting period were as follows:

	December 31
	2025	2024
Time deposits with original maturities of more than 3 months	1.70%	1.69%-1.70%
Time deposits with original maturity date of more than 1 year	-	1.7%

Refer to Note 28 for information relating to investments in financial assets at amortized cost pledged as security.

9. NOTES RECEIVABLE AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable	$ 2,022	$ 1,957
Trade receivables	189,538	181,481
	191,560	183,438
Less: Allowance for impairment loss	(339)	(202)
	$ 191,221	$ 183,236

The average credit period of waste disposal services and sales of goods is 30 to 120 days. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the year to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.

Customers of the Group can be classified into government institutions and general companies and their credit risks are described as follows:

a. In principle, government institutions do not present significant credit risk concerns. If difficulties in collection arise, an assessment would be performed separately.

b. For the credit quality of notes receivable and accounts receivable of general companies, the Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates and industry outlook. As the Group's historical credit loss experience does not show significantly different loss patterns for different domestic customer segments except for foreign customers, the provision for loss allowance based on invoice date is not further distinguished according to the Group's different domestic customer base. A higher expected credit loss rate for foreign customer is assessed based on the rate for domestic customer.

When there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation, or when the trade receivables are over 365 days past due, the Group recognizes 100% of the allowance for losses and continues to engage in enforcement activity to attempt to recover the receivables due.

The following table details the loss allowance of accounts receivable based on the Group's provision matrix:

December 31, 2025

	Government Institutions	General Companies		Total
		1 - 120 Days	More Than 121 Days
Expected credit loss rate	0%	0.14%-0.28%	100%
Gross carrying amount	$ 14,612	$ 176,948	$ -	$ 191,560
Loss allowance (Lifetime ECL)	-	(339)	-	(339)
Amortized cost	$ 14,612	$ 176,609	$ -	$ 191,221

December 31, 2024

	Government Institutions	General Companies		Total
		1 - 120 Days	More Than 121 Days
Expected credit loss rate	0%	0.11%-0.22%	100%
Gross carrying amount	$ 28,767	$ 154,671	$ -	$ 183,438
Loss allowance (Lifetime ECL)	-	(202)	-	(202)
Amortized cost	$ 28,767	$ 154,469	$ -	$ 183,236

The movements of the loss allowance of notes receivable and trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 202	$ 156
Add: Recognize impairment loss in the current period	137	46
Balance on December 31	$ 339	$ 202

29 -

10. INVENTORIES

	December 31
	2025	2024
Merchandise	$ 2,585	$ 606
Raw materials	614	629
Finished goods	49,092	20,736
	$ 52,291	$ 21,971

For the years ended December 31, 2025 and 2024, the allowance for write-down of inventories was $395 thousand and $2,401 thousand, respectively.

For the years ended December 31, 2025 and 2024, the cost of goods sold related to inventory was $681,245 thousand and $697,600 thousand, respectively. The (reversals) write-down of inventories included in the cost of goods sold was $(2,006) thousand and $229 thousand, respectively. Inventory write-downs were reversed as a result of increased market prices and the disposal of related inventories.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Material associate
Chase Sustainability Technology Co., Ltd. (CHASE)	$ 24,066	$ 18,808
Joint ventures
Ke Jiou Co., Ltd. (Ke Jiou)	$ 57,222	$ -

a. Investment in associates

		Percentage of Ownership and Voting Rights Held by Non-controlling Interests
		December 31
Name of Subsidiary	Principal Place of Business	2025	2024
CHASE	Environmental technology and sustainable services	14.12%	14.12%

In December 2018, the Group acquired 1,200 thousand ordinary shares of CHASE for $12,000 thousand, representing a 20% ownership stake, thereby obtaining significant influence over CHASE. CHASE primarily focuses on the integration and innovation of environmental protection and technology. It provides clients with "Real-time Waste Services" and "Smart Sustainability" solutions, offering a wide range of services from intelligent plant management, waste matching, and carbon accounting to energy saving and emission reduction, as well as automated sustainability report generation, comprehensively supporting clients in digitalizing their sustainability initiatives. Following several capital increases, the Group did not participate in proportion to its original ownership, leading to a dilution to 14.12%.

The financial information of CHASE was summarized as follows:

	December 31
	2025	2024
Current assets	$ 427,240	$ 556,881
Non-current assets	72,676	31,209
Current liabilities	(316,030)	(407,616)
Non-current liabilities	(19,345)	(53,180)
Equity	$ 164,541	$ 127,294
Percentage of ownership	14.12%	14.12%
Equity attributable to the Group	$ 23,228	$ 17,970
Investment premium	838	838
Carrying amount	$ 24,066	$ 18,808
	For the Year Ended December 31
	2025	2024
Operating revenue	$ 316,316	$ 307,955
Net profit for the year	$ 50,436	$ 28,711
Other comprehensive income	-	-
Total comprehensive income for the year	$ 50,436	$ 28,711

The Group holds 14.12% of the voting rights in CHASE. Considering that the Group controls one third of board of director in CHASE, management has determined that the Group has significant influence over CHASE. Therefore, CHASE is classified as an associate accounted for using the equity method.

The Group recognized its share of profit in associate accounted for using the equity method in 2025 and 2024 amounting to $7,112 thousand and $4,063 thousand, respectively. The amounts were recognized based on the associate's audited financial statements for the same periods.

In 2025 and 2024, the Group received cash dividend of $2,400 thousand and $1,200 thousand from associates, respectively.

b. Investment in joint ventures

Name of Subsidiary	Principal Place of Business	Percentage of Ownership and Voting Rights Held by Non-controlling Interests
		December 31
Ke Jiou	Distribution of heated tobacco products and other goods	2025	2024
		49%	-

Ke Jiou was originally a wholly owned subsidiary of the Group. In September 2025, the Group entered into a joint venture arrangement with other parties to develop distribution business, and made an additional investment of $44,080 thousand. As of December 31, 2025, the Group’s ownership interest in Ke Jiou decreased to 49%, and was reclassified as a joint venture, with the investment accounted for using the equity method. After the investment in September 2025, an disposal gain of $68 thousand was recognized and recorded as other gains and losses. The net cash outflow, calculated as the consideration paid or received for the disposal less cash and cash equivalents held by the subsidiary at the date control was lost, amounted to $436 thousand.

The financial information of Ke Jiou was summarized as follows:

	December 31, 2025
Current assets	$ 245,616
Non-current assets	397
Current liabilities	( 129,233)
Non-current liabilities	-
Equity	$ 116,780
Percentage of ownership	49%
Equity attributable to the Group	$ 57,222
Carrying amount	$ 57,222
	For the Year Ended December 31, 2025
Operating revenue	$ 47,302
Net profit for the year	$ 24,863
Other comprehensive income	-
Total comprehensive income for the year	$ 24,863

The Group recognized its share of profit from joint ventures accounted for using the equity method in 2025 amounting to $12,207 thousand. The amount was recognized based on the joint ventures’ audited financial statements for the same periods.

