股票代碼6923

112年度年報

中台資源科技股份有限公司

CHUNG TAI RESOURCE TECHNOLOGY CORP.

中台綠能循環經濟

創新研發中心

Group To Grow Strong & Use An Economic Innovation Center

I. The name, title, contact phone number and email address of the Company's spokesperson and deputy spokesperson:

Spokesperson's name: Hsu, Pei-Yu
Title: Special Assistant to the President
Telephone: (02) 2397-5801
Email address: [email protected]
Deputy spokesperson's name: Shih, Hsiu-Wei
Title: Chief Finance Officer
Telephone: (02)2397-5801
Email address: [email protected]

II. Address and telephone number of the headquarters and factory:

Factory address and telephone number:

Chung Tai Plant 1: No. 288, Datan S. Rd., Guanyin Dist., Taoyuan City 328451, Taiwan (R.O.C.)
Telephone: (03)473-7311

Chung Tai Plant 2: No. 328, Huanke Rd., Guanyin Dist., Taoyuan City 328451, Taiwan (R.O.C.)
Telephone: (03)473-0068

Chung Tai Plant 3: No. 326, Huanke Rd., Guanyin Dist., Taoyuan City 328451, Taiwan (R.O.C.)
Telephone: (03)473-0068

Taipei Office Address: 2F., No. 7, Sec. 2, Ren'ai Rd., Zhongzheng Dist., Taipei City 100026, Taiwan (R.O.C.)
Telephone: (02)2397-5801

III. Stock Transfer Agent:

Name: Stock Affair Department, Yuanta Securities Co., Ltd.
Address: B1, No. 67, Sec. 2, Dunhua S. Rd., Da'an Dist., Taipei City 106646, Taiwan (R.O.C.)
Telephone: (02)2586-5859
Website: http://www.yuanta.com.tw/

IV. Name of the CPAs, Accounting Firm, Address, Website, and Telephone for the Most Recent Annual Financial Report:

Accounting Firm: Deloitte & Touche
CPAs: Chiu, Yung-Ming and Shih, Chin-Chuan
Address: 20F., No. 100, Songren Rd., Xinyi Dist., Taipei City 110421, Taiwan (R.O.C.)
Telephone: (02)2725-9988
Website: https://www2.deloitte.com/tw/tc.html

V. Name and Trading Venue of Overseas Securities Listed for Trading and Methods to Access Information on Such Overseas Securities: None.

VI. Website of the Company: https://www.chinalab.com.tw/

Chapter 1 Letter to Shareholders... 5

Chapter 2 Corporate Governance Report... 8
I. Information on Directors, President, Vice Presidents, Assistant Managers, and Heads of Departments and Branches ... 8
II. Corporate Governance Operations... 22
III. Certified Public Accountant Fee Information ... 72
IV. Change of CPA information... 72
V. The situation where the Company's Chairman, President, or Manager responsible for financial or accounting affairs has, within the past year, served at the certifying accounting firm or its affiliated enterprises... 72
VI. Changes in Shareholding and Pledge of Shares by Directors, Supervisors, Managerial Officers, and Shareholders Holding More Than 10% of the Company's Shares in the Most Recent Year and as of the Date of the Annual Report... 72
VII. Information on the relationship between the top ten shareholders, whether they are related parties or spouses, relatives within the second degree of kinship... 73
VIII. The shareholdings of the Company, its directors, supervisors, managerial officers, and enterprises directly or indirectly controlled by the Company in the same invested enterprises, and the calculation of comprehensive shareholding ratio... 74

Chapter 3 Funding Status... 75
I. Capital and Shares... 75
II. Status of corporate bonds issuance... 79
III. Status of preferred stock issuance... 80
IV. Status of overseas depository receipts issuance... 80
V. Status of employee stock options issuance... 80
VI. Status of restricted employee shares issuance... 80
VII. Status of new shares issuance for merger or acquisition of other companies... 80
VIII. Status of implementation of capital allocation plans... 80

Chapter 4 Operational Overview... 84
I. Business Content... 84
II. Market and Production/Sales Overview... 107
III. Information on employees in the last two years and up to the printing date of the annual report... 123
IV. Environmental protection expenditure information... 123
V. Labor-Management Relations... 127

VI. Information Security Management ... 130
VII. Important Contracts ... 132

Chapter 5 Review and Analysis of Financial Status, Operating Results, and Risk Factors ... 134

I. Financial Status Comparative Analysis Table ... 134
II. Financial Performance Comparative Analysis Table ... 135
III. Cash Flow Comparison Analysis Table ... 136
IV. Impact of Major Capital Expenditures in the Most Recent Year on Financial and Business Operations ... 137
V. Investment Policy in the Most Recent Year, Main Reasons for Profit or Loss, Improvement Plans, and Investment Plan for the Coming Year ... 137
VI. Risk analysis and assessment for the most recent year up to the printing date of the annual report ... 138

Chapter 6 Special Recorded Items ... 147

I. Affiliated Enterprise Information: The most recent annual Consolidated Business Report of Affiliated Enterprises, Consolidated Financial Statements of Affiliated Enterprises, and Affiliation Report prepared in accordance with the "Regulations Governing the Preparation of Consolidated Business Reports of Affiliated Enterprises, Consolidated Financial Statements of Affiliated Enterprises, and Affiliation Reports" established by this Commission ... 147
II. For the most recent year and up to the printing date of the annual report, the status of private placement of securities ... 147
III. Other necessary supplementary information ... 147

Chapter 7 Significant Impact Events ... 148

Appendix A Consolidated Financial Report and Independent Auditors' Report for 2024

Appendix B Parent Company Only Financial Report and Independent Auditors' Report for 2024

Chapter 1 Letter to Shareholders

Dear Shareholders:

Looking back on the past year, the global economic environment was full of challenges, and the environmental protection industry continued to innovate and develop under market changes and policy implementations. Under these changing circumstances, the Company adheres to the business philosophy of "Utilizing Resources for Public Welfare," continues to deepen resource recycling technology, actively promotes innovative applications, and strives to fulfill corporate social responsibility while maintaining stable operations. Through the collective efforts of all colleagues, the Company has not only consolidated its market position but also created stable returns for shareholders.

I. Operating Results for Year 2024

The year 2024 (same hereafter) was a critical year of operational growth for the Company. In terms of revenue, profitability, technological innovation, and market expansion, the Company has achieved significant results, further establishing its position as an industry leader.

First, in the capital market, the Company successfully listed on the Taiwan Stock Exchange in September 2024. This is not only an affirmation of the Company's years of effort but also an important milestone toward sustainable development. The listing has placed greater responsibility on the Company, and in the future, we will respond to shareholders' expectations with more transparent and robust management.

In terms of operational performance, the consolidated revenue for 2024 reached NT$ (same hereafter) 1.716 billion, representing a 35% growth compared to 2023, marking five consecutive years of positive growth and demonstrating stable and continuous growth momentum. Consolidated net profit after tax reached NT$ 408 million, an annual increase of 61%, reflecting the Company's breakthrough in business integration and technological innovation. Through the integration and application of multiple technologies, we have successfully created a differentiated resource recycling model, providing comprehensive solutions, which has also further enhanced our market competitiveness.

In the field of high-value waste recycling and processing, the Company's performance has been even more impressive. In 2024, the consolidated gross profit margin rebounded to 35%, with the high-efficiency waste resource processing model demonstrating economic benefits. Additionally, Chung Tai maintains a leading market position in multiple areas including waste lighting source recycling, mercury-containing industrial waste, and copper recovery from waste printed circuit boards (PCBs), bringing in stable cash flow. In 2024, international markets experienced fluctuations due to supply disruptions, demand changes, and policy impacts, creating market expectations for future supply-demand balance, which has also driven stable development of the Company's resource products in the market.

The Company has been established for over 20 years. During this period, the Company has continuously accumulated rich management experience and has cultivated a team of green-collar talents with professional certifications in occupational safety, environmental protection, fire safety, and other areas. This solid team is the key driving force behind the Company's continued growth. Behind all these achievements, we must thank the efforts and dedication of all our colleagues.

II. Industry Trends and Development Opportunities for 2025

Looking ahead to 2025, Taiwan's environmental protection and circular economy industries will continue to deepen, with government policies and market demands bringing new opportunities for the Company. At the same time, the government will continue to optimize circular economy regulations, promoting industrial upgrading through policy support. The National Development Fund is also actively investing, strengthening investments in green industries and net-zero technologies, bringing greater development opportunities to the environmental protection and circular economy sectors. With the investment of funds and technology, areas such as waste lithium battery recycling and waste solar panel reuse will accelerate in development in the future. These technological breakthroughs will meet the future processing needs for decommissioned renewable energy equipment.

In terms of company development planning, Phase II of Plant One began construction in May 2024, reaching 30% completion by the end of 2024, and is expected to commence operations in 2026. This will significantly enhance waste treatment capacity, and reduce operating costs through fly ash water washing technology, providing more stable waste solutions for Taiwan's technology industry. The Company is also collaborating with the Taiwan Construction Research Institute to develop "Asbestos-Containing Waste Material Detoxification Technology," providing more comprehensive environmental protection solutions for the industry.

The Company actively participates in soil and groundwater contamination remediation, effectively reducing heavy metals and harmful organic compounds remaining in soil through thermal treatment equipment operation and maintenance, and prevention of secondary pollution such as VOCs (volatile organic compounds). The front section of the Kaohsiung Refinery North Zone 1 contamination remediation project, a collaboration between the Company and Jesper Co., Ltd., was nearing completion by the end of 2024. Chung Tai is also actively bidding for remediation projects such as mercury-contaminated sites and electronic waste pollution sites, accelerating sustainable land use and diverse ecological restoration.

III. Facing Challenges and Response Strategies

Despite the Company's outstanding performance in recent years, in the face of a rapidly changing market environment, the Company still needs to carefully respond to industry challenges to ensure long-term competitive advantages. First, in terms of capacity utilization, the Company still has room for improvement. In the future, the Company will continue to optimize production scheduling, improve capacity utilization, and leverage the benefits of economies of scale.

Secondly, in terms of technological innovation, the Company has actively invested in forward-looking technologies and business collaborations such as flue gas carbon capture, low-carbon incineration power generation, and high-efficiency recycling models. Currently, we are collaborating with research institutions and universities including the Industrial Technology Research Institute, National Taipei University of Technology, and National Central University, hoping to accelerate technology development and application through industry-academia-research cooperation.

In recent years, the Ministry of Environment has continued to strengthen the promotion of Continuous Emission Monitoring Systems (CEMS) policy for stationary pollution sources. The Company had already deployed this ahead of schedule two years ago, completing the introduction of automatic monitoring equipment in advance, demonstrating its forward-looking planning capability. Additionally, in terms of international markets, the integration of the global circular economy industry chain is accelerating. In the future, the Company will actively cooperate with international partners to expand overseas markets. Through cooperation with major Japanese refining companies and others, we are gradually establishing a specialized division of labor model for the global circular economy, preparing for future market expansion.

IV. Conclusion

Standing at a critical moment of industrial transformation, Chung Tai will continue to deepen its environmental protection business, creating a more competitive resource recycling model through technological innovation and market expansion. The Company firmly believes that through stable financial management, application of innovative technologies, and the efforts of all colleagues, Chung Tai will continue to breakthrough and move toward greater achievements. Sincerely thank all shareholders for their support and trust. In the future, the Company will continue to operate with a transparent and responsible attitude, creating long-term value for shareholders.

Chung Tai Resource Technology Corp.

Chairman: Cheng, Kuang-Chieh

President: Chang, Chi-Ta

Chapter 2 Corporate Governance Report

I. Information on Directors, President, Vice Presidents, Assistant Managers, and Heads of Departments and Branches

(I) Directors' Information

Names, Education/Experience, Shareholdings, and Nature of Directors

April 30, 2025; Unit: Shares; %

Title	Nationality or Place of Registration	Name	Gender Age	Date of First Appointment	Date of Appointment	Term of Office	Shares Held at Time of Appointment		Number of Shares Currently Held		Shares Currently Held by Spouse and Minor Children		Shares Held in the Name of Others		Major Experience (Education)	Current Positions Held in the Company and Other Companies	Managers, Directors, or Supervisors Who Are Spouses or Relatives Within the Second Degree of Kinship
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Title	Name	Relationship
Chairman	R.O.C	Cheng, Kuang-Chieh	Male 51–60	2010.6.28	2022.8.10	3	3,256,576	4.01%	3,412,626	3.71	1,293,104	1.41%	0	0.00%	1. National Taipei University of Technology, Department of Business Management EMBA
2. President of CHINA ELECTRIC MFG. CORP.	1. Director of Chase Sustainability Technology CO., LTD.
2. Chairman of SMOKING ENVIRONMENTALLY FRIENDLY CORPORATION
3. Chairman 3.CHUNG TAI INVESTMENT CO., LTD (Samoa)	Plant Manager	Cheng, Jen-Chang	Second-degree Relative
Director	R.O.C	Chuang, Jui-Yuan	Male 51–60	2016.8.22	2022.8.10	3	0	0.00%	0	0.00%	0	0.00%	0	0.00%	Fu Jen Catholic University, Department of Physics	1. Director and President of JIIN YEEH DING ENTERPRISE CORP.
2. President of GRAND TONE ENTERPRISE COMPANY LIMITED
3. Chairman of YUAN LONG INVESTMENT LTD.
4. Director of YEEH DING CORP.
5. Director of HE RUI INVESTMENT CO., LTD.
6. Director 6.GOLD FINANCE LIMITED
7. Director of SU FONG ENTERPRISE CO., LTD.
8. Chairman of HONG WEI DEVELOPMENT CO., LTD.	-	-	-
Director	R.O.C	CLEANAWAY Co., Ltd.	-	2019.6.10	2022.8.10	3	15,600,000	19.23%	16,447,000	17.90%	0	0.00%	Note 1	Note 1	-	-	-	-	-

Title	Nationality or Place of Registration	Name	Gender Age	Date of First Appointment	Date of Appointment	Term of Office	Shares Held at Time of Appointment		Number of Shares Currently Held		Shares Currently Held by Spouse and Minor Children		Shares Held in the Name of Others		Major Experience (Education)	Managers, Directors, or Supervisors Who Are Spouses or Relatives Within the Second Degree of Kinship
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio		Title	Name	Relationship
	R.O.C	Yang, Yung-Fe	Male 31–40	2017.10.16	2022.8.10	3	12,155,755	14.98%	12,145,755	13.22%	0	0.00%	Note 2	Note 2	1. Master's Degree in Brand Management, European Business School London
2. Ph.D. in Environmental Engineering, National Taiwan University	1. Director and President of Cleanaway Company Limited
2. Chairman of CLEANAWAY ENERGY COMPANY LIMITED
3. Chairman of Chase Sustainability Technology CO., LTD.
4. Chairman of QIAO ZHI YANG Co., Ltd.
5. Chairman and President of Da Zhao Circular Economy Co., Ltd.
6. Chairman of Top-Comment Resources Company Limited.
7. Director of ER CHENG INVESTMENT HOLDINGS CO., LTD.
8. Chairman and President of Da Cheng Recycling Company Limited
9. Director of Cowin Environmental Resources Limited
10. Director of HAO DA ENTERPRISE CO., LTD.
11. Director and President of Da Chuang Power Co., LTD.
12 Director of WEI HE ENTERPRISE CO., LTD.
13. Director and President of Ji DING MATERIALS CO., LTD.
14. Director and President of Cleanaway Company Limited
15. Director and President of DA TSANG INDUSTRIAL COMPANY LIMITED
16. Director and President of Ji WEI Co., Ltd.
17. Director and President of Kang Lien Enterprise Company Limited
18. Director and President of Da Ning Co., Ltd.
19. Director and President of Cleanaway Investment Company Limited
20. Director and President of Da Chuang Green Energy CO., LTD.
21. Chairman of Yunneng Technology Co., Ltd.
22. Chairman of INNOCHANNEL Technology Company Limited
23. Chairman of Xinyun Co., Ltd.	Director	Chen, Yu-Hsien	Second-degree Relative

Note 1: CLEANAWAY Co., Ltd. holds 1,064,000 shares (1.16%) of the Company through its subsidiaries Du Ning Co., Ltd. and Ji Wei Co., Ltd.
Note 2: Yang, Yung-Fa holds 270,000 shares (0.29% ownership) of the Company through QIAO ZHI YANG Co., Ltd.
Note 3: Elected and appointed on October 4, 2023.

Directors and Supervisors Who Are Institutional Shareholders, and the Major Shareholders of Those Institutions:

(1) Major Shareholders of the Institutional Shareholder

March 11, 2025

Name of Institutional Shareholder	Major Shareholders of the Institutional Shareholder	Shareholding Ratio
CLEANAWAY Co., Ltd.	Yang, Ching-Hsiang	5.40%
	Yang Ching-Hsiang's trust account under the custody of Taishin International Bank	5.40%
	KANG LAN ENTERPRISE CO., LTD.	4.93%
	Yang, Shu-Hui	4.53%
	WEI HE ENTERPRISE CO., LTD.	3.18%
	HAO DA ENTERPRISE CO., LTD.	2.86%
	QIAO ZHI YANG Co., Ltd.	2.75%
	HAO DA ENTERPRISE CO., LTD.	2.32%
	Yang, Li Pi-Lien's trust account under the custody of Taishin International Bank	2.06%
	KGI Life Insurance Co., Ltd.	1.96%

Major Shareholders of the Legal Entities Listed in the Previous Table

March 11, 2025

Legal Entity Name	Major Shareholders of the Legal Entity	Shareholding Ratio
KANG LAN ENTERPRISE CO., LTD.	Yang, Ching-Hsiang	61.710%
	Yang, Li Pi-Lien	19.900%
	Yang, Shu-Fen	15.660%
	WEI HE ENTERPRISE CO., LTD.	2.730%
WEI HE ENTERPRISE CO., LTD.	Yang, Hsiu-Han	99.997%
	Yang, Yu-Ching	0.003%
HAO DA ENTERPRISE CO., LTD.	Yang, Yu-Ching	99.997%
	Yang, Yung-Fa	0.003%
QIAO ZHI YANG Co., Ltd.	Yang, Yung-Fa	99.997%
	Yang, Hsiu-Han	0.003%
HAO DA ENTERPRISE CO., LTD.	Yang, Li Pi-Lien	97.155%
	Yang, Ching-Hsiang	2.642%
	Yang, Shu-Fen	0.203%
KGI Life Insurance Co., Ltd.	China Development Financial Holding Corp.	100.000%

Disclosure of Information on Professional Knowledge, Diversity, and Independence of Directors

| Diversity
Director Name | Basic Composition | | | | Professional Knowledge and Skills | | | | | Professional Capabilities and Experience | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Nationality | Gender | Employee Status | Age | Marketing | Finance and Accounting
Taxation | Environmental Engineering | Operations Management | Circular Economy | Interactive Education | Operational Decision-Making and Business Development | Business Management and Service Research & Development | Business Management and Crisis Handling | Industry Knowledge | International Market Perspective | Leadership Decision-Making | Environmental Sustainability and Social Participation |
| Cheng, Kuang-Chieh
Chairman | R.O.C | Male | None | 51~60 | | | | V | V | V | V | | V | V | V | | V |
| Chuang, Jui-Yuan
Director | R.O.C | Male | None | 51~60 | | V | | V | V | | | V | V | V | V | | V |
| Wu, Chun-I Director | R.O.C | Male | None | 41~50 | V | | | V | | | | | V | | | V | V |
| Chen, Tsung-Tien
Director | R.O.C | Male | None | 61~70 | V | V | | V | | | V | V | | V | V | | |
| Yang, Yang-Fa
Director | R.O.C | Male | None | 31~40 | | | V | V | V | | V | | V | V | V | V | V |
| Chen, Yu-Hsien
Director | R.O.C | Male | None | 41~50 | | | V | V | V | | | | V | | V | | |
| Fang, Yao-Hua
Independent Director | R.O.C | Male | None | 41~50 | | V | | | V | | | V | | V | V | | |
| Wei, Kuo-Yen
Independent Director | R.O.C | Male | None | 71~80 | | | V | V | V | V | | | | V | V | V | |
| Wang, Yu-Ling
Independent Director | R.O.C | Female | None | 41~50 | | | | V | | V | V | | V | V | | V | |

(1) Considering the current 9 members of the Company's Board of Directors, they collectively possess diverse capabilities and experiences in business judgment and business development, accounting and financial analysis, business management and service research & development, risk management and crisis handling, industry knowledge, international market perspective, leadership decision-making, as well as environmental sustainability and social participation.

(2) All Board members are of domestic nationality; female members account for 11.11%; there are no directors with employee status; the age distribution of members includes 1 member aged 31-40, 4 members aged 41-50, 2 members aged 51-60, 1 member aged 61-70, and 1 member aged 71-80.

(3) The aspects of diversity, complementarity, and implementation of the Board of Directors already include the standards stipulated in Article 20 of the Company's "Corporate Governance Code"; in the future, the diversity policy will still be amended as appropriate based on the operation of the Board of Directors, business model, and development needs, including but not limited to standards in two major aspects: basic conditions and values, and professional knowledge and skills, to ensure that Board members generally possess the knowledge, skills, and literacy necessary to perform their duties.

(4) The achievement status of specific management objectives for the Board of Directors' diversity policy is as follows:

Management Objectives	Achievement Status
The number of directors concurrently serving as the Company's managerial officers should not exceed one-third of the Board seats	Achieved
The Board of Directors should include at least one female director	Achieved
The consecutive term of independent directors should not exceed three terms	Achieved

(5) Independence:

The Company's 3 independent directors (accounting for 33.3% of all Board members) meet the qualification requirements stipulated in the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" issued by the Financial Supervisory Commission, both before and after taking office. The Company's Board of Directors consists of 9 directors, including 3 independent directors, 3 natural person directors, and 3 corporate representative directors. None of the directors concurrently serve as employees of the Company, which demonstrates the high independence of the Board of Directors.

Among the Company's 9 directors, except for Yang, Yung-Fa and Chen, Yu-Hsien who are relatives by marriage within the second degree of kinship, the remaining directors do not have spousal relationships or relationships within the second degree of kinship, and there are no circumstances stipulated in Paragraphs 3 and 4 of Article 26-3 of the Securities and Exchange Act.

The Company's Board of Directors is committed to continuously evaluating the independence of directors, taking into consideration all relevant factors, including: whether the relevant directors can continue to raise constructive questions to management and other directors, whether the views expressed are independent from management or other directors, and whether their words and actions inside and outside the boardroom are appropriate. The Company's directors, under appropriate circumstances, are able to meet expectations and demonstrate the above qualities.

(II) President, Vice President, Assistant Manager and Information of Department and Branch Heads

April 30, 2025; Unit: Shares; %

Title	Nationality	Name	Gender	Date of Appointment	Shares Held		Shares held by spouse and minor children		Shares Held in the Name of Others		Major Experience (Education)	Current Positions Held at Other Companies	Managerial Officers Who Are Spouses or Within the Second Degree of Kinship			Status of Managerial Officers' Acquisition of Employee Stock Options	Notes
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Title	Name	Relationship
President	R.O.C	Chang, Chi-Ta	Male	2019/5/1	80,000	0.09%	-	-	-	-	Institute of Natural Resources Management, National Taipei University Deputy Executive Director of Taiwan Green Productivity Foundation	None	-	-	-	-	-
Vice President	R.O.C	Li, Shu-Hua	Female	2001/5/9	224,263	0.24%	100,000	0.11%	-	-	Department of International Business, Ming Chuan University Planning Section Manager of CHINA ELECTRIC MFG. CORP.	None	-	-	-	-	-
Plant Manager	R.O.C	Cheng, Jen-Chang	Male	2006/4/13	1,059,107	1.15%	13,068	0.01%	-	-	Department of Business Administration, National Cheng Kung University Section Manager of TYC BROTHER INDUSTRIAL CO, LTD.	None	-	-	-	-	-
Chief Finance Officer	R.O.C	Shih, Hsiu-Wei	Male	2019/3/4	-	-	-	-	-	-	Department of Accounting, National Chengchi University Deloitte & Touche	None	-	-	-	-	-

(III) Remuneration Paid to Directors, Supervisors, President and Vice Presidents in the Recent Year (2024)

Remuneration of Directors (Including Independent Directors)

December 31, 2024; Unit: NT$ thousand; %

Title	Name	Directors' Remuneration								Total of A, B, C and D, and the Ratio to Net Income After Tax	Remuneration for Concurrent Employment as Employees								Total Amount of A, B, C, D, E, F, and G as a Percentage of Net Income After Tax (%)	Remuneration Received from Invested Companies Other Than Subsidiaries or Parent Company
		Compensation (A)		Severance Pay and Pensions (B)		Director's Remuneration (C)		Business Execution Expenses (D)				Salary, Bonuses, and Special Allowances, etc. (E)		Pension/ Retirement Benefits (F)		Employee Compensation (G)
		The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report	All Companies in the Financial Report		The Company		All Companies in the Financial Report			The Company	All Companies in the Financial Report
														Cash amount	Stock amount	Cash amount	Stock amount	Cash amount	Stock amount
Chairman	Cheng, Kuang-Chieh	13,568	13,568	-	-	2,600	2,600	240	240	16,408 (4.01%)	16,408 (4.01%)	-	-	-	-	-	-	-	-	16,408 (4.01%)	16,408 (4.01%)	-
Director	Chuang, Jui-Yuan
Director	Lien, Cheng-Yu (Note)
Director	Representative of Cleanaway Company Limited: Chen, Tsung-Tien
Director	Representative of Cleanaway Company Limited: Yang, Yung-Fa
Director	Representative of Cleanaway Company Limited: Chen, Yu-Hsien
Independent Director	Fang, Yao-Hua	1,080	1,080	-	-	-	-	114	114	1,194 (0.29%)	1,194 (0.29%)	-	-	-	-	-	-	-	1,194 (0.29%)	1,194 (0.29%)	-
Independent Director	Wei, Kuo-Yen
Independent Director	Wang, Yu-Ling

Note 1: Please explain the policy, system, standards, and structure for Independent Director compensation, and describe the relationship between the compensation amount and factors such as responsibilities, risks, and time commitment: Independent Director compensation is primarily determined by the Remuneration Committee in accordance with the Company's "Director and Functional Committee Compensation Regulations". Independent Directors who concurrently serve as members of functional committees do not receive compensation for these additional positions.
Note 2: In addition to what is disclosed in the above table, remuneration received by company directors in the most recent year for services provided (such as serving as non-employee consultants to the parent company/all companies in the financial report/invested businesses): None.

Remuneration Range Table

Remuneration Ranges Paid to Each Director of the Company	Director Name
	Total of First Four Items of Remuneration (A+B+C+D)		Total of First Seven Items of Remuneration (A+B+C+D+E+F+G)
	The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report
Less than NT$1,000,000	Chuang, Jui-Yuan, Wu, Chun-I, Representative of Cleanaway Company Limited: Chen, Tsung-Tien, Representative of Cleanaway Company Limited: Yang, Yung-Fa, Representative of Cleanaway Company Limited: Chen, Yu-Hsien, Fang, Yao-Hua, Wei, Kuo-Yen, Wang, Yu-Ling	Chuang, Jui-Yuan, Wu, Chun-I, Representative of Cleanaway Company Limited: Chen, Tsung-Tien, Representative of Cleanaway Company Limited: Yang, Yung-Fa, Representative of Cleanaway Company Limited: Chen, Yu-Hsien, Fang, Yao-Hua, Wei, Kuo-Yen, Wang, Yu-Ling	Chuang, Jui-Yuan, Wu, Chun-I, Representative of Cleanaway Company Limited: Chen, Tsung-Tien, Representative of Cleanaway Company Limited: Yang, Yung-Fa, Representative of Cleanaway Company Limited: Chen, Yu-Hsien, Fang, Yao-Hua, Wei, Kuo-Yen, Wang, Yu-Ling	Chuang, Jui-Yuan, Wu, Chun-I, Representative of Cleanaway Company Limited: Chen, Tsung-Tien, Representative of Cleanaway Company Limited: Yang, Yung-Fa, Representative of Cleanaway Company Limited: Chen, Yu-Hsien, Fang, Yao-Hua, Wei, Kuo-Yen, Wang, Yu-Ling
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive)	-	-	-	-
NT$2,000,000 (inclusive) ~ NT$3,500,000 (exclusive)	-	-	-	-
NT$3,500,000 (inclusive) ~ NT$5,000,000 (exclusive)	-	-	-	-
NT$5,000,000 (inclusive) ~ NT$10,000,000 (exclusive)	-	-	-	-
NT$10,000,000 (inclusive) ~ NT$15,000,000 (exclusive)	Cheng, Kuang-Chieh	Cheng, Kuang-Chieh	Cheng, Kuang-Chieh	Cheng, Kuang-Chieh
NT$15,000,000 (inclusive) ~ NT$30,000,000 (exclusive)	-	-	-	-
NT$30,000,000 (inclusive) ~ NT$50,000,000 (exclusive)	-	-	-	-
NT$50,000,000 (inclusive) ~ NT$100,000,000 (exclusive)	-	-	-	-
NT$100,000,000 or above	-	-	-	-
Total	Total of 9 people	Total of 9 people	Total of 9 people	Total of 9 people

Remuneration of supervisors: Not applicable.

3. Remuneration of President and Vice President

December 31, 2024; Unit: NT$ thousand

Title	Name	Salary (A)		Severance Pay and Pensions (B)		Bonuses and Allowances (C)		Employee Compensation Amount (D)				Total of A, B, C and D, and the Ratio to Net Income After Tax		Remuneration Received from Invested Companies Other Than Subsidiaries or Parent Company
		The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report	The Company	All Companies in the Financial Report	The Company		in the Financial Report All Companies		The Company	All Companies in the Financial Report
								Cash amount	Stock amount	Cash amount	Stock amount
President	Chang, Chi-Ta	4,642	4,642	378	378	7,800	7,800	240	-	240	-	13,060 (3.19%)	13,060 (3.19%)	-
Vice President	Li, Shu-Hua

Remuneration Range Table

Range of Remuneration Paid to Each President and Vice President of the Company	Name of President and Vice Presidents
	The Company	All Companies in the Financial Reports (E)
Less than NT$1,000,000	-	-
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive)	-	-
NT$2,000,000 (inclusive) ~ NT$3,500,000 (exclusive)	-	-
NT$3,500,000 (inclusive) ~ NT$5,000,000 (exclusive)	-	-
NT$5,000,000 (inclusive) ~ NT$10,000,000 (exclusive)	Chang, Chi-Ta; Li, Shu-Hua	Chang, Chi-Ta; Li, Shu-Hua
NT$10,000,000 (inclusive) ~ NT$15,000,000 (exclusive)	-	-
NT$15,000,000 (inclusive) ~ NT$30,000,000 (exclusive)	-	-
NT$30,000,000 (inclusive) ~ NT$50,000,000 (exclusive)	-	-
NT$50,000,000 (inclusive) ~ NT$100,000,000 (exclusive)	-	-
NT$100,000,000 or above	-	-
Total	Total of 2 people	Total of 2 people

Names of managerial officers and the distribution of employee compensation:

March 31, 2025; Unit: NT$ thousand

	Title	Name	Stock amount	Cash amount	Total	Ratio of total amount to net income after tax (%)
Managerial Officer:	President	Chang, Chi-Ta	-	480	480	0.12%
	Vice President	Li, Shu-Hua
	Plant Manager	Cheng, Jen-Chang
	Chief Finance Officer	Shih, Hsiu-Wei

(IV) Comparative analysis of the ratio of total compensation paid to the Directors, Supervisors, President, and Vice Presidents of the Company and all companies in the consolidated financial statements to net income after tax in the most recent two years, along with an explanation of the compensation policy, standards and combinations, the procedures for determining compensation, and its correlation with operating performance and future risks:

Analysis of the ratio of compensation paid to the Directors, Supervisors, President, and Vice Presidents of the Company to net income after tax in the most recent two years

Unit: NT$ thousand

	The Company		All Companies in the Financial Report
	Total compensation	Ratio to net income after tax	Total compensation	Ratio to net income after tax
2023	22,244	8.73%	22,244	8.73%
2024	30,662	7.49%	30,662	7.49%

The total compensation of the Directors, President and Vice President of the Company and all companies in the financial report as a ratio to net income after tax decreased by $1.24\%$ in 2024 compared to 2023. The Company's compensation over the past 2 years has been distributed within the range of $7\% \sim 8\%$ of after-tax profit or loss. Although the scale is affected by the Company's operational performance, the overall structure remains relatively fixed. Adjustments are mainly made considering inflation and project performance to ensure the compensation is reasonable and competitive in the market.

Policies, standards and composition of compensation payment, procedures for determining compensation, and its relationship with operating performance and future risks

The Company's compensation policy includes employee and director compensation stipulated in the Company's Articles of Incorporation, which is approved by the Board of Directors and reported to the shareholders' meeting. The payment methods for Directors and President compensation follow the Company's salary management regulations (including compensation regulations for Directors and functional committees, managerial officers' compensation management regulations, Board performance evaluation regulations, etc.) and reference industry salary levels. Based on performance compensation implementation guidelines, the Company considers overall operational performance, takes into account future operational risks, and references individual performance achievement rates and contributions to provide reasonable compensation.