31 -

12. PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Machinery and Equipment	Office Equipment	Transportation Equipment	Other Equipment	Construction in Progress and Equipment Under Acceptance	Total
Cost
Balance on January 1, 2025	$ 909,685	$ 1,151,116	$ 1,300,333	$ 33,770	$ 50,964	$ 47,449	$ 165,470	$ 3,658,787
Additions	-	3,720	30,405	169	2,243	7,712	338,032	382,281
Disposals	-	(24,755)	(84,600)	(2,805)	(1,944)	(15,078)	-	(129,182)
Reclassification	-	-	756	-	-	-	(2,751)	(1,995)
Balance on December 31, 2025	$ 909,685	$ 1,130,081	$ 1,246,894	$ 31,134	$ 51,263	$ 40,083	$ 500,751	$ 3,909,891
Accumulated depreciation and impairment
Balance on January 1, 2025	$ -	$ 240,191	$ 309,242	$ 31,497	$ 24,936	$ 25,431	$ -	$ 631,297
Depreciation expenses	-	29,867	80,360	984	8,006	8,663	-	127,880
Disposals	-	(24,755)	(84,600)	(2,805)	(1,944)	(15,078)	-	(129,182)
Balance on December 31, 2025	$ -	$ 245,303	$ 305,002	$ 29,676	$ 30,998	$ 19,016	$ -	$ 629,995
Carrying amount at December 31, 2025	$ 909,685	$ 884,778	$ 941,892	$ 1,458	$ 20,265	$ 21,067	$ 500,751	$ 3,279,896
Cost
Balance on January 1, 2024	$ 909,685	$ 1,148,729	$ 1,267,816	$ 33,770	$ 47,052	$ 37,900	$ 25,167	$ 3,470,119
Additions	-	2,387	22,130	-	2,126	8,979	155,379	191,001
Disposals	-	-	(1,500)	-	(833)	-	-	(2,333)
Reclassification	-	-	11,887	-	2,619	570	(15,076)	-
Balance on December 31, 2024	$ 909,685	$ 1,151,116	$ 1,300,333	$ 33,770	$ 50,964	$ 47,449	$ 165,470	$ 3,658,787
Accumulated depreciation and impairment
Balance on January 1, 2024	$ -	$ 210,557	$ 222,110	$ 30,055	$ 18,211	$ 15,234	$ -	$ 496,167
Depreciation expenses	-	29,634	87,400	1,442	7,558	10,197	-	136,231
Disposals	-	-	(268)	-	(833)	-	-	(1,101)
Balance on December 31, 2024	$ -	$ 240,191	$ 309,242	$ 31,497	$ 24,936	$ 25,431	$ -	$ 631,297
Carrying amount on December 31, 2024	$ 909,685	$ 910,925	$ 991,091	$ 2,273	$ 26,028	$ 22,018	$ 165,470	$ 3,027,490

a. The above items of property, plant and equipment used by the Group were depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings		For the Year Ended December 31
Main buildings	10-60 years
Building improvements and accessories	2-30 years
Machinery equipment	2-25 years
Transportation equipment	5-8 years
Office equipment	3-5 years
Other equipment	2-20 years

b. Property, plant and equipment used by the Group and pledged as collateral for bank borrowings were set out in Note 28.

c. Non-cash investing activities related to property, plant, and equipment were as follows:

	For the Year Ended December 31
	2025	2024
Additions to property, plant, and equipment	$ 382,281	$ 191,001
Non-cash investing activities
Net change in payables for equipment	(6,934)	(3,453)
Payments for property, plant and equipment	$ 375,347	$ 187,548

d. No impairment assessment was performed for the years ended December 31, 2025 and 2024 as there was no indication of impairment.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amount
Transportation equipment	$ 1,760	$ 188
Machinery equipment	4,761	5,485
	$ 6,521	$ 5,673
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 2,437	$ 251
Depreciation charge for right-of-use assets
Transportation equipment	$ 718	$ 673
Machinery equipment	724	723
	$ 1,442	$ 1,396

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 1,416	$ 744
Non-current	$ 5,918	$ 5,496

The weighted average interest rate ranges for lease liabilities were as follows:

	December 31
	2025	2024
Transportation equipment	10.99%	8.0%
Machinery equipment	10.0%	10.0%

c. Other lease information

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 540	$ 690
Expenses relating to low-value asset leases	$ 147	$ 145
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ 168	$ 165
Total cash outflow for leases	$ (2,838)	$ (2,844)

The Group's leases of certain parking spaces qualify as short-term leases and leases of certain communication equipment qualify as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

14. OTHER INTANGIBLE ASSETS - COMPUTER SOFTWARE

	For the Year Ended December 31
	2025	2024
Cost
Balance on January 1	$ 1,321	$ 901
Additions	83	420
Disposals	(111)	-
Balance on December 31	$ 1,293	$ 1,321
Accumulated amortization
Balance on January 1	$ 631	$ 362
Amortization	279	269
Disposals	(111)	-
Balance on December 31	$ 799	$ 631
Carrying amount on December 31	$ 494	$ 690

Other intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Computer software 3-5 years

15. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 28)
Mega International Commercial Bank	$ 20,000	$ -

The interest rate range for revolving loan facility as of December 31, 2025 was 1.8%

b. Long-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 28)
Hua Nan Commercial Bank (2)	$ 1,117,732	$ 1,311,995
Taiwan Cooperative Bank (1)	80,000	-
Less: Current portion	(170,200)	(171,887)
Less: Unamortized deferred loan origination fees	(846)	(976)
	$ 1,026,686	$ 1,139,132

1) The Group has entered into a loan agreement with Taiwan Cooperative Bank, which is secured by the Group's freehold land (refer to Note 28). The loan is due on December 26, 2030, with facility amount of $80,000 thousand, and the interest rate is based on the bank's fixed deposit index rate, plus a floating annual rate. According to the agreement, the interests should be paid monthly for the first two years, and from the third year onward, the principal and interests will be repaid in 36 equal monthly installments.

2) The Group has entered into a loan agreement with Hua Nan Commercial Bank, which is secured by the Group's freehold land (including additional mortgage on completed construction as described in Note 28). Upon the completion of the factory, the land and construction financing loan will be transferred to the industrial zone factory loan. The loan period is 15 years with a 2-year grace period. Interests should be paid monthly during the loan period, and after the grace period, the principal will be repaid in monthly installments averagely. The aforementioned loan was transferred from land and construction financing into the industrial factory loan in October 2021. The interest rate is the bank's fixed deposit index rate, plus 0.42%.

3) The Group has acquired the Ministry of Economic Affairs' SME Accelerated Investment Program on October 21, 2019. In February 2020, the Group has entered into a loan agreement with Hua Nan Commercial Bank for SME Accelerated Investment Equipment Financing, with a 10-year loan period and a 3-year grace period for the principal. After the grace period, the principal will be repaid in monthly installments averagely. The interest rate for the first five years is calculated with the Postal Savings 2-year floating rate minus 1.045%. In the sixth year, the interest rate will be calculated with the Postal Savings 2-year floating rate, plus an additional 0.205%. Interest is to be paid monthly during the loan period. For the machinery and equipment purchased by the loan above, the Group issued a negative pledge letter to Hua Nan Commercial Bank under Article 30 of the Banking Act of the Republic of China, committing not to grant any security, pledge, mortgage, or any encumbrance to other creditors, nor to transfer, sell, trust, dispose of the same assets in any manner, and provide any repeated pledge to other creditors for the same collateral.

The details of the loan with Hua Nan Commercial Bank were as follows:

	December 31
	2025	2024
The factory financing loan	$ 663,923	$ 725,207
The SME accelerated investment equipment loan	453,809	562,724
Other	-	24,064
	$ 1,117,732	$ 1,311,995

36 -

16. NOTES PAYABLE AND TRADE PAYABLES

	December 31
	2025	2024
Notes payable	$ 3,225	$ 3,130
Trade payables	42,838	16,887
Payable for environmental construction services	37,586	124,414
	$ 83,649	$ 144,431

17. OTHER PAYABLES

	December 31
	2025	2024
Accrued compensation and bonus	$ 52,795	$ 48,588
Payable for equipment (Note 27)	17,405	10,471
Others	57,231	57,427
	$ 127,431	$ 116,486

18. DEFERRED REVENUE - NON-CURRENT

	December 31
	2025	2024
Government grants	$ 11,492	$ 12,390
Other	1,942	2,104
	$ 13,434	$ 14,494

In order to promote the development of the environmental protection industry, Taoyuan Government has signed an environmental technology park subsidy agreement with the Group in December 2006. After the Group completed the land acquisition and obtained the permit in August 2008, the government subsidized the Group with a total amount of $10,624 thousand, which was recorded as non-current deferred revenue and will be recognized in the profit and loss over the useful life of the related assets. The subsidy income recognized for the years ended December 31, 2025 and 2024 were $408 thousand, respectively (recorded under other income and net gain/loss).

The Group has obtained the secured bank loans with interest rate that is more favorable than market by acquiring the qualification approval for the Ministry of Economic Affairs' SME Accelerated Investment Action Plan (refer to Note 15). The benefit from the interest rate differential is recognized as a government subsidy. The government subsidy income under this plan was recognized amounted to $4,589 thousand and $8,357 thousand for the years ended December 31, 2025 and 2024, respectively (recognized under other income and net gain/loss).

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees' individual pension accounts at 6% of their monthly salaries and wages.

b. Defined benefit plans

The defined benefit plans adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Company has no right to influence the investment policy and strategy.

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

	December 31
	2025	2024
Present value of defined benefit obligation	$ (7,984)	$ (7,523)
Fair value of plan assets	14,441	12,845
Net defined benefit assets	$ 6,457	$ 5,322

Movements in net defined benefit assets were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
Balance on January 1, 2024	$ (7,125)	$ 11,191	$ 4,066
Service cost
Current service cost	(184)	-	(184)
Net interest income (expense)	(80)	128	48
Recognized in profit or loss	(264)	128	(136)
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	986	986
Actuarial gain, - changes in financial assumptions	77	-	77
Actuarial loss - experience adjustments	(211)	-	(211)
Recognized in other comprehensive income	(134)	986	852
Contributions from the employer	-	540	540
Balance on December 31, 2024	(7,523)	12,845	5,322
			(Continued)

38 -

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
Service cost
Current service cost	$ (192)	$ -	$ (192)
Net interest income (expense)	(104)	181	77
Recognized in profit or loss	(296)	181	(115)
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	875	875
Actuarial loss - changes in financial assumptions	(45)	-	(45)
Actuarial loss - experience adjustments	(120)	-	(120)
Recognized in other comprehensive income	(165)	875	710
Contributions from the employer	-	540	540
Balance on December 31, 2025	$ (7,984)	$ 14,441	$ 6,457
			(Concluded)

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

	For the Year Ended December 31
	2025	2024
Operating costs	$ -	$ -
Operating expenses	115	136
	$ 115	$ 136

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

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets shall not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

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

	December 31
	2025	2024
Discount rate(s)	1.125%	1.375%
Expected rate(s) of salary increase	3.75%	3.75%

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

	December 31
	2025	2024
Discount rate(s)
0.25% increase	$ (45)	$ (76)
0.25% decrease	$ 46	$ 78
Expected rate(s) of salary increase
0.25% increase	$ 44	$ 75
0.25% decrease	$ (44)	$ (74)

The above sensitivity analysis may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that changes in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plans for the next year	$ 540	$ 540
Average duration of the defined benefit obligation	2.3 years	4 years

20. EQUITY

a. Ordinary shares

	December 31
	2025	2024
Shares authorized (in thousands of shares)	160,000	160,000
Shares authorized	$ 1,600,000	$ 1,600,000
Shares issued and fully paid (in thousands of shares)	91,488	91,888
Shares issued and fully paid	$ 914,880	$ 918,880

The Company's board of directors resolved to issue 9,264 thousand of ordinary shares with a $10 par value for pre-initial public offering placement, the above issuance of shares for cash capital increase was approved by the Taiwan Stock Exchange under letter No. 1130014217 which was effective on August 7, 2024. In accordance with Article 267 of the Company Act, 14.59% of the total issued ordinary shares, amounting to 1,352 thousand shares, were reserved for employee subscription at $80 per share. The remaining shares were allocated through competitive auction of 6,330 thousand shares and public subscription of 1,582 thousand shares. The weighted average price of the competitive

auction was $87.33 per share, while the public subscription price was $80 per share. The total amount raised was $787,511 thousand, and the full amount was received. The base date of the capital increase date was set on September 23, 2024, and the registration was completed on October 15, 2024. The underwriting fee for the issuance of ordinary shares was $3,000 thousand, which was deducted from the capital surplus of the issuance premium.