Relationship between performance evaluation and compensation for Directors and managerial officers:

The proportion of compensation allocated to the Company's Directors and managerial officers follows Article 21 of the Company's Articles of Incorporation, which stipulates that if the Company makes a profit before tax for the year, no less than one percent shall be allocated as employee compensation, to be distributed in the form of stock or cash as resolved by the Board of Directors. The recipients include employees of subsidiaries who meet certain conditions. The Company may, from the aforementioned profit, allocate no more than five percent as compensation for Directors by resolution of the Board of Directors.

To regularly evaluate the compensation of Directors and managerial officers, their remuneration is based on their level of participation in the Company's operations and individual performance contributions. The Company assesses ethical risk events involving Directors and managerial officers or other risks that negatively impact the Company's image and reputation, internal management deficiencies, or personnel misconduct. The compensation ratio is calculated after comprehensive consideration of Directors' and managerial officers' target achievement rates, profitability, operational efficiency, and contributions, providing reasonable compensation. The Company also reviews the compensation system for Directors and managerial officers in a timely manner according to actual operational conditions and relevant regulations.

II. Corporate Governance Operations

(I) Board of Directors Operations

The Board of Directors of the Company held a total of 9 meetings in the most recent year (2024) and up to April 30, 2025. The attendance of Directors and Independent Directors is as follows:

Title	Name	Actual Attendance (Presence) Count [B]	Number of Proxy Attendance	Actual Attendance (Presence) Rate (%) [B/A]	Notes
Chairman	Cheng, Kuang-Chieh	9	0	100.00	-
Director	Chuang, Jui-Yuan	8	1	88.89	-
Director	Wu, Chun-I	7	0	77.78
Corporate Director	CLEANAWAY Co., Ltd. Representative: Yang, Yung-Fa	9	0	100.00	-
Corporate Director	CLEANAWAY Co., Ltd. Representative: Chen, Yu-Hsien	9	0	100.00	-
Corporate Director	CLEANAWAY Co., Ltd. Representative: Chen, Tsung-Tien	9	0	100.00	-
Independent Director	Fang, Yao-Hua	9	0	100.00
Independent Director	Wei, Kuo-Yen	6	0	66.67
Independent Director	Wang, Yu-Ling	8	0	88.89
Other matters to be recorded:
I. If any of the following circumstances occurs in the operation of the Board of Directors, the date and session of the Board meeting, the content of proposals, the opinions of all Independent Directors, and the company's handling of the Independent Directors' opinions shall be specified:
(1) The matters listed in Article 14-3 of the Securities and Exchange Act: The Company has established an Audit Committee, please refer to the "Operation of the Audit Committee".
(2) Other matters resolved by the Board of Directors, except for the aforementioned matters, which Independent Directors have objected to or expressed reservations about and for which there are records or written statements: None.
II. The implementation of recusal by Directors for proposals with conflicts of interest shall specify the name of the Director, the content of the proposal, the reason for recusal due to conflicts of interest, and the participation in voting:

Board Meeting Date	Director Name	Proposal Content	Reason for Recusal due to Conflicts of Interest	Participation in Voting
2024.03.13	Fang, Yao-Hua, Wei, Kuo-Yen, Wang, Yu-Ling	Distribution of Individual Remuneration for the Company's Independent Directors for the Year 2023	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting
2024.03.13	Cheng, Kuang-Chieh, Chuang, Jui-Yuan, Chen, Tsung-Tien, Yang, Yung-Fa, Chen, Yu-Hsien, Wu, Chun-IWu, Chun-I	Distribution of Individual Remuneration for the Company's Non-Independent Directors for the Year 2023	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting
2024.05.13	Cheng, Kuang-Chieh, Chuang, Jui-Yuan, Chen, Tsung-Tien, Yang, Yung-Fa, Chen, Yu-Hsien, Wu, Chun-IWu, Chun-I	Related Proposals Between the Company and Its Reinvestment - Cleaway Energy Co., Ltd. from 2021 to May 2024	As they held or currently hold important positions in the company's group or have investment relationships, they have a personal interest in this case	Recused from discussion and did not participate in voting
2024.07.18	Cheng, Kuang-Chieh, Chen, Tsung-Tien, Yang, Yung-Fa	Major Contract Case Between the Company and Chase Sustainability Technology Corporation	As they currently hold important positions in that company, they have a personal interest in this case	Recused from discussion and did not participate in voting
2024.11.13	Cheng, Kuang-Chieh	Mercury Waste Project Performance Bonus Case	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting
2024.12.18	Wei, Kuo-Yen	2025 Compensation Case for Independent Director WEI, KUO-YEN	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting
2024.12.18	Wang, Yu-Ling	2025 Compensation Case for Independent Director WANG, YU-LING	Involved in personal remuneration, having a personal interest in this case	Took leave, did not participate in discussion and voting
2024.12.18	Fang, Yao-Hua	2025 Compensation Case for Independent Director FANG, YAO-HUA	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting

2024.12.18	Yang, Yung-Fa, Chen, Yu-Hsien, Chen, Tsung-Tien, Wu, Chun-I	Case of Providing Loan to CLEANAWAY ENERGY COMPANY LIMITED	Due to currently holding a senior position within the company's group or having investment relationships, they have a personal interest in this case	Except for WU, CHUN-I who took leave and did not participate in discussion and voting, all others recused themselves from discussion and did not participate in voting
2024.12.18	Fang, Yao-Hua, Wei, Kuo-Yen, Wang, Yu-Ling	2025 Independent Director Compensation Case	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting
2024.12.18	Cheng, Kuang-Chieh	2024 Year-End Bonus Case for Chairman and Managerial Officers	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting
2024.12.18	Cheng, Kuang-Chieh	2025 Compensation Case for Chairman and Managerial Officers	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting
2025.03.11	Cheng, Kuang-Chieh, Chuang, Jui-Yuan, Chen, Tsung-Tien, Yang, Yung-Fa, Chen, Yu-Hsien, Wu, Chun-IWu, Chun-I	2024 Individual Compensation Distribution Case for Non-Independent Directors of the Company	Involved in personal remuneration, having a personal interest in this case	Recused from discussion and did not participate in voting

III. Listed companies should disclose information about the board of directors' self (or peer) evaluation cycle and period, evaluation scope, method, and evaluation content:
The Company has passed the "Performance Evaluation Measures for the Board of Directors and Functional Committees" at the board meeting on September 8, 2022, and implemented the annual performance evaluation of the board of directors in 2024. The evaluation scope, method, and content are as follows:

Evaluation Cycle	Evaluation Period	Evaluation Scope	Evaluation Method	Evaluation Content
Conducted once a year	2024/1/1~2024/12/31	Performance evaluation of the Board of Directors, individual directors, and functional committees (Remuneration and Audit Committees)	Internal self-evaluation of the Board of Directors, self-evaluation of individual directors, self-evaluation of functional committee members	Board of Directors Performance Evaluation: Including level of participation in company operations, quality of board decisions, board composition and structure, director selection and continuing education, internal control. Individual Director Performance Evaluation: Including understanding of company goals and missions, awareness of director responsibilities, level of participation in company operations, internal relationship

				management and communication, director's expertise and continuing education, internal control. Functional Committee Performance Evaluation: Level of participation in company operations, awareness of functional committee responsibilities, quality of functional committee decisions, functional committee composition and member selection, internal control.
The Company has established the "Board of Directors Performance Evaluation Measures," with the scope of evaluation including the overall Board of Directors, functional committees' performance evaluation, and individual director evaluation. The evaluation methods include internal self-evaluation of the Board or other appropriate methods to conduct performance evaluation. According to these measures, performance evaluations are conducted regularly every year and completed before the end of the first quarter of the following year, to serve as a reference basis for the selection or nomination of directors and committee members. The Board of Directors performance evaluation for 2024 was completed by the end of February 2025 in accordance with the "Board of Directors and Functional Committees Performance Evaluation Measures. The evaluation scores for the Board of Directors, functional committees' performance, and directors' self-evaluation for 2024 reflect that their overall operations are satisfactory. The evaluation results were submitted to the 19th meeting of the 8th Board of Directors on March 11, 2025, for reporting.
IV. Goals and Implementation Status of Strengthening Board Functions for the Current and Recent Years: The Company has established the "Board of Directors Meeting Regulations" to effectively establish a board governance system and strengthen its supervisory function. All important proposals are announced on the Market Observation Post System in accordance with the law to achieve full information disclosure and protect shareholders' rights. In addition, the Company has appointed three Independent Directors, who collectively form the Audit Committee and the Remuneration Committee to implement the spirit of corporate governance. Members of the Board of Directors continue to participate in training courses related to corporate governance themes, enriching their knowledge and enhancing exchanges, in order to continuously improve the functions of the Board of Directors. To encourage continuous education for Directors, the Company regularly arranges corporate governance-related courses for Directors and provides information about courses offered by external training institutions for Directors' reference. The Company continues to maintain "Directors and Officers Liability Insurance" to reduce potential risks that may cause damage to the Company and its shareholders.

(II) Operation of the Audit Committee

In the most recent year (2023) and through April 30, 2024, the Audit Committee held a total of 9 meetings [A], with Independent Directors' attendance as follows:

Title	Name	Number of Actual Attendance [B]	Number of Proxy Attendance	Actual Attendance Rate (%) [B/A]	Notes
Independent Director	Fang, Yao-Hua	9	0	100.00	-
Independent Director	Wang, Yu-Ling	9	0	100.00	-
Independent Director	Wei, Kuo-Yen	5	0	55.56	-
Other matters to be recorded: I. If any of the following circumstances occur in the operation of the Audit Committee, the date of the Audit Committee meeting, session, proposal content, Independent Directors' objections, reservations or significant recommendations, the resolution results of the Audit Committee, and the company's response to the Audit Committee's opinions shall be specified: (1) Matters listed in Article 14-5 of the Securities and Exchange Act
Audit Committee Date/Session		Proposal Content		Audit Committee Resolution Results	Company's Response to the Audit Committee's Opinions
The 6th Meeting of the 1st Term 2024.03.13		1. The Company's 2023 Business Report and Financial Statements 2. 2023 "Statement of Internal Control System" Case 3. Proposed Amendment to the Company's Management Regulations 4. 2024 CPA Independence, Competence, Appointment and Remuneration Case		All attending committee members unanimously approved	All attending directors unanimously approved
The 7th Meeting of the 1st Term 2024.04.22		1. Review of the Statement of Internal Control System.		All attending committee members unanimously approved	All attending directors unanimously approved
The 8th Meeting of the 1st Term 2024.05.13		1. Review of the consolidated financial report for the first quarter of 2024 2. Expansion of Chung Tai Plant 1 Phase II		All attending committee members unanimously approved	All attending directors unanimously approved
The 9th meeting of the 1st term 2024.07.18		1. Proposed amendments to the "Management Regulations for Legal and Regulatory Compliance 2. Proposed amendments to the Internal Control System - Management Control Operations (adding management of legal and regulatory compliance matters) and Internal Audit Implementation Rules (adding audit		All attending committee members unanimously approved	All attending directors unanimously approved
		of the 2024 CPA Independence, Competence, Appointment and Remuneration

| | procedures for the management of legal and regulatory compliance matters)
3. The Company proposes to conduct a cash capital increase prior to its initial listing
4. The major contract case between the Company and Chase Sustainability Technology Co., Ltd. | | |
| --- | --- | --- | --- |
| The 10th meeting of the 1st term 2024.08.07 | 1. The Company's consolidated financial report for the first half of 2024
2. The CPA's non-audit fee compensation case | All attending committee members unanimously approved | All attending directors unanimously approved |
| The 11th meeting of the 1st term 2024.11.13 | 1. The Company's consolidated financial report for the third quarter of 2024
2. Proposed addition of "Sustainability Information Management Regulations
3. Proposed amendments to the Company's "Internal Control System" and "Internal Audit Implementation Rules | All attending committee members unanimously approved | All attending directors unanimously approved |
| The 12th meeting of the 1st term 2024.12.18 | 1. Amendment of Certain Articles of the Company's Articles of Incorporation.
2. Proposed amendments to the "Audit Committee Charter
3. Case of Lending Funds to CLEANAWAY ENERGY COMPANY LIMITED
4. Establishing the Company's 2025 Internal Audit Plan | All attending committee members unanimously approved | All attending directors unanimously approved |
| The 13th meeting of the 1st term 2025.03.11 | 1. The Company's business report and financial statements for the year 2024
2. Proposed amendment to the Company's "Internal Control System - Payroll Cycle
3. "Statement of Internal Control System" for the year 2024 | All attending committee members unanimously approved | All attending directors unanimously approved |
| The 14th meeting of the 1st term 2025.04.21 | The selection of CPAs for the Company from fiscal year 2025 to the first quarter of fiscal year 2028 | All attending committee members unanimously approved | All attending directors unanimously approved |
| (2) Besides the aforementioned matters, other resolutions that were not approved by the Audit Committee but were approved by more than two-thirds of all directors: None.
II. Implementation of recusal by independent directors from proposals with conflicts of interest; the name of the independent director, the content of the proposal, the reason for recusal due to conflict of interest, and the status of voting participation shall be stated: None.
III. Communication between independent directors and the Internal Audit Manager and CPAs (including significant matters, methods, and results of communication regarding the Company's financial and business status)
(1) The Company's Internal Audit Manager regularly provides audit reports to independent directors and, when necessary, may communicate via telephone, mail, or text messages at any time. The Internal Audit Manager also attends Audit Committee meetings to provide recommendations and explanations when committee members require relevant information.
After the Company's Internal Audit Manager has the audit reports and follow-up reports | | | |

approved, the audit reports and follow-up reports are delivered to each Audit Committee member before the end of the month following the completion of the audit items, and are reported at the quarterly Audit Committee meetings, with smooth communication between both parties. The Company's Internal Audit Manager also maintains smooth communication channels with the CPAs, and in accordance with the regulations of the competent authority, a copy of the next year's audit plan, the implementation status of the previous year's annual audit plan, and the improvement status of internal control deficiencies and abnormal events during the year are sent to the CPAs for reference after the reporting procedure is completed.

(2) The Company's CPAs explain financial statement review or audit-related matters to independent directors through written or face-to-face communication. Independent directors may also provide opinions through the same methods and can communicate fully via telephone, mail, or text messages when necessary. During this period, the CPAs have assigned personnel to attend Board meetings to facilitate real-time communication with independent directors. In addition, the CPAs conducted independent communications with the Audit Committee on March 13, 2024, December 18, 2024, and March 11, 2025, respectively. The communication items included audit planning, audit results, Audit Quality Indicators (AQI), etc., and the management team was recused during these processes.

(III) Information on the operations of the supervisors: Not applicable.

(IV) The operational status of corporate governance and the differences from and reasons for variance with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies

Evaluation Item	Implementation Status			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
	Yes	No	Summary Description
I. Has the Company formulated and disclosed corporate governance principles based on the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies"?	✓		The Company has established Corporate Governance Best Practice Principles with relevant regulations regarding the protection of shareholders' rights, strengthening the functions of the Board of Directors, respecting the rights of stakeholders, and enhancing information transparency.	No significant differences from the Corporate Governance Best Practice Principles.
II. Company Ownership Structure and Shareholders' Rights

Evaluation Item	Implementation Status			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
	Yes	No	Summary Description
(I) Has the Company established internal operating procedures to handle shareholder suggestions, concerns, disputes, and litigation matters, and are these procedures implemented accordingly?	☑		The Company has established internal procedures for handling material information and has appointed a spokesperson and deputy spokesperson to handle shareholder suggestions or disputes.	No significant differences from the Corporate Governance Best Practice Principles.
(II) Does the Company maintain awareness of the list of major shareholders who actually control the Company and the ultimate controllers of these major shareholders?	☑		The Company accurately tracks the shareholding status of major shareholders, directors, and managers based on the shareholder register provided by the stock affairs agency during book closure periods. In addition, changes in shareholdings of insiders (directors, managers, and shareholders holding more than ten percent of shares) are reported monthly to the Market Observation Post System designated by the competent authority.	No significant differences from the Corporate Governance Best Practice Principles.
(III) Has the Company established and implemented risk control and firewalls between itself and its affiliated enterprises?	☑		The Company has established procedures for related party transactions and relevant management regulations, and handles them in accordance with relevant laws and regulations, which can effectively establish risk control.	No significant differences from the Corporate Governance Best Practice Principles.
(IV) Has the Company established internal regulations prohibiting insiders from trading securities using undisclosed market information?	☑		The Company has established "Procedures for Handling Material Inside Information" and "Code of Ethical Conduct," and has formulated "Procedures for Handling Material Inside Information" in accordance with laws and regulations, which prohibit insiders from trading	No significant differences from the Corporate Governance Best Practice Principles.

A. Employees: Communication channels have been established such as periodic employee care, health supervision, labor-management meetings, and employee welfare committee meetings.

B. Shareholders/Investors: The Company treats all shareholders based on principles of fairness and transparency. In addition to convening annual shareholders' meetings in accordance with the Company Act and relevant regulations, the Company encourages shareholders to actively participate in making proposals and asking questions at shareholders' meetings.

C. Customers: Dedicated sales and customer service units respond promptly to customer needs, establishing a customer complaint feedback system to check the progress of issue resolution in real time; on-site customer audits and questionnaire responses; establishing quality management and | |

(V) Composition, Responsibilities, and Operation of the Remuneration Committee:

Information on the Operation of the Remuneration Committee

(1) The Remuneration Committee members are composed of the Company's three independent directors. For their years of service, professional qualifications, experience, and independence status, please refer to [Part II, 1, (1), 1. Directors' Names and Education/Experience, and 3. Disclosure of Directors' Professional Knowledge, Diversity, and Independence Information] in this annual report.

(2) The Company's Remuneration Committee consists of 3 members.

(3) During the most recent year (2024) and up to April 30, 2025, the Remuneration Committee held 5 meetings [A]. The qualifications and attendance of the committee members are as follows:

Title	Name	Number of Actual Attendance [B]	Number of Proxy Attendance	Actual Attendance Rate (%) [B/A]
Independent Director Convener	Wei, Kuo-Yen	2	0	40.00
Independent Director Committee Member	Wang, Yu-Ling	4	0	80.00
Independent Director Committee Member	Fang, Yao-Hua	5	0	100.00
Other matters to be recorded:
I. Meeting information of the Directors' Remuneration Committee:
Remuneration Committee Meeting Date/Session	Proposal Content		Resolution Results	The Company's Handling of the Remuneration Committee's Opinions
2024/3/13
The 5th Meeting of the 1st Term	1. Distribution of Employee and Director Compensation for the Company for the Year 2023
2. The Distribution of Individual Compensation for Non-Independent Directors of the Company for the Year 2023
3. The Distribution of Compensation for Independent Director WEI, KUO-YEN of the Company for the Year 2023
4. The Distribution of Compensation for Independent Director WANG, YU-LING of the Company for the Year 2023
5. The Distribution of Compensation for Independent Director FANG, YAO-HUA of the Company for the Year 2023		Approved by all attending committee members with the consent of the chairperson.	Submitted to the Board of Directors and approved by the resolution of other attending directors excluding directors who recused themselves due to conflicts of interest
2024/8/7
The 6th Meeting of the 1st Term	1. The managerial officers' subscription to shares in the issuance of new shares for cash capital increase		Approved by all attending committee members with the consent of the chairperson.	Submitted to the Board of Directors and approved by all attending directors.
2024/11/13
The 7th Meeting of the 1st Term	1. Mercury Waste Project Performance Bonus Case		Approved by all attending committee members with the consent of the chairperson.	Submitted to the Board of Directors and approved by the resolution of other attending directors excluding directors who recused themselves due to conflicts of interest

| 2024/12/18
The 8th Meeting
of the 1st Term | 1. Review of the Year-end Bonus for the Chairman and Managerial Officers for the Year 2024
2. Review of the Compensation for the Chairman and Managerial Officers for the Year 2025
3. Review of the Compensation for Independent Director Wei, Kuo-Yen for the Year 2025
4. Review of the Compensation for Independent Director WANG, YU-LING for the Year 2025
5. Review of the Compensation for Independent Director FANG, YAO-HUA for the Year 2025 | Approved by all attending committee members with the consent of the chairperson. | Submitted to the Board of Directors and approved by the resolution of other attending directors excluding directors who recused themselves due to conflicts of interest |
| --- | --- | --- | --- |
| 2025/3/11
The 9th meeting
of the 1st term | 1. Distribution of Employee and Director Compensation for the Company for the Year 2024
2. Distribution of Individual Compensation for Non-Independent Directors of the Company for the Year 2024 | Approved by all attending committee members with the consent of the chairperson. | Submitted to the Board of Directors and approved by the resolution of other attending directors excluding directors who recused themselves due to conflicts of interest |

II. If the Board of Directors does not adopt or modifies the recommendations of the Remuneration Committee, the date and term of the Board meeting, the content of the proposal, the resolution results of the Board, and the Company's handling of the Remuneration Committee's opinions should be specified (if the remuneration approved by the Board is better than the recommendation of the Remuneration Committee, the differences and reasons should be specified): No such situation occurred.

III. Regarding the resolutions of the Remuneration Committee, if members have objections or reservations with records or written statements, the date and term of the Remuneration Committee meeting, the content of the proposal, the opinions of all members, and the handling of these opinions should be specified: No such situation occurred.

Information and Operation of the Nomination Committee Members: The Company has not yet established a Nomination Committee.

(VI) Status of Promoting Sustainable Development and Differences from and Reasons for Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies

Evaluation Item	Implementation Status			Differences from and Reasons for Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
I. Has the company established a governance structure to promote sustainable development, set up a dedicated (or part-time) unit to promote sustainable development, authorized senior management to handle it, and does the Board of Directors supervise the implementation?	✓		The Company has established the "Corporate Social Responsibility Practice Principles," which was approved by the Board of Directors' resolution on September 16, 2022, and reported at the extraordinary shareholders' meeting on December 2, 2022. The Company approved the establishment of the "Sustainable Development Committee Charter" at the Board of Directors meeting on April 12, 2024, and on July 18, 2024, nominated and appointed members to the Sustainable Development Committee in accordance with the aforementioned charter to achieve the Company's sustainable development goals. The committee convener is the Company's Independent DirectorFang, Yao-Hua, and the Company's President Chang, Chi-Ta serves concurrently as the Chief Sustainability Officer. Four subgroups have been established: "Corporate Governance," "Sustainable Environment," "Social Welfare," and "Sustainability Information Disclosure. Cross-departmental subgroups execute	No significant difference.
			the development of the "Sustainable Development Plan." The Company has established the "Corporate Governance" as the "Sustainable Environment Plan" and "Sustainability Information Disclosure." The Board of Directors have established the "Corporate Governance Plan" and the "Sustainability Information Disclosure." The Company has established the "Corporate Governance Plan" and the "Sustainability Information Disclosure." The Board of Directors have established the "Sustainability Information Disclosure."

Evaluation Item	Implementation Status
	Yes	No	Summary Description
			operations, compile implementation plans or other sustainability-related matters, which are consolidated by the Sustainable Development Committee and regularly reported to the Board of Directors on implementation results.
The Company's most recent sustainability report preparation (for 2022 and 2023) was approved by the Board of Directors on August 7, 2024. The sustainable development plans and strategies for 2025 were reported to the Board of Directors on December 19, 2024.
II. Does the company conduct risk assessments on environmental, social, and corporate governance issues related to company operations in accordance with the materiality principle, and establish relevant risk management policies or strategies?	☑		The scope of sustainability development promotion is consistent with the entities included in Chung Tai Resource Technology's consolidated financial statements.
In accordance with the materiality principle, assessments are conducted to ensure that environmental, social, and corporate governance (ESG) issues related to company operations are adequately identified and managed. This involves collecting ESG issues relevant to the company, then analyzing the impact of each issue through four identification factors (degree of impact, scope of impact, reversibility, and probability of occurrence), and ranking them according	No significant difference.

(VII) Climate-related Information for Listed Companies

Implementation Status of Climate-related Information

Items	Implementation Status
1. Describe the supervision and governance of climate-related risks and opportunities by the board of directors and management.	The Board of Directors plans to formally incorporate climate issues into governance matters in 2025, and will supervise them through quarterly reports at Sustainability and Occupational Safety and Health meetings. The Board of Directors will provide strategic guidance and resource support for the management progress of climate risks and opportunities, and support the Sustainability Development Committee in promoting related work, enabling the commitments of senior management to be transformed into concrete actions. In the future, the Board will also regularly review the progress of climate-related strategies and targets to ensure that the Company is moving toward sustainable transformation.
2. Describe how the identified climate risks and opportunities affect the	We have preliminarily identified several climate change-related risks and opportunities. Among these,

Items

Implementation Status

1. Describe the supervision and governance of climate-related risks and opportunities by the board of directors and management.

The Board of Directors plans to formally incorporate climate issues into governance matters in 2025, and will supervise them through quarterly reports at Sustainability and Occupational Safety and Health meetings. The Board of Directors will provide strategic guidance and resource support for the management progress of climate risks and opportunities, and support the Sustainability Development Committee in promoting related work, enabling the commitments of senior management to be transformed into concrete actions. In the future, the Board will also regularly review the progress of climate-related strategies and targets to ensure that the Company is moving toward sustainable transformation.

2. Describe how the identified climate risks and opportunities affect the

We have preliminarily identified several climate change-related risks and opportunities. Among these,

Items	Implementation Status
company's business, strategy, and finances (short-term, medium-term, long-term).	the physical risks of "extreme climate" (including heavy rainfall, drought, high temperatures, low temperatures, and typhoons) may lead to increased operational safety risks for employees and property damage in the short term. In the medium term, water resource tensions could affect the stable operation of incineration equipment at Plant 1 and PCB recycling equipment at Plant 3. If the frequency of extreme climate events continues to rise in the future, it will increase equipment maintenance and insurance costs, impacting operational resilience.
On the other hand, the company also pays attention to opportunities brought by climate transition, including the promotion of low-carbon circular economy policies, increased application of renewable energy, and enhanced potential for waste resource recovery. In the medium to long term, the company will evaluate green electricity procurement, energy-saving retrofits, and carbon inventory mechanisms to expand its green business layout in line with net-zero trends, strengthen competitive advantages, and attract sustainability-oriented investors.
3. Describe the financial impact of extreme climate events and transition actions.	Extreme climate events such as heavy rainfall, drought, high temperatures, etc., may impact the Company's plant operations and infrastructure. For example, heavy rainfall may cause delays in waste collection, compressing processing time, equipment damage, and increased maintenance costs for disaster prevention facilities; drought may limit water use for recycling and incineration processes, requiring additional purchases of industrial water or temporary suspension of specific processes, increasing operational costs. High and low temperatures will also affect employee health and scheduling efficiency, causing fluctuations in labor productivity.
On the climate transition front, with the advancement of domestic carbon fee systems and green procurement policies, the company may face carbon emission costs or customer carbon reduction requirements in the future. For example, if energy conservation and green electricity are not introduced early in energy use, operating costs may increase or certain government and large enterprise tenders may be lost. In the long term, the company must plan capital expenditures in advance (such as in-plant energy-saving renovations, green electricity procurement, or carbon inventory system

Items	Implementation Status
	implementation) to control financial impacts during the transition process.
4. Explain how the climate risk identification, assessment, and management processes are integrated into the overall risk management system.	The Company has completed preliminary climate risk identification in 2024, and through cross-departmental meetings confirmed that extreme climate is the main source of physical risk, covering scenarios such as heavy rain, drought, high temperatures, low temperatures, and typhoons, and has discussed and documented their potential impacts on operational safety and process stability. Subsequently, we will expand the assessment of transition risks (such as carbon fees, green procurement, etc.), and classify and manage them according to their probability of occurrence and degree of impact.
The company has planned to formally incorporate the climate risk management mechanism into the existing risk inventory process in 2025, and include it in the annual operational risk assessment and internal audit review mechanism. Risk items will be included in the risk reporting responsibilities of each department, with the Sustainability Development Committee coordinating integration and conducting regular reviews, to strengthen the resilience and forward-looking nature of the company's overall risk management system.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and main financial impacts used should be explained.	Currently, the Company has not yet implemented climate scenario analysis tools; however, we recognize that they are helpful for assessing operational risks and financial impacts under different future climate conditions. The company will continue to pay attention to the practical applications and guidance resources for this tool from peers, consultants, and government agencies, and will gradually evaluate the timing and methods of implementation based on actual needs and technical maturity.
We preliminarily plan to reference climate change trends published by government and international climate organizations (such as the UN's IPCC) to simulate and make simple projections of potential scenarios including extreme weather, water resources, operational interruptions, and rising carbon fees under future climate condition changes. In the future, if further modeling tools become available, they will be incorporated as reference bases for equipment investment, facility planning, and risk management, to strengthen the company's adaptive capacity in facing climate challenges.

Items	Implementation Status
6. If there is a transition plan for managing climate-related risks, explain the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	The Company plans to complete a preliminary identification of climate physical risks by 2025, confirming that extreme climate events (such as heavy rain, drought, high temperatures, low temperatures) are the main risk sources, while simultaneously expanding the inventory of transition risks, including scenarios such as the implementation of carbon fees and increased environmental protection tender thresholds. Although we have not yet formally established climate management indicators and reduction targets, we have already begun planning the future direction of indicator-based management. The preliminary concept will focus on "operational stability" and "resource use efficiency" as the management core, with proposed evaluation indicators including: number of equipment abnormalities caused by extreme climate events, electricity/water intensity per ton of waste processing service, backup water source installation rate at facilities, and the proportion of carbon fees or energy expenditure in operating costs. In the future, we will also gradually establish medium and long-term energy conservation and carbon reduction targets in accordance with government regulatory initiatives and industry trends, and incorporate them into the supervision mechanism of the Sustainability Development Committee and the performance management system for senior executives. The Company hopes to strengthen climate risk response capabilities through the gradual introduction of data-based management, laying the foundation for subsequent scenario analysis and indicator management.
7. If internal carbon pricing is used as a planning tool, the basis for price setting should be explained	The Company has not yet implemented an internal carbon pricing system, mainly because the company's operational model focuses on waste treatment and circular economy businesses, and there is currently no need for interdepartmental, cross-service/product internal allocation of carbon costs or investment evaluation requirements, making the practical implementation of limited significance. However, the company has been monitoring the development of carbon fee systems and related government regulatory processes. In the future, if carbon costs become more sensitive to business decisions, we will evaluate establishing an internal carbon price based on domestic carbon fee reference prices or international carbon market prices, to serve as a basis for financial feasibility analysis of projects

Items

Implementation Status

6. If there is a transition plan for managing climate-related risks, explain the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.

The Company plans to complete a preliminary identification of climate physical risks by 2025, confirming that extreme climate events (such as heavy rain, drought, high temperatures, low temperatures) are the main risk sources, while simultaneously expanding the inventory of transition risks, including scenarios such as the implementation of carbon fees and increased environmental protection tender thresholds. Although we have not yet formally established climate management indicators and reduction targets, we have already begun planning the future direction of indicator-based management. The preliminary concept will focus on "operational stability" and "resource use efficiency" as the management core, with proposed evaluation indicators including: number of equipment abnormalities caused by extreme climate events, electricity/water intensity per ton of waste processing service, backup water source installation rate at facilities, and the proportion of carbon fees or energy expenditure in operating costs. In the future, we will also gradually establish medium and long-term energy conservation and carbon reduction targets in accordance with government regulatory initiatives and industry trends, and incorporate them into the supervision mechanism of the Sustainability Development Committee and the performance management system for senior executives. The Company hopes to strengthen climate risk response capabilities through the gradual introduction of data-based management, laying the foundation for subsequent scenario analysis and indicator management.

7. If internal carbon pricing is used as a planning tool, the basis for price setting should be explained

The Company has not yet implemented an internal carbon pricing system, mainly because the company's operational model focuses on waste treatment and circular economy businesses, and there is currently no need for interdepartmental, cross-service/product internal allocation of carbon costs or investment evaluation requirements, making the practical implementation of limited significance. However, the company has been monitoring the development of carbon fee systems and related government regulatory processes. In the future, if carbon costs become more sensitive to business decisions, we will evaluate establishing an internal carbon price based on domestic carbon fee reference prices or international carbon market prices, to serve as a basis for financial feasibility analysis of projects

Items	Implementation Status
	such as equipment replacement, energy-saving investments, or green electricity procurement.
8. If climate-related targets have been set, information should be provided on the activities covered, greenhouse gas emission scopes, planned timelines, and annual progress toward achievement; if carbon offsets or Renewable Energy Certificates (RECs) are used to achieve related targets, the source and quantity of carbon reduction credits being offset or the quantity of Renewable Energy Certificates (RECs) should be explained.	The Company has not yet set specific climate-related carbon reduction targets, mainly because the scope of greenhouse gas inventory operations is still being defined, and the relevant emission baseline data is still under development. In view of the ongoing evolution of regulations and industry standards, the company has preliminarily identified potential target directions and implementation frameworks. Subsequently, based on carbon inventory results, equipment emission characteristics, and operational models, we will evaluate using indicators such as electricity intensity, carbon emission density per unit of processing, energy efficiency improvement rate, or the proportion of green electricity usage as management references. The company expects to complete the inventory and target framework planning between 2025-2026, and will gradually establish mid to long-term carbon reduction targets with timelines and achievement pathways, depending on the progress of regulatory implementation and the status of carbon fee system implementation. Progress toward achievement will be regularly monitored and tracked through the Sustainability Development Committee, and the introduction of an internal management platform will be studied to promote cross-departmental collaboration and information transparency. Currently, carbon offsets or Renewable Energy Certificates (RECs) are not being used; however, if needed in the future, self-generation for self-consumption or certificate procurement methods will be used as supplementary measures.
9. Greenhouse gas inventory and verification status, reduction targets, strategies, and specific action plans	Please refer to the explanation in this annual report [Part 2, Section 2, (7), 2, The Company's greenhouse gas inventory and verification status for the past two years].