On August 12, 2025, the Board of Directors resolved to cancel 400 thousand treasury shares, with base date of August 29, 2025 set as the capital reduction date, and the related registration was completed on October 20, 2025. As of December 31, 2025 and 2024, the Company's paid-in capital amounted to $914,880 thousand and $918,880 thousand, respectively. The par value per share was $10, and all shares issued were ordinary shares.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Issuance of ordinary shares (1)	$ 1,216,754	$ 1,268,018
May only be used to offset a deficit
Changes in percentage of ownership interests in subsidiaries or associates (2)	1,327	974
	$ 1,218,081	$ 1,268,992

1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital.
2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries and associates resulting from equity transactions other than actual disposals or acquisitions or from changes in capital surplus of investments accounted for using the equity method.

c. Retained earnings and dividends policy

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

According to the Articles, there are multiple services provided by the Company, and it's difficult to distinguish them with the growth stage. Because there will be significant expansion plan in the next couple of years and also a financial need, the Company's board of directors will resolve dividends distribution, which is limited to no less than 10% of total attributable earnings, by considering capital expenditure budget, loans and financial structure, operating, shareholders' interest and balanced dividends.

The dividend distribution is mainly based on cash dividends and stock dividends balanced dividend policies, of which the cash dividend payment ratio is limited to no less than 10% of the total dividends distributed from the earnings of the current year.

40 -

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2024 and 2023, which were approved in the shareholders' meetings on June 26, 2025 and June 20, 2024, respectively, were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 40,964	$ 25,373
Special reserve (Note 1)	$ 15,808	$ 3,066
Cash dividends	$ 321,608	$ 239,611
Distribution of cash from capital surplus	$ 45,944	$ -
Cash dividends per share ($)	$ 3.5	$ 2.90
Distribution of cash from capital surplus per share ($) (Note 2)	$ 0.5	$ -

Note 1: In accordance with the letter No. 1090150022 Order by Taiwan Stock Exchange, the Company has set aside the special reserve equivalent to the net negative amounts in other equities at the year end of the year, which were exchange differences on translating foreign operations and unrealized gain or loss on financial assets at fair value through other comprehensive income, and then reverse when there is reversal on those net negative balance.

Note 2: On June 26, 2025, the shareholders' meeting resolved the distribution of cash dividends from the 2024 earnings as well as cash distributions from capital surplus, amounting to a total of $4.00 per share, and authorized the Chairman to handle matters related to adjustments to the distribution ratio, determination of the record date, and the payment process. However, due to the expiration of the Company's first treasury share repurchase program on June 10, 2025, which affected the number of outstanding shares eligible for dividend distribution, the actual cash distribution per share was adjusted to approximately $4.017 per share after the adjustment to the distribution ratio.

The appropriation of earnings for 2025, which will be proposed by the Company's board of directors on March 6, 2026, was as follows:

	For the Year Ended December 31, 2025
Legal reserve	$ 25,859
Special reserve	$ 20,633
Cash dividends	$ 242,443
Distribution of cash from capital surplus	$ 32,021
Cash dividends per share ($)	$ 2.65
Distribution of cash from capital surplus per share ($)	$ 0.35

The appropriation of earnings and the distribution of cash from capital surplus for 2025 will be resolved by shareholders' meeting to be held in 2026.

d. Treasury shares

Purpose of Buy-back	Maintain the Company's Credit and Shareholders' Equity (In Thousands of Shares)
Number of shares on January 1, 2025	-
Purchase during the year	400
Cancellation during the year	(400)
Number of shares on December 31, 2025	-

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as the rights to dividends and to vote.

REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from the waste services	$ 890,841	$ 978,288
Revenue from the sale of goods	222,106	191,984
Revenue from the environmental construction	39,230	544,557
Others	3,331	1,916
	$ 1,155,508	$ 1,716,745

Please refer to Note 4(m) for the accounting policy of each main operating revenue and the timing of satisfaction of significant performance obligations.

Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and trade receivables (Note 9)	$ 191,560	$ 183,438	$ 155,636
Contract assets
Environmental construction
The cost input has not yet reached the right to payment	$ 106,459	$ 273,147	$ 108,901
Construction retention	65,560	32,606	-
	$ 172,019	$ 305,753	$ 108,901
Contract liabilities
Revenue from waste disposal	$ 32,332	$ 16,787	$ 17,698

The changes in the contract assets/liability balances primarily result from the difference between the completion of performance obligations of environmental construction contracts and waste disposal contracts, and the timing when the customers pay.

The credit risk characteristics of contract assets are identical to those of accounts receivable generated from similar contracts. Consequently, the Group also recognizes the allowance for ECLs on contract assets based on the life time ECLs rate of accounts receivable. The primary customers of contract assets are government agencies.

Contract cost related assets - costs to fulfil a contract

	For the Year Ended December 31
	2025	2024
Beginning balance	$ 434	$ 762
Addition	577	11,015
Recognized as operating costs	(585)	(11,343)
Ending balance	$ 426	$ 434

In order to provide waste disposal services and environmental construction projects, the Company capitalizes the costs of purchased recycling containers (e.g., light boxes, garbage trucks), and project repair supplies as costs to fulfil a contract.

Contracts with customers that have not been fully completed

As of December 31, 2025 and 2024, amounts allocated to unfulfilled performance obligations were $10,168 thousand and $49,398 thousand, respectively. The Group shall recognize revenue based on the progress of environmental construction projects. The contracts for environmental construction projects will be completed since 2025 to 2026.

22. NET PROFIT

a. Other income and expense

	For the Year Ended December 31
	2025	2024
Grants income (Note 18)	$ 6,760	$ 10,597
Revenue from the disposal of scraps	261	286
Others	246	266
	$ 7,267	$ 11,149

b. Other operating gains and losses

	For the Year Ended December 31
	2025	2024
Net foreign exchange (losses) gains	$(15,499)	$14,509
Gain on disposal of investments	68	-
Gain on disposal of property, plant and equipment	-	268
	$(15,431)	$14,777

c. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 27,082	$ 33,070
Interest on lease liabilities	774	656
	$ 27,856	$ 33,726

d. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
Property, plant and equipment	$ 127,880	$ 136,231
Right-of-use assets	1,442	1,396
Intangible assets	279	269
	$ 129,601	$ 137,896
An analysis of depreciation by function
Operating costs	$ 125,166	$ 134,237
Operating expenses	4,156	3,390
	$ 129,322	$ 137,627
An analysis of amortization by function
Operating costs	$ -	$ -
Operating expenses	279	269
	$ 279	$ 269

e. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Post-employment benefits (Note 19)
Defined contribution plan	$ 4,773	$ 4,876
Defined benefit plans	115	136
	4,888	5,012
Salary expenses	163,652	169,625
Employee insurance expenses	13,960	12,984
Other employee benefits	19,034	18,876
Total employee benefits expense	$ 201,534	$ 206,497
An analysis of employee benefits expense by function
Operating costs	$ 139,918	$ 143,469
Operating expenses	61,616	63,028
	$ 201,534	$ 206,497

f. Cash capital increase reserved for employees' subscription

On July 18, 2024, the Company’s board of directors resolved to issue ordinary shares, which consisted of 1,352 thousand ordinary shares for subscription by employees, with price of $80 per share. The rights to subscribe for shares by employees were measured at the grant-date fair value in accordance with IFRS 2 “Share-based Payment”. The Company used the Black-Scholes valuation model, with the following input assumptions:

Share price on the grant-date	$75.41
Exercise price	$80
Expected volatility rate	14.119%
Duration of existence	0.019 years
Risk-free interest rate	1.225%

The fair value per share on the grant date was assessed with market approach, which was based on the average PE ratio, PB ratio, and adjusted over-the-counter prices of comparable listed (or OTC) companies in the domestic industry.

The expected price volatility was based on the average of annualized standard deviation by stock return rates of comparable peer companies over the most recent years.

The compensation cost recognized by the Company for employees’ subscription for the years ended December 31, 2024 was $0 thousand.

g. Compensation of employees and remuneration of directors

According to the Company’s Articles, the Company accrues compensation of employees and remuneration of directors and supervisors at rates of no less than 1% and no higher than 5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors and supervisors.

In addition, in accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company’s Articles on June 26, 2025. Of the total compensation of employees, no less than 15% shall be allocated to non-executive employees.

The compensation of employees (including non-executive employees) and the remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Company’s board of directors on March 6, 2026 and March 11, 2025, respectively, were as follows:

Estimated ratio

	For the Year Ended December 31
	2025	2024
Compensation of employees	2.57%	1.93%
Remuneration of directors	0.83%	0.50%

Amount

	For the Year Ended December 31
	2025		2024
	Cash	Shares	Cash	Shares
Compensation of employees	$ 9,107	$ -	$ 10,084	$ -
Remuneration of directors	2,928	-	2,600	-

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

There was no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2025 and 2024.

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

23. INCOME TAXES

a. Income tax expense recognized in profit or loss

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 64,344	$ 101,275
Adjustments for prior year	-	(7)
	64,344	101,268
Deferred tax
In respect of the current year	377	50
Income tax expense recognized in profit or loss	$ 64,721	$ 101,318

A reconciliation of accounting profit and income tax expense was as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax from continuing operations	$ 342,668	$ 510,273
Income tax expense calculated at the statutory rate	$ 68,549	$ 102,063
Nondeductible expenses in determining taxable income	36	75
Unrealized share of profits of subsidiaries, associates, and joint ventures accounted for using equity method	(3,864)	(813)
Adjustments for prior year - current tax	-	(7)
Income tax expense recognized in profit or loss	$ 64,721	$ 101,318

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax (expenses) benefits
In respect of the current year
Remeasurement of defined benefit plans	$ (142)	$ (170)

c. Current tax liabilities

	December 31
	2025	2024
Current tax liabilities
Income taxes payable	$ 33,615	$ 68,405

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Accrued for annual leave	$ 1,035	$ 67	$ -	$ 1,102
Allowance to reduce inventory to market	480	(401)	-	79
Property, plant and equipment	21	-	-	21
	$ 1,536	$ (334)	$ -	$ 1,202
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Defined benefit retirement plan	$ 1,065	$ 84	$ 142	$ 1,291
Unrealized foreign exchange gains	82	(55)	-	27
Others	-	14	-	14
	$ 1,147	$ 43	$ 142	$ 1,332

For the year ended December 31, 2024

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Accrued for annual leave	$ 822	$ 213	$ -	$ 1,035
Allowance to reduce inventory to market	434	46	-	480
Unrealized foreign exchange losses	125	(125)	-	-
Property, plant and equipment	21	-	-	21
Other employee benefits payable	20	(20)	-	-
	$ 1,422	$ 114	$ -	$ 1,536

48 -

Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Defined benefit retirement plan	$ 813	$ 82	$ 170	$ 1,065
Unrealized foreign exchange gains	-	82	-	82
	$ 813	$ 164	$ 170	$ 1,147

e. The deductible temporary differences for which no deferred income tax assets have been recognized

	For the Year Ended December 31
	2025	2024
Deductible temporary differences
Investment in subsidiaries	$ 51,369	$ 30,600

f. The income tax returns of the Company through 2023 have been assessed by the tax authorities.

24. EARNINGS PER SHARE

Earnings and the number of weighted average shares used for calculation of EPS were stated as follows:

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Basic earnings per share	$ 277,947	$ 408,955
Diluted earnings per share	$ 277,947	$ 408,955

Number of Shares

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	91,622	85,155
Effect of potentially dilutive ordinary shares
Compensation of employees	113	143
Weighted average number of ordinary shares used in the computation of diluted earnings per share	91,735	85,298

The Company may settle the compensation of employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

49 -

25. CAPITAL MANAGEMENT

The Group's capital management is designed to ensure that the Group will be able to continue as going concerns while maximizing the return to stakeholders. Key management personnel of the Group will review the capital structure on a periodically basis, while considering macro-economics, market risks, and cashflows from operating activities. In order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders, the number of new shares issued.

The Group is not subject to any externally imposed capital requirements.

26. FINANCIAL INSTRUMENTS

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

Financial assets (liabilities) held by the Group which are not measured at fair value, are all financial instruments at amortized cost.

The management of the Group considers that the carrying amounts of financial assets (cash and equivalent, financial assets measured at amortized cost, contract assets, notes and account receivables, and refundable deposits) and financial liabilities (long-term and short-term bank borrowings (including current portion of long-term borrowings), notes payable and accounts payable, accounts payable to related parties and other payables) that are not measured at fair value are close to their fair value.

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

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive gains or losses
Investments in equity instruments Unlisted shares	$ -	$ -	$ 194,378	$ 194,378
December 31, 2024	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive gains or losses
Investments in equity instruments Unlisted shares	$ -	$ -	$ 201,636	$ 201,636

In 2025 and 2024, there was no transfer between level 1 and level 2 fair value measurement.

2) Adjustment of financial instruments measured at fair value Level 3

	December 31
	2025	2024
Equity instruments of financial assets at fair value through other comprehensive gains or losses
Beginning balance	$ 201,636	$ 217,550
Purchase	13,500	-
Recognized in other comprehensive gains or losses (unrealized valuation gains or losses on financial assets at fair value through other comprehensive gains or losses)	(20,758)	(15,914)
Ending balance	$ 194,378	$ 201,636
The change in unrealized gains or losses relating to assets held at the end of the year and recognized in profit or loss	$ -	$ -

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair value of domestic unlisted stocks was estimated using the asset method.