The Company's greenhouse gas inventory and verification status for the past two years: (1) Greenhouse gas inventory information (2) Greenhouse gas verification information (2) Greenhouse gas reduction targets, strategies, and specific action plans:

The Financial Supervisory Commission (FSC) issued the "Sustainable Development Roadmap for Listed Companies" on March 3, 2022, which progressively requires all listed companies to complete greenhouse gas inventory by 2027 and to complete verification of greenhouse gas inventory by 2029.

The Company has preliminarily conducted a self-inventory operation in accordance with the "Guidelines for Greenhouse Gas Emissions Inventory and Registration" issued by the Ministry of Environment, although some statistical data still need to be completed. According to the aforementioned roadmap, the Company has a capital of less than NT$5 billion and is subject to complete individual company inventory by 2026, complete consolidated statement scope inventory by 2027, complete individual company verification by 2028, and complete verification of subsidiaries within the consolidated statement scope by 2029. The Company will maintain a proactive attitude, continue to enhance the basic inventory data, and strive to complete the inventory and verification operations ahead of schedule, while further developing reasonable reduction targets and implementation pathways.

(VIII) Implementation of Ethical Corporate Management and Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons

Evaluation Item	Implementation Status			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary Description
I. Establishing Ethical Corporate Management Policies and Programs
(I) Has the company established an ethical corporate management policy approved by the Board of Directors, and clearly stated in its regulations and external documents the policies and practices of	✓		The Company has established "Ethical Corporate Management Best Practice Principles," "Procedures and Guidelines for Ethical Corporate Management," and "Code of Ethical Conduct," enabling the Directors and employees of the Company to understand the Company's ethical standards, and to engage in business activities based on the principles of fairness, honesty, trustworthiness, and transparency, effectively implementing ethical corporate management policies. 1. The scope of the "Ethical Corporate Management Best Practice	No significant difference.
(II) Has the company established a legal and ethical corporate management policy, and clearly stated in its regulations and external documents the policies and practices of the Company, and the regulations of the Company's ethical standards, and the regulations of the Company's compliance with the laws of the State of California, and the regulations of the State of California's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local			the Company has established "Ethical Corporate Management Best Practice Principles," "Procedures and Guidelines for Ethical Corporate Management," and "Code of Ethical Conduct," enabling the Directors and employees of the Company to understand the Company's ethical standards, and to engage in business activities based on the principles of fairness, honesty, trustworthiness, and transparency, effectively implementing ethical corporate management policies. 2. The scope of the "Ethical Corporate Management Best Practice	No significant difference.
(III) Has the company established a legal and ethical corporate management policy, and clearly stated in its regulations and external documents the policies and practices of the Company, and the regulations of the Company's compliance with the laws of the State of California, and the regulations of the State of California's Federal, State and Local Authority's Federal, State and Local Authority's Federal, State and Local			the Company has established "Ethical Corporate Management Best Practice Principles," "Procedures and Guidelines for Ethical Corporate Management," and "Code of Ethical Conduct," enabling the Directors and employees of the Company to understand the Company's ethical standards, and to engage in business activities based on the principles of fairness, honesty, trustworthiness, and transparency, effectively implementing ethical corporate management policies. 3. The scope of the "Ethical Corporate Management Best Practice	No significant difference.

Evaluation Item	Implementation Status
	Yes	No	Summary Description
ethical corporate management, as well as the commitment of the Board of Directors and senior management to actively implement the management policy?			Principles" and "Procedures and Guidelines for Ethical Corporate Management" includes prohibitions on bribery and acceptance of bribes, illegal political contributions, improper charitable donations or activities, and improper acceptance of gifts or hospitality. The code also stipulates that Directors, supervisory units, and managerial officers should avoid conflicts of interest, and establishes a comprehensive internal control system for dishonest behaviors or high-risk business activities with potential risks.
2. The scope of the "Code of Ethical Conduct" includes avoiding conflicts of interest and improper benefits transfer, prohibition of seeking personal gain, implementing confidentiality of company and customer information, fair trading and truthful reporting of transactions, proper use and maintenance of company assets, etc. Currently, the Chairman's Office is established as the dedicated unit responsible for the revision, implementation, interpretation, consultation services, registration and filing of reported content, and other related operations and supervision of this procedure and behavioral guidelines, and regularly reports to the Board of Directors.
Various internal regulations and external documents, such as the Employee Code of Conduct and Vendor Commitment

(IX) Other important information that helps enhance understanding of the Company's corporate governance operations may also be disclosed

Directors' continuing education in 2024:

Date	Course Topic	Course Name	Organizer	Hours	Directors Who Participated
2024/2/27	Advanced Practical Seminar for Directors and Corporate Governance Officers	Sustainable Supply Strategies Under Increasing Global Risks	Securities and Futures Institute	3	Yang, Yung-Fa, Chen, Tsung-Tien, Cheng, Kuang-Chieh, Fang, Yao-Hua, Chen, Yu-Hsien, Wang, Yu-Ling
2024/5/8	Insider Trading and Ethical Management	Responsibilities of Directors and Supervisors in Securities Violation Cases	Taiwan Corporate Governance Association.	3	Chuang, Jui-Yuan
2024/8/6	Carbon Trading Mechanisms and Carbon Management Applications	Carbon Trading Mechanisms and Carbon Management Applications	Securities and Futures Institute	3	Yang, Yung-Fa; Chen, Yu-Hsien; Cheng, Kuang-Chieh; Wu, Chun-I; Chen, Tsung-Tien; Wei, Kuo-Yen; Fang, Yao-Hua; Wang, Yu-Ling
2024/6/21	Corporate Governance and Securities Regulations	Corporate Governance and Securities Regulations	Taiwan Corporate Governance Association.	3	Wu, Chun-I
2024/8/20	Corporate Governance Category	Trilogy of Appropriate Disclosure in Sustainability Reporting	Accounting Research and Development Foundation.	3	Fang, Yao-Hua
2024/8/27	Corporate Governance Category	Establishing ESG Sustainability Strategy to Enhance Competitiveness	Accounting Research and Development Foundation.	3	Fang, Yao-Hua
2024/11/8	Law	Understanding and Prevention of Workplace Illegal Infringement (Including the Latest Amendments to the Gender Equality in Employment Act)	Taiwan Corporate Governance Association.	3	Chuang, Jui-Yuan
2024/12/3	Corporate Governance Category	Sustainability Policy and Corporate Governance	Accounting Research and Development Foundation.	3	Wei, Kuo-Yen
2024/12/21	Corporate Governance Category	Effective Internal Control for Sustainability Reporting	Accounting Research and Development Foundation.	3	Fang, Yao-Hua

2024 Corporate Governance Officer Continuing Education Status:

Date	Course Topic	Course Name	Organizer	Hours	Continuing Education Officer
2024/2/27	Advanced Practical Seminar for Directors and Corporate Governance Officers	Sustainable Supply Strategies Under Increasing Global Risks	Securities and Futures Institute	3	Shih, Hsiu-Wei
2024/3/7	Corporate Sustainability and Net-Zero Strategy Course for Directors	Corporate Sustainability and Net-Zero Strategy Course for Directors	Chung-Hua Institution for Economic Research	6	Shih, Hsiu-Wei
2024/8/6	Carbon Trading Mechanisms and Carbon Management Applications	Carbon Trading Mechanisms and Carbon Management Applications	Securities and Futures Institute	3	Shih, Hsiu-Wei
2024/10/24	Promotional Conference on Building a New Carbon Era with Sustainable Knowledge	GHG Protocol Corporate Standard and Scope 3 Standard Promotional Course	Business Council for Sustainable Development of Taiwan (BCSD Taiwan)	7	Shih, Hsiu-Wei
2024/10/25	2024 Legal Promotional Seminar on Insider Stock Trading	2024 Legal Promotional Seminar on Insider Stock Trading	Securities and Futures Market Development Foundation	3	Shih, Hsiu-Wei
2024/12/17	Corporate Governance Category	2024 Corporate Governance Forum - New Challenges for Corporate Governance Officers	Taipei Bar Association	3	Shih, Hsiu-Wei

(X) The following items should be disclosed regarding the implementation status of the internal control system:

Internal Control Statement:

For the 2024 Internal Control System Statement, please refer to Market Observation Post System > Single Company > Corporate Governance > Company Regulations/Internal Control > Internal Control Statement Announcement, Website: https://mops.twse.com.tw/mops/#/web/t06sg20.

If a CPA has been commissioned to conduct a special audit of the internal control system, the CPA's audit report should be disclosed:

In accordance with the requirements for the Company's initial application for stock listing, we have commissioned a CPA to conduct a special audit of the internal control system for the period from April 1, 2023 to March 31, 2024. Please refer to Market Observation Post System > Single Company > Corporate Governance > Company Regulations/Internal Control > Special Audit Report on Internal Control, Website: https://mops.twse.com.tw/mops/#/web/t06hsg20.

(XI) Important resolutions of the shareholders' meetings and board of directors' meetings in the most recent year and up to the date of the annual report's publication.

Important resolutions of the annual and extraordinary shareholders' meetings in the most recent year and up to the date of the annual report's publication, and their implementation status:

Date	Important Resolutions of Shareholders' Meetings	Implementation Status
2024/6/20
(Annual Shareholders' Meeting)	Business Report and Financial Statements for the year 2023.	Approved Proposal
	Earnings Distribution for the year 2023.	Approved Proposal
	Amendment of Certain Articles of the Company's Articles of Incorporation.	Implementation according to the amended Articles of Incorporation
	Amendment to the Company's "Procedures for Acquisition or Disposal of Assets	Implementation according to the amended Procedures for Acquisition or Disposal of Assets
	Amendment of the Company's "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees".	Implementation according to the amended Procedures for Lending Funds to Others and Endorsement & Guarantee
	Amendment of Director Election Procedures	Implementation according to the amended Procedures for Election of Directors

Important resolutions of the Board of Directors for the year 2024 and up to the date of printing of the annual report:

Date	Resolution Item:
2024/03/13	1. The allocation of remuneration for employees and directors/supervisors of the Company for the year 2023
	2. The allocation of individual remuneration for independent directors of the Company for the year 2023
	3. The allocation of individual remuneration for non-independent directors and supervisors of the Company for the year 2023
	4. The business report and financial statements of the Company for the year 2023
	5. The Company's earnings distribution proposal for the year 2023
	6. Amendment of Certain Articles of the Company's Articles of Incorporation.
	7. Amendment to the Company's management regulations
	8. The Company's "Statement of Internal Control System
	9. The convening matters of the Company's 2024 Annual General Meeting of Shareholders
	10. The Company's application for renewal of a credit line of NT$30 million from Far Eastern International Bank Co., Ltd.
	11. The Company's application for renewal of a credit line of NT$30 million from CTBC Bank Co., Ltd.
	12. The Company's application for a credit line of NT$50 million from Hua Nan Commercial Bank, Ltd.

Date	Resolution Item:
	13. The Company's application for a low-carbon transition financing project with a credit line of NT$35 million from Hua Nan Commercial Bank, Ltd.
	14. Matters relating to the acceptance of shareholder proposals for the Company's 2024 Annual General Meeting of Shareholders
	15. The Company's engagement of the lead underwriter to handle overallotment during the underwriting period
2024/04/22	1. Approval of the Statement of Internal Control System
	2. Approval of the financial forecast information for the second and third quarters of 2024 in accordance with the requirements for listing application
	3. Establishment of the "Organizational Rules for the Sustainability Development Committee
	4. The Company's application for a credit line of NT$60 million from Taiwan Cooperative Bank
	5. The Company's application for renewal of a financing line of NT$100 million from Mega International Commercial Bank Co., Ltd.
	6. The independence, competence, appointment, and remuneration of the certified public accountants for the year 2024
2024/05/13	1. The consolidated financial statements for the first quarter of 2024
	2. Expansion of Chung Tai Plant 1 Phase II
	3. The relevant resolutions on the Company's investment in "reinvestment - Cleaway Energy" from 2021 to May 2024
2024/07/18	1. Nomination and appointment of members of the Sustainability Development Committee
	2. Amendment to the "Management Regulations for Regulatory Compliance Matters
	3. Amendment to the internal control system - Management control operations (addition of management for regulatory compliance matters) and internal audit implementation rules (addition of audit procedures for regulatory compliance matters)
	4. The Company's cash capital increase before initial listing
	5. The Company's application for renewal of a financing facility of NT$80 million from Yuanta Commercial Bank
	6. The Company's application for renewal of a facility of NT$50 million from CTBC Bank Co., Ltd.
	7. The major contract case between the Company and Chase Sustainability Technology Co., Ltd.
2024/08/07	1. The Company's consolidated financial report for the first half of 2024
	2. Amendment to the "Sustainable Development Committee Charter
	3. The managerial officers' subscription to shares in the issuance of new shares for cash capital increase
	4. Approval of Chong Tai's 2022-2023 Sustainability Report
	5. The CPA's non-audit fee compensation case
2024/11/13	1. The Company's consolidated financial report for the third quarter of 2024
	2. Addition of "Sustainability Information Management Regulations
	3. Amendment to the Company's "Internal Control System" and "Internal Audit Implementation Rules
	4. Mercury Waste Project Performance Bonus Case
2024/12/18	1. Amendment of Certain Articles of the Company's Articles of Incorporation.
	2. Amendment to the "Audit Committee Charter

Date	Resolution Item:
	3. Amendment to the "Rules of Procedure for Board of Directors Meetings
	4. Case of Lending Funds to CLEANAWAY ENERGY COMPANY LIMITED
	5. 2025 Annual Operating Plan and Business Budget
	6. Establishing the Company's 2025 Internal Audit Plan
	7. Case of the Company's Application for Renewal of a Credit Line of NT$100 Million from Cathay United Bank
	8. Remuneration of Independent Directors for 2025
	9. Year-end Bonus for Chairman and Managerial Officers for 2024
	10. Remuneration for Chairman and Managerial Officers for 2025
2025/3/11	1. Distribution of Employees' and Directors' Compensation for the Company's 2024
	2. Distribution of Individual Compensation for the Company's Non-Independent Directors for 2024
	3. The Company's 2024 Business Report and Financial Statements
	4. The Company's 2024 Earnings Distribution and Cash Distribution from Capital Surplus
	5. Renewal of Credit Facility of TWD 30 Million from Far Eastern International Bank
	6. Application for Credit Facility of TWD 150 Million from Taiwan Cooperative Bank
	7. Amendment to the Company's "Internal Control System - Payroll Cycle
	8. The Company's "Statement of Internal Control System
	9. Complete Re-election of Directors (including Independent Directors)
	10. Nomination of Director (including Independent Director) Candidates and Qualification Review
	11. Lifting the non-competition restrictions for newly elected directors.
	12. Convening Reasons for the 2025 Annual General Shareholders' Meeting
	13. Matters Related to Accepting Shareholder Proposals (Nominations) in 2025
2025/4/10	1. Proposed Repurchase of the Company's Common Shares

(XII) In the most recent year and up to the printing date of the annual report, there were no recorded or written statements of disagreement from directors or supervisors regarding important resolutions passed by the Board of Directors.

III. Certified Public Accountant Fee Information

(I) Payment amounts of audit fees and non-audit fees to the certified public accountant, their accounting firm, and affiliated enterprises, as well as the content of non-audit services:

Amount Unit: NT$ thousand

Name of Accounting Firm	CPA Name	Audit Period of the Accountant	Audit Fees	Non-audit Fees (Note)	Total	Note
Deloitte & Touche	Chiu, Yung-Ming, Shih, Chin-Chuan	2024/1/1-2024/12/31	1,550	1,255	2,805	None

Note: The non-audit service fees paid by the Company to Deloitte & Touche include "Listing Review," "Business Income Tax Certification," "Internal Control Special Review," "Annual Report Review for Shareholders' Meeting," etc.

(II) If the audit fees paid in the year when the accounting firm was changed are less than those paid in the year prior to the change:

Not applicable.

(III) Audit fees decreased by 10% or more compared to the previous year: Not applicable.

IV. Change of CPA information: Not applicable.

V. The situation where the Company's Chairman, President, or Manager responsible for financial or accounting affairs has, within the past year, served at the certifying accounting firm or its affiliated enterprises: Not applicable.

VI. Changes in Shareholding and Pledge of Shares by Directors, Supervisors, Managerial Officers, and Shareholders Holding More Than 10% of the Company's Shares in the Most Recent Year and as of the Date of the Annual Report

(I) Changes in Shareholding and Pledge of Shares by Directors, Supervisors, Managerial Officers, and Shareholders Holding More Than 10% of the Company's Shares:

For information disclosure, please refer to

Shareholding transfer: Market Observation Post System > Single Company > Shareholding Changes/Securities Issuance > Shareholding Transfer Data Inquiry > Insiders' Shareholding Changes Post-reporting Form, website https://mops.twse.com.tw/mops/#/web/query6_1.
Changes in pledge of shares: Market Observation Post System > Single Company > Shareholding Changes/Securities Issuance > Insiders' Pledging and Releasing of Pledges > Announcement of Insiders' Pledging and Releasing of Pledges, website https://mopsov.twse.com.tw/mops/web/STAMAK03_1.

(II) Information regarding the transfer of shares by Directors, Supervisors, Managerial Officers, and Shareholders holding more than 10% of shares to related parties: Not applicable.

(III) Information regarding the pledge of shares by Directors, Supervisors, Managerial Officers, and Shareholders holding more than 10% of shares to related parties: Not applicable.

VII. Information on the relationship between the top ten shareholders, whether they are related parties or spouses, relatives within the second degree of kinship

April 27, 2025; Unit: Thousand shares; %

Name	Shares held by the person		Shares held by spouse and minor children		Shares held in the name of others		Names and relationships of the top ten shareholders who are related parties or are spouses, relatives within the second degree of kinship		Notes
	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Name (or full name)	Relationship
Cleanaway Company Limited	16,447,000	17.90%	-	-	1,064,000 (Note 1)	1.16% (Note 1)	-	-	-
Representative: Yang, Ching-Hsiang	-	-	-	-	-	-	Yang, Yung-Fa	Father-son	-
Yang, Yung-Fa	12,145,755	13.22%	-	-	270,000 (Note 2)	0.29% (Note 2)	Yang, Ching-Hsiang	Father-son	-
Cheng, Kuang-Chieh	3,412,626	3.71%	1,293,104	1.41%	-	-	Huang, Chen-Ying	Spouse	-
JIIN YEEH DING ENTERPRISE CORP.	2,974,659	3.24%	-	-	-	-	-	-	-
Representative: Chuang, Ching-Chi	-	-	-	-	-	-	-	-	-
Hsu, Wen-Sen	2387000	2.60%	-	-	-	-	-	-	-
HE RUI INVESTMENT CO., LTD.	2,126,600	2.31%	-	-	-	-	-	-	-
Representative: Yen, Kan-Lin	-	-	-	-	-	-	-	-	-
Wu, Chun-I	1,750,000	1.90%	-	-	-	-	-	-	-
ZHUO LI INVESTMENT CO., LTD.	1,340,000	1.46%	-	-	-	-	-	-	-
Representative: Lien, Ming-Jen	-	-	-	-	-	-	-	-	-
Huang, Chen-Ying	1,293,104	1.41%	3,412,626	3.71%	-	-	Cheng, Kuang-Chieh	Spouse	-
Kuo, Ya-Hui	1,254,000	1.36%	-	-	-	-	-	-	-

Note 1: Cleanaway Co., Ltd. holds 1,064,000 shares (1.16% ownership) of the Company through its subsidiaries JI WEI Co., Ltd. and Da Ning Co., Ltd.
Note 2: Yang, Yung-Fa holds 270,000 shares (0.29% ownership) of the Company through QIAO ZHI YANG Co., Ltd.

VIII. The shareholdings of the Company, its directors, supervisors, managerial officers, and enterprises directly or indirectly controlled by the Company in the same invested enterprises, and the calculation of comprehensive shareholding ratio: Not applicable.

Chapter 3 Funding Status

I. Capital and Shares

(I) Source and Types of Capital

April 30, 2025; Unit: NT$ thousand; thousand shares

Month/Year	Issue Price (NT$)	Authorized Capital		Paid-in Capital		Notes
		Number of Shares (thousand shares)	Amount (thousand NT$)	Number of Shares (thousand shares)	Amount (thousand NT$)	Source of Capital	Capital Contributions in Property Other Than Cash	Others
2001.05	10	10,000	100,000	5,000	50,000	Initial capital of NT$50,000 thousand	None	Note 1
2005.08	10	10,000	100,000	5,500	55,000	Earnings Transferred to Capital Increase NT$5,000 thousand	None	Note 2
2006.08	10	30,000	300,000	10,010	100,100	Earnings Transferred to Capital Increase NT$45,100 thousand	None	Note 3
2007.10	10	30,000	300,000	16,345	163,450	Earnings Transferred to Capital Increase NT$63,350 thousand	None	Note 4
2008.09	10	30,000	300,000	24,722	247,220	Earnings Transferred to Capital Increase NT$83,770 thousand	None	Note 5
2009.11	10	30,000	300,000	27,597	275,970	Earnings Transferred to Capital Increase NT$28,750 thousand	None	Note 6
2010.09	10	30,000	300,000	28,487	284,870	Earnings Transferred to Capital Increase NT$8,900 thousand	None	Note 7
2011.10	10	50,000	500,000	31,365	313,654	Earnings Transferred to Capital Increase NT$28,784 thousand	None	Note 8
2022.02	10	50,000	500,000	37,365	373,654	Cash Capital Increase NT$60,000 thousand	None	Note 9
2022.11	10	50,000	500,000	40,840	408,404	Earnings Transferred to Capital Increase NT$34,749 thousand	None	Note 10
2018.06	10	80,000	800,000	59,924	599,244	Earnings Transferred to Capital Increase NT$40,840 thousand Cash Capital Increase NT$150,000 thousand	None	Note 11
2019.03	24	80,000	800,000	77,924	779,244	Cash Capital Increase NT$180,000 thousand	None	Note 12
2020.09	25	160,000	1,600,000	81,124	811,244	Cash Capital Increase NT$32,000 thousand	None	Note 13

Month/Year	Issue Price (NT$)	Authorized Capital		Paid-in Capital		Notes
		Number of Shares (thousand shares)	Amount (thousand NT$)	Number of Shares (thousand shares)	Amount (thousand NT$)	Source of Capital	Capital Contributions in Property Other Than Cash	Others
2023.01	85	160,000	1,600,000	82,624	826,244	Cash Capital Increase NT$15,000 thousand	None	Note 14
2024.09	80	160,000	1,600,000	91,888	918,880	Cash Capital Increase NT$92,636 thousand	None	Note 15

Note 1: Taipei City Construction Industry Document No. 90278602, dated May 9, 2001.
Note 2: Municipal Industry and Commerce Document No. 09417026210, dated August 16, 2005.
Note 3: Municipal Industry and Commerce Document No. 09582685320, dated September 12, 2006.
Note 4: Municipal Industry and Commerce Document No. 09690513000, dated October 17, 2007.
Note 5: Municipal Industry and Commerce Document No. 09791367610, dated November 17, 2008.
Note 6: Municipal Industry and Commerce Document No. 09890396610, dated November 12, 2009
Note 7: Municipal Industry and Commerce Document No. 09990768120, dated January 11, 2011.
Note 8: Municipal Industry and Commerce Document No. 10088277400, dated October 7, 2011.
Note 9: Municipal Industry and Commerce Document No. 10180979810, dated February 17, 2012
Note 10: Municipal Industry and Commerce Document No. 10189424610, dated November 13, 2012
Note 11: Commercial Public Document No. 10701067700, dated June 27, 2018.
Note 12: Commercial Public Document No. 10801035230, dated April 2, 2019.
Note 13: Commercial Public Document No. 11001155280, dated September 1, 2021.
Note 14: Commercial Public Document No. 11230009550, authorized on February 9, 2023.
Note 15: Commercial Public Document No. 11330176330, authorized on October 15, 2024.

April 30, 2025; Unit: Shares

Type of Shares	Authorized Capital			Notes
	Outstanding Shares	Unissued Shares	Total
Common Shares	91,888,000	68,112,000	160,000,000	Listed Company Shares

(II) List of Major Shareholders

Shareholders who hold more than $5\%$ of shares or are among the top ten shareholders in terms of shareholding percentage: names, number of shares held, and percentages:

April 27, 2025; Unit: Shares; %

Shares Name of Major Shareholders	Number of Shares Held	Shareholding Ratio
CLEANAWAY Co., Ltd.	16,447,000	17.90%
Yang, Yung-Fa	12,145,755	13.22%
Cheng, Kuang-Chieh	3,412,626	3.71%
JIIN YEEH DING ENTERPRISE CORP.	2,974,659	3.24%
Hsu, Wen-Sen	2,387,000	2.60%
HE RUI INVESTMENT CO., LTD.	2,126,600	2.31%
Wu, Chun-I	1,750,000	1.90%
ZHUO LI INVESTMENT CO., LTD.	1,340,000	1.46%
Huang, Chen-Ying	1,293,104	1.41%
Kuo, Ya-Hui	1,254,000	1.36%

(III) Company Dividend Policy and Implementation Status

The dividend policy stipulated in the Company's Articles of Incorporation is as follows:

If the Company records a profit in its annual final accounts, it shall first pay taxes and offset accumulated losses, then allocate 10% as legal reserve, except when the legal reserve has reached the Company's paid-in capital. After that, the Company shall set aside or reverse special reserve in accordance with laws and regulations. If there is any remaining profit, along with the accumulated undistributed earnings, the Board of Directors shall prepare a proposal for profit distribution and submit it to the shareholders' meeting for resolution.

The Company offers diverse products and services, making it difficult to distinguish its growth stage. However, there are plans for significant production line expansion and capital requirements in the coming years. The Board of Directors will distribute shareholders' dividends after considering the current capital expenditure budget, financing funds and financial structure, operational needs, shareholders' interests, and balanced dividends. The distribution ratio shall not be less than ten percent of the distributable earnings for the current period. The Company's shareholder dividends may be distributed in the form of cash or stock, provided that the proportion of cash dividends shall not be less than ten percent of the total shareholder dividends.

Proposed Shareholder Dividend Distribution for This Year

The Company's profit distribution for the year 2024 was approved by the Board of Directors on March 11, 2025. From the distributable earnings, NT$321,608,000 is proposed to be distributed to shareholders as cash dividends of NT$3.50 per share. Additionally, NT$45,944,000 from the capital surplus from the premium on issuance of common shares is proposed to be distributed to shareholders as cash of NT$0.50 per share. The total cash distribution amounts to NT$367,552,000, with a total cash distribution of NT$4.00 per share. This profit distribution proposal is scheduled to be submitted for approval at the Annual General Shareholders' Meeting on June 26, 2025.

Expected significant changes in dividend policy: None.

(IV) Impact of the proposed stock dividends on the Company's operating performance and earnings per share at this shareholders' meeting: Not applicable.

(V) Employee and Director Compensation:

Percentages or ranges of employee, director, and supervisor compensation as stipulated in the Company's Articles of Incorporation:

If the Company has pre-tax profits for the year, at least one percent shall be allocated as employee compensation, which shall be distributed by a resolution of the Board of Directors in the form of stocks or cash, and the recipients shall include employees of subordinate companies who meet certain conditions; the Company may, from the aforementioned profit amount, by a resolution of the Board of Directors, allocate no more than five percent as compensation for Directors and Supervisors. The distribution of employee compensation and directors' and supervisors' compensation shall be reported to the shareholders' meeting. However, if the Company still has accumulated losses, it shall reserve the amount for covering the losses first, and then allocate employee compensation and directors' and supervisors' remuneration according to the ratio in the preceding paragraph.

Basis for estimating the amount of employee, director, and supervisor compensation for the current period, calculation basis for the number of shares for employee compensation distributed as stock, and accounting treatment if the actual distribution amount differs from the estimated amount:

The Company estimates the amount of employee, director, and supervisor compensation based on the pre-tax net profit before deducting employee compensation and director/supervisor compensation, calculated according to the appropriation percentages specified in the Company's Articles of Incorporation, and recognizes it as salary expense. If the actual distribution amount differs from the estimated amount, it will be treated as a change in accounting estimate, and the difference will be recognized in the profit or loss of the following year.

The distribution of compensation approved by the Board of Directors:

(1) The amount of employee compensation and director and supervisor compensation distributed in cash or stock. If there is a difference from the estimated amount recognized as an expense for the year, the difference, reason, and handling situation should be disclosed:

The Company's Board of Directors passed the distribution of employee compensation and director/supervisor compensation for the year 2024 on March 11, 2025, with employee compensation and director/supervisor compensation amounting to NT$10,084 thousand and NT$2,600 thousand respectively, all to be distributed in cash, with no difference in expense recognition.

(2) The ratio of employee compensation distributed in stock to the sum of current after-tax net income and total employee compensation: The Company did not distribute employee compensation in stock for the year 2024, so this is not applicable.

The actual distribution of employee and director compensation for the previous year (including the number of shares distributed, amount, and share price), and if there is a difference from the recognized employee and director compensation, the difference, reason, and handling situation should be described:

The Company's Board of Directors resolved on March 13, 2024 to distribute employee compensation and director/supervisor compensation for the year 2023 in cash amounting to NT$6,328 thousand and NT$2,200 thousand respectively, which is the same as the employee compensation and director/supervisor compensation recognized in the financial reports. The Company's employee compensation for the year 2023 was reported to the Annual General Meeting of Shareholders on June 20, 2024, with no changes to the distribution amounts of employee and director compensation.

(VI) Status of Company's Share Repurchase: (Still in progress as of the printing date of the annual report)

The Company's Board of Directors resolved on April 10, 2025 to repurchase the Company's common shares on the centralized securities exchange market. The relevant information is as follows:

April 30, 2025

Repurchase period	2025 First Time
Purpose of repurchase	To maintain the Company's credibility and shareholders' equity, repurchase and cancel shares
Type of shares repurchased	Common Shares
Maximum total amount of shares repurchased	NTD (same below) 231,000 thousand
Scheduled repurchase period	From April 11, 2025 to June 10, 2025
Scheduled repurchase quantity	2,000 thousand shares
Price range for repurchase	NTD 50 to 115.5 per share
Type and quantity of shares already repurchased	Ordinary shares 212 thousand shares
Amount of shares already repurchased	NTD 15,190 thousand
Ratio of already repurchased quantity to the planned repurchase quantity	10.60%

II. Status of corporate bonds issuance: Not applicable.

III. Status of preferred stock issuance: Not applicable.
IV. Status of overseas depository receipts issuance: Not applicable.
V. Status of employee stock options issuance: Not applicable.
VI. Status of restricted employee shares issuance: Not applicable.
VII. Status of new shares issuance for merger or acquisition of other companies: Not applicable.
VIII. Status of implementation of capital allocation plans

As of the quarter preceding the printing date of the annual report, the details and implementation status of any previous issuance or private placement of securities that have not been completed, or have been completed within the last three years but have not yet shown their planned benefits:

The Company has not issued new shares or corporate bonds for mergers or acquisitions of other companies. The previous cash capital increases reported within the past three years include a capital increase of NT$127,500 thousand in 2022 and a capital increase of NT$787,511 thousand in 2024. The details of these plans, their implementation status, and benefit analysis are as follows. Relevant public information can also be found at

For plan details, please refer to Market Observation Post System > Single Company > Equity Changes/Securities Issuance > Fundraising > Implementation of Fundraising Plans, website: https://mopsov.twse.com.tw/mops/web/bfhtm_q2.
For implementation status, please refer to Market Observation Post System > Single Company > Equity Changes/Securities Issuance > Fundraising > Implementation of Fundraising Plans, website: https://mopsov.twse.com.tw/mops/web/bfhtm_q2.

2022 Cash Capital Increase

Plan Details
(1) Date and reference number of approval by the competent authority: September 16, 2022, TPEX Letter No. 1110010178
(2) Total funds required for this plan: NT$127,500 thousand.
(3) Source of funds: Cash capital increase through issuance of 1,500 thousand ordinary shares, with par value of NT$10 per share, issuance price of NT$85 per share, for a total capital increase amount of NT$127,500 thousand.
(4) Plan items and scheduled fund utilization progress

Unit: NT$ thousand

Plan Item	Expected Completion Date	Total Funds Required	Scheduled Fund Utilization Progress
			Q1 2023	Q2 2023	Q3 2023
Repayment of Bank Loans	Q3 2023	127,500	54,076	27,229	46,195

(5) Expected Potential Benefits:

The Company's current capital increase through issuance of new shares will raise a total of NT$127,500 thousand, which is expected to be used for repayment of bank loans to reduce the amount of bank borrowings and lower the interest burden, as well as to strengthen the financial structure.