The asset method evaluates the fair value of the investee company's assets and liabilities based on the balance sheet as of the reporting date. Except for accounts receivable, other current assets, investments accounted for using the equity method, certain property, plant and equipment, right-of-use assets, and refundable deposits, all other assets and liabilities were assessed based on their carrying amounts. The significant unobservable inputs used by the Group were the adjustment of the difference between replacement cost and repurchase cost.

c. Financial risk management objectives and policies

The Group's main financial instruments include cash and cash equivalents, financial assets at amortized cost, contract assets, notes and trade receivables, refundable deposits, borrowings (including current portion), notes and trade payables, accounts payable to related parties, and other payables. The financial management department of the Group provides services to business units and coordinates operations in the domestic and overseas financial markets by supervising internal risk exposure reports and managing financial risks related to the operations of the Group in accordance with the risk level and breadth analyses. Such risks include market risk, credit risk and liquidity risk.

The finance and business departments regularly report to the management of the Group. The management would carry out risk monitoring and policy implementation based on its duties and responsibilities to diminish the risk exposures.

1) Market risk

a) Foreign currency risk

The Group engages in foreign currency-denominated sales transactions, causing the Group to cause risk exposure to the fluctuation of the exchange rates. In order to avoid fluctuations in the value of foreign currency assets and future cash flows due to exchange rate fluctuations, the Group avoids the impact of the exchange rates fluctuations through analyzing the amount and maturity period of foreign currency assets and liabilities and considering the risk of foreign currency net position to avoid related risks.

Sensitivity analysis

The Group is mainly affected by fluctuations in the exchange rates of U.S. dollar.

The following table details the sensitivity analysis of the Group on the effect of $1\%$ fluctuation in the foreign exchange rate against the New Taiwan dollar. $1\%$ is the sensitivity rate used when reporting exchange rate risk to the key management of the group, and it also represents the management's assessment of the reasonably possible range of changes in foreign currency exchange rates. Sensitivity analysis only covers outstanding monetary items in foreign currencies, and conversion at the end of the period is adjusted assuming a $1\%$ exchange rate change. In the following table, if the impact amount of U.S. dollar is negative, it means that when New Taiwan dollar appreciates $1\%$ against U.S. dollar, it will reduce the amount of net income before tax; when New Taiwan dollar depreciates $1\%$ against U.S. dollar, it will increase the net income before tax in the same amount.

Impact of USD
2025	2024
$ 159 *	$ 1,635 *

Mainly attributable to the Group's outstanding U.S. dollar-denominated cash and cash equivalents, notes receivable and accounts, refundable deposits and other payables as at the balance sheet date.

b) Interest rate risk

The Group is exposed to interest rate risk because the Group borrow funds at both fixed and floating interest rates. The Group is exposed to fair value interest rate risk from fixed rate borrowings while the Group is exposed to dash flow interest rate risk from floating rate borrowings. The management monitors periodically on interest risk, and will consider to execute necessary actions when market rate changes significantly.

The carrying amounts of financial assets and financial liabilities of the Group that were exposed to interest rate risks on the balance sheet date were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 36,475	$ 561,065
Cash flow interest rate risk
Financial assets	76,844	58,625
Financial liabilities	1,216,886	1,311,019

Sensitivity analysis

The sensitivity analysis below is based on the Group's exposure to interest rate risk on the balance sheet date. For assets and liabilities with floating interest rates, the analysis method assumes the assets and liabilities in external circulation on the reporting date remain so throughout the year. With regard to the evaluation of the possible range of changes to the interest rate, if the interest rate increases or decreases by $1\%$ while all other variables remain unchanged, the Group's net profit before tax in 2025 and 2024 will decrease or increase by $\$11,400$ thousand and $\$12,524$ thousand, respectively.

2) Credit risk

Credit risk refers to the risk of financial loss to the Group due to a counterparty’s failure to fulfill contractual obligations. As of the balance sheet date, the maximum credit risk exposure to the company arising from the counterparty’s failure to fulfill obligations and from financial guarantees provided by the Group (without considering collateral or other credit enhancement tools, and the maximum exposure amount that cannot be revoked) primarily stems from the carrying amount of financial assets recognized in the consolidated balance sheet.

The accounts receivable and notes receivable of the Group are concentrated with a few customers, but these companies are not related. To maintain the quality of accounts receivable and notes receivable, the Group’s policy is to transact with counterparties with good credit and to continuously assess their financial condition and historical transaction records. As a result, the expected credit risk on accounts receivable and notes receivable is limited.

The Group’s maximum credit exposure is the carrying amount of the financial assets, after deducting amounts that can be offset under applicable regulations and recognized impairment losses, without considering collateral or other credit enhancement policies (i.e., the carrying amount of financial assets).

3) Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support operations and reduce the impact of cash flow fluctuations. The management of the Group supervises the use of bank facilities and ensures compliance with the terms of the loan contract, so as to address new investment plan.

Borrowings loans are important to liquidity for the Group. For the Group’s unused financing facilities, please refer to Section b. Financing facilities below.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The maturity analysis of remaining contracts of non-derivative financial liabilities is based on the earliest possible date on which the Group may be required to make repayments and the undiscounted cash flows of financial liabilities (including principal and estimated future interest). Therefore, the Group may be requested to immediately return bank loans in the earliest period specified in the table below without considering the probability of bank’s immediate execution of such rights. Maturity analysis of other non-derivative financial liabilities shall be prepared in accordance with the agreed repayment date.

	Weighted Average Effective Interest Rate (%)	Demand or Less than 1 Year	2-5 Years	5+ Years	Total
December 31, 2025
Non-derivative financial liabilities		$ 171,889	$ -	$ -	$ 171,889
Lease liabilities	10.0-10.99	1,416	4,251	1,667	7,334
Variable interest rate liabilities	0.68-2.16	190,639	670,035	356,651	1,217,325
		$ 363,944	$ 674,286	$ 358,318	$ 1,396,548
					(Continued)

52 -

53 -

Weighted Average Effective Interest Rate (%)	Demand or Less than 1 Year	2-5 Years	5+ Years	Total
December 31, 2024
Non-derivative financial liabilities	$ 220,873	$ -	$ -	$ 220,873
Lease liabilities	8-10	744	5,496	6,240
Variable interest rate liabilities	0.5-2.16	172,139	703,175	1,311,271
	$ 393,756	$ 708,671	$ 435,957	$ 1,538,384
				(Concluded)

b) Financing facilities

The classification by collateral was as follows:

	December 31
	2025	2024
Unsecured bank facilities
Amount used	$ -	$ -
Amount unused	330,000	310,000
	$ 330,000	$ 310,000
Secured bank facilities
Amount used	$ 1,217,732	$ 1,311,995
Amount unused	150,000	160,000
	$ 1,367,732	$ 1,471,995

The classification by repayment period was as follows:

	December 31
	2025	2024
Short-term borrowings from financial institutions
Amount used	$ 20,000	$ -
Amount unused	420,000	470,000
	$ 440,000	$ 470,000
Medium and long-term borrowings from financial institutions
Amount used	$ 1,197,732	$ 1,311,995
Amount unused	60,000	-
	$ 1,257,732	$ 1,311,995

c) Guarantee facilities provided by financial institution for contract,

	December 31
	2025	2024
Secured guarantee from financial institutions
Amount used	$ 54,689	$ 177,863
Amount unused	-	-
	$ 54,689	$ 177,863

The guarantee facilities were used in comfort letters for project bidding and advance payment repayment.