(7) Date of input to the information reporting website designated by the Financial Supervisory Commission: February 13, 2023.

Implementation Status

Plan Item	Implementation Status		First Three Quarters of 2023	Reasons for Ahead of Schedule or Delay
Repayment of Bank Loans	Expenditure Amount	Expected	127,500	Executed according to plan, repaid bank loans of 127,500 in the first three quarters of 2023
		Actual	127,500
	Implementation Progress	Expected	100%
		Actual	100%

Evaluation of Implementation Benefits

The Company's cash capital increase plan is for repaying bank loans. The disclosure items that should be revealed for a cash capital increase plan involving bank loan repayment:

Item Year		End of 2023	End of 2022
Basic Financial Information	Current Assets	651,532	397,551
	Current Liabilities	695,539	357,161
	Total Liabilities	2,093,993	1,922,404
	Operating Revenue	1,272,457	838,324
	Operating Net Income	342,846	241,443
	Interest Expense	33,118	23,240
Financial Structure	Debt to Asset Ratio	53.82%	54.83
	Long-term Capital to Property, Plant and Equipment Ratio	107.44%	105.50
Debt-Paying Ability	Current Ratio	93.67%	111.21
	Quick Ratio	86.99%	105.11

Source: Financial reports audited and certified by accountants.

The cash capital increase plan used to repay bank loans was completed in the third quarter of 2023. After the capital increase, the operating revenue in 2023 grew by 51.79% compared to 2022, and the operating profit in 2023 grew by 42.00% compared to 2022.

The debt to asset ratio and long-term capital to property, plant and equipment ratio both improved compared to 2022, showing that the benefits of the cash capital increase are gradually becoming apparent.

2024 Cash Capital Increase

1. Plan Details

(1) Date and reference number of approval from the competent authority: August 7, 2024, Taiwan Stock Exchange Corporation letter No. 1130014217
(2) Total amount of funds required for this plan: NT$787,511 thousand.
(3) Source of funds: This cash capital increase involves issuing 9,263,625 shares, each with a par value of NT$10. The minimum underwriting price for competitive auction is NT$67.80 per share, with priority given to bidders offering higher prices, and each successful bidder shall subscribe according to their bidding price. The public offering price is NT$87.33, calculated as the weighted average of the prices and quantities of all successful bids. However, since this average price is higher than 1.18 times the minimum underwriting price, the public subscription underwriting price is set at NT$80 per share, issued at a premium.
(4) Plan items and scheduled fund utilization progress

Plan Item	Expected Completion Date	Total Funds Required	Scheduled Fund Utilization Progress
			Q3 2024
Replenishment of Working Capital	Q3 2024	787,511	787,511

(5) Expected Potential Benefits:

The total amount of the current fundraising plan is NT$787,511 thousand, which will be entirely used to replenish working capital for future business development, to maintain the Company's competitiveness, ensure long-term stable operations, and provide positive benefits for business operations and financial structure optimization.

(6) Changes to the plan content, sources and uses of funds, reasons for changes, benefits before and after changes, and the date when the changed plan was submitted to the shareholders' meeting: Not applicable.
(7) Date of input into the information reporting website designated by the Financial Supervisory Commission: August 7, 2024.

2. Implementation Status

Plan Item	Implementation Status		Q3 2024	Reasons for Ahead of Schedule or Delay
Repayment of Bank Loans	Expenditure Amount	Expected	787,511	As Planned and On Schedule Completed
		Actual	787,511
	Implementation Progress	Expected	100%
		Actual	100%

3. Evaluation of Implementation Benefits

The purpose of this capital increase conducted by the Company is to strengthen working

capital, with the expected benefit being to maintain stable operations and strengthen the financial structure. The Company has fully invested in strengthening working capital after completing the fundraising in September 2024, and has improved indicators such as debt ratio, long-term capital to property, plant and equipment ratio, current ratio, and quick ratio. Therefore, the actual achievement of this cash capital increase is consistent with the originally expected benefits, and there are no significant abnormalities.

| Item\Year | | September 30, 2024
(Q3 2024) | June 30, 2024
(Q2 2024) |
| --- | --- | --- | --- |
| Basic
Financial
Information | Current Assets | 1,255,490 | 848,540 |
| | Current Liabilities | 633,093 | 986,974 |
| | Total Liabilities | 1,829,562 | 2,290,493 |
| | Operating Revenue | 1,401,003 | 999,296 |
| | Operating Net Income | 417,877 | 262,848 |
| | Interest Expense | 25,993 | 17,904 |
| | Earnings Per Share (NT$) | 4.00 | 2.56 |
| Financial
Structure | Debt to Asset Ratio | 40.74% | 56.50% |
| | Long-term Capital to Property, Plant and Equipment Ratio | 130.19% | 104.70% |
| Debt-
Paying
Ability | Current Ratio | 198.31% | 85.97% |
| | Quick Ratio | 192.11% | 81.62% |

Source: Financial reports reviewed by accountants.

Chapter 4 Operational Overview

I. Business Content

(I) Business Scope

1. Main contents of business operations:

The Company's main business items include comprehensive treatment of industrial waste incineration for power generation, recycling of mercury from mercury-containing waste, thermal pyrolysis treatment for recovering precious metals, recycling copper from waste printed circuit boards, and environmental remediation engineering. Through these technologies and green energy solutions, waste is transformed into useful resources, reducing negative environmental impacts.

2. Business Proportion of Main Products

Unit: NT$ thousand; %

Year Product Items	2022		2023		2024
	Amount	Proportion (%)	Amount	Proportion (%)	Amount	Proportion (%)
Waste Treatment Services	675,953	80.63	919,926	72.29	978,288	56.99
Environmental Remediation Projects	-	-	206,659	16.24	544,557	31.72
Copper Powder and Other Product Sales	161,273	19.24	145,284	11.42	191,984	11.18
Others (Note)	1,098	0.13	588	0.05	1,916	0.11
Total	838,324	100.00	1,272,457	100.00	1,716,745	100.00

Note: Other income includes commission service income, environmental education income, etc.

3. Current Products (Services) Items

Service Items	Content
Industrial Waste Removal and Treatment	Industrial waste removal services, as well as incineration, physical, chemical, solidification, distillation, pyrolysis, and other treatment or recycling processes.
Recyclable Treatment	Waste Lighting Source Recycling and Treatment Services
Environmental Remediation Projects	Soil and groundwater remediation work for contaminated sites
By-product Sales	Sales of copper powder from mixed waste hardware, mixed metals containing precious metals, and other single metals, as well as CLSM and other recycled products.

Newly Developed Products (Services) in Planning

Project Classification	Newly Developed Products (Services) in Planning
Circular Economy/Recycling and Reuse Development	1. Installation of high-efficiency steam turbine power generation facilities to recover waste heat generated from incineration for power generation.
2. Continue to improve the resource recycling and reuse rate of waste lighting sources to exceed 95%.
3. Develop and test metallurgical technologies such as acid dissolution, electrolysis, and melting to enhance the copper purity of recycled waste printed circuit boards to over 99%.
Maximizing Waste Reuse	1. Reduce the derived waste generation from waste lighting sources to below 5%;
2. Maintain zero emissions in the full cycle of waste printed circuit board recycling and treatment;
3. Develop recycling and treatment processes for waste lithium batteries and waste solar panels.
Green Products and Services	1. Continue to promote environmental education;
2. Plan and test fly ash water washing detoxification and resource recovery facilities, as well as conduct flue gas carbon capture and reuse testing.

(II) Industry Overview

Current Status and Development of the Industry

The Company upholds the management philosophy of "Utilization for Public Welfare," transforming waste into useful resources and energy while reducing environmental damage. Established Chung Tai Plant 1 as a comprehensive treatment center integrating incineration power generation, solidification, chemical, and cleaning treatment mechanisms, combined with Chung Tai Plant 2's distillation recovery of mercury and thermal pyrolysis recovery of precious metals, as well as Chung Tai Plant 3's full-cycle zero-waste copper metal recycling, to build Chung Tai Resource Technology's "Energy Resource Integration Value Chain" system. This comprehensively recycles and processes waste resources from electronics-related industries, chemical industries and other manufacturing industries, as well as medical and residential/commercial sectors, transforming them into resources and energy, providing all-round resource recovery solutions, and striving to become a model for the circular economy framework. The following is an explanation of the current status and development of industries related to the Company's business operations and services:

(1) Global Waste Treatment Industry Overview

According to the definition by the Organisation for Economic Co-operation and Development (OECD), waste management refers to the process of handling products from production to post-use residuals, including the control, supervision, and regulatory management of waste collection, transportation, treatment, and disposal processes. Since these are products of economic activity, factors such as population size, lifestyle, industry, and urbanization all affect the types and quantities of waste. If improperly handled and returned to the environment, waste will seriously threaten human health, therefore requiring strict management. On the other hand, if waste is effectively treated, recycled, and reused, it not only reduces harm to the environment and health but can also further extract valuable resources such as paper, plastic, and metals, thereby reducing the cost of remanufactured products and consumption of production materials. This process also creates many job opportunities, promoting sustainable development in economic, social, and environmental aspects.

According to United Nations statistics, the Earth's population may grow from the current 8 billion people to 9.7 billion by 2050, and reach a peak of around 10.4 billion people by 2080. Due to factors such as population growth, urbanization development, economic growth, changes in consumer lifestyles and shopping habits over the past few decades, millions of tons of general waste and industrial waste from households, factories, and commercial institutions have been generated, becoming one of the urgent issues that countries around the world need to address. According to United Nations statistics, the world generates 2.3 billion tons of municipal solid waste annually, of which at least one-third is not effectively treated in an environmentally safe manner. By 2050, global waste volume is expected to increase to 3.8 billion tons.

According to the assessment by the Global Waste Management Outlook (February 2024), if the hidden costs of pollution, health deterioration, and climate change caused by poor waste management practices are taken into account, the costs would rise to 361 billion US dollars. If urgent action is not taken for waste management, by 2050, the global annual cost could nearly double, reaching an astonishing 640.3 billion US dollars; by adopting waste prevention and management measures to control waste, the annual net cost could be limited to 270.2 billion US dollars by 2050. However, predictions show that by adopting a circular economy model that decouples waste generation from economic growth through waste avoidance, sustainable business practices, and comprehensive waste management, it could actually bring a net benefit of 108.5 billion US dollars annually.

According to data from Acumen Research and Consulting forecasting the

global waste recycling services market, revenue generated by the global waste management industry will continue to grow, from 60.05 billion US dollars in 2022 to a projected 99.02 billion US dollars by 2032, representing a compound annual growth rate of 5.1%. Currently, the main development of the global environmental protection market is still in developed countries, accounting for approximately 70% of the global environmental protection market. North America has the largest scale with a market share of 30%, followed by Europe and Asia. With the rise of developing countries in recent years, they have gradually become the main force for market growth, and their proportion is also gradually increasing.

The increase in global waste generation, growing interest in sustainable urban living demands, and attention to non-fossil energy sources will drive the increase in demand for the waste incineration power generation market. The Asia-Pacific region is expected to dominate the global market and show significant development, with major demand coming from countries such as China, India, and Japan. The support and investment from the governments of these countries will play an important role in market development. Currently, urban waste incineration treatment is the dominant technology, but this technology produces pollution and brings health and safety risks, therefore measures need to be taken to reduce emissions and ensure that waste-to-energy conversion does not cause secondary air pollution.

In addition, global electronic waste management also poses a significant challenge to human survival. In 2022, the global generation of electronic waste reached as high as 62 million metric tons, but only 22% was properly recycled and processed. These wastes contain many valuable metal resources, such as copper, gold, and iron, but they may also contain toxic substances like mercury or lead, which can cause harm to the environment and health if not properly handled. Currently, global electronic waste recycling management and facilities are insufficient. Due to factors such as continued increase in consumption and shortened product lifecycles, electronic waste is expected to increase to 82 million metric tons by 2030, with the recycling rate potentially dropping to only 20%. This will result in a large amount of natural resources being wasted, while also potentially increasing the environmental burden. Countries around the world are strengthening electronic waste management regulations, increasing waste recycling and processing capacity, and investing in electronic waste treatment, improving the repair and reuse of electrical appliances, to reduce illegal waste transportation. These measures not only contribute to environmental protection but can also bring stability and returns to the socioeconomic sphere.

In the future, waste management will become a new integrated and innovative service model and solution. Businesses, government agencies, and even households can rely on the business model of professional environmental

waste treatment vendors, allowing them to focus on their core activities. The continuously increasing amount of waste can be transformed into valuable products or energy, driving the growth of the global waste management market and establishing sustainable business models.

(2) Overview of Taiwan's Waste Treatment Industry

With the rise of environmental awareness, Taiwan has successively established various policies and measures for waste treatment. In 1984 and 1991, the "Urban Garbage Treatment Program" and "Garbage Treatment Program" were respectively formulated, establishing a waste treatment model primarily focused on incineration, with landfill as a supplementary method. According to Article 2, Paragraph 2 of the Waste Disposal Act, "industrial waste" refers to waste produced from business activities that is not generated from the daily lives of employees, including hazardous industrial waste and general industrial waste; "general waste" refers to waste other than industrial waste.

Pre-treatment includes compression processing, sorting, drying, and dewatering processes, with the aim of recycling valuable materials from waste to achieve reduction and resource recovery; intermediate treatment involves processing pre-treated waste through physical, chemical, biological, or thermal methods to make it stable, harmless, safe, and reduced in volume for storage, transportation, recycling, or disposal procedures; final treatment is the ultimate disposal of residual materials after pre-treatment and intermediate treatment, returning them to water bodies or land, including stable landfill, sanitary landfill, closed landfill, and ocean disposal.

In recent years, in response to climate change and the 2050 net-zero emissions target, the government has actively promoted the "Resource Circulation Zero Waste" strategy, systematically revising the current "Waste Disposal Act" and "Resource Recycling Act" to introduce institutional reforms centered on resource circulation promotion laws, strengthening source reduction, sustainable product policies, circular economy markets and reuse management, while also enhancing the technological enforcement for the inclusion and management of emerging wastes and illegal disposal.

In addition, the "Waste Management and Resource Recovery Action Program" approved by the Executive Yuan has classified domestic industrial, agricultural, construction, and household waste into four major categories: combustible, inorganic, organic, and chemical waste according to their nature, gradually expanding processing facility capacity, strengthening landfill management, and promoting the resource recovery of organic materials such as wastewater, livestock waste, and industrial waste liquids. Taiwan's resource

recycling and waste management industries are moving toward high-value, intelligent, and low-carbon development trends. Under policy guidance, private enterprises are also accelerating their investment in green technology and facility upgrades.

A. Industrial Waste Industry

As Taiwan's economic development is primarily driven by manufacturing and export processing industries, general industrial waste removal services account for the largest proportion of the waste management industry, reaching about 30%. Since 2019, under the trend of Taiwanese businesses returning home, industrial and commercial development has been rapid, with continuous innovation and research in high-tech products. The number of established businesses and economically active population has also increased. Benefiting from favorable factors such as the ongoing US-China trade war, significant domestic pandemic prevention results, and the global pandemic easing, Taiwan's manufacturing export orders have been booming. With the manufacturing industry thriving, the generation of industrial and general waste has grown accordingly. Domestic landfills can no longer accommodate the rapidly increasing amount of waste, and the hazardous and toxic nature of harmful industrial waste cannot be addressed by traditional landfill methods. Therefore, it can be expected that the number of waste treatment service facilities and the tonnage of waste processed will increase daily due to growing demand.

According to the 2023 industrial waste declaration statistics report issued by the Ministry of Environment, Taiwan generated approximately 20.04 million tons of industrial waste domestically in 2023, including 18.56 million tons of general industrial waste, accounting for 92.62%, and 1.48 million tons of hazardous industrial waste, accounting for 7.38%. Over the past 5 years, regarding industrial waste treatment, incineration accounted for the highest proportion from 2018 to 2020, while physical treatment has risen to first place since 2021. From 2022 to 2023, the amount of industrial waste generated has shown a generally steady decreasing trend, with a reduction of 770,000 metric tons compared to 2021, indicating that domestic processing capacity is still sufficient. With the promotion of industrial resource recycling in recent years, industrial waste is now primarily handled through circular utilization methods, with the reuse rate rising from 75% in 2018 to 85% in 2023. In the future, the effective recycling and regeneration of resources will continue to be promoted to establish a society of sustainable resource utilization. According to data from the Industrial Waste Management and Resource Recovery Information Network, the 2024 reuse status and output value analysis shows that the reuse volume reached 13.991 million metric tons,

with a reuse rate of 81.7%. The resource recycling industry's output value reached NT$80.63 billion, indicating stable development of the industrial waste treatment industry focused on resource circular utilization.

Industrial Waste Treatment Status Over the Past Five Years

Unit: metric ton

Treatment Method Year	Amount Generated	Thermal Treatment (excluding incineration)	Incineration Treatment	Physical Treatment	Solidification Treatment	Chemical Treatment	Other Treatment	Landfill Treatment		Resource Reuse
								On-site/Intermediate Treatment	Final Organization Treatment
2019	19,840,51	367,48	1,215,89	883,02	135,37	96,31	278,73	113,08	87,61	16,667,85
2020	20,030,41	408,29	1,108,00	935,48	56,13	97,99	314,74	106,55	69,25	16,938,32
2021	21,950,31	421,60	1,021,33	1,049,61	67,38	142,80	318,83	75,69	81,95	18,741,70
2022	21,178,03	421,49	972,23	1,182,22	55,89	147,58	244,99	89,32	104,76	17,766,50
2023	20,038,74	393,71	935,3	1,402,59	44,85	140,30	141,67	133,00	47,44	17,112,43

Data Source: 2023 Industrial Waste Declaration Volume Statistical Report from the Ministry of Environment.

The declared volume of medical institution waste has shown an increasing trend over the years, with approximately 12% of medical institution waste being reused, while the remainder is primarily treated through incineration. In 2023, medical institutions generated approximately 140,000 metric tons of waste, of which about 66% (100,000 metric tons) was general waste and general industrial waste (with approximately 90,000 metric tons treated through incineration), and about 34% (40,000 metric tons) was hazardous industrial waste in the form of biomedical waste (with approximately 30,000 metric tons treated through incineration).

In 2023, the Executive Yuan allocated 1.6 billion dollars to establish a management mechanism for waste discharge and subsidize local governments to assist the public in the removal and treatment of asbestos building material waste. To provide guidelines for local governments in applying for and reviewing asbestos building material waste removal and treatment plans, the "Principles for Subsidizing Asbestos Building Material Waste Removal and Treatment Operations" was promulgated on August 15, 2023. The principles were subsequently amended twice, on October 26, 2023, and June 8, 2024, to include illegal structures, suspended or discontinued business buildings, and non-residential civil buildings in the scope of subsidies for asbestos building material waste disposal costs. The eligible subsidy recipients will be further reviewed and revised based on practical operational situations.

According to October 2023 statistics from the Ministry of Environment, there are approximately 132 managed locations suspected of causing air

pollution. Based on the data, only 403 chimneys are equipped with 24-hour real-time monitoring "Continuous Emission Monitoring Systems" (CEMS). However, these regulated and monitored stationary air pollution sources represent only a portion of the total. If determination for CEMS installation is based solely on heat output or incineration volume, facilities with smaller heat output or incineration scale that still produce toxic gases, suspended particulates, or fly ash after incineration may slip through the regulatory net as stationary air pollution sources, adversely affecting public health. The Ministry of Environment's future goal is to require all companies burning hazardous waste to install "Continuous Emission Monitoring Systems" (CEMS).

The United Nations Minamata Convention on Mercury officially came into effect on August 16, 2017. Although Taiwan is not a party to the convention, it has examined international mercury management and implementation status to plan its regulatory direction in alignment with the international convention's regulatory items and timeline. Through inter-ministerial cooperation, Taiwan jointly developed the "Implementation Plan for the United Nations Minamata Convention on Mercury" (approved by the Executive Yuan on June 27, 2016), establishing the division of responsibilities among ministries as the basis for promoting domestic mercury management. In 2023, the Ministry of Environment's Chemical Bureau completed the compilation of annual implementation results from various ministries and published them on the Minamata Convention on Mercury information website.

The Ministry of Environment actively promotes the appropriate application of inorganic recycled aggregates through various measures, including proper policy guidance, regulatory frameworks, technical research to improve quality, and economic incentives. These efforts maximize the circular value of aggregates and achieve resource recycling goals. The main reuse applications include road engineering, controlled low strength material (CLSM), cement raw materials, and port area filling.

In November 2022, considering the significant pressure faced by listed companies regarding regulatory sustainable transformation, Taiwan's Environmental Protection Agency established the "Resource Recycling Network Waste Management Plan." This plan adopts the core concept of "large enterprises leading small ones," aiming to comprehensively integrate upstream and midstream industry players to jointly create a circular economy network. This not only simplifies and accelerates administrative procedures but also requires companies to regularly provide information on waste transportation movements and encourages businesses to establish self-management systems and vehicle image

monitoring equipment to implement transparent source tracking. Particularly under the trend of European regulations emphasizing "supply chain due diligence," this is expected to significantly strengthen the order-taking capacity of Taiwan's manufacturing industry. It is worth noting that this "large enterprises leading small ones" model is also being applied to the "Manufacturing Low-Carbon and Smart Upgrade Transformation Subsidy," demonstrating the strengthening of domestic industrial integration capabilities and the synergies that can be achieved in sustainable transformation. However, attention should be paid to whether Taiwan's carbon inventory process simultaneously extends deeply into small and medium-sized enterprises, thereby addressing the problem of insufficient Scope 3 carbon inventory data sources and achieving greater effectiveness with less effort. This is especially important as the Scope 3 carbon reduction timelines set by most leading brand companies under SBTi are approaching, compelling Taiwan's manufacturing industry to obtain carbon emission data related to transportation, waste treatment, or recycling as early as possible.

To strengthen the management of Solid Recovered Fuel (SRF), the mercury content product standards have been made more stringent with reference to international ISO standards, and an SRF product classification system has been established. A product history control mechanism has been established to track product flow. Strengthening manufacturing plant reviews through three substantive review stages—document review, field inspection, and trial operation—as well as review by specialized technical teams to ensure that manufactured SRF complies with relevant regulations. Strengthening air pollution emission management for user facilities, regulating facilities that use SRF as fuel and the air pollution prevention equipment they should have, with the Ministry of Environment's Department of Air Quality Protection establishing air pollution emission standards for resource recycling fuels. The Ministry of Environment formed an "SRF Operation Inspection and Guidance Team" on June 17, 2024, and from mid-June conducted a comprehensive three-month inspection and guidance for all 66 manufacturing and user facilities nationwide (48 manufacturing plants and 18 user facilities). The guidance operation was completed on September 13, 2024, and the inspection report was published on October 9, 2024. Based on the inspection report results, an SRF management regulation was established in December 2024, and an SRF white paper was issued in April 2025, creating a favorable environment for "SRF waste-to-energy" conversion.

B. Waste Lighting Industry

The waste lighting recycling and processing business requires certification in waste lighting dismantling techniques and mercury recovery processing. It processes waste fluorescent tubes and light bulbs for resource recovery, achieving the goals of separation, detoxification, and resource recovery, while producing derivatives for resource reuse. These derivatives primarily include glass, fluorescent powder, various metals, and mercury.

According to the "Announced Recyclable Waste (Waste Lighting) Historical Recovery Data" from the Ministry of Environment's Resource Circulation Administration, Taiwan's waste lighting processing volume has shown a decreasing trend since 2019. This indicates that the market has gradually accepted more energy-efficient and durable LED lighting products. Additionally, as governments worldwide develop stricter energy-saving and environmental protection policies for lighting, the growth rate of energy-efficient LED lighting products will continue to increase, while the use of traditional fluorescent tubes has gradually declined. According to the Industrial Technology Research Institute's report on the rise of LED lighting, LED products have accounted for over 50% of the global lighting market since 2020, and are estimated to reach over 80% market share by 2026, while the proportion of waste incandescent bulbs and fluorescent tubes will decline year by year.

In recent years, due to the international trend of mercury limitation and the development of lighting sources toward energy conservation, traditional lighting has gradually been replaced by LEDs, resulting in reduced recycling volumes that make processing operations financially unsustainable. To facilitate recycling and processing channels, a revision to increase the subsidy rates for traditional lighting was announced on December 30, 2022, and implemented from January 1, 2023.

Data on Recyclable Waste (Waste Lighting) Recovery Volume for the Past Five Years

Unit: Kilogram

Year	2020	2021	2022	2023	2024
Waste Lighting Category	3,741,579	3,294,267	2,799,970	2,752,172	2,738,112

Data source: Government Open Data Platform.

C. Waste Printed Circuit Board Industry

Taiwan is currently a global hub for electronic industry development. With the flourishing development of 5G, high-performance computing, cloud, IoT, automotive production capacity expansion and other industries, the replacement speed of electronic products is accelerating. Since all electronic devices contain one or more printed circuit boards, waste printed circuit boards account for a significant proportion of electronic waste. Improper handling of waste printed circuit boards may cause environmental pollution and biological health hazards. Therefore, the treatment of waste electronic products has become a focus of environmental protection policies in various countries. The optoelectronics and semiconductor industries are booming, and the government has listed the resource recycling industry as one of the top ten emerging industries.

From the recycling and processing of waste materials from major PCB manufacturers, valuable waste copper is the main component. The issue of copper metal recycling and reuse has gradually gained worldwide attention, driven by both market supply and demand. On the demand side, copper recycling and regeneration helps reduce energy consumption and lower carbon dioxide emissions. On the supply side, as the grade of natural copper mining gradually declines, the copper content in natural copper ore is only about 0.5% to 2.0%. In comparison, the copper content in common electronic waste is more efficient for smelting than natural mineral sources, prompting the industry to consider increasing the proportion of recycled copper usage. Therefore, copper recycling and regeneration has become an important global industrial trend.

Taiwan produces a large amount of waste printed circuit boards (PCBs) every year, with sources including discarded circuit boards from electronic products and trim materials from the PCB manufacturing process. According to statistics, between 2017-2018, the total amount of formally recycled waste electronic equipment in Taiwan averaged about 135,000 tons annually, with a significant portion containing PCB components. Since PCBs contain abundant metals (such as copper, gold, silver, etc.), the main purpose of recycling and processing is to extract and reuse these valuable metals. In fact, recycling 1 ton of waste circuit boards can recover metals worth approximately NT$84,000, indicating that waste PCBs have considerable resource value. It is worth noting that the actual amount of electronic waste generated in Taiwan is far higher than the amount formally recycled. Some electronic products (such as mobile phones, etc.) are not included in legally mandated recycling items, resulting in some electronic waste containing PCBs potentially flowing into informal channels or being stored. Furthermore, with the widespread

use of electronic devices, the generation of electronic waste shows an increasing trend year by year; research estimates that approximately 340,000 tons of electronic waste are generated annually.

Strengthening the recycling and processing of waste PCBs has become a focus of environmental protection departments, to prevent the loss of valuable metal resources and environmental pollution. Taiwan's waste PCB recycling and processing industry has already formed a considerable scale. The amount of waste electronic equipment (including PCBs) processed each year reaches hundreds of thousands of tons, supporting a market scale of several billion New Taiwan dollars (estimated from the value of recycled metals). Processing operators must all obtain government permits and follow environmental protection standards for processing, forming a legal recycling and processing system. Since PCBs contain harmful substances such as lead and cadmium, operators need to ensure proper pollution prevention (such as wastewater treatment, smoke and dust collection) during the recycling process. In the early period, Taiwan lacked complete smelting facilities, and some PCB residues needed to be exported for processing or were illegally disposed of by unscrupulous operators; for example, between 2016 and 2019, there was a case in Pingtung where approximately 2,286 tons of crushed PCB fiberglass powder were illegally dumped, causing copper content in the soil to exceed standards. This incident highlights the importance of strengthening supervision and implementing legal processing. Taiwan has a policy and regulatory framework of the "Waste Disposal Act" for the management of waste PCBs, ensuring that the recycling and processing process meets environmental protection requirements.

In recent years, the Taiwan government has actively integrated the concept of circular economy into waste PCB management policies, promoting sustainable resource utilization. At the policy level, the Environmental Protection Administration and related ministries have launched the "Circular Economy Action Plan," encouraging manufacturers to strengthen research and development of waste resource recovery technologies. In addition to regulatory adjustments, the government also promotes industry-academia-research collaboration and innovation. The Environmental Protection Administration collaborates with colleges and universities, research institutions, and the industry to develop advanced electronic waste recycling technologies, in order to improve resource recovery efficiency and reduce environmental impact.

The recycled copper price has shown a long-term high correlation with international copper futures prices (such as the London Metal Exchange LME, New York Mercantile Exchange COMEX). In the year 113 (2024),

benefiting from global energy transition driving the demand growth for electric vehicles and renewable energy facilities, coupled with unstable supply from major copper mining areas in South America and China's new energy infrastructure policy initiatives, international copper prices have maintained at a relatively high range. LME copper futures remained between US$8,000 and US$9,800 per ton for most of the year, while COMEX copper prices approached US$5 per pound by the end of the year, reaching a new high in recent years. Looking ahead to the year 2025, the market generally expects copper supply to remain tight, with limited new mine development globally, continuing expansion of demand from new energy and electric vehicle industries, plus potential metal price volatility driven by U.S. trade policies and geopolitical variables. Investment banking institutions mostly estimate that the annual average price of LME copper futures will be between US$8,500 and US$10,500 per ton. The recycled copper market will also continue its pattern of high correlation with futures market trends. High prices will stimulate recycling willingness, but with copper smelting enterprises increasing their proportion of secondary resource usage and environmental regulations pushing forward, the absorption momentum of recycled copper is expected to remain robust, with price support. It is anticipated that recycled copper will maintain a high-level fluctuating trend throughout the year.

D. Soil and Groundwater Environmental Remediation Engineering Industry

After the Soil and Groundwater Pollution Remediation Act (hereinafter referred to as the Soil Pollution Act) was amended in 2010, it significantly stimulated demand for land pollution-related services. In the bidding projects announced by the Environmental Protection Administration for investigating contaminated land in various regions, after investigation, contaminated land will be subject to administrative control, public announcement, and restrictions on land use (prohibited from development, establishment, and transfer), and relevant responsible parties will be compelled to carry out soil pollution remediation operations. For land where pollution remediation is not voluntarily implemented, the Soil and Groundwater Pollution Remediation Fund will invest resources, ultimately achieving the purpose of soil restoration and reuse. In response to the aforementioned soil pollution remediation operation processes, related demands for soil pollution remediation services have emerged, such as: soil pollution investigation and testing operations, soil pollution remediation and site management, soil restoration and resource-oriented reuse.

Compiling the accumulated number of controlled sites over the years, the number of delisted sites, and the current number of controlled sites,

the number of sites under control in the current year has gradually decreased since 2017, while the accumulated number of delisted sites has shown an increasing growth rate since 2014, with the growth rate showing a slowdown in 2021 (the average annual number of delisted sites from 2014 to 2023 is 635).

註：統計數據截至112年12月，資料於113年1月16日擷取。

Sales Revenue of Pollution Remediation Industry in the Past Five Years

Unit: NTD 100 million

Year	2020	2021	2022	2023	2024
Pollution Remediation Industry	146.43	142.99	155.68	155.57	186.29

Data Source: Ministry of Finance Statistical Database.

According to the research report from the Industrial Economics Database of Taiwan Institute of Economic Research, pollution remediation companies have benefited from the recent expansion actions of domestic technology companies, which have increased the demand for land use in Taiwan, driving up the number of pollution site remediation projects. In order to control polluted soil and prevent it from flowing to unknown destinations, in the past, there was a tendency not to transport polluted soil off-site, instead using in-situ or on-site treatment methods; or if it was transported off-site, the polluted soil was treated as waste, undergoing removal, solidification, and landfilling, which was expensive and had no other added value. However, after years of remediation experience, it has been discovered that in-situ and on-site treatment of contaminated soil has limitations, high control costs, the treatment process easily causes secondary pollution, and there are various problems such as poor cooperation from landowners. Therefore, in

recent years, the policy direction of the Environmental Protection Department has been to remove contaminated soil and transport it to soil rehabilitation plants for ex-situ treatment, and to reuse soil resources that meet various pollutant control standards after treatment. Subsequently, these can be resold through the soil resource industry, deriving added value from soil pollution remediation. With the gradual increase in environmental awareness in Taiwan and the demand for land for urban development, the overall environmental protection market continues to rise. Recently, the demand for projects from related public tenders and private enterprises has been gradually increasing. In addition to the increase in the overall market case volume, there is also a growing trend in the amount of individual project cases.