27. TRANSACTIONS WITH RELATED PARTIES

Details of transactions between the Group and other related parties were disclosed as follows.

a. Related party name and category

Related Party Name	Related Party Category
Cleanaway Company Limited (Cleanaway)	Investor with significant influence
Kang Lan Enterprise Co., Ltd (Kang Lan Enterprise)	Subsidiary of the investor with significant influence (Cleanaway)
Ji Wei Co., Ltd (Ji Wei)	Subsidiary of the investor with significant influence (Cleanaway)
Da Yuan Company Limited (Da Yuan)	Subsidiary of the investor with significant influence (Cleanaway)
Top-Comment Resources Co., Ltd (Top-Comment)	Subsidiary of the investor with significant influence (Cleanaway)
Da Chuang Green Energy Co., Ltd (Da Chuang Green Energy)	Subsidiary of the investor with significant influence (Cleanaway)
Chase Sustainability Technology Co., Ltd. (Chase)	Associates
Ke Jiou Co., Ltd. (Ke Jiou)	Joint investment

b. Significant Transactions with related parties

1) Operating revenue

	For the Year Ended December 31
	2025	2024
Chase	$ 195,517	$ 163,656
Cleanaway	-	257
Others	496	540
	$ 196,013	$ 164,453

The revenue primarily arose from waste treatment services and management fee services provided to related parties, and there is no significant difference on sales term between non-related parties.

55 -

2) Operating costs

	For the Year Ended December 31
	2025	2024
Ji Wei	$ 45,411	$ 30,642
Chase	15,480	37,542
Kang Lan Enterprise	8,362	8,319
Da Yuan	4,051	4,202
	$ 73,304	$ 80,705

The service costs were primarily incurred for waste treatment services provided by related parties, and there is no significant difference on sales term between non-related parties.

3) Notes and account receivables

	December 31
	2025	2024
Chase	$ 34,176	$ 29,335

The receivables were generated from waste disposal services entrusted by related parties. The basis for the provision of allowance for doubtful accounts has no significant difference between non-related parties. For details on the provision of allowance for doubtful accounts, please refer to Note 9.

4) Payables to related parties

	December 31
	2025	2024
Ji Wei	$ 8,474	$ 5,214
Chase	3,757	2,392
Da Yuan	3,288	-
Kang Lan Enterprise	1,441	1,190
	$ 16,960	$ 8,796

The payables were generated from waste disposal service costs.

5) Other payables (excluding borrowings from related parties)

	December 31
	2025	2024
Da Chuang Green Energy	$ 1,474	$ -

The payables were generated from equipment purchase.

6) Loans to related parties

Interest revenue

	For the Year Ended December 31
	2025	2024
Da Yuan	$ 1,065	$ -
Ke Jiou	246	-
	$ 1,311	$ -

The Group provided unsecured short-term loans to Da Yuan, with drawdown periods from January to June 2025. All such loans had been fully repaid as of December 31, 2025. The interest rates were determined with reference to the Taipei Interbank Offered Rate (TAIBOR) one-month rate plus 0.91% per annum.

The Group also provided unsecured short-term loans to Ke Jiou, with drawdown periods from October to December 2025. All such loans had been fully repaid as of December 31, 2025. The interest rates were determined with reference to the monthly indicator rate of the time-deposit interest rate of Taiwan Cooperative Bank plus 0.61% per annum.

7) Acquisition of property, plant and equipment

Related Party Category/Name	Purchase Price
	For the Year Ended December 31
	2025	2024
Da Chuang Green Energy	$ 1,404	$ -

c. Remuneration of key management personnel

The total remuneration of key management personnel for the years ended December 31, 2025 and 2024, respectively was as follows:

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 25,316	$ 30,284
Post-employment benefits	378	378
	$ 25,694	$ 30,662

57 -

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

Assets provided by the Group as collateral to secured loans and construction guarantee were as follows:

	December 31
	2025	2024
Pledged certificate of deposit (recognized as financial assets at amortized cost)	$ 36,475	29,105
Property, plant and equipment, net	2,543,228	2,611,005
	$ 2,579,703	$ 2,640,110

The machinery equipment listed above was subject to negative pledges under loan agreements (refer to Note 15), amounting to $909,784 thousand and $956,944 thousand as of December 31, 2025 and 2024, respectively.

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Unrecognized commitments were as follows:

	December 31
	2025	2024
Acquisition of property, plant and equipment	$ 65,255	$ 282,380

As of December 31, 2025 and 2024, there were notes payable of $32,493 thousand and $31,415 thousand, respectively, as bidding and performance guarantees. These notes are refundable and cancellable upon the completion of the bidding process and termination of the guaranteed obligations.

30. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES

The following information was summarized according to the foreign currencies other than the functional currency of the Group. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:

December 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items USD	$ 718	31.43	$ 22,552
Financial liabilities
Monetary items USD	212	31.43	6,663

December 31, 2024

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 5,027	32.79	$ 164,820
Financial liabilities
Monetary items
USD	39	32.79	1,285

31. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (None)
3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 2)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)
6) Intercompany relationships and significant intercompany transactions (None)

b. Information on investees (Table 4)

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area (None)

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

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year

c) The amount of property transactions and the amount of the resultant gains or losses
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes
e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services

32. SEGMENT INFORMATION

a. Operating segment financial information

1) Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided.
2) The Group operates two main operating segments for organizational management and resources allocation purpose. The waste disposal treatments and circular Economy segment, which engages in waste disposal and treatment services, recycling of waste lighting sources, recycling of waste printed circuit boards, and electricity generation by waste heat; and the environmental construction Services segment, which engages in soil and groundwater pollution remediation services.