The rapid global economic development has led to the accelerated consumption of limited resources, thus sustainable development and circular economy have become the most important consensus in the international community. In view of the U.S. Clean Act, the EU's CBAM, and Taiwan's Climate Change Response Act, all of which will prompt major domestic manufacturers to accelerate their environmental protection and energy transition steps, the environmental protection industry, driven by this trend, will establish a positive image. Furthermore, under the active guidance of government policies and the increasing environmental awareness of the people, the market scale can continue to expand, creating economic benefits. The Executive Yuan of Taiwan has clearly defined the goal of achieving net-zero carbon emissions by 2050, and has begun planning to levy carbon fees, establishing a carbon trading exchange in August 2023. It is expected that the domestic waste treatment demand market will continue to expand, strengthening incentives for manufacturers to invest in resource recycling and carbon reduction equipment. Research and development funds will be successively invested in recycling and treatment technologies such as waste solar panels, waste lithium batteries from electric vehicles, fly ash detoxification, and carbon capture and reuse, as well as strengthening the establishment of resource recycling networks. In addition, the collection of water consumption fees will also promote the continuous construction of reclaimed water plants and wastewater recycling systems. Therefore, it is expected that this industry will have abundant development momentum, and the industry outlook will continue to show a growth trend.

Relationship between upstream, midstream, and downstream industries

The industry to which the Company belongs is the circular economy value chain. The relationship between upstream, midstream, and downstream industries is presented according to material sources, the Company's recycling and treatment technologies, and resource-converted products:

物料來源	高科技、化工、醫療等所產生廢棄物	廢棄照明(傳統營光燈管、電子業曝光燈等) 、含貴重金屬複合材料	電子零組件、半導體、印刷電路板業等所產生下腳料、邊框等)
回收處理技術	焚化、化學、洗淨、固化等處理	破碎、蒸餾、熱脫附、熱裂解等處理	乾、濕破碎、水搖床分選、改質
資源化產品	電力再生粉料 CLSM 水泥塊製品	高純度汞玻璃粒料品貴重金屬	高純度鋼粉混凝土掺料

Future development trends and competitive situation of products

(1) Removal and treatment of industrial waste

A. Development trend: After the "Paris Agreement" was signed and became international law, "energy conservation, emission reduction, and circular economy" have become a common international language. Under the inevitable depletion of limited Earth resources, the prices of new resources become more valuable due to their scarcity, creating pressure for continuously rising prices. In the future, environmental awareness will be highly accepted by countries worldwide. After reviewing the mature models of countries that have already implemented high-level

environmental protection policies, the environmental protection industry will become an indispensable and important link in human life. The government has therefore actively strengthened the guidance of public and private waste disposal organizations, significantly simplified regulations, and increased incentives to encourage private institutions to invest in the waste treatment industry, with the aim of improving the proper treatment rate of domestic industrial waste.

B. Competitive situation: The number of established businesses and population continues to increase, leading to a relative growth in the generation of industrial waste and general waste. Domestic landfills can no longer accommodate the rapidly expanding quantity of waste. Among these, the hazardous and toxic industrial waste cannot be resolved through traditional landfilling. Therefore, it can be expected that the demand for waste treatment service facilities and processing tonnage will increase daily due to this need. Furthermore, given Taiwan's dense population and limited land resources, the high-efficiency and diversified treatment plants operated by the Company represent the current best and fastest solution to waste management problems.

(2) Treatment of recyclable materials

A. Development trend: The types of lighting sources used in our country can be divided with 2009 as a watershed. Development trend: Prior to 2009, traditional light sources were predominant, including fluorescent tubes (including T12/T9/T8/T5), energy-saving light bulbs, mercury lamps, metal halide lamps, high-pressure sodium lamps, etc. During this period, lighting products followed past lighting usage habits (where fixtures and light sources could be separated), so after installing a light fixture, if the light source was damaged, a replacement light source could be purchased. After 2009, LED lighting emerged, and our country's lighting market began to change. The rapid price drop and high-efficiency characteristics of LED lighting products have driven market growth, with some products already becoming mainstream in the market, causing the market share of traditional lighting products to gradually decline. In addition, integrated LED lighting products have entered the market with advantages such as small size, long lifespan, and better energy-saving benefits. Examples include LED street lights, LED spotlights, LED recessed lights, and LED floodlights, all of which adopt an integrated design. When these types of products are damaged, the entire fixture must be replaced directly. Although this changes the habit of replacing light sources, due to their higher cost-performance ratio, they have gradually been accepted by the market and become mainstream (Industrial Technology Research Institute, 2021/1/15).

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B. Competition situation: The Company's recycling and processing of waste lighting sources is currently an oligopolistic business in Taiwan. The Company has obtained qualified processing credentials in accordance with the "Management Measures for Recyclable Waste Recovery and Treatment Industry," the "Management Measures for Application and Review of Recyclable Waste Recovery, Removal, and Treatment Subsidies," and the "Operation Manual for Recyclable Waste Recovery, Removal, and Treatment Verification and Certification (Waste Lighting Sources Category). The recycling process of waste lighting sources aims to achieve the goals of separation, detoxification, and resource recovery, as well as producing various types of recovered materials. From 2022 to 2024, the processing volume market share approached 70%. In the future, we will continue to increase the resource recycling and reuse ratio of waste lighting sources to over 95%, maximizing waste reuse.

The Company's second plant processes recyclable waste lighting sources and has obtained qualified processing credentials in accordance with the "Management Measures for Recyclable Waste Recovery and Treatment Industry," the "Management Measures for Application and Review of Recyclable Waste Recovery, Removal, and Treatment Subsidies," and the "Operation Manual for Recyclable Waste Recovery, Removal, and Treatment Verification and Certification (Waste Lighting Sources Category). The recycling process of waste lighting sources aims to achieve the goals of separation, detoxification, and resource recovery, as well as producing various types of recovered materials. The total processing volume from 2020 to 2024 was 11,262 tons; through the resource recovery processing, materials such as "mercury, glass, iron, aluminum" were produced, totaling 10,332.6 tons, achieving a recycling rate of 90%.

Unit: metric ton

Items	2020	2021	2022	2023	2024
The Company's Recyclable Processing Volume	2,940.5	2,609.5	2,178.8	1,903.7	1,629.5
Recovered Resources (Mercury, Glass, Iron, Aluminum, etc.)	2,671.5	2,371.4	2,103.4	1,687.1	1,499.2
Recycling Rate	91%	91%	97%	89%	92%

(3) Mixed Waste Hardware Processing and Derivative Sales

A. Development Trend: Recycling and processing of scrap materials involves collecting excess materials, trimmings, etc. generated during the production process, which can be used for resource recovery. The

larger the processing volume of mixed waste hardware, the greater the economic scale to effectively reduce costs; as the market demand for copper increases, the stability of raw material sources and processing to increase copper content will be favored by customers.

B. Competitive Situation: After the completion of the Company's third plant, it has obtained qualification as a Class A waste treatment facility, receiving copper-containing waste from domestic printed circuit board manufacturers. Using processes such as decomposition, dry crushing, wet crushing, and water table separation, the Company can recover copper powder with a purity of over 80%. The copper powder product is then resold to copper smelting manufacturers to be reprocessed into pure copper. The separated glass fiber resin is further processed through a modification procedure to produce "concrete admixture. The copper powder product is reprocessed into pure copper by copper smelting manufacturers, while the concrete admixture is used by the cement manufacturing industry, achieving the goal of complete recycling with zero waste. From 2022 to 2024, a total of 29,642 tons of waste printed circuit boards were processed; the recycled products of copper powder and concrete admixture totaled 29,603 tons, achieving a recycling ratio of approximately 100%. This business is one of the important sources of revenue for the Company; the selling price of copper powder is affected by international copper futures prices and exchange rates, so the Company adjusts the proportion of sales between domestic and foreign customers to diversify risk.

(4) Environmental Remediation Projects

A. Development Trend: The Company holds a professional environmental protection engineering construction license. After years of cultivation, in August 2023, we partnered with professional pollution remediation engineering company JABBO TECHNOLOGY CO., LTD. to jointly participate in the soil and groundwater pollution remediation project of the Kaohsiung CPC Refinery for the Kaohsiung City Government, with a contract amount of approximately NT$1 billion. After the completion of this soil and groundwater pollution remediation project, the land will be planned by the Kaohsiung City Government as an environmental protection facility site for an advanced semiconductor industry base. The Company and Jesper Co., Ltd. are working together to complete the site excavation project within 1 year, and to complete the on-site soil and groundwater pollution remediation project within the following year. The early completion of this project will help accelerate environmental improvement in Taiwan and meet the land requirements for the future semiconductor industry base ahead of schedule.

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B. Competition Situation: The soil and groundwater environmental protection service business covers multiple fields from pollution investigation to subsequent improvement and remediation, including planning and design, on-site sampling, laboratory testing, equipment supply, on-site construction, engineer certification, and soil treatment facilities. There are several companies competing in each of these fields domestically. The Company will continue to strengthen its waste treatment advantages, actively pursue mercury-contaminated and electronic waste-contaminated sites, integrate relevant resources and project management capabilities, and introduce relevant talent. Building on the experience from the aforementioned cases, we will continue to compete for controlled contaminated sites in Taiwan that require remediation.

(III) Technology and Research & Development Overview

1. Technology Level and Research Development of Business Operations

The Company is mainly engaged in domestic waste removal and treatment. In addition to focusing on technological capabilities for resource recovery and energy recovery processing, we are also working with upstream and downstream operators to promote resource circular linkages, enabling recycled materials to smoothly flow downstream or return to the original manufacturing process in a closed-loop system. We continuously research and develop higher-value materials for upcycling applications. The related business improvements are mainly implemented by site personnel based on actual existing conditions. In 2023, the salaries of personnel engaged in research and development work were officially recorded as R&D salary expenses, with the President directly leading the R&D unit - "Circular Economy Innovation and Research Laboratory.

(1) Research and Development Personnel and Their Educational and Professional Background:

Unit: Number of People

Education	2023	2024	As of the end of April 2025
Doctorate	-	0	0
Master's Degree	1	1	0
College/University	1	1	1

(2) Research and development expenses invested annually in the past five years:

Unit: NT$ thousand; %

Items	2020	2021	2022	2023	2024
Research and Development Expenses	-	-	-	3,461	5,145
Net Operating Revenue	-	-	-	1,272,457	1,716,745
Percentage of Research and Development Expenses to Net Operating Revenue (%)	-	-	-	0.27	0.30

From 2019 to 2022, the Company focused on process improvements to provide new services to customers, but did not have a dedicated R&D budget or department, so no specific R&D expenses were allocated.

(3) Successfully developed technologies or products in the past five years

The Company's operational direction has expanded from the resource recycling of waste lighting sources, mercury-containing waste, and waste printed circuit boards to include the pyrolysis treatment of composite materials, comprehensive waste incineration, heat recovery power generation, and the reuse of incineration bottom ash. The Company continues to research and develop resource recycling technologies, develop processes that maximize resource recovery and reuse, and innovate green products and services to provide customers with comprehensive circular economy solutions.

Time	Important R&D Achievements	Description
2020	Establishing various operational parameters for the pyrolysis treatment process	1. Conducting process testing according to the trial operation plan approved by the Taoyuan City Government.2. Completed trial operation and established various operational parameters.
2021	Optimal mix ratios for the application of incineration bottom ash in controlled low-strength materials (CLSM), recycled aggregates, and cement products	Commissioned the Taiwan Construction Research Institute to develop material recycling technology.
2022	Developing optimal mix ratios for the application of incineration bottom ash in CLSM, recycled	Completed the optimal mix ratios for the application of incineration bottom ash in CLSM, recycled aggregates,
	aggregates, and cement products	and then to develop new material.

Time	Important R&D Achievements	Description
	aggregates, and cement products	and cement products.
2023	Sodium bicarbonate application in acid removal technology for exhaust gases	1. Established the optimal exhaust gas temperature range for sodium bicarbonate.
2. Set up sodium bicarbonate grinding and dosing equipment.
2024	Research, Analysis and Market Matching Plan for the Application of Industrial Waste Incineration Bottom Ash Recycled Aggregates	Analysis of recycled aggregate products applied as raw materials in engineering materials, and their reuse development as two products: "permeable bonding mortar" and "permeable bricks".

(IV) Long-term and short-term business development plans

Short-term business development plan

(1) Increase the business of Plant One Incineration Comprehensive Treatment Center to expand the company's operational scale

In addition to actively pursuing our original recycling and processing business for waste lighting sources, waste printed circuit boards, and composite material processing, the completion and commissioning of Plant One's incinerator in 2022 has added new treatment methods including incineration treatment, chemical treatment, solidification treatment, and cleaning treatment. These methods allow us to perform resource recovery processing according to the characteristics of various types of waste, expanding our service market and the company's operational scale.

(2) Strengthen pollution prevention and control

In response to the new treatment methods of Plant One's incinerator, which produce pollution including derivative waste, air pollution, wastewater, and noise, relevant pollution prevention and control measures are being adopted to comply with regulatory requirements and implement proper treatment and environmental monitoring.

(3) Equipment and formula improvements to enhance recycling efficiency

The Company will continue to strengthen its own technology, increase production capacity, develop high-value technology for recycled products, and improve the purity of recovered copper to help reduce the industry's dependence on copper imports.

(4) Improve financial structure and increase financing channels

We are fully committed to advancing the company into the capital market, acquiring long-term funding to improve our financial structure and increase

financial flexibility, while simultaneously sharing the company's operational achievements with employees and the general public.

2. Long-term business development plan

(1) Keep track of industry dynamics and pay attention to domestic and international recycling policies

Air pollution emission standards and regulations for processed derivatives and recycled materials are becoming increasingly stringent, but this may also lead to a larger demand market. The Company will continue to monitor newly announced items that require recycling and processing, develop corresponding processing methods, procedures, and equipment, and apply for processing permits in a timely manner to enrich the company's operational activities.

In terms of international markets, the integration of the global circular economy industry chain is accelerating. In the future, the Company will actively cooperate with international partners to expand overseas markets. Through cooperation with major Japanese refining companies and others, we are gradually establishing a specialized division of labor model for the global circular economy, preparing for future market expansion.

(2) Continue to improve employee per capita contribution and enhance team cohesion

We plan regular employee training to enhance professional skills and work efficiency; additionally, we are gradually improving employee welfare systems and designing appropriate compensation mechanisms, adhering to the concept of sustainable operation, establishing corporate culture, and increasing employees' sense of identification with the company.

(3) Sound financial planning

Continuously generate profits to create stable operating funds, supplemented by diverse financing channels from financial institutions and capital markets, to reduce operational risks and enhance market competitive advantage.

(4) Development strategies and phased objectives

Invest in Cleaway Energy Co., Ltd., to develop renewable energy power plants using Solid Recovered Fuel (SRF), creating synergy with the Company's business operations.

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Collaborate with the Material and Chemical Research Laboratories of the Industrial Technology Research Institute on "Flue Gas Carbon Capture and Utilization," implementing it on a small-scale trial basis. This project mixes carbon dioxide from flue gas with fly ash washing wastewater to produce carbonic acid, which then reacts with calcium dissolved in the wastewater to form calcium carbonate. This achieves the purpose of treating waste gas and wastewater simultaneously, while also providing carbon fixation benefits.

Collaborate with the Metal Industries Research & Development Centre on "Recycling and Regeneration Evaluation Technology for Waste Printed Circuit Boards" and "Recycling and Regeneration Evaluation Technology for Waste Lithium Batteries," developing research cooperation on high value-added circular technologies. The cooperation plan will involve [Pyrometallurgical Research] and [Hydrometallurgical Electrolytic Purification Technology Research]. Chung Tai Resource Technology and the Metal Industries Research & Development Centre aim to successively complete the development of [Halogen-free Copper Powder Pyrometallurgical Process Technology] from 2023 onwards to produce copper ingots with a purity of $\geq 90\mathrm{wt}\%$ ; as well as the development of [Slag-making Smelting Technology] and [Copper Powder Oxygen Blowing Refining Process], further increasing copper ingot purity to $\geq 95\mathrm{wt}\%$ ; and ultimately achieve the development of [Hydrometallurgical Electrolytic Purification Technology] to produce cathode copper with 4N purity.

In addition, the Company is also collaborating with major manufacturers to conduct small-scale trials, utilizing pyrolysis carbonization technology for waste lithium battery recycling and treatment. The recovered black powder is further researched and refined to extract valuable rare metals such as nickel, cobalt, and lithium, which can be supplied as raw materials to the battery manufacturing industry, forming part of a closed-loop circular economy.

II. Market and Production/Sales Overview

(I) Market Analysis

1. Main Product (Service) Sales (Provision) Regions

Year Sales Regions	2022		2023		2024
	Amount	Ratio (%)	Amount	Ratio (%)	Amount	Ratio (%)
Domestic Sales (Taiwan)	707,120	84.35	1,158,372	91.03	1,560,111	90.88
Export Sales (Overseas)	131,204	15.65	114,085	8.97	156,634	9.12

The Company's overseas sales business focuses on the Japanese market, with recycled copper as the main product.

2. Market Share

For the estimable waste treatment market, the Company's market share in the domestic market is disclosed as follows:

(1) Recycling and Treatment of Waste Lighting

After the Company's processing volume is audited by a third-party certification organization, the auditing certification body submits a processing certification volume report to the Environmental Protection Department, which the Company uses as the basis for requesting subsidy amounts. The processing volume from 2021 to 2023 totaled 5,710 tons, with a market share of approximately $70\%$ . The market share in 2024 has declined compared to the previous period, mainly because the rapid popularization of LED lighting in recent years has changed the market structure. The Company's second plant currently focuses on the processing of traditional fluorescent tubes. Based on business strategy considerations, it has not applied for a permit to recycle and process waste LED lights, which indirectly affects the overall market share performance.

Items	2022	2023	2024
The Company's Recyclable Processing Volume	2,179	1,904	1,629.5
Total Nationally Certified Waste Lighting Source Processing Volume by the Environmental Protection Department	2,780	2,752	2,738
Market Share	78%	70%	59%

(2) Waste Printed Circuit Board Processing

The Company primarily processes Class E waste, including metal-containing printed circuit board waste and its dust, as well as waste printed circuit boards with attached components. Therefore, comparing the Company's recycling processing volume with the statistics reported by the Environmental Protection Department, the estimated market share is approximately $20\%$ to $30\%$ .

Items	2022	2023	2024
The Company's Recycling Processing Volume	11,727	10,257	7,685
Reported Output of Industrial Waste (E-0221, E-0217, E-0222, E-0229)	38,524	33,947	35,014
Market Share	30%	30%	22%

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(3) Industrial Waste Incineration Treatment Process

The Company's First Plant has been operating since April 2022, with incineration treatment being one of its main processes. The estimated market share based on the statistical report data of industrial waste reported to the Environmental Protection Department is as follows:

Items	April to December 2022	2023	2024
The Company's Incineration Treatment Volume	19,418	25,676	Note 1
National General and Hazardous Industrial Waste Incineration Treatment Volume	972,230	935,340	Note 1
Market Share	1.8%	2.7%	Note 1

Note 1: The Ministry of Environment has not yet announced the incineration treatment statistical information for 2024.

Market's Future Supply and Demand Conditions and Growth Potential

Currently, our country's waste disposal policy is based on the governing principle of "Setting goals for resource sustainability, creating new opportunities through circular utilization," and has formulated resource recycling policy planning, moving toward sustainable resource utilization, advocating green production, green consumption, source reduction, resource recycling, reuse, and regenerative utilization methods to effectively circulate resources, gradually achieving the goals of complete waste recycling and zero waste. Taiwan currently has a high level of environmental awareness, and the industrial sector has already formed the concept of legal disposal of industrial waste. Coupled with the government's vigorous promotion of environmental protection work and increasingly improved environmental regulations, the situation of waste being casually buried without proper treatment will be greatly reduced. As the domestic industrial structure consists mostly of small and medium-sized enterprises, most business units are unable to handle waste disposal on their own. Therefore, the waste they generate will inevitably need to be properly treated by professional waste disposal companies, and the market scale will further expand.

From the demand perspective, due to the current high environmental awareness, regardless of domestic or global environmental protection regulations becoming increasingly comprehensive, factory emission standards becoming more stringent, government's vigorous promotion of environmental protection, and businesses gradually emphasizing ESG, all contribute to the rising demand for waste treatment. Additionally, benefiting from the booming export orders in the manufacturing industry, the generation of industrial waste has also increased accordingly. Additionally, since 2019, Taiwanese businesses have been returning

from mainland China to set up factories in Taiwan, ushering in an era of waste explosion that urgently requires qualified environmental treatment plants for assistance. Currently, there are only 114 companies in Taiwan with Class A treatment and disposal qualifications. Furthermore, with mountains of waste waiting to be processed and the serious problem of illegal industrial waste dumping causing environmental pollution and concerns about odor and air pollution, the waste treatment industry is experiencing a situation where demand exceeds supply.

From the supply perspective, due to regulatory restrictions, the treatment of general industrial and hazardous industrial waste requires obtaining permission from the competent authority and undergoing periodic reviews to execute related operations. Additionally, the timeline for license application certification is relatively lengthy, making the risk of supply surplus minimal.

4. Competitive Advantage

(1) Implementation of Smart Tools and Information Systems in Each Plant

Since the planning of its factories, the Company has gradually introduced the concept of information management and practically applied it to work processes, implementing comprehensive information management that complies with safety-oriented recycling and treatment technologies and procedures. This includes transportation, incineration, accounting management, material management, and report analysis, with the introduction of smart warehouse management methods that combine barcode technology and customized ERP systems to improve operational efficiency and quality. Additionally, we have established a high-specification laboratory to analyze the composition of waste materials, providing a basis for ingredient formulation and input, in order to achieve optimized treatment objectives. The plant is equipped with a central control room (CTV) and continuous emission monitoring systems (CEMS) to monitor the operational status of various systems during the incineration process, with feedback integration to laboratory information.

(2) Continuous Improvement in Comprehensive Waste Treatment, Mercury-Containing Lamp and Waste PCB Recycling Technologies

Since the operation of the Company's Plant 1, which specializes in comprehensive treatment of hazardous industrial waste incineration, we have adopted automatic continuous monitoring and regular air pollution emission testing to control the potential environmental impact of waste treatment. We have voluntarily set "zero emission" and "zero waste" as our goals, and have invested in relevant research and development. Our air pollution emission values already comply with the requirements of strict domestic and international environmental regulations. In the future, we will actively research carbon capture and reuse technologies, as well as fly ash detoxification techniques, with the determination to become a resource circulation zero-waste center that integrates energy and resource technologies, combining incineration power generation, solidification, chemical and cleaning treatment mechanisms.

The Company's Plant 2 utilizes dry physical treatment for waste lighting sources and mercury-containing waste, with dust collection filter bags, activated carbon adsorption, and scrubbing towers installed according to air pollution emission characteristics. Additionally, waste composite materials are treated by pyrolysis, equipped with post-combustion chambers, ceramic membrane filtration, dust collection filter bags, and activated carbon adsorption. In the future, the waste lighting source plant will continue to increase the resource recycling and reuse rate of waste lighting sources to over 95%.

The Company's Plant 3 employs crushing and sorting processes for waste printed circuit boards, with dust collection filter bag facilities installed for dust control. In the future, we will develop and implement metallurgical technologies such as acid dissolution, electrolysis, and smelting to increase the copper purity recovered from waste printed circuit boards to over 99%, recovering and producing high-purity copper materials to help reduce the industry's dependence on foreign imports. With core development focused on feedstock conversion, material transformation, and energy recovery technologies, we are actively implementing circular economy principles and the United Nations Sustainable Development Goals (SDGs).

The Company's various plants separately process solid, liquid, and medical waste, and in response to the diverse and complex nature of industrial waste, we are licensed to receive 212 types of waste codes, making us the leading waste treatment center in northern Taiwan. The Company grasps development opportunities in the waste treatment and circular economy markets, continuously innovating and improving to enhance our core competitiveness, in order to realize the Company's founding mission of "Utilizing Resources

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for Public Welfare" and become the best partner in the green supply chain for industries.

Favorable and Unfavorable Factors Affecting the Company's Future Development Prospects and Response Strategies

(1) Favorable Factors

A. Environmental sustainability issues are receiving attention, and waste management regulations are becoming more stringent:

In Taiwan's early period, due to incomplete environmental protection laws, underdeveloped public environmental awareness, and lack of attention to environmental sustainability issues, there has been an increasing number of incidents where polluting industries illegally discharged wastewater/waste, or were heavily fined by government authorities or gradually shut down because they could not meet environmental regulatory standards. As environmental protection concepts become a global emerging trend, and with government promotion and increased knowledge levels, environmental awareness has been widely established, gradually building a positive image of the green energy and environmental protection industry in the minds of the Taiwanese people. The Environmental Protection Administration of the Executive Yuan also announced amendments to the "Regulations Governing the Reuse of Industrial Waste by the Environmental Protection Administration of the Executive Yuan" in 2022, clearly stipulating that public and private waste disposal organizations entrusted with removing reusable industrial waste must use vehicles approved by the issuing authority to carry out the removal, in order to achieve consistent management with public and private waste disposal organizations. In view of the increasingly strong environmental protection demands from the government and brand companies, the domestic needs for waste recycling and wastewater reuse have expanded further. For the environmental protection industry, which has already been developing steadily for a long time, this adds strong growth momentum, thus the industry outlook is expected to continue showing growth trends in the future.

B. Small and medium-sized enterprises lack the capacity to handle waste independently, and outsourcing waste management has become an industry trend in recent years

According to the "2024 White Paper on Small and Medium Enterprises" published by the Ministry of Economic Affairs, the number of SMEs in

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Taiwan exceeded 1.67 million in 2024, accounting for more than 98% of all enterprises. Since SMEs constitute the majority and generate relatively small amounts of waste, yet self-handling of waste treatment and transportation requires professional equipment setup, facilities, and trained technical operators, SMEs typically face challenges such as lack of economies of scale, processing space, technology, talent, and capital when attempting to manage waste independently, making it not cost-effective. In recent years, with the rise of the circular economy industry and sustainable regeneration trends, various businesses have gradually recognized the benefits of outsourcing to professional waste management service providers and the advantages generated by this professional division of labor. Therefore, outsourcing waste management has become increasingly common, which will help the Company's future business expansion and operational scale improvement. The Company regularly reports in accordance with environmental protection regulations and provides clients with comprehensive regulatory consultation, offering one-stop environmental protection services, which further enhances the Company's competitive advantage.

C. Good customer relationships and diverse client industries help to diversify risk

The Company is engaged in comprehensive treatment of industrial waste incineration for power generation, pollution remediation, treatment of mercury-containing waste, pyrolysis recovery of precious metals, and recycling copper from electronic waste printed circuit boards. Its main customers are spread throughout the northern region, and it also processes industrial waste from all over Taiwan through introductions and matchmaking by waste transportation companies. The Company has established high-quality business partnerships with customers and waste transportation companies over many years, demonstrating that its services have been recognized by customers. In the future, it will continue to strengthen business relationships with customers and respond to market demands through professional services and excellent processing results. In addition, the Company's clients come from various industries including electronics, construction, chemical industries, hotels, etc. This diversity of client industries also helps to disperse the concentration risk of a single industry.

D. Regulatory Protection

Comprehensive domestic environmental protection regulations have increased the barriers to entry into this industry, and the Company regularly reports in accordance with environmental protection regulations and provides clients with comprehensive regulatory

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consultation, which further enhances the Company's competitive advantage.

E. Good management systems to reduce costs and enhance competitiveness

The Company has established various management systems and actively promotes and implements them, enabling each employee to understand their duties, relevant system regulations, and various welfare measures. The Company regularly conducts vocational training to instruct employees on the processing standards and recycling value of various wastes, with the aim of ensuring that all industrial waste collected by the Company receives the most appropriate treatment and achieves the highest recycling value.

(2) Unfavorable Factors and Countermeasures

A. Circular economy and carbon trading leading to a reduction in industrial waste

In response to the trend of circular economy, enterprises continue to promote source separation and waste reduction, use low-energy consumption machinery and equipment, collaborate with manufacturers to develop new waste recycling technologies, and strengthen the reuse of waste resources. The aim is to recycle waste generated during production activities or final products back into the supply chain, thereby achieving the goals of maximizing resource utilization and minimizing waste generation. In addition, the Taiwan Carbon Trading Exchange was inaugurated in Kaohsiung in August 2023. In the future, it will focus on three major trading items: domestic "voluntary reduction," "incremental offsetting," and international "carbon trading." For the entire industry or supply chain, through the carbon trading market, the price of carbon and the value of carbon credits will become more visible, increasing willingness to invest in carbon reduction projects, which will consequently affect the production volume of industrial waste in companies.

Response Strategies:

The Company's main business operations include the resource recovery treatment of waste lighting sources and waste printed circuit boards. We have also completed the construction of pyrolysis and incineration treatment facilities, as well as heat recovery power generation systems and bottom ash reuse facilities, providing comprehensive circular economy solutions. In the future, we will continue to research and

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develop high-value resource circulation technologies, develop processes that maximize resource recovery and reuse, and create innovative green products and services, striving to become the best partner in the green supply chain for the industry. In addition to maintaining close cooperative relationships with existing customers, we also continue to develop new customers. The Company is actively expanding into new business areas, including soil pollution remediation, waste lithium battery and waste solar panel recycling, flue gas carbon capture and reuse, and the production of solid recovered fuel. These initiatives will diversify the Company's waste treatment and recycling business, aligning with the trend of businesses choosing to commission resource recovery processing for their industrial waste, thereby continuously reducing operational risks.

B. PC Board Industry Fluctuations Affecting Raw Material Supply

As the Company's main source of raw materials is waste printed circuit boards generated from PC board manufacturing processes, we recover copper powder through resource recovery treatment of waste printed circuit boards produced by the electronics industry, which is then sold to copper smelters. If the PC board industry is affected by economic fluctuations, the capacity utilization rate of major technology manufacturers will influence the production volume of waste printed circuit boards, which directly affects the Company's raw material supply sources. This will consequently impact the processing volume of waste printed circuit boards, leading to idle or overloaded equipment capacity at the Company, thus affecting the Company's operational status.

Response Strategies:

The Company actively works through major transportation vendors to ensure stability of supply sources, deepening cooperation with major PC board manufacturers and transportation vendors while increasing added value, making the technical business cooperation model between both parties more closely integrated. We also continuously expand into new customer markets for product applications to inject new business capacity and balance dependence on existing customers. Furthermore, we enhance research and development capabilities to extend into new application areas, improving enterprise competitiveness and injecting new growth momentum for the company, with the aim of effectively reducing risks in raw material supply.

C. Copper Price Market Fluctuations Affecting Copper Powder Sales

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The Company's Plant Three has obtained qualification as a Class A waste treatment facility. Waste printed circuit boards from PC board manufacturers undergo processing procedures including decomposition, dry crushing, wet crushing, and water table sorting, which can recover "copper powder" with a purity of over 80%. Additionally, the separated fiberglass resin undergoes a modification process to produce "concrete admixture". The Company sells recoverable copper powder to downstream businesses, so if international copper prices decline, it could adversely affect the Company's operations.

Response Strategies:

The Company employs dry/wet crushing and water table sorting to produce high-purity copper powder and concrete admixture products, achieving the goal of full recycling with zero waste. For future copper powder sales, we will adjust profit-sharing ratios with customers according to international copper price fluctuations, and ship products immediately to avoid inventory devaluation losses. Facing more uncertainties and challenges in the copper powder market, the Company will continuously make dynamic adjustments to its waste metal recycling and processing business model to address the profit impact caused by copper price fluctuations. In the future, we will collaborate with the Metal Industries Research & Development Centre on research for "Lithium Battery Recycling and Regeneration" and "Refining Copper Ingot Slag Smelting and Electrolytic Purification Technology." We hope to recover valuable resources (such as positive electrodes (black powder) and high-purity copper plates) through equipment improvements and innovative technologies, continuing to develop the Company's urban mining philosophy.

D. Difficulty in Acquiring Talent

In recent years, the Company's main business operations include comprehensive treatment of waste incineration for power generation, mercury recovery from mercury-containing waste, thermal pyrolysis treatment for precious metal recovery, copper recovery from waste printed circuit boards, and environmental remediation engineering, providing comprehensive resource recycling solutions. As the environmental protection industry market expands and labor demands increase, combined with the continuous rise in the price index over the past two years, waste treatment production lines require highly specialized technical talents in chemical engineering, electrical engineering, electronics, mechanics, materials, environmental engineering, occupational safety, and equipment operation. Furthermore, due to the relatively remote location and inconvenient transportation of

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industrial factory areas such as Guanyin in Taoyuan where we are situated, recruitment and acquisition of talent is comparatively difficult.

Response Strategies

To address the difficulty in talent recruitment, the Company continues to improve the work environment by providing excellent employee benefits and developing employee reward programs to enhance employee loyalty to the company. At the same time, through external training opportunities, we enrich employees' knowledge of the latest technologies and relevant regulations in the industry. We have also established a comprehensive annual training plan for operating and maintaining treatment facilities to strengthen employees' core professional skills. We continuously enhance employees' soft and hard capabilities to ensure that colleagues can balance career planning with achievement and growth in their work, thereby increasing retention willingness and creating higher work efficiency and workplace value. Additionally, through the capital market, we enhance the company's visibility and corporate image to attract outstanding talent.

(II) Main Products' Important Uses and Production Processes

Important Uses of Main Products (Post-Treatment Derivatives)

環境經濟產品	說明	環境經濟產品	說明
環保再生經營	2006年晴保再生經營開發完成，回收之恩，玻璃及螢光紋等提供國內螢光經營製造公司生產，因產總外移於2007年停止生產。	回收玻璃	回收之玻璃粒料產品原提供給經營玻璃製造商使用，因產總外移關係，現供應給混凝土業者添加使用取代天然矽石粒料。
品壓計	回收之金屬等產品，提供國內各壓計廠商使用，經由廠各壓計回收處理，可再次提供原產品循環使用，因「聯合國原水俱公約」於2019年停止生產。	人工石材及星光石材	回收玻璃研發人工石材及星光石材，再生產品多元化運用。
曝光燈再生鍋金屬	回收之鍋金屬，提供給歐司朗公司重新生產製程用曝光燈使用。	回收之鍋、紙及鐵	回收之鍋、紙及鐵等廢瓦金，提供給金屬熔爐重新製作新原料。
玻璃土壤	研發回收玻璃製作玻璃土壤，開創新用途，提高回收價值。	回收鋼粉	回收鋼粉純度高，交由金屬熔爐純化製作新原料，降低環境負荷及地球資源之開採，並可提升資源再利用比率。
玻璃藝品	回收玻璃研發製作玻璃藝品，可提升回收產品價值。	混凝土原料	可提供混凝土業取代水泥製品之細粒料產品使用。

中台資源科技「資源再生與回復」循環經濟模式

資源再生項目	資源化產品	相關運用
	1.回收金屬汞
2.回收玻璃
3.回收金屬(銅、鐵、鋁、鎢)
	1.回收鋁粉
2.混凝土掺料

The Company is part of the recycling industry, taking over at the waste stage of the product life cycle. Its main business model is "resource regeneration and recovery," which enables waste resources to be reborn and enter the manufacturing end for reuse or as recycled materials to replace virgin materials, as well as producing high-value materials or developing innovative products, providing "closed-loop," "upcycling," or "downcycling" uses.

2. Production Process

(1) Integrated Waste-to-Energy and Resource Recovery Treatment

Treatment methods include incineration, solidification, chemical treatment, and cleaning processes, with heat recovery for power generation and bottom ash reuse, making it an integrated waste-to-energy and resource recovery treatment center.

(2) Resource Recovery Treatment for Waste Lighting Sources and Mercury-Containing Waste

Self-developed recycling equipment for waste lighting sources, achieving a

resource recovery rate of over $90\%$ , with mercury recovery reaching high recovery rates and high purity levels, leading the world in this technology.

(3) Resource Recovery Treatment for Waste Composite Materials

Using vacuum-based oxygen-free thermal pyrolysis technology to change the bonding structure of waste composite materials, making them easier to separate, while preserving valuable inorganic resources (such as precious metals) for subsequent purification processing. For waste materials that are difficult to treat through incineration and do not contain precious metals, this technology processes them into inorganic residues for resource recovery applications.

(4) Resource Recovery Treatment for Waste Printed Circuit Boards

Using dry/wet crushing and water shaking table separation to produce high-purity copper powder and concrete admixture products, achieving the goal of full-cycle recycling with zero waste.

(III) Current Supply Status of Main Raw Materials

The main raw materials are waste lighting tubes and waste electrical and electronic items provided by recycling companies and business organizations. We maintain long-term cooperative relationships with our main raw material suppliers, having collaborated for many years with good partnership relations, resulting in stable supply conditions. There have been no instances of supply shortages or material disruptions.

(IV) Explanation of Significant Changes in Gross Margin by Major Product Category or Department Over the Past Two Years

Comparative Table of Gross Margin Changes Over the Past Two Years

Item Items\Year	2023	2024	Percentage Change
	Gross Margin	Gross Margin
Waste Treatment Services	35%	40%	+5%
Environmental Remediation Projects	19%	23%	+4%
Copper Powder and Other Product Sales	35%	40%	+5%
Others	100%	100%	-
Total	32%	35%	+3%

Analysis of Gross Margin changes exceeding $20\%$ : Not applicable.

(V) Major Suppliers and Customers List

Names of suppliers accounting for more than 10% of total purchases in either of the last two years, their purchase amounts and proportions, and explanation for changes

Items	2022				2023				2024
	Name	Amount	Percentage of Annual Net Purchases (%)	Relationship with the issuer	Name	Amount	Percentage of Annual Net Purchases (%)	Relationship with the issuer	Name	Amount	Percentage of Annual Net Purchases (%)	Relationship with the issuer
1	Unimicron Technology Corp.	28,591	11.16	None	HG Company	166,933	32.08	None	HG Company	366,401	50.13	None
2	SY Company	26,127	10.20	None	Unimicron Technology Corp.	56,753	10.91	None	-			-
	Others	201,435	78.64	-	Others	296,719	57.01	-	Others	364,557	49.87	-
	Net purchase amount	256,153	100.00		Net purchase amount	520,405	100.00		Net purchase amount	730,958	100.00

Reason for changes: The Company is primarily engaged in the processing of waste lighting sources, the recycling and processing of waste printed circuit boards, and waste incineration business. The main purchase items include waste electronics, waste lighting fixtures, chemical materials, derivative processing fees, and transportation costs. With the operation of Chung Tai Plant 1 in 2022 and the addition of environmental engineering business in 2023, some suppliers have moved up in ranking and new service engineering suppliers (such as HG Company) have been added.

Names of customers who have accounted for more than ten percent of the total sales in either of the last two years, along with their sales amounts and percentages, and an explanation of the reasons for any changes

Items	2022				2023				2024
	Name	Amount	Percentage of annual net sales (%)	Relationship with the issuer	Name	Amount	Percentage of annual net sales (%)	Relationship with the issuer	Name	Amount	Percentage of annual net sales (%)	Relationship with the issuer
1	Nissho Oguchi Electronics Co., Ltd.	130,655	15.59	None	Public Works Bureau of Kaohsiung City Government	206,659	16.24	None	Public Works Bureau of Kaohsiung City Government	544,557	31.72	None
2	HC Company	92,120	10.99	None	FP Group	198,164	15.57	None	-	-	-	-
3	Chase Sustainability Technology	88,408	10.55	Equity method recognized reinvestment	Chase Sustainability Technology	135,153	10.62	Equity method recognized reinvestment	-	-	-	-
	Others	527,141	62.87	-	Others	732,481	57.57	-	Others	1,172,188	68.28	-
	Net sales	838,324	100.00	-	Net sales	1,272,457	100.00	-	Net sales	1,716,745	100.00	-

Reasons for changes: The Company mainly engages in waste lighting source treatment, waste printed circuit board recycling treatment, and waste incineration

business. In 2022, with the commercial operation of Chung Tai Plant 1, the proportion of customers related to incineration business increased; in 2023 and 2024, as the Company undertook soil pollution remediation projects, the Public Works Bureau of Kaohsiung City Government suddenly became the Company's largest customer.

III. Information on employees in the last two years and up to the printing date of the annual report

Unit: person; year; %

Year		End of 2023	End of 2024	April 30, 2025
Number of employees	Direct employees	129	120	118
	Indirect employees	63	68	67
	Total	192	188	185
Average age		39.08	40.01	39.89
Average years of service (years)		4.08	5.15	5.26
Education distribution ratio	Doctorate	0.00%	0.00%	0.00%
	Master's Degree	7.81%	7.98%	8.65%
	Bachelor's degree (specialized)	41.67%	39.89%	38.92%
	High school (and below)	50.52%	52.13%	52.43%

IV. Environmental protection expenditure information

(I) According to legal requirements, explanation of the application, payment, or establishment status for those who should apply for pollution facility installation permits or pollution discharge permits, or should pay pollution prevention fees, or should establish dedicated environmental protection units and personnel:

In terms of waste treatment: According to the Waste Disposal Act, the Company has three Class A waste treatment plants. Plant 1 is a Comprehensive Energy Resource Recovery Treatment Center (treatment methods include: incineration, solidification, and chemical treatment), Plant 2 is a Mercury-Containing Waste and Composite Material Resource Recovery Treatment Center (treatment methods include: thermal treatment and physical treatment), and Plant 3 is a Waste Printed Circuit Board Resource Recovery Treatment Center (treatment method is physical treatment). According to legal requirements, the following relevant permits and licenses have been obtained:

Applying unit	Permit Type	Certificate Number	Valid Period
Taoyuan City Government	First Plant Class A Waste Treatment Facility	2025 Taoyuan City Waste Class A Treatment Certificate No. 0010	2028/11/28
Taoyuan City Government	Second Plant Class A Waste Treatment Facility	2024 Taoyuan City Waste Class A Treatment Certificate No. 0039	2029/07/07
Taoyuan City Government	Third Plant Class A Waste Treatment Facility	2024 Taoyuan City Waste Class A Treatment Certificate No. 0062	2029/10/22

Air Pollution Control Section: According to the Air Pollution Control Act, the Company has established control procedures for four fixed pollution sources. According to legal requirements, the following relevant permits and licenses have been obtained:

Applying unit	Permit Type	Certificate Number	Valid Period
Department of Environmental Protection, Taoyuan City Government	Plant 1 Waste Incineration Treatment Procedure (M01)	Environmental Air Operation Certificate No. H7008-00	2027/03/17
Department of Environmental Protection, Taoyuan City Government	Plant 1 Waste Solidification Treatment Procedure (M02)	Environmental Air Operation Certificate No. H7004-00	2027/03/10
Department of Environmental Protection, Taoyuan City Government	Plant 2 Mercury-Containing Waste Recycling Manufacturing Procedure (M01)	Environmental Air Operation Certificate No. H4747-07	2025/07/06
Department of Environmental Protection, Taoyuan City Government	Plant 2 Waste Thermal Treatment (Excluding Incineration) Procedure (M02)	Environmental Air Operation Certificate No. H6785-01	2025/08/30

Regarding water pollution prevention: All of the Company's processing plants are located within the technology park, and the wastewater generated is all connected to and treated by the park's wastewater treatment center.
During the operational phase, in addition to general domestic waste, general industrial waste and hazardous industrial waste may be generated after waste treatment. These can be handled by the Company's Plant 1 for in-house treatment. The incineration bottom ash after treatment is made into recycled products, while the incineration fly ash is solidified in the plant and then sent to qualified treatment facilities for landfill disposal.
In accordance with legal regulations, employees have obtained qualification certificates issued by the Ministry of Environment, including four Class A Waste Treatment Professional Technicians, two Class B Waste Treatment Professional Technicians, one Class A Air Pollution Control Specialist, one Class A Wastewater Treatment Specialist, and one Class A Toxic Chemical Substance Professional Management Technician.
Status of Pollution Prevention Fee Payments:

(1) Air Pollution Control Fees: Pollution control fees are paid according to the Air Pollution Control Act and the concentration of pollutant emissions.

(2) Soil Pollution Prevention Fund: The soil pollution prevention fund is paid based on the production volume of regulated recycled products.

(II) List of the Company's main investments in environmental pollution prevention equipment, their purposes, and potential benefits:

Details of Pollution Prevention Equipment
December 31, 2024 Unit: NT$ thousand

Equipment Name	Quantity	Acquisition Date	Investment Cost	Undepreciated Balance	Purpose and Expected Benefits
Exhaust Gas Treatment Equipment
Activated Carbon Exhaust Gas Treatment Equipment
Incinerator CEMS Project
Dust Collection Equipment	One Batch	2022/0/4/1	135,610	112,791	Set up a post-combustion chamber for complete combustion of harmful substances, coupled with an air pollution prevention system to neutralize exhaust gases. The air pollution prevention system includes a desulfurization and acid removal system, denitrification system, selective catalytic reduction, bag dust collectors, Venturi scrubbers, and wet scrubbing towers to remove nitrogen oxides, particulate pollutants, heavy metals, and suppress dioxins from exhaust gases.
Wastewater Treatment Plant Equipment	One Batch	2022/4/1	33,700	25,462	Treatment facilities include various waste liquid collection ponds, pH adjustment tanks, reduction tanks, oxidation tanks, activated carbon reaction tanks, rapid mixing chambers, slow mixing basins, chemical precipitation tanks, chemical neutralization tanks, sludge concentration tanks, and press filter type sludge dewatering machines. The main purpose is to remove organic matter and heavy metals from wastewater, then neutralize and dilute before

Equipment Name	Quantity	Acquisition Date	Investment Cost	Undepreciated Balance	Purpose and Expected Benefits
					discharging to the industrial zone wastewater treatment plant through the sewer system.
Catalytic Filter Bag Set	One Batch	2023/3/1	12,467	5,610	Dust filtration can achieve 99.9% removal efficiency, and the special catalyst can remove nitrogen oxides and dioxins, reducing gaseous and particulate air pollutant emissions.
Sodium Bicarbonate Grinding System Engineering	One Batch	2023/3/23	3,400	2,465	Refinement of air pollution control materials, increasing gas contact rate, enhancing adsorption and removal of acidic gases, and reducing acidic gas emission concentrations.
dust collection equipment	One Batch	2021/7/1	1,530	689	Recycle suspended particulates in waste gas.
PP-Filter Press Plates	One Batch	2018/1/19	252	-	Filter press components.
PPAM-40 Sludge Press	One Batch	2017/4/17	2,400	-	Wastewater recycling; solid-liquid separation.
Plate and Frame Filter Press	One Batch	2015/2/28	6,999	-
Wastewater treatment pool facilities	One Batch	2015/2/28	88	-	Recycling wastewater; sedimentation of fiberglass sludge.

(III) Please indicate the losses suffered by the company due to environmental pollution for the year and up to the printing date of the annual report (including compensation and violations of environmental protection regulations resulting from environmental protection inspections, which should clearly state the date of disposition, disposition reference number, violated regulation articles, content of violation, and content of disposition), and disclose the current and future estimated amounts and countermeasures. If a reasonable estimate cannot be made, please explain the fact that it cannot be reasonably estimated:

During the maintenance period of the incineration equipment, waste intake to the facility should be suspended according to law

The Company reported the maintenance of the incineration equipment to the Taoyuan City Government for reference on February 16, 2024. According to Appendix 4 of the Class A Waste Disposal Permit: "During equipment maintenance periods, if received waste cannot be processed within 30 days, waste intake to the facility shall be suspended. The Company mistakenly understood that during the maintenance period exceeding 30 days, waste intake should be suspended. However, the Company misinterpreted that only after obtaining the approval letter, if processing could not be completed within 30 days, would it need to stop accepting waste. The Environmental Protection Bureau of Taoyuan City Government, upon checking the industrial waste declaration and management information system of the Resource Recycling Administration of the Ministry of Environment, found that the Company still accepted waste intake to the facility during the period from February 22 to March 4, 2024.

Therefore, the Company violated Article 18 of the Management Regulations for Public and Private Waste Disposal Organizations Permit, which states: "Clearance and disposal organizations shall operate in accordance with this Act and its relevant regulations and the content of the application documents approved upon review," and was fined NT$18,000. The Company submitted a letter to the competent authority on February 26, 2024, applying for modification of the attachments to the Class A processing documents, which has been approved, and has also paid the aforementioned penalty fine.

V. Labor-Management Relations

(I) List the company's various employee welfare measures, continuing education, training, retirement system and their implementation status, as well as the agreements between labor and management and the measures for protecting various employee rights and interests

Employee Welfare Measures and Implementation Status

(1) In addition to the Labor Insurance and National Health Insurance required by law, the Company also provides group insurance for employees.

(2) Dragon Boat Festival and Mid-Autumn Festival bonuses, and year-end bonuses are provided.

(3) Factory employees undergo an annual health examination once a year; Taipei office employees undergo a health examination once every two years.

(4) Milk, coffee, tea, and snacks are provided to employees to care for their daily needs.

(5) The Company's Employee Welfare Committee was established in 2019 and was approved and filed by the Taoyuan City Government under document No. 1080329025.

(6) The Company's Employee Welfare Committee coordinates various employee welfare and subsidy matters, arranges employee trips, health promotion activities, and provides opening ceremony gifts, May Day Labor Day gifts, birthday gifts, childbirth congratulatory gifts, wedding gifts, and funeral condolence payments.

(7) Various incentive programs are offered, such as rewards for recommending outstanding talent.

(8) We value the physical and mental health of our employees, and have specially

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appointed professional occupational physicians and nurses to be stationed at the factory regularly to provide physical and mental health consultation services for employees. With the help of a professional team, employees can receive health assessments, psychological counseling, and healthcare recommendations during work hours, helping to detect and improve physical and mental stress or health issues early on, promoting workplace health and well-being, and creating a secure and friendly work environment.

Employee continuing education, training, and implementation status

The Company has established an education and training procedure to help new employees understand their job responsibilities and work environment, and provides relevant guidance to employees during their work, cultivating employees' professional knowledge and skills, enabling them to develop their competencies and increase work efficiency, providing employees with a good work environment for learning and growth.

Retirement system and implementation status

In accordance with the new labor pension system under the Labor Pension Act, the Company contributes 6% of employees' monthly total salary as retirement funds, which are deposited into individual retirement accounts at the Bureau of Labor Insurance. Foreign employees are subject to the old labor pension system. In 2024, a total of 1 employee retired and received the relevant retirement benefits according to law.

Status of labor-management agreements

The Company's various regulations all comply with the Labor Standards Act as the guiding principle. The Company highly values employee opinions, adopts a two-way and open approach to communicate with employees, and regularly holds labor-management meetings, with the aim of maintaining a good and harmonious interactive relationship between labor and management. The Company has established a mechanism for regular communication with employees and provides reasonable notification to employees of operational activities that may have a significant impact. In 2024, the Company held a total of eight labor-management meetings based on work locations and operational sites, averaging two meetings per quarter.

Status of various employee rights protection measures

The Company has established relevant management measures and systems, which clearly stipulate employee rights and obligations, human rights promotion, and welfare items. The Company regularly reviews and revises welfare content to

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protect the rights of all employees. The Company has established employee grievance mechanisms and channels, and handles them appropriately. The Company has obtained ISO 45001 Occupational Health and Safety Management System certification, providing employees with a safe and healthy work environment, and regularly implements safety and health education for employees.

(II) In the most recent year and up to the printing date of this annual report, losses incurred by the Company due to labor disputes (including violations of the Labor Standards Act identified in labor inspections, which should specify the date of penalty, penalty reference number, violated provisions, content of violation, and penalty content), and disclosure of current and potential estimated amounts and response measures. If a reasonable estimate cannot be made, the fact that a reasonable estimate cannot be made should be stated.

Unit	Penalty Date	Penalty Reference Number	Violated Provisions	Content of Violation	Penalty Content and Response Measures
Ministry of Labor's Bureau of Labor Insurance	2024/05/28	Retirement Insurance Division No. 11360063261	Paragraph 2, Article 15 of the Labor Pension Act	The employer failed to accurately report and adjust the labor pension contribution wages as required.	(Note 1)
Ministry of Labor	2024/05/21	Labor Bureau Contribution No. 11301871440	Article 14 of the Labor Insurance Act	The employer failed to accurately report and adjust the labor insurance contribution wages as required.
Occupational Safety and Health Administration	2024/01/25	Occupational Safety and Health Administration Letter No. 1130202378	Article 29-2, Paragraph 1 of the Occupational Safety and Health Facilities Regulations and Article 6, Paragraph 1 of the Occupational Safety and Health Act	When workers are engaged in operations in confined spaces where there are potential hazards to workers, the employer failed to post the following precautions at a conspicuous location at the entrance of the work site to inform the workers.	(Note 2)
Occupational Safety and Health Administration	2024/01/25	Occupational Safety and Health Administration Letter No. 1130202378A	Article 280 of the Occupational Safety and Health Facilities Regulations and Article 6, Paragraph 1 of the Occupational Safety and Health Act	When there is a risk of falling or scattering objects during operations that may endanger workers, the employer failed to ensure that workers properly use safety helmets and other necessary protective equipment, resulting in an occupational accident as specified in Article 37, Paragraph 2, Subparagraph 1 of the Occupational Safety and Health Act.
Occupational Safety and Health Administration	2024/12/11	Occupational Safety and Health Administration Letter No. 1130208041	Article 28, Paragraph 2 of the Labor Inspection Act and the Standards for Determining Immediate Danger to Workers as Specified in Article 28 of the Labor Inspection Act	Discovered that at work areas with edges and openings at heights of two meters or more, the project failed to install compliant guardrails, covers, safety nets, or fall prevention facilities requiring safety harnesses	(Note 3)
Occupational Safety and Health Administration	2025/01/03	Occupational Safety and Health Administration Letter No. 1130208041	Article 104, Paragraph 1 and Article 107 of the Safety Standards for Machinery and Equipment, and Article 6, Paragraph 1 of the Occupational Safety and Health Act	The guards used on bench grinders and pedestal grinders were not equipped with tongue plates or other methods to adjust the gap between the periphery of the necessary grinding wheel part and the guard to less than ten millimeters; bench grinders or pedestal grinders did not have work rests that could be adjusted to maintain a gap of less than three millimeters between the grinding wheel and the work rest.	(Note 4)
Occupational Safety and Health Administration	2025/01/03	Occupational Safety and Health Administration Letter No. 1130208041A	Article 27, Paragraph 1, Subparagraphs 1, 2, and 3 of the Occupational Safety and Health Act	When working jointly with contractors where workers are employed separately, failed to establish a coordinating organization and designate a person in charge of the workplace for command, supervision, and coordination duties; failed to implement necessary	(Note 5)

Unit	Penalty Date	Penalty Reference Number	Violated Provisions	Content of Violation	Penalty Content and Response Measures
				measures for work communication and adjustment; and failed to conduct inspections of the workplace.
Occupational Safety and Health Administration	2025/01/06	Occupational Safety and Health Administration Letter No. 1130207934	Article 6, Paragraph 1, Subparagraph 2 of the Regulations on Designation and Management of Priority Management Chemicals and Article 14, Paragraph 2 of the Occupational Safety and Health Act	Operators have failed to report the following priority management chemicals for reference as required by Article 14, Paragraph 2 of the Act: 1. ... 2. When operating priority management chemicals as specified in Article 2, Subparagraph 2, whose concentration and total annual operation volume for any operational activity reach the standards set forth in Appendix 2.	(Note 6)

(Note 1) The total fine amounted to approximately NT$27,000. The oversight occurred due to personnel being unfamiliar with the procedures. In response, we have established immediate notification and reporting processes for salary changes to ensure compliance with labor insurance and pension regulations.

(Note 2) The total fine amounted to NT$60,000. In accordance with the Occupational Safety and Health Act and ISO 45001 requirements, the Company has established standard operating procedures including "Special Operations Safety Permit Control Procedure," "Contractor Safety and Health Control Procedure," and "Management Regulations for the Use of Occupational Safety Protective Equipment." These operations are managed through measures such as submitting special operations applications, posting confined space operation precautions in visible locations at operation site entrances, requiring the proper wearing of safety and health protective equipment as stipulated, implementing access control, and conducting regular inspections.

(Note 3) Partial work stoppage. The non-compliant scaffolding was dismantled according to relevant regulations, and the application for resumption of work was completed within two weeks. Subsequently, we strictly required that all outsourced construction projects must apply for high-altitude operations in accordance with relevant regulations.

(Note 4) The total fine amounted to NT$60,000. We have completed relevant tool and equipment adjustments as well as operational modifications. We have also strengthened equipment inspections and pre-use verifications by personnel to prevent similar incidents from occurring again.

(Note 5) The total fine amounted to NT$90,000. We have completed the establishment of a coordination organization, with the workplace supervisor taking charge of command, supervision, and coordination work. This ensures sufficient communication and adjustment of work matters between the Company and contractors, implements pre-operation coordination and during-operation inspection mechanisms, and strengthens on-site safety management.

(Note 6) The total fine amounted to NT$60,000. We have verified the operational status of relevant priority managed chemicals. For chemicals meeting reporting requirements, we have completed the filing and reporting in accordance with relevant regulations. We have also established an internal management mechanism to ensure timely and accurate reporting operations in the future.

VI. Information Security Management

(I) Description of information security risk management structure, information security policies, specific management programs, and resources invested in information security management, etc.

To strengthen information security management, establish a secure and trustworthy electronic enterprise, and ensure the security of data, systems, equipment, and networks, the Company has established a dedicated Information Department. In accordance with relevant laws and regulations, this department conducts information security risk assessments, determines the security requirement levels for various information operations, and implements appropriate and sufficient information security measures. This ensures the security of information collection, processing, transmission, storage, and circulation both internally and externally. The information security policies and management approaches are as follows:

The Company's information security management structure is as follows:

2. Information Security Policies and Specific Management Programs

To effectively implement information security management, the Company's information security organization follows the Plan-Do-Check-Act (PDCA) approach for management execution. This involves reviewing the applicability of information security policies and protection measures, with the Information Security Emergency Response Team reporting on implementation effectiveness.

The "Planning Phase" focuses on information security risk management, establishing a comprehensive information security management system and reducing enterprise security threats from system, technical, and procedural perspectives. This establishes confidential information protection services that meet customer requirements at the highest standards.
The "Implementation Phase" establishes multi-layered security protection, continuously introducing and integrating security control mechanisms into daily operational processes such as software and hardware maintenance, supplier information security management, etc. It systematically monitors information security to maintain the confidentiality, integrity, and availability of the Company's important assets.
The "Checking Phase" actively monitors information security management and verifies implementation and effectiveness through periodic audits of related operations.
The "Action Phase" is based on review and continuous improvement,

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implementing supervision and audits to ensure the ongoing effectiveness of information security regulations. When employees violate relevant regulations and procedures, they are handled according to the information security violation process, and personnel actions are taken based on the severity of the violation (including impact on the employee's annual performance evaluation or necessary legal actions). Additionally, regular reviews and implementation of improvement measures including information security measures, education, training, and promotion are conducted to ensure that the Company's important confidential information is not leaked.

Resources Invested in Information Security Management

The Company regularly conducts information security and personal data protection education and training for all employees. Additionally, information security and personal data training courses are arranged for specialized work areas such as system administration, network management, program development, information security management, security testing, and personal data protection.

(II) List any losses suffered due to major information security incidents in the last two years and up to the printing date of the annual report, their potential impacts, and response measures. If reasonable estimation is not possible, the fact of such inability should be stated: None.

VII. Important Contracts

Nature of Contract	Parties	Contract Period	Main Content	Restrictive Clauses
Credit Facility Agreement (Capital Expenditure)	Hua Nan Bank, HSINSHENG BRANCH	2021.10.29~2036.10.29	Industrial Park Loan - Factory	Provide land and building as collateral; commitment not to grant any rights to other creditors on machinery and equipment (negative pledge).
Credit Facility Agreement (Capital Expenditure)	Hua Nan Bank, HSINSHENG BRANCH	2020.02.24~2030.02.24	SME Accelerated Investment Loan
Labor Service Contract	Construction Office Public Works Bureau, Kaohsiung City Government	2023.07.26~2025.07.25	Accelerating Soil and Groundwater Pollution Remediation Work for Kaohsiung Refinery Areas 1, 2, 5, and 6 (North Area 1 Case)	None
Industrial Waste Treatment Contract	FP Group's (E5) Company	2023.10.01~2025.09.30	Industrial Waste Treatment	None
Industrial Waste Disposal Agency	JI WEI Co., Ltd.	2024.04.01~2024.12.31	Landfill of Solidified Material After	None

Contract			Intermediate Treatment
Labor Engineering Contract	HG Co., Ltd.	2023.07.26~2025.07.25	Pollution Remediation Excavation and Other Labor Services	None
Industrial Natural Gas Purchase and Sale Agreement	CPC Corporation, Taiwan	2021.04.06~2026.03.30	Natural Gas Supply	None

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Chapter 5 Review and Analysis of Financial Status, Operating Results, and Risk Factors

I. Financial Status Comparative Analysis Table

Main reasons and impacts of significant changes in assets, liabilities, and equity over the past two years; if the impact is significant, future response plans should be explained:

Item	2023	2024	Difference
			Amount	%
Current Assets	655,017	1,098,814	443,797	67.75%
Property, Plant and Equipment	2,973,952	3,027,490	53,538	1.80%
Intangible Assets	539	690	151	28.01%
Other Assets	262,357	298,900	36,543	13.93%
Total Assets	3,891,865	4,425,894	534,029	13.72%
Current Liabilities	696,518	529,447	-167,071	-23.99%
Non-current Liabilities	1,398,454	1,160,269	-238,185	-17.03%
Total Liabilities	2,094,972	1,689,716	-405,256	-19.34%
Share Capital	826,244	918,880	92,636	11.21%
Capital Surplus	576,561	1,268,992	692,431	120.10%
Retained Earnings	401,088	571,114	170,026	42.39%
Other Equity	(7,000)	(22,808)	-15,808	225.83%
Non-controlling Interests	-	-	-	-
Total Equity	1,796,893	2,736,178	939,285	52.27%
1. Description of Significant Changes (Changes exceeding 20% between periods, and absolute change amount exceeding NT$10 million):(1) Current assets increased: This is mainly due to the increase in cash and cash equivalents as a result of funds raised from the Company's initial listing of common shares on the stock exchange in September 2024; additionally, the balance of contract assets also increased due to contract revenue recognized based on the percentage-of-completion method, which has not yet reached the billable status.(2) Current liabilities increased: This is mainly due to the repayment of short-term borrowings with funds raised from the Company's initial listing of common shares on the stock exchange in September 2024.(3) Capital surplus increased: This is mainly due to the premium on cash capital increase in September 2024.(4) Retained earnings increased: This is mainly due to the increase in profits in 2024.(5) Total equity increased: This is mainly due to the cash capital increase in September 2024 and the increase in profits in 2024.2. Future Response Plans for Significant Impacts:The above changes do not have a significant adverse impact on the Company, and the Company's overall performance has no significant abnormalities, so there is no need to develop a response plan.

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II. Financial Performance Comparative Analysis Table

The main reasons for significant changes in operating revenue, operating profit, and pre-tax profit for the most recent two years, the expected sales volume and its basis, the possible impact on the company's future financial and business operations, and the response plan:

(I) Analysis of Operating Results for the Most Recent Two Years

Items\Year	2023	2024	Amount of Increase (Decrease)	Percentage of Change %
Operating Revenue	1,272,457	1,716,745	444,288	34.92%
Operating Costs	861,907	1,116,782	254,875	29.57%
Gross Profit from Operations	410,550	599,963	189,413	46.14%
Operating Net Income	342,847	514,539	171,692	50.08%
Non-operating Income and Expenses	(24,959)	(4,266)	20,693	82.91%
Income Before Tax	317,888	510,273	192,385	60.52%
Net Income for the Period	254,637	408,955	154,318	60.60%
Total Comprehensive Income for the Period	250,674	393,829	143,155	57.10%
Description of Significant Changes (Changes exceeding 20% between periods, and absolute change amount exceeding NT$10 million):
1. Operating revenue and operating costs increased, mainly due to the increase in waste service and environmental engineering business volume, which led to an increase in related revenue and costs.
2. Due to revenue growth driving profit growth, related operating gross profit, operating income, income before tax, net income for the period, and total comprehensive income for the period all increased accordingly.
3. The increase in non-operating income and expenses was mainly due to the Company holding more USD assets than USD liabilities. As the New Taiwan Dollar depreciated against the US Dollar, more foreign exchange gains were generated this year.

(II) Expected sales volume and its basis, possible impact on the company's future financial and business operations, and response plans:

The Company has not published future financial forecasts, therefore we do not intend to disclose expected sales volumes.

III. Cash Flow Comparison Analysis Table

(I) Analysis of Cash Flow Changes in the Most Recent Year

Item\Year	2023	2024	Amount of Increase (Decrease)	Change Ratio (%)
Cash Inflow (Outflow) from Operating Activities	447,640	291,966	(155,674)	(34.78)
Cash Inflow (Outflow) from Investing Activities	(350,305)	(104,703)	245,602	70.11
Cash Inflow (Outflow) from Financing Activities	(76,218)	174,576	250,794	329.05
Analysis of Cash Flow Changes: 1. Decrease in Cash Inflow from Operating Activities: This is mainly due to the environmental engineering remediation income being recognized according to the percentage of completion, but there is still a partial timing difference with the client's payment status, resulting in a decrease in cash inflow from operating activities compared to last year. 2. Decrease in Cash Outflow from Investing Activities: This is mainly due to last year's (2023) investment in shares of renewable energy power plant companies and the reclassification of dedicated funds received from environmental engineering projects as financial assets. This year (2024), there are no new equity investments, and the recovery of financial assets from dedicated funds received from environmental engineering projects has led to cash inflow. 3. Increase in Cash Inflow from Financing Activities: This is mainly due to more cash being raised this year (2024) from the listing of common shares, which, after deducting loan repayments and cash dividend distributions, resulted in a net cash inflow from financing activities.

(II) Improvement Plan for Insufficient Liquidity: The Company does not have any issues with insufficient liquidity.
(III) Analysis of Cash Liquidity for the Coming Year (2025) (Parent Company)

Beginning Cash Balance	Expected Net Cash Flow from Operating Activities for the Entire Year	Expected Net Cash Flow from Investing Activities for the Entire Year	Expected Net Cash Flow from Financing Activities for the Entire Year	Expected Cash Surplus (Deficit) Amount	Remedial Measures for Expected Cash Deficit
					Investment Plan	Financial Management Plan
590,466	588,270	(564,201)	(304,920)	309,615	-	-
Analysis and Explanation: 1. Analysis of Cash Flow Changes for the Coming Year: Operating Activities: As the Company expects stable operating income and profitability, and payments from large government projects are gradually being received, the cash flow from operating activities is higher than the previous year (2024).