Operating segments, segment revenue and operating results

For the year ended, December 31, 2025

	Waste Disposal Treatments and Circular Economy	Environmental Construction Services	Adjustments and Eliminations	Total
Revenue from external customers	$ 1,116,278	$ 39,230	$ -	$ 1,155,508
Gross profit of reportable segments	$ 434,434	$ 8,550	$ -	$ 442,984
Interest costs				(27,856)
Other				(72,460)
Profit before tax				$ 342,668

For the year ended, December 31, 2024

	Waste Disposal Treatments and Circular Economy	Environmental Construction Services	Adjustments and Eliminations	Total
Revenue from external customers	$ 1,172,188	$ 544,557	$ -	$ 1,716,745
Gross profit of reportable segments	$ 475,526	$ 124,437	$ -	$ 599,963
Interest costs				(33,726)
Other				(55,964)
Profit before tax				$ 510,273

The Group evaluates performance of segments and develops strategy to allocate the resources for the segments. Operating expenses, other income and expenses, non-operating income and expenses, income tax expenses, and operating assets and liabilities are managed on a consolidated basis; therefore, those are not allocated to the reportable segments. Furthermore, not all the reportable segments include significant non-cash items such as depreciation and amortization in segmental profit or loss. The reported amounts are consistent with the reports used by the chief operating decision maker.

b. Geographical information

	Revenue from External Customers		Non-current Assets
	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Taiwan	$ 1,027,003	$ 1,560,111	$ 3,286,911	$ 3,033,853
Japan	127,827	156,634	-	-
Others	678	-	-	-
	$ 1,155,508	$ 1,716,745	$ 3,286,911	$ 3,033,853

The regional revenue of the Group is determined by the region in where payments are collected. Non-current assets exclude property, plant and equipment, right-of-use assets, and computer software, net.

c. Information on major customers

Revenue from a single customer amount to 10% or more of the consolidated operating revenue for each period were as follows:

For the year ended December 31, 2025

	Amounts	%
Chase	$ 195,517	17
Ohkuchi Electronics	127,827	11
FP Group	120,539	10
	$ 443,883	38

For the year ended December 31, 2024

	Amounts	%
Public Works Bureau of Kaohsiung City Government	$ 544,557	32

61 -

TABLE 1

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

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

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing (Note 1)	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower	Aggregate Financing Limit	Note
													Item	Value
0	Chung Tai Resource Technology Corp.	Da Yuan Company Limited (Note 3)	Other receivables	Yes	$ 250,000	$ -	$ -	2.3-2.7	The necessity of short-term financing	$ -	Operating	$ -	None	$ -	$ 1,039,044	$ 1,039,044	Note 2
1	Chung Tai Resource Technology Corp.	Ke Jiou Co., Ltd.	Other receivables	Yes	280,000	280,000	-	2.1-2.556	The necessity of short-term financing	-	Operating	-	None	-	1,039,044	1,039,044	Note 2

Note 1: According to the Company's "Procedures for Loans and Guarantees":
1) For companies or business entities requiring short-term financing, the individual loan amount shall not exceed 40% of the Company's net assets based on the most recent audited or reviewed financial statements.
2) The total loan amount of the Company shall not exceed 40% of the Company's net assets based on the most recent audited or reviewed financial statements.

Note 2: Financing limits are based on the Company's most recent audited or reviewed financial statements. The limits of December 2025 disclosed on the Market Observation Post System were based on financial statements of 2025Q3, as the financial statements of 2025Q4 were not yet audited, and thus may differ from the above amounts.

Note 3: The company was originally named Cleanaway Energy Co., Ltd. and was renamed Da Yuan Company Limited in September 2025. The registration of the name change was completed in October 2025.

TABLE 2

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Chung Tai Resource Technology Corp.	Stock - ordinary share
Da Yuan Company Limited (Note 4)	Subsidiary of the investor with significant influence (Cleanaway)	Financial assets at fair value through other comprehensive income	10,770,000	$ 194,378	15	$ 194,378	-

Note 1: For the purposes of this table, marketable securities refer to stocks, bonds, beneficiary certificates, and derivative securities thereof within the scope of IFRS 9 "Financial Instruments."
Note 2: The marketable securities presented in this table are disclosed by the Company based on the materiality principle.
Note 3: For information on investments in subsidiaries, associates, and joint ventures, please refer to Table 4.
Note 4: The company was originally named Cleanaway Energy Co., Ltd. and was renamed Da Yuan Company Limited in September 2025. The registration of the name change was completed in October 2025.

TABLE 3

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Chung Tai Resource Technology Corp.	Chase Sustainability Technology Co., Ltd.	Associate	Waste disposal services revenue	$ 195,517	17	Determined by the contract	-	-	$ 34,176	18

TABLE 4

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2025	December 31, 2025	Number of Shares	%	Carrying Amount
Chung Tai Resource Technology Corp.	Chung Tai Investment Co., Ltd.	Samoa	Investment activities	$ 8,737	$ 8,737	20,000,000	100.00	$ 1,542	$ (24)	$ (24)	Subsidiary of the Company
	Ke Jiou Co., Ltd.	No. 326, Huanke Rd., Guanyin Dist., Taoyuan City	Distribution of heated tobacco products and other goods	45,080	1,000	4,508,000	49.00	57,222	24,863	12,157	Joint venture of the Company (Note 2)
	Chase Sustainability Technology Co., Ltd	1F., No. 177, Sec. 2, Jianguo S. Rd., Da’an Dist., Taipei City	Environmental technology and sustainable services	12,000	12,000	1,200,000	14.12	24,066	50,436	7,112	Associate of the Company

Note 1: For the column of Share of Profits/Losses, only the Company's direct investment in subsidiaries shall be provided. The rest is not required. The profit or loss of each subsidiary already includes the investment gains of its investees required to be recognized by laws.
Note 2: Since September 2025, the Company has lost control over Ke Jiou Co., Ltd., and it has been reclassified as a joint venture accounted for using the equity method. Refer to Note 11.

AI assistant

ctrt — Annual Report 2025

52663_rns_2026-04-30_af2cf87d-bb54-4950-ac57-6485fe59b729.pdf

CHUNG TAI RESOURCE TECHNOLOGY CORP. and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Timing of Service Revenue Recognition

Other Matter

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

2) Waste service revenue

3) Environmental construction contract

n. Leases

The Group as lessee

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

8. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

9. NOTES RECEIVABLE AND TRADE RECEIVABLES

10. INVENTORIES

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

14. OTHER INTANGIBLE ASSETS - COMPUTER SOFTWARE

15. BORROWINGS

16. NOTES PAYABLE AND TRADE PAYABLES

17. OTHER PAYABLES

18. DEFERRED REVENUE - NON-CURRENT

19. RETIREMENT BENEFIT PLANS

20. EQUITY

22. NET PROFIT

23. INCOME TAXES

24. EARNINGS PER SHARE

Net Profit for the Year

Number of Shares

25. CAPITAL MANAGEMENT

26. FINANCIAL INSTRUMENTS

b) Financing facilities

27. TRANSACTIONS WITH RELATED PARTIES

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

30. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES

31. SEPARATELY DISCLOSED ITEMS

32. SEGMENT INFORMATION

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

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ctrt Annual Report 2025