Investment Activities: Mainly due to investments in the second phase of the first plant construction.

Financing Activities: Mainly due to the payment of cash dividends and cash distribution from capital surplus.

Remedial Measures for Projected Cash Shortfall and Liquidity Analysis: There is no projected cash shortfall, so this is not applicable.

IV. Impact of Major Capital Expenditures in the Most Recent Year on Financial and Business Operations

The Company's major capital expenditures in 2022-2023 were mainly for the production line upgrade at Chung Tai Plant 1, mostly funded by own capital or bank financing; the second phase of the first plant construction, launched in May 2024, has a budget of approximately NT$700 million, planned to be funded by a combination of own capital and bank loans. The aforementioned capital expenditures can increase revenue sources, reduce operating costs, and maintain the Company's competitiveness in the long term.

V. Investment Policy in the Most Recent Year, Main Reasons for Profit or Loss, Improvement Plans, and Investment Plan for the Coming Year

(I) Investment Policy: The Company's investment policy is based on the principle of balancing the developmental needs of its main business and long-term strategic investments, rather than considering short-term financial investments. The relevant implementing departments follow the "Investment Cycle" and "Procedures for Acquisition or Disposal of Assets" of the internal control system. The "Subsidiary Management Regulations" serve as guidelines for business management, implementing supervision and management operations for invested enterprises. All the aforementioned measures or procedures have been discussed and approved by the Board of Directors or shareholders' meetings.

(II) Main Reasons for Investment Profit or Loss in the Most Recent Year, Improvement Plans, and Investment Plan for the Coming Year:

| Item
Company Name | Shareholding Ratio | Investment Amount | Investee Company's Profit (Loss) for 2024 | Main Reasons for Profit or Loss | Improvement Plan | Investment Plan for the Coming Year |
| --- | --- | --- | --- | --- | --- | --- |
| SMOKING ENVIRONMENTALLY FRIENDLY CORPORATION | 100% | 1,000 | (20) | During the startup period, mainly engaged in market development, financial planning, and | Continue with the entrepreneurial development plan. | Planning to increase investment when the market and regulations mature |

Item Company Name	Shareholding Ratio	Investment Amount	Investee Company's Profit (Loss) for 2024	Main Reasons for Profit or Loss	Improvement Plan	Investment Plan for the Coming Year
				other activities.
Chase Sustainability Technology CO., LTD.	14%	12,000	28,711	Mainly engaged in waste matching and sustainability services	Operations are normal, therefore not applicable.	No plans to increase investment at the moment
CHUNG TAI INVESTMENT CO., LTD (Samoa)	100%	8,737	(41)	Holding investment company	Operations are normal, therefore not applicable.	No plans to increase investment at the moment
CLEANAWAY ENERGY COMPANY LIMITED	15%	225,050	45,252	Energy business development, with one-time income contribution generating profits in 2024.	The company's Taoyuan power plant project has commenced construction in 2023.	No plans to increase investment at the moment Note

Note: For the Taoyuan development project of CLEANAWAY ENERGY COMPANY LIMITED, in March 2024, the Taoyuan City Government revoked the entry permit due to non-compliance with the entry procedures. CLEANAWAY ENERGY COMPANY LIMITED filed an administrative appeal to the Ministry of Economic Affairs in April 2024 against the decision, and in June 2024, the Ministry of Economic Affairs revoked the Taoyuan City Government's cancellation order, restoring the entry permit. Subsequently, in August 2024, they received a notice from the Taoyuan City Government revoking the approval letter for entry as a renewable energy industry project. CLEANAWAY ENERGY COMPANY LIMITED has filed another administrative appeal against this decision in accordance with the law. After examination, according to the Ministry of Economic Affairs' administrative appeal decision in December 2024, the Taoyuan City Government's August 2024 disposition to revoke the entry approval letter for CLEANAWAY ENERGY COMPANY LIMITED has been overturned. While the Taoyuan development project of CLEANAWAY ENERGY COMPANY LIMITED continues to progress, the Company closely monitors and promptly responds to relevant regulatory changes.

VI. Risk analysis and assessment for the most recent year up to the printing date of the annual report

(I) Impact of interest rate changes, exchange rate fluctuations, and inflation on the Company's profit and loss, and future response measures

Impact of interest rate changes on the Company's profit and loss, and future response measures

The Company's past operations were mainly funded by its own capital. However,

recently, for the construction of Chung Tai Plant 1, in addition to raising cash through capital increases from shareholders, the Company has also arranged long-term and short-term loans from domestic banks. Most of the Company's long-term and short-term financial liabilities are at floating interest rates, so rising interest rates may generate higher interest expenses than expected. For the years 2024 and 2023, the net amount of interest income minus interest expenses was NT$(23,106) thousand and NT$(25,700) thousand, respectively.

The Company borrows funds at fixed or floating interest rates, thereby creating interest rate exposure. Fixed-rate borrowings expose the Company to fair value interest rate risk; floating-rate borrowings expose the Company to cash flow interest rate risk. The Company's management regularly monitors interest rate risk, and if necessary, will consider taking necessary measures for significant interest rate risks to control the risks arising from market interest rate fluctuations. The carrying amounts of the Company's financial liabilities exposed to interest rate risk at the balance sheet date are as follows:

	2023	2024
With fair value interest rate risk
- Financial assets	112,105	561,065
With cash flow interest rate risk
- Financial assets	224,111	58,625
- Financial liabilities	1,680,025	1,311,019

The following sensitivity analysis is determined based on the interest rate exposure at the balance sheet date. For floating-rate assets and liabilities, the analysis assumes that the amounts of assets and liabilities outstanding at the balance sheet date were outstanding throughout the year. Furthermore, assessing the reasonable possible range of interest rate changes, if interest rates increase or decrease by $1\%$ , with all other variables remaining constant, the Company's pre-tax net income for the years 2024 and 2023 will decrease or increase by NT$12,524 thousand and NT$14,559 thousand, respectively.

Additionally, the Company obtained qualification approval for the Ministry of Economic Affairs' SME Accelerated Investment Program on October 21, 2019. In February 2020, the Company signed an SME Accelerated Investment Equipment Loan agreement with Hua Nan Commercial Bank with a total limit of NT$762,400 thousand. The contract period is 10 years with a 3-year principal grace period. Upon expiry of the grace period, the loan is being repaid in equal monthly installments starting from March 2023. The Company will make good use of the government-subsidized loan interest preferential period to allocate funds to reduce the impact of interest rate fluctuations.

Impact of exchange rate fluctuations on the Company's profit and loss and future response measures

The Company engages in sales denominated in foreign currencies, which exposes the Company to exchange rate risks due to market exchange rate fluctuations. For exchange rate risk management, the Company regularly reviews its asset and liability positions affected by exchange rates and makes appropriate adjustments to control risks arising from foreign exchange fluctuations.

Sensitivity analysis

The Company is primarily affected by fluctuations in the US dollar exchange rate.

The table below details the Company's sensitivity analysis when the exchange rate of the New Taiwan Dollar (functional currency) increases and decreases by 1% against relevant foreign currencies. 1% is the sensitivity ratio used when reporting exchange rate risks to key management personnel, and also represents management's assessment of the reasonably possible range of foreign currency exchange rate fluctuations. The sensitivity analysis only includes outstanding foreign currency monetary items, and adjusts their translation at the end of the period by a 1% change in exchange rates. The scope of the sensitivity analysis includes items not denominated in the functional currency of the creditor or borrower. The positive numbers in the table below indicate the amount by which pre-tax net income would increase when the New Taiwan Dollar depreciates by 1% relative to each relevant currency; when the New Taiwan Dollar appreciates by 1% relative to each relevant foreign currency, the impact on pre-tax net income or equity would be a negative amount of the same value.

	2023	2024
Impact of US Dollar	1,838	1,635

Primarily derived from the Company's outstanding US Dollar denominated cash and cash equivalents, notes and accounts receivable, refundable deposits, and equipment payables as of the balance sheet date.
Impact of Inflation on the Company's Profit and Loss and Future Response Measures

The Company constantly monitors price changes in the recycling and raw materials markets to reduce the impact of cost fluctuations on the Company's profit and loss.

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(II) Policy, Main Reasons for Profit or Loss, and Future Response Measures for Engaging in High-risk, High-leverage Investments, Lending of Funds to Others, Endorsements and Guarantees, and Derivative Transactions

The Company focuses on its core business operations and follows a stable, conservative financial policy. In the most recent fiscal year and up to the printing date of the annual report, the Company has not engaged in any high-risk or high-leverage investments. In addition, the Company has established "Procedures for Lending Funds to Other Parties and Endorsements/Guarantees" and "Procedures for Acquisition or Disposal of Assets," which have been approved by resolution of the shareholders' meeting and serve as the basis for the Company's execution of related transactions. In the most recent fiscal year and up to the printing date of the annual report, except for the explanation below, the Company has not provided endorsements or guarantees for others, nor engaged in derivative transactions.

The Company's Board of Directors resolved on December 18, 2024, to lend funds to CLEANAWAY ENERGY COMPANY LIMITED for its operational needs. The proposed lending amount is NT$250,000,000, with a loan period from January 1, 2025, to June 30, 2025. The loan interest rate is calculated at [Taipei Interbank Offered Rate (TAIBOR) one month +0.91%] per annum, with an interest rate range of approximately 2.3% to 2.7% (for example, as of the end of November 2024, the rate was 2.5019%). Interest will be collected quarterly. For related regular information disclosure, please refer to the Public Information Observatory > Single Company > Business Overview > Endorsements and Guarantees/Fund Lending > Fund Lending and Endorsements and Guarantees Schedule Information, website: https://mops.twse.com.tw/mops/#/web/t65sb04.

(III) Future Research and Development Plans and Estimated R&D Expenses

The Company's main business operations include the resource recovery treatment of waste lighting sources and waste printed circuit boards, and has established pyrolysis and incineration treatment facilities, as well as heat recovery power generation systems and bottom ash recycling facilities, providing comprehensive circular economy solutions. In the next three years, the Company plans to invest NT$10,000 to 15,000 thousand in research and development expenses to continuously develop high-value resource recycling technologies; develop processes that maximize resource recovery and reuse, as well as innovative green products and services, striving to become the best partner in the green supply chain for industries.

(IV) Impacts and Response Measures for Significant Domestic and Foreign Policy and Legal Changes on the Company's Financial Operations

The Company conducts all operations in compliance with relevant domestic and foreign regulations, constantly monitoring policy development trends and regulatory changes both domestically and internationally. We consult with relevant professionals

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and collect pertinent information to provide reference for management decision-making, in order to fully grasp and respond to market environment changes, and adjust the Company's operational strategies in a timely manner. In the most recent fiscal year and up to the printing date of the annual report, there have been no significant domestic or foreign policy and legal changes that have had a material impact on the Company's financial operations.

(V) Technological Changes (Including Information Security Risks) and Industry Changes and Their Impact on the Company's Financial Operations and Response Measures

The Company is in the waste treatment industry and constantly monitors relevant technological changes in the industry, stays abreast of market trends to evaluate their impact on company operations, and makes appropriate operational adjustments. In the most recent fiscal year and up to the printing date of the annual report, there have been no significant technological changes or industry changes that have had a material impact on the Company's financial operations.

(VI) Impact of Corporate Image Change on Corporate Crisis Management and Response Measures

Since its establishment, the Company has upheld the principles of sustainable operations, corporate social responsibility, and environmental responsibility. We strictly adhere to government regulations, continuously improve our management capabilities, and all colleagues strive to achieve profit targets to fulfill our responsibility to all shareholders. In the future, the Company will be dedicated to advancing toward the goals of circular economy and waste resource recovery. In the most recent fiscal year and up to the printing date of the annual report, there have been no changes in corporate image that have caused corporate crises for the Company.

(VII) Expected Benefits, Potential Risks, and Response Measures for Mergers and Acquisitions

As of the printing date of the annual report, the Company has no plans to merge with or acquire other companies. In the future, if there are any merger or acquisition plans, they will be handled in accordance with the Company's "Procedures for Acquisition or Disposal of Assets" and will be conducted with a prudent evaluation attitude, fully considering the synergistic effects of the merger, to effectively protect shareholders' interests.

(VIII) Expected Benefits, Potential Risks, and Response Measures for Plant Expansion

Due to the continuously increasing demand for industrial waste treatment from customers, the Company considered in 2018 that the plant capacity and processing methods could no longer meet customer requirements. To meet medium and long-term

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operational planning needs, after thorough evaluation, the Company has planned to build a comprehensive industrial waste treatment plant (incineration/chemical/washing/solidification). The Company, in principle, expands its plants and production capacity in phases and stages, with the minimum risk that is financially affordable, while simultaneously ensuring the Company's steady growth and meeting customers' capacity requirements. The newly constructed comprehensive waste treatment center obtained its operating permit in March 2022, and has been positively contributing to the Company's operations and financial performance since 2022. Considering the dynamics of the waste treatment market, the Company has planned to build the Phase 2 project of Plant 1 starting from 2024, transforming the liquid incineration production line into a mixed solid-liquid combustion system, aiming to increase solid waste incineration capacity; adding solid recovered fuel (SRF) pre-processing facilities to increase physical treatment capacity, where the produced solid recovered fuel can be used for generating steam in environmentally friendly boilers or for power generation in emerging power plants.

(IX) Risks and Response Measures for Concentrated Procurement or Sales

Regarding procurement:

The Company has established long-term and good cooperative relationships with various suppliers, and regularly pays attention to trends in raw material market supply changes, actively developing multiple suppliers to reduce the risk of concentrated procurement. In addition, the Company is also committed to strengthening the supply chain management of raw materials to ensure the stability of supply sources. Therefore, the Company believes that the risk of concentrated procurement can be reasonably controlled. In the second half of 2023, the Company undertook the soil remediation project for the Kaohsiung Refinery, commissioning contractors to perform excavation and remediation work for soil and groundwater contamination. Due to the large contract amount and for unified management convenience, the proportion of service procurement from a single contractor exceeded 30% in 2023-2024. However, there are still multiple contractors in the local area capable of performing related environmental remediation work, and this is a project-based engineering task. The Company also has a professional team stationed on-site for supervision and management, so there is no risk of supply interruption due to concentrated procurement.

Regarding sales:

The Company's main customers from 2021 to 2024 include metal recycling companies, government agencies, large chemical groups, and waste removal intermediaries. Excluding environmental engineering business, the highest proportion of sales to a single customer accounts for approximately 10% to 20% of net sales, so there is no situation of sales being concentrated among a few

143

customers. In addition to maintaining cooperative relationships with existing customers, the Company also continuously develops new customers. Furthermore, the Company's Plant One treatment facility began operations in 2022, making the Company's business more diversified, further expanding and diversifying business sources, and continuously reducing operational risks.

In 2023-2024, due to undertaking large-scale soil and groundwater contamination remediation projects (environmental engineering business), the largest customer was the Public Works Bureau of Kaohsiung City Government. The project-based nature of these contracts resulted in sales being concentrated to a single customer, but this is project-based business with phased and non-continuous characteristics. In the future, the customer structure will be adjusted based on project progress and business development.

(X) Impact, risks, and response measures regarding large-scale transfers or changes in shareholdings by directors, supervisors, or major shareholders holding more than ten percent of shares: None.

(XI) Changes in management control and their impact, risks, and response measures: The Company has not experienced any changes in management control during the most recent fiscal year and up to the printing date of this annual report.

(XII) Litigation or non-litigation events: The Company should disclose any material litigation, non-litigation, or administrative disputes that have been finalized by judgment or are still pending involving the Company, its directors, supervisors, president, de facto responsible persons, major shareholders with shareholding exceeding ten percent, and subsidiaries, where the outcome may have a significant impact on shareholders' equity or securities prices. Such disclosure should include the disputed facts, monetary amount involved, litigation commencement date, main parties involved, and the handling status up to the printing date of this annual report.

Apart from the following disclosed information, there are no material litigation or non-litigation events that could potentially have a significant impact on shareholders' equity or securities prices.

The case of fraudulent financial statements of CHINA ELECTRIC MFG. CORPORATION

Our Chairman, CHENG, KUANG-CHIEH, who served as the President of CHINA ELECTRIC MFG. CORPORATION (hereinafter referred to as "CE") from September 4 to December 4, 2013, was implicated in a criminal lawsuit filed in October 2016 by prosecutors against CE's Chairman CHOU and former President CHANG for misappropriation under Article 171, Paragraph 2 of the Securities and Exchange Act during 2010 to 2013. Subsequently, the Securities

144

and Investors Protection Center (hereinafter referred to as "SIPC") filed a civil lawsuit, claiming that CE's financial statements were falsified, causing 567 investors to mistakenly trust the financial reports from Q2 2012 to Q2 2016 and purchase CE shares. The SIPC sought joint and several liability for damages from directors, supervisors, and presidents responsible for the fraudulent financial reports during the respective periods.

The case was ruled by the Taipei District Court in a civil judgment on March 30, 2022, which stated that "Cheng, Kuang-Chieh never intentionally participated in fictitious transactions or fabricated financial reports, and committed no acts of falsification or fraud. After assuming the position of President, although Cheng, Kuang-Chieh signed the Q3 2013 financial report of CE, he had already worked together with LI to uncover clues regarding the fictitious LED transactions and energy storage cabinet fraudulent transactions, and reported these to the directors and supervisors. However, his findings were not accepted by the board, and he was instead forced to sign an apology letter, ultimately leading to his reluctant resignation. Cheng, Kuang-Chieh had indeed fulfilled his duties as President, and should be exempted from liability by analogy to the current provisions of Article 20-1, Paragraph 2 of the Securities and Exchange Act.

In summary, during his three-month tenure as CE's President, Cheng, Kuang-Chieh fully discharged his responsibilities as a professional manager, quickly discovered irregularities, protected shareholders' interests, and courageously acted as a whistleblower. This clearly demonstrates that he did not violate any relevant laws or regulations that would have significantly impacted the company's shareholders' equity or securities prices.

2. Workplace Safety Incident

In May 2023, an employee surnamed Chiang, hired by an outsourced contractor, was involved in a workplace accident on the Company's premises. On February 20, 2024, the Company received a criminal summons from the Taiwan Taoyuan District Prosecutors Office, requesting the appearance of Chairman Cheng on March 12, 2024, to provide an explanation regarding the workplace safety incident involving the contractor's employee.

On the appointed date, Chairman Cheng, accompanied by Plant Manager Mr. Cheng and legal counsel, appeared before the Prosecutors Office to present the facts of the case and the Company's handling of the incident. Upon reviewing the case details, the prosecutor took into account that the Company had reached a settlement with the family of the injured contractor employee, and that Plant Manager Mr. Cheng had accepted responsibility as the person in charge of the workplace under Article 40 of the Occupational Safety and Health Act.

Furthermore, the prosecutor reviewed documentation submitted in court, including a letter from the Taoyuan City Government (Ref. No. 1109051341, dated May 21, 2021), which confirmed the factory registration of Chung Tai Plant 1,

145

listing Mr. Cheng as the registered person in charge.

After discussions with Mr. Cheng and the legal representative, the prosecutor granted a deferred prosecution for both the Company and Mr. Cheng, effective until October 27, 2025, contingent upon a payment of NT$250,000 to the national treasury.

(XIII) Other significant risks and response measures: None.

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Chapter 6 Special Recorded Items

Please refer to the Market Observation Post System > Single Company > Electronic Document Download > Affiliated Enterprise Documents Section, website https://mopsov.twse.com.tw/mops/web/t57sb01_q10.

II. For the most recent year and up to the printing date of the annual report, the status of private placement of securities: None.

III. Other necessary supplementary information: None.

147

148

Chapter 7 Significant Impact Events

For the most recent year and up to the printing date of the annual report, any matters specified in Paragraph 3, Subparagraph 2, Article 36 of the Securities and Exchange Act that might have a significant impact on shareholders' equity or securities prices: None.

CHUNG TAI RESOURCE TECHNOLOGY CORP. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2024 and 2023 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, 2024 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 and Separate 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

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, 2024 and 2023, 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, 2024 and 2023, 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, 2024. 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, 2024 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, the cut-off of certain kinds of waste treatment revenue 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, 2024 and 2023 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, 2024, and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

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, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

	2024		2023
	Amount	%	Amount	%
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 592,101	14	$ 230,156	6
Financial assets at amortized cost - current (Notes 4, 8 and 28)	15,005	-	112,105	3
Contract assets - current (Notes 4 and 21)	273,147	6	108,901	3
Notes and trade receivable (Notes 4, 9, 21 and 27)	183,236	4	155,480	4
Inventories (Notes 4 and 10)	21,971	1	33,777	1
Prepayments	10,699	-	12,673	-
Other current assets	2,655	-	1,925	-
Total current assets	1,098,814	25	655,017	17
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 7)	201,636	5	217,550	6
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)	18,808	1	15,389	-
Contract Assets - non-current (Notes 4 and 21)	32,606	1	-	-
Property, plant and equipment (Notes 4, 12, 22 and 28)	3,027,490	68	2,973,952	76
Right-of-use assets (Notes 4 and 13)	5,673	-	6,818	-
Net computer software (Notes 4 and 14)	690	-	539	-
Deferred tax assets (Notes 4 and 23)	1,536	-	1,422	-
Refundable deposits (Note 4)	18,785	-	16,350	1
Costs to fulfil a contract - non-current (Notes 4 and 21)	434	-	762	-
Net defined benefit assets - non-current (Notes 4 and 19)	5,322	-	4,066	-
Total non-current assets	3,327,080	75	3,236,848	83
TOTAL	$ 4,425,894	100	$ 3,891,865	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 15 and 28)	$ -	-	$ 133,000	3
Contract liabilities - current (Note 21)	16,787	-	17,698	1
Notes and trade payables (Note 16)	144,431	3	180,038	5
Trade payables to related parties (Note 27)	8,796	-	16,976	-
Other payables (Note 17)	116,486	3	111,829	3
Current tax liabilities (Notes 4 and 23)	68,405	2	63,181	2
Lease liabilities - current (Notes 4 and 13)	744	-	1,119	-
Current portion of long-term borrowings (Notes 15 and 28)	171,887	4	170,200	4
Other current liabilities (Note 4)	1,911	-	2,477	-
Total current liabilities	529,447	12	696,518	18
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 15 and 28)	1,139,132	26	1,376,825	35
Deferred tax liabilities (Notes 4 and 23)	1,147	-	813	-
Lease liabilities - non-current (Notes 4 and 13)	5,496	-	6,058	-
Deferred revenue - non-current (Notes 4 and 18)	14,494	-	14,758	1
Total non-current liabilities	1,160,269	26	1,398,454	36
Total liabilities	1,689,716	38	2,094,972	54
EQUITY (Note 20)
Ordinary shares	918,880	21	826,244	21
Capital surplus	1,268,992	29	576,561	15
Retained earnings
Legal reserve	148,561	3	123,188	3
Special reserve	7,000	-	3,934	-
Unappropriated earnings	415,553	10	273,966	7
Total retained earnings	571,114	13	401,088	10
Other equity
Exchange differences on translating foreign operations (Note 4)	606	-	500	-
Unrealized gain or loss on financial assets at fair value through other comprehensive income (Note 4)	(23,414)	(1)	(7,500)	-
Total other equity	(22,808)	(1)	(7,000)	-
Total equity	2,736,178	62	1,796,893	46
TOTAL	$ 4,425,894	100	$ 3,891,865	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, 2024 AND 2023

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

	2024		2023
	Amount	%	Amount	%
NET OPERATING REVENUE (Notes 4, 21 and 27)	$ 1,716,745	100	$ 1,272,457	100
OPERATING COSTS (Notes 10, 19, 21, 22 and 27)	1,116,782	65	861,907	68
GROSS PROFIT	599,963	35	410,550	32
OPERATING EXPENSES (Notes 9, 19 and 22)
Selling and marketing expenses	7,854	1	6,796	1
General and administrative expenses	83,528	5	68,740	5
Research and development expenses	5,145	-	3,461	-
Expected credit loss (reversal gain)	46	-	(19)	-
Total operating expenses	96,573	6	78,978	6
OTHER OPERATING INCOME AND EXPENSES
(Notes 18 and 22)	11,149	1	11,275	1
PROFIT FROM OPERATIONS	514,539	30	342,847	27
NON-OPERATING INCOME AND EXPENSES
(Notes 4, 11 and 22)
Interest income	10,620	1	7,418	1
Other gains and losses	14,777	1	(1,208)	-
Share of profit in associates accounted for under the equity method	4,063	-	1,949	-
Finance costs	(33,726)	(2)	(33,118)	(3)
Total non-operating income and expenses	(4,266)	-	(24,959)	(2)
PROFIT BEFORE INCOME TAX	510,273	30	317,888	25
INCOME TAX EXPENSE (Notes 4 and 23)	101,318	6	63,251	5
NET PROFIT FOR THE YEAR	408,955	24	254,637	20

(Continued)

CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

	2024		2023
	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)	$ 852	-	$ (1,121)	-
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Note 4)	(15,914)	(1)	(3,066)	-
Income tax relating to items that will not be reclassified subsequently to profit or loss (Notes 4 and 23)	(170)	-	224	-
	(15,232)	(1)	(3,963)	-
Items that maybe reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations (Note 4)	106	-	-	-
Other comprehensive gain for the year, net of income tax	(15,126)	(1)	(3,963)	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 393,829	23	$ 250,674	20
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 408,955	24	$ 254,624	20
Non-controlling interests	-	-	13	-
	$ 408,955	24	$ 254,637	20
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 393,829	23	$ 250,661	20
Non-controlling interests	-	-	$ 13	-
	$ 393,829	23	$ 250,674	20
EARNINGS PER SHARE (Note 24)
Basic	$ 4.80		$ 3.08
Diluted	$ 4.79		$ 3.08

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

(Concluded)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Shares (In Thousand)	Ordinary Shares	Capital Surplus	Retained Earnings			Other Equity		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 AT JANUARY 1, 2023	81,124	$ 811,244	$ 464,061	$ 105,143	$ 2,764	$ 204,703	$ 500	$ (4,434)	$ 941	$ 1,584,922
Appropriation of 2022 earnings
Legal reserve	-	-	-	18,045	-	(18,045)	-	-	-	-
Special reserve	-	-	-	-	1,170	(1,170)	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	-	(165,249)	-	-	-	(165,249)
Net profit for the year ended December 31, 2023	-	-	-	-	-	254,624	-	-	13	254,637
Other comprehensive income (loss) for the year ended December 31, 2023	-	-	-	-	-	(897)	-	(3,066)	-	(3,963)
Changes in non-controlling equity	-	-	-	-	-	-	-	-	(954)	(954)
Issuance of ordinary shares for cash	1,500	15,000	112,500	-	-	-	-	-	-	127,500
BALANCE AT DECEMBER 31, 2023	82,624	826,244	576,561	123,188	3,934	273,966	500	(7,500)	-	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)
Changes in associates accounted for using the equity method	-	-	556	-	-	-	-	-	-	556
Net profit for the year ended December 31, 2024	-	-	-	-	-	408,955	-	-	-	408,955
Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	682	106	(15,914)	-	(15,126)
Issuance of ordinary shares for cash	9,264	92,636	691,875	-	-	-	-	-	-	784,511
BALANCE AT DECEMBER 31, 2024	91,888	$ 918,880	$ 1,268,992	$ 148,561	$ 7,000	$ 415,553	$ 606	$ (23,414)	$ -	$ 2,736,178

CONSOLIDATED STATEMENTS OF CASH FLOWS

	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$ 510,273	$ 317,888
Adjustments for:
Depreciation expenses	137,627	130,197
Amortization expense	269	262
Expected credit loss (reversal gain)	46	(19)
Finance costs	33,726	33,118
Interest income	(10,620)	(7,418)
Share of profit in associates accounted for under the equity method	(4,063)	(1,949)
(Gain)/loss on disposal of property, plant and equipment	(268)	60
Amortization of deferred revenue	(1,051)	(1,007)
Changes in operating assets and liabilities
Contract assets	(196,852)	(108,901)
Notes and trade receivables	(27,802)	(12,104)
Inventories	11,806	(20,817)
Prepayments	1,974	(3,486)
Other current assets	(278)	345
Costs to fulfil a contract	328	1,035
Net defined benefit assets	(404)	(449)
Contract liabilities	(911)	9,974
Notes and Trade payables	(35,607)	145,642
Trade payables to related parties	(8,180)	12,305
Other payables	1,330	25,298
Other current liabilities	(566)	(792)
Deferred revenue - non-current	787	-
Cash generated from operations	411,564	519,182
Interest received	10,168	7,418
Interest paid	(33,722)	(32,868)
Income tax paid	(96,044)	(46,092)
Net cash generated from operating activities	291,966	447,640
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	-	(150,000)
Purchase of financial assets at amortized cost	-	(87,755)
Proceeds from sale of financial assets at amortized cost	83,000	-
Payments for property, plant and equipment	(187,548)	(117,494)
Proceeds from disposal of property, plant and equipment	1,500	-
Increase in refundable deposits	(8,912)	(1,187)
Decrease in refundable deposits	6,477	5,381
Payments for intangible assets	(420)	(450)
Dividends received	1,200	1,200
Net cash used in investing activities	(104,703)	(350,305)

(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
(In Thousands of New Taiwan Dollars)

	2024	2023
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	$ -	$ 65,000
Repayments of short-term borrowings	(133,000)	-
Proceeds from long-term borrowings	24,064	-
Repayments of long-term borrowings	(260,200)	(100,976)
Repayment of the principal portion of lease liabilities	(1,188)	(1,539)
Dividends paid to owners of the Company	(239,611)	(165,249)
Proceeds from issuance of ordinary shares	784,511	127,500
Change in non-controlling equity	-	(954)
Net cash generated from (used in) financing activities	174,576	(76,218)
Effect of exchange rate changes on cash and cash equivalents	106	-
NET INCREASE IN CASH AND CASH EQUIVALENTS	361,945	21,117
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	230,156	209,039
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 592,101	$ 230,156

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

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CHUNG TAI RESOURCE TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

HUNG 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 11, 2025.

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 initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the accounting policies of the Company and its subsidiaries (collectively, the "Group").

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IAS 21 “Lack of Exchangeability”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets	January 1, 2025 (Note 1)
January 1, 2026 (Note 2)

Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

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Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2026. It is permitted to apply these amendments for an earlier period beginning on January 1, 2025. An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

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)
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of derecognition of financial liabilities	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
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 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027

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

IFRS 18 "Presentation and Disclosure in Financial Statements"

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
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.

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.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

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		Note
			December 31	2024
CHUNG TAI RESOURCE TECHNOLOGY CORP.	CHUNG TAI INVESTMENT CO., LTD (CHUNG TAI INVESTMENT)	Investment activities	100%	100%
	Ke Jiou Co. Ltd. (Ke Jiou)	Waste collection and product distribution business	100%	100%
CHUNG TAI INVESTMENT	CHUNG TAI METAL INVESTMENT CO., LTD (CHUNG TAI METAL)	General investment	-	-	Note

Note: In November 2023, CHUNG TAI METAL INVESTMENT CO., LIMITED has completed its liquidation.

Refer to Note 31, Tables 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.

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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

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

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

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

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 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.

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When the Group subscribes for additional new shares of an associate 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. 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 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, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required 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 equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group’s net investment in the associate), 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.

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.

When the Group transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate 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.

18 -
19 -
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.

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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.

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.

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.

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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 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 wastes 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.

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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.

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.

23 -

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.

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.

24 -

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.

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
	2024	2023
Cash on hand	$ 533	$ 468
Checking accounts and demand deposits	59,608	65,570
Cash equivalents
Time deposits with original maturities of 3 months or less	531,960	164,118
	$ 592,101	$ 230,156

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
	2024	2023
Time deposits with original maturities of 3 months or less	1.40%-4.65%	5.24%-5.30%

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2024	2023
Non-current
Domestic investments
Unlisted shares
Cleanaway Energy Company Limited. (Cleanaway Energy)	$ 201,636	$ 217,550

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 2023, the Group participated in a capital increase for Cleanaway Energy under original percentage amounting to NT$150,000 thousand in cash.

In March 2024, the Taoyuan City Government revoked the consent letter of park entry for Taoyuan development project of Cleanaway Energy due to non-qualification. Cleanaway Energy 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, Cleanaway Energy received a formal letter from the Taoyuan City Government to revoke the consent letter of park entry for renewable energy industry projects. Cleanaway Energy 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 Cleanaway Energy which occurred in August 2024 was revoked. The Taoyuan development project of Cleanaway Energy 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
	2024	2023
Current
Time deposits with original maturities of more than 3 months	$ 15,005	$ 28,715
Restricted demand deposit	-	83,390
	$ 15,005	$112,105
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, 2024 and 2023 was both NT$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.

In 2023, in order to participate the bidding for government environmental construction project, a restricted account was opened at a financial institution. The advance payment for the project was designated to the project and is classified as a restricted demand deposit.

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 2024 and 2023 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
	2024	2023
Time deposits with original maturities of more than 3 months	1.69%-1.70%	1.565%-1.575%
Restricted demand deposit	-	0.58%
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
	2024	2023
Notes receivable - operating	$ 1,957	$ 395
Trade receivables	181,481	155,241
	183,438	155,636
Less: Allowance for impairment loss	(202)	(156)
	$ 183,236	$ 155,480

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 have credit quality concern. 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, 2024

	Government Institutions	General Companies		Total
		1 - 120 Days	More Than 121 Days
Expected credit loss rate	-	0.1%-0.2%	100%
Gross carrying amount	$ 28,767	$ 154,671	$ -	$ 183,438
Loss allowance (Lifetime ECL)	-	(202)	-	(202)
Amortized cost	$ 28,767	$ 154,469	$ -	$ 183,236

December 31, 2023

	Government Institutions	General Companies		Total
		1 - 120 Days	More Than 121 Days
Expected credit loss rate	-	0.1%-0.2%	100%
Gross carrying amount	$ 19,311	$ 136,325	$ -	$ 155,636
Loss allowance (Lifetime ECL)	-	(156)	-	(156)
Amortized cost	$ 19,311	$ 136,169	$ -	$ 155,480

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

	For the Year Ended December 31
	2024	2023
Balance at January 1	$ 156	$ 348
Add: Recognize impairment loss in the current period	46	-
Less: Reverse impairment loss in the current period	-	(19)
Less: Amounts written off	-	(173)
Balance at December 31	$ 202	$ 156

10. INVENTORIES

	December 31
	2024	2023
Merchandise	$ 606	$ 769
Raw materials	629	2,865
Finished goods	20,736	30,143
	$ 21,971	$ 33,777

For the years ended December 31, 2024 and 2023, the allowance for write-down of inventories was $2,401 thousand and $2,172 thousand, respectively.

For the years ended December 31, 2024 and 2023, the cost of goods sold related to inventory was $697,600 thousand and $694,809 thousand, respectively; the write-down of inventories included in the cost of goods sold was $229 thousand and $2,171 thousand, respectively.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2024	2023
Material associate
CHASE SUSTAINABILITY TECHNOLOGY CO., LTD (CHASE)	$ 18,808	$ 15,389
	Percentage of Ownership and Voting Rights Held by Non-controlling Interests
	December 31
Name of Subsidiary	Principal Place of Business	2024
CHASE	Environmental technology and sustainable services	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, while also integrating AIoT (The Artificial Intelligence of Things) with the environmental protection industry alliance. CHASE provides customers with integrated, intelligent one-stop waste management and environmental protection solutions. 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
	2024	2023
Current assets	$ 504,440	$ 373,064
Non-current assets	31,209	45,492
Current liabilities	(353,635)	(302,319)
Non-current liabilities	(54,720)	(19,225)
Equity	$ 127,294	$ 97,012
Percentage of ownership	14.12%	15.00%
Equity attributable to the Group	$ 17,970	$ 14,551
Investment premium	838	838
Carrying amount	$ 18,808	$ 15,389
	For the Year Ended December 31
	2024	2023
Operating revenue	$ 307,955	$ 206,210
Net profit for the year	$ 28,711	$ 12,998
Other comprehensive income	-	-
Total comprehensive income for the year	$ 28,711	$ 12,998

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 2024 and 2023 amounting to $4,063 thousand and $1,949 thousand, respectively. The amounts were recognized based on the associate's audited financial statements for the same periods.

In 2024 and 2023, the Group received cash dividend of NT$1,200 thousand from associates, respectively.

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 at 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 at 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 at 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 at December 31, 2024	$ -	$ 240,191	$ 309,242	$ 31,497	$ 24,936	$ 25,431	$ -	$ 631,297
Carrying amount at December 31, 2024	$ 909,685	$ 910,925	$ 991,091	$ 2,273	$ 26,028	$ 22,018	$ 165,470	$ 3,027,490
Cost
Balance at January 1, 2023	$ 909,685	$ 1,151,262	$ 1,221,051	$ 33,770	$ 38,465	$ 39,735	$ 6,098	$ 3,400,066
Additions	-	6,005	67,279	-	11,046	8,037	25,167	117,534
Disposals	-	(8,538)	(25,209)	-	(2,559)	(11,175)	-	(47,481)
Reclassification	-	-	4,695	-	100	1,303	(6,098)	-
Balance at December 31, 2023	$ 909,685	$ 1,148,729	$ 1,267,816	$ 33,770	$ 47,052	$ 37,900	$ 25,167	$ 3,470,119
Accumulated depreciation and impairment
Balance at January 1, 2023	$ -	$ 189,707	$ 165,109	$ 28,327	$ 14,681	$ 17,284	$ -	$ 415,108
Depreciation expenses	-	29,388	82,210	1,728	6,029	9,125	-	128,480
Disposals	-	(8,538)	(25,209)	-	(2,499)	(11,175)	-	(47,421)
Balance at December 31, 2023	$ -	$ 210,557	$ 222,110	$ 30,055	$ 18,211	$ 15,234	$ -	$ 496,167
Carrying amount at December 31, 2023	$ 909,685	$ 938,172	$ 1,045,706	$ 3,715	$ 28,841	$ 22,666	$ 25,167	$ 2,973,952

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
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

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

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

	For the Year Ended December 31
	2024	2023
Additions to property, plant, and equipment	$ 191,001	$ 117,534
Non-cash investing activities
Net change in payables for equipment	(3,453)	(40)
Payments for property, plant and equipment	$ 187,548	$ 117,494

No impairment assessment was performed for the years ended December 31, 2024 and 2023 as there was no indication of impairment.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2024	2023
Carrying amount
Transportation equipment	$ 188	$ 610
Machinery equipment	5,485	6,208
	$ 5,673	$ 6,818
	For the Year Ended December 31
	2024	2023
Additions to right-of-use assets	$ 251	$ 618
Depreciation charge for right-of-use assets
Transportation equipment	$ 673	$ 994
Machinery equipment	723	723
	$ 1,396	$ 1,717

b. Lease liabilities

	December 31
	2024	2023
Carrying amounts
Current	$ 744	$ 1,119
Non-current	$ 5,496	$ 6,058

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

	December 31
	2024	2023
Transportation equipment	8.0%	8.0%-11.86%
Machinery equipment	10.0%	10.0%

c. Other lease information

	For the Year Ended December 31
	2024	2023
Expenses relating to short-term leases	$ 690	$ 730
Expenses relating to low-value asset leases	$ 145	$ 124
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ 165	$ 193
Total cash outflow for leases	$ (2,844)	$ (3,330)

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
	2024	2023
Cost
Beginning balance	$ 901	$ 717
Additions	420	450
Disposals	-	(266)
Ending balance	$ 1,321	$ 901
Accumulated amortization
Beginning balance	$ 362	$ 366
Amortization	269	262
Disposals	-	(266)
Ending balance	$ 631	$ 362
Net balance at year-end	$ 690	$ 539

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
	2024	2023
Secured borrowings (Note 28)
Mega International Commercial Bank	$ -	$ 50,000
Unsecured borrowings
Cathay United Bank.	-	60,000
Yuanta Commercial Bank	-	23,000
	-	83,000
	$ -	$ 133,000

The interest rate range for revolving loan facility as of December 31, 2023 was 1.70% to 1.72%

b. Long-term borrowings

	December 31
	2024	2023
Secured borrowings (Note 28)
Hua Nan Commercial Bank (2)	$ 1,311,995	$ 1,458,131
Taiwan Cooperative Bank (1)	-	90,000
Less: Current portion	(171,887)	(170,200)
Less: Unamortized deferred loan origination fees	(976)	(1,106)
	$ 1,139,132	$ 1,376,825

To meet the funding requirements for the establishment of the CHUNG TAI Green Energy Circular Economy Innovation Research and Development Center, the Group has entered into long-term loans with banks.

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 28, 2027, with facility amount of $90,000 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. The Group has made an early repayment in September 2024.

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
	2024	2023
The factory financing loan	$ 725,207	$ 786,493
The SME accelerated investment equipment loan	562,724	671,638
Other	24,064	-
	$ 1,311,995	$ 1,458,131

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16. NOTES PAYABLE AND TRADE PAYABLES

	December 31
	2024	2023
Notes payable	$ 3,130	$ 5,994
Trade payables	16,887	25,529
Payable for environmental construction services	124,414	148,515
	$ 144,431	$ 180,038

17. OTHER PAYABLES FROM UNRELATED PARTIES

	December 31
	2024	2023
Accrued compensation and bonus	$ 48,588	$ 44,112
Payable for equipment	10,471	7,018
Others	57,427	60,699
	$ 116,486	$ 111,829

18. DEFERRED REVENUE - NON-CURRENT

	December 31
	2024	2023
Government grants	$ 12,390	$ 13,287
Other	2,104	1,471
	$ 14,494	$ 14,758

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, 2024 and 2023 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 $8,357 thousand and $9,574 thousand for the years ended December 31, 2024 and 2023, respectively (recognized under other income and net gain/loss).

36 -

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 parent company only balance sheets in respect of the Company's defined benefit plans were as follows:

	December 31
	2024	2023
Present value of defined benefit obligation	$ (7,523)	$ (7,125)
Fair value of plan assets	12,845	11,191
Net defined benefit assets	$ 5,322	$ 4,066

Movements in net defined benefit (assets) liabilities were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
Balance at January 1, 2023	$ (5,691)	$ 10,429	$ 4,738
Service cost
Current service cost	(147)	-	(147)
Net interest income (expense)	(64)	120	56
Recognized in profit or loss	(211)	120	(91)
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	102	102
Actuarial loss - changes in financial assumptions	(75)	-	(75)
Actuarial loss - experience adjustments	(1,148)	-	(1,148)
Recognized in other comprehensive income	(1,223)	102	(1,121)
Contributions from the employer	-	540	540
Balance at December 31, 2023	(7,125)	11,191	4,066
			(Continued)

37 -

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
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 at December 31, 2024	$ (7,523)	$ 12,845	$ 5,322
			(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
	2024	2023
Operating costs	$ -	$ -
Operating expenses	136	91
	$ 136	$ 91

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
	2024	2023
Discount rate(s)	1.375%	1.125%
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
	2024	2023
Discount rate(s)
0.25% increase	$ (76)	$ (77)
0.25% decrease	$ 78	$ 78
Expected rate(s) of salary increase
0.25% increase	$ 75	$ 76
0.25% decrease	$ (74)	$ (75)

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
	2024	2023
Expected contributions to the plans for the next year	$ 540	$ 540
Average duration of the defined benefit obligation	4 years	4.3 years

20. EQUITY

a. Ordinary shares

	December 31
	2024	2023
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)	91,888	82,624
Shares issued and fully paid	$ 918,880	$ 826,244

To enhance its financial structure, the Company executed a cash capital increase in January 2023, issuing 1,500 thousand shares with a par value of NT$10 per share at a premium issuance price of $85 per share. The total amount raised was $127,500 thousand. The base date of the capital increase date was January 13, 2023, and the relevant registration was completed in February 2023.

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. As of December 31, 2024, and December 31, 2023, the Company's paid-in capital was $918,880 thousand and $826,244 thousand, respectively, with a par value of NT$10 per share, all of which were ordinary shares.

b. Capital surplus

	December 31
	2024	2023
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Issuance of ordinary shares (1)	$ 1,268,018	$ 576,143
May only be used to offset a deficit
Changes in percentage of ownership interests in subsidiaries or associates (2)	974	418
	$ 1,268,992	$ 576,561

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.

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 2023 and 2022, which were approved in the shareholders' meetings on June 20, 2024 and June 16, 2023, respectively, were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 25,373	$ 18,045
Special reserve	$ 3,066	$ 1,170
Cash dividends	$ 239,611	$ 165,249
Cash dividends per share ($)	$ 2.90	$ 2.00

Note: 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.

The appropriation of earnings for 2024, which will be proposed by the Company's board of directors on March 11, 2025, was as follows:

	For the Year Ended December 31, 2024
Legal reserve	$ 40,964
Special reserve	$ 15,808
Cash dividends	$ 321,608
Distribution of cash from capital surplus	$ 45,944
Cash dividends per share ($)	$ 3.5
Distribution of cash from capital surplus per share ($)	$ 0.5

The appropriation of earnings and the distribution of cash from capital surplus for 2024 will be resolved by shareholders' meeting to be held in 2025.

REVENUE

	For the Year Ended December 31
	2024	2023
Revenue from the waste services	$ 978,288	$ 919,926
Revenue from the environmental construction	544,557	206,659
Revenue from the sale of goods	191,984	145,284
Others	1,916	588
	$ 1,716,745	$ 1,272,457

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, 2024	December 31, 2023	January 1, 2023
Notes and trade receivables (Note 9)	$ 183,438	$ 155,636	$ 143,705
Contract assets
Environmental construction
The cost input has not yet reached the right to payment	$ 273,147	$ 108,901	$ -
Construction retention	32,606	-	-
	$ 305,753	$ 108,901	$ -
Contract liabilities
Revenue from waste disposal	$ 16,787	$ 17,698	$ 7,724

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
	2024	2023
Beginning balance	$ 762	$ 1,797
Addition	11,015	703
Recognized as operating costs	(11,343)	(1,738)
Ending balance	$ 434	$ 762

41 -

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, 2024 and 2023, amounts allocated to unfulfilled performance obligations were $49,398 thousand and $770,913 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 2024 to 2026.

22. NET PROFIT

a. Other income and expense

	For the Year Ended December 31
	2024	2023
Grants income (Note 18)	$ 10,597	$ 10,562
Revenue from the disposal of scraps	286	144
Others	266	569
	$ 11,149	$ 11,275

b. Other operating gains and losses

	For the Year Ended December 31
	2024	2023
Net foreign exchange gains (losses)	$ 14,509	($ 1,148)
Gain (loss) on disposal of property, plant and equipment	268	( 60)
	$ 14,777	($ 1,208)

c. Finance costs

	For the Year Ended December 31
	2024	2023
Interest on bank loans	$ 33,070	$ 32,374
Interest on lease liabilities	656	744
	$ 33,726	$ 33,118

d. Depreciation and amortization

	For the Year Ended December 31
	2024	2023
Property, plant and equipment	$ 136,231	$ 128,480
Right-of-use assets	1,396	1,717
Intangible assets	269	262
	$ 137,896	$ 130,459
An analysis of depreciation by function
Operating costs	$ 134,237	$ 127,094
Operating expenses	3,390	3,103
	$ 137,627	$ 130,197
An analysis of amortization by function
Operating costs	$ -	$ -
Operating expenses	269	262
	$ 269	$ 262
e. Employee benefits expense
	For the Year Ended December 31
	2024	2023
Post-employment benefits (Note 19)
Defined contribution plan	$ 4,876	$ 4,693
Defined benefit plans	136	91
	5,012	4,784
Salary expenses	169,625	158,639
Employee insurance expenses	12,984	11,833
Other employee benefits	18,876	18,132
Total employee benefits expense	$ 206,497	$ 193,388
An analysis of employee benefits expense by function
Operating costs	$ 143,469	$ 144,048
Operating expenses	63,028	49,340
	$ 206,497	$ 193,388

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. The compensation of employees and the remuneration of directors for the years ended December 31, 2024 and 2023, which were approved by the Company’s board of directors on March 11, 2025 and March 13, 2024, respectively, were as follows:

Estimated ratio

	For the Year Ended December 31
	2024	2023
Compensation of employees	1.93%	1.94%
Remuneration of directors	0.50%	0.67%

Amount

	For the Year Ended December 31
	2024		2023
	Cash	Shares	Cash	Shares
Compensation of employees	$ 10,084	$ -	$ 6,328	$ -
Remuneration of directors	2,600	-	2,200	-

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, 2024 and 2023.

45 -

23. INCOME TAXES

a. Income tax expense recognized in profit or loss

	For the Year Ended December 31
	2024	2023
Current tax
In respect of the current year	$ 101,275	$ 63,855
Adjustments for prior year	(7)	(2)
	101,268	63,853
Deferred tax
In respect of the current year	50	(602)
Income tax expense recognized in profit or loss	$ 101,318	$ 63,251

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

	For the Year Ended December 31
	2024	2023
Profit before tax from continuing operations	$ 510,273	$ 317,875
Income tax expense calculated at the statutory rate	$ 102,063	$ 63,572
Nondeductible expenses in determining taxable income	75	71
Unrealized share of profits of subsidiaries and associates accounted for using equity method	(813)	(390)
Adjustments for prior year - current tax	(7)	(2)
Income tax expense recognized in profit or loss	$ 101,318	$ 63,251

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2024	2023
Deferred tax (expenses) benefits
In respect of the current year
Remeasurement of defined benefit plans	$ (170)	$ 224

c. Current tax liabilities

	December 31
	2024	2023
Current tax liabilities
Income taxes payable	$ 68,405	$ 63,181

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, 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
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

For the year ended December 31, 2023

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Accrued for annual leave	$ 677	$ 145	$ -	$ 822
Allowance to reduce inventory to market	-	434	-	434
Unrealized foreign exchange losses	-	125	-	125
Property, plant and equipment	21	-	-	21
Other employee benefits payable	40	(20)	-	20
	$ 738	$ 684	$ -	$ 1,422 (Continued)

47 -

Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Defined benefit retirement plan	$ 948	$ 89	$ (224)	$ 813
Unrealized foreign exchange gains	7	(7)	-	-
	$ 955	$ 82	$ (224)	$ 813
				(Concluded)

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

	For the Year Ended December 31
	2024	2023
Deductible temporary differences
Investment in subsidiaries	$ 30,600	$ 14,731

f. Income tax assessments

The income tax returns of the Company and Ke Jiou through 2022 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
	2024	2023
Basic earnings per share	$ 408,955	$ 254,624
Diluted earnings per share	$ 408,955	$ 254,624

Number of Shares

	For the Year Ended December 31
	2024	2023
Weighted average number of ordinary shares used in the computation of basic earnings per share	$ 85,155	$ 82,575
Effect of potentially dilutive ordinary shares
Compensation of employees	143	142
Weighted average number of ordinary shares used in the computation of diluted earnings per share	85,298	82,717

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.

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 - 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, 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
December 31, 2023
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive gains or losses
Investments in equity instruments
Unlisted shares	$ -	$ -	$ 217,550	$ 217,550

In 2024 and 2023, 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
	2024	2023
Equity instruments of financial assets at fair value through other comprehensive gains or losses
Beginning balance	$ 217,550	$ 70,616
Purchase	-	150,000
Recognized in other comprehensive gains or losses (unrealized valuation gains or losses on financial assets at fair value through other comprehensive gains or losses)	(15,914)	(3,066)
Ending balance	$ 201,636	$ 217,550
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 receivable, refundable deposits, borrowings (including current portion), notes and trade payables, accounts payable from 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
2024	2023
$ 1,635 *	$ 1,838 *

Mainly attributable to the Group's outstanding U.S. dollar-denominated cash and approximately equivalent cash, notes receivable and accounts, margin 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
	2024	2023
Fair value interest rate risk
Financial assets	$ 561,065	$ 112,105
Cash flow interest rate risk
Financial assets	58,625	224,111
Financial liabilities	1,311,019	1,680,025

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 2024 and 2023 will decrease or increase by $\$12,524$ thousand and $\$14,559$ thousand, respectively.

50 -

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, 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	435,957	1,311,271
		$ 393,756	$ 708,671	$ 435,957	$ 1,538,384
					(Continued)

51 -
52 -

Weighted Average Effective Interest Rate (%)	Demand or Less than 1 Year	2-5 Years	5+ Years	Total
December 31, 2023
Non-derivative financial liabilities	-	$ 262,399	$ -	$ 262,399
Lease liabilities	8-11.86	1,119	6,058	7,177
Variable interest rate liabilities	0.55-2.223	303,578	770,798	1,680,403
		$ 567,096	$ 776,856	$ 1,949,979
				(Concluded)

b) Financing facilities

The classification by collateral was as follows:

	December 31
	2024	2023
Unsecured bank facilities
Amount used	$ -	$ 83,000
Amount unused	310,000	277,000
	$ 310,000	$ 360,000
Secured bank facilities
Amount used	$ 1,311,995	$ 1,598,131
Amount unused	160,000	60,000
	$ 1,471,995	$ 1,658,131

The classification by repayment period was as follows:

	December 31
	2024	2023
Short-term borrowings from financial institutions
Amount used	$ -	$ 133,000
Amount unused	470,000	337,000
	$ 470,000	$ 470,000
Medium and long-term borrowings from financial institutions
Amount used	$ 1,311,995	$ 1,548,131
Amount unused	-	-
	$ 1,311,995	$ 1,548,131

c) Guarantee facilities provided by financial institution for contract,

	December 31
	2024	2023
Secured guarantee from financial institutions
Amount used	$ 177,863	$ 256,613
Amount unused	-	-
	$ 177,863	$ 256,613

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
Da Ning Company Limited (Da Ning)	Subsidiary of the investor with significant influence (Cleanaway)
Kang Lien Enterprise Company Limited (Kang Lien Enterprise)	Subsidiary of the investor with significant influence (Cleanaway)
Cleanaway Energy Company Limited (Cleanaway Energy)	Subsidiary of the investor with significant influence (Cleanaway)
Chase Sustainability Technology Co., Ltd. (Chase) (Note 11)	Associates

b. Significant Transactions with related parties

1) Operating revenue

	For the Year Ended December 31
	2024	2023
Chase	$ 163,656	$ 135,154
Cleanaway	257	11,684
Others	540	576
	$ 164,453	$ 147,414

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

54 -

2) Operating costs

	For the Year Ended December 31
	2024	2023
Chase	$ 37,542	$ 39,588
Chi Wei	30,642	-
Kang Lien Enterprise	8,319	3,634
Cleanaway Energy	4,202	-
Cleanaway	-	165
	$ 80,705	$ 43,387

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
	2024	2023
Chase	$ 29,335	$ 29,415
Cleanaway	-	791
	$ 29,335	$ 30,206

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
	2024	2023
Chi Wei	$ 5,214	$ -
Chase	2,392	16,686
Kang Lien Enterprise	1,190	290
	$ 8,796	$ 16,976

The payables were generated from waste disposal service costs.

c. Remuneration of key management personnel

The total remuneration of key management personnel for the year ended December 31, 2024 and 2023, respectively was as follows:

	For the Year Ended December 31
	2024	2023
Short-term employee benefits	$ 30,284	$ 21,866
Post-employment benefits	378	378
	$ 30,662	$ 22,244

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
	2024	2023
Restricted demand deposit (recognized as financial assets at amortized cost - current)	$ -	$ 83,390
Pledged certificate of deposit (recognized as financial assets at amortized cost)	29,105	22,340
Property, plant and equipment, net	2,611,005	2,682,899
	$ 2,640,110	$ 2,788,629

The machinery equipment listed above was subject to negative pledges under loan agreements (refer to Note 15), amounting to $956,944 thousand and $1,006,863 thousand as of December 31, 2024, and 2023, respectively.

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Unrecognized commitments were as follows:

	December 31
	2024	2023
Acquisition of property, plant and equipment	$ 282,380	$ 12,820

As of December 31, 2024, and 2023, there were notes payable of $31,415 thousand and $22,867 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.

56 -

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:

	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
December 31, 2023
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items USD	$ 6,038	30.71	$ 185,407
Financial liabilities
Monetary items USD	51	30.71	1,560

31. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others (None)
2) Endorsements/guarantees provided (None)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 1)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (Table 2)

6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)

7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)

8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)

9) Trading in derivative instruments (None)

10) Intercompany relationships and significant intercompany transactions (Table 4)

b. 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

d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 5)

SEGMENTS 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.

57 -

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, 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

For the year ended, December 31, 2023

	Waste Disposal Treatments and Circular Economy	Environmental Construction Services	Adjustments and Eliminations	Total
Revenue from external customers	$ 1,065,798	$ 206,659	$ -	$ 1,272,457
Gross profit of reportable segments	$ 370,942	$ 39,608	$ -	$ 410,550
Interest costs				(33,118)
Other				(59,544)
Profit before tax				$ 317,888

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
	2024	2023	2024	2023
Taiwan	$ 1,560,111	$ 1,158,372	$ 3,033,853	$ 2,981,309
Japan	156,634	114,085	-	-
	$ 1,716,745	$ 1,272,457	$ 3,033,853	$ 2,981,309

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, 2024

	Amounts	%
Public Works Bureau of Kaohsiung City Government	$ 544,557	32
For the year ended, December 31, 2023
	Amounts	%
Public Works Bureau of Kaohsiung City Government	$ 206,659	16
FP Group	198,164	16
Chase	135,154	11
	$ 539,977	43

TABLE 1

MARKETABLE SECURITIES HELD

DECEMBER 31, 2024

(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, 2024
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
CHUNG TAI RESOURCE TECHNOLOGY CORP.	Stock - ordinary share
Cleanaway Energy Company Limited	Subsidiary of the investor with significant influence (Cleanaway)	Financial assets at fair value through other comprehensive income	10,500,000	$ 201,636	15	$ 201,636	-

60 -

TABLE 2

ACQUISITION OF INDIVIDUAL REAL ESTATE AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2024

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

Buyer	Property	Event Date	Transaction Amount	Payment Status	Counterparty	Relationship	Information on Previous Title Transfer If Counterparty Is A Related Party				Pricing Reference	Purpose of Acquisition	Other Terms
							Property Owner	Relationship	Transaction Date	Amount
CHUNG TAI RESOURCE TECHNOLOGY CORP.	CHUNG TAI plant 1, phase 2 - civil engineering	July 17, 2024	$ 335,242	Cumulative payments of $153,261 thousand, made in accordance with the payment schedule in the contract	Fan Du Construction Co., Ltd.	Non-related party	-	-	-	$ -	Price comparison and negotiation	In response to the needs for future operations and business development.	-

TABLE 3

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, 2024

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	$ 163,655	10	Determined by the contract	-	-	$ 29,335	16

TABLE 4

INFORMATION ON INVESTEES

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2024			Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2024	December 31, 2024	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	$ 1,634	$ (41)	$ (41)	Subsidiary of the Company
	Ke Jiou Co., Ltd.	No. 326, Huanke Rd., Guanyin Dist., Taoyuan City	Waste collection and product distribution business	1,000	1,000	100,000	100.00	917	(20)	(20)	Subsidiary of the Company
	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	18,808	28,711	4,063	Associate of the Company

Note: 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.

TABLE 5

INFORMATION OF MAJOR SHAREHOLDERS

DECEMBER 31, 2024

Name of Major Shareholder	Shares
	Number of Shares	Percentage of Ownership (%)
Cleanaway Company Limited	16,447,000	17.89
Yong-Fa, Yang	12,155,755	13.22

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of $5\%$ or greater, that have been issued without physical registration (including treasury shares) by the Group as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than $10\%$ in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.

CHUNG TAI RESOURCE TECHNOLOGY CORP.

Parent Company Only Financial Statements for the Years Ended December 31, 2024 and 2023 and Independent Auditors' Report

INDEPENDENT AUDITORS' REPORT

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

Opinion

We have audited the accompanying parent company only financial statements of CHUNG TAI RESOURCE TECHNOLOGY CORP. (the “Company”), which comprise the parent company only balance sheets as of December 31, 2024 and 2023, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2024 and 2023, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing 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 parent company only financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2024 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 parent company only financial statements.

Operating revenue is one of the material matters in parent company only financial reporting. The company is engaged in the waste disposal treatments. Due to the large number of customer entrustments for waste disposal treatments, there are various quantities entrusted, calculation for billing, and sales terms, which involves 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 parent company only financial statements. Therefore, under our assessment, the cut-off of certain kinds of waste treatment revenue 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.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuer and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 parent company only 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 parent company only 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 Company'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 Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only 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 Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

Notice to Readers

The accompanying financial statements are intended only to present the 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 financial statements are those generally applied in the Republic of China.

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

CHUNG TAI RESOURCE TECHNOLOGY CORP.

PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2024 AND 2023

	2024		2023
	Amount	%	Amount	%
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 590,466	14	$ 228,534	6
Financial assets at amortized cost - current (Notes 4, 8 and 28)	15,005	-	112,105	3
Contract Assets - current (Notes 4 and 21)	273,147	6	108,901	3
Notes and trade receivable (Notes 4, 9, 21 and 27)	183,236	4	155,480	4
Inventories (Notes 4 and 10)	21,971	1	33,777	1
Prepayments	10,699	-	12,673	-
Other current assets	696	-	62	-
Total current assets	1,095,220	25	651,532	17
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 7)	201,636	5	217,550	6
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)	21,359	1	17,895	1
Contract Assets - non-current (Notes 4 and 21)	32,606	1	-	-
Property, plant and equipment (Notes 4, 12, 22 and 28)	3,027,490	68	2,973,952	76
Right-of-use assets (Notes 4 and 13)	5,673	-	6,818	-
Net computer software (Notes 4 and 14)	690	-	539	-
Deferred tax assets (Notes 4 and 23)	1,536	-	1,422	-
Refundable deposits (Note 4)	18,785	-	16,350	-
Costs to fulfil a contract - non-current (Notes 4 and 21)	434	-	762	-
Net defined benefit assets - non-current (Notes 4 and 19)	5,322	-	4,066	-
Total non-current assets	3,329,631	75	3,239,354	83
TOTAL	$ 4,424,851	100	$ 3,890,886	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 15 and 28)	$ -	-	$ 133,000	3
Contract liabilities - current (Note 21)	16,787	-	17,698	1
Notes and trade payables (Note 16)	144,431	3	180,038	5
Trade payables to related parties (Note 27)	8,796	-	16,976	-
Other payables (Note 17)	115,443	3	110,850	3
Current tax liabilities (Notes 4 and 23)	68,405	2	63,181	2
Lease liabilities - current (Notes 4 and 13)	744	-	1,119	-
Current portion of long-term borrowings (Notes 15 and 28)	171,887	4	170,200	4
Other current liabilities (Note 4)	1,911	-	2,477	-
Total current liabilities	528,404	12	695,539	18
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 15 and 28)	1,139,132	26	1,376,825	36
Deferred tax liabilities (Notes 4 and 23)	1,147	-	813	-
Lease liabilities - non-current (Notes 4 and 13)	5,496	-	6,058	-
Deferred revenue - non-current (Notes 4 and 13)	14,494	-	14,758	-
Total non-current liabilities	1,160,269	26	1,398,454	36
Total liabilities	1,688,673	38	2,093,993	54
EQUITY (Note 20)
Ordinary shares	918,880	21	826,244	21
Capital surplus	1,268,992	29	576,561	15
Retained earnings
Legal reserve	148,561	3	123,188	3
Special reserve	7,000	-	3,934	-
Unappropriated earnings	415,553	10	273,966	7
Total retained earnings	571,114	13	401,088	10
Other equity
Exchange differences on translating foreign operations (Note 4)	606	-	500	-
Unrealized gain or loss on financial assets at fair value through other comprehensive income (Note 4)	(23,414)	(1)	(7,500)	-
Total other equity	(22,808)	(1)	(7,000)	-
Total equity	2,736,178	62	1,796,893	46
TOTAL	$ 4,424,851	100	$ 3,890,886	100

The accompanying notes are an integral part of the parent company only financial statements.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

	2024		2023
	Amount	%	Amount	%
NET OPERATING REVENUE (Notes 4, 21 and 27)	$ 1,716,745	100	$ 1,272,457	100
OPERATING COSTS (Notes 10, 19, 21, 22 and 27)	1,116,782	65	861,907	68
GROSS PROFIT	599,963	35	410,550	32
OPERATING EXPENSES (Notes 9, 19 and 22)
Selling and marketing expenses	7,854	1	6,796	1
General and administrative expenses	83,480	5	68,604	5
Research and development expenses	5,145	-	3,461	-
Expected credit loss (reversal gain)	46	-	(19)	-
Total operating expenses	96,525	6	78,842	6
OTHER OPERATING INCOME AND EXPENSES
(Notes 18 and 22)	11,149	1	11,138	1
LOSS FROM OPERATIONS	514,587	30	342,846	27
NON-OPERATING INCOME AND EXPENSES
(Notes 4 and 22)
Interest income	10,604	1	7,403	1
Other gains and losses	14,806	1	(1,176)	-
Share of profit in subsidiaries and associates
accounted for under the equity method	4,002	-	1,920	-
Finance costs	(33,726)	(2)	(33,118)	(3)
Total non-operating income and expenses	(4,314)	-	(24,971)	(2)
PROFIT BEFORE INCOME TAX	510,273	30	317,875	25
INCOME TAX EXPENSE (Notes 4 and 23)	101,318	6	63,251	5
NET PROFIT FOR THE YEAR	408,955	24	254,624	20
			(Continued)

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

	2024		2023
	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)	$ 852	-	$ (1,121)	-
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Note 4)	(15,914)	(1)	(3,066)	-
Income tax relating to items that will not be reclassified subsequently to profit or loss (Notes 4 and 23)	(170)	-	224	-
	(15,232)	(1)	(3,963)	-
Items that maybe reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations (Note 4)	106	-	-	-
Other comprehensive gain for the year, net of income tax	(15,126)	(1)	(3,963)	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 393,829	23	$ 250,661	20
EARNINGS PER SHARE (Note 24)
Basic	$ 4.80		$ 3.08
Diluted	$ 4.79		$ 3.08

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

	Shares (In Thousand)	Ordinary Shares	Capital Surplus	Retained Earnings			Other Equity		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 AT JANUARY 1, 2023	81,124	$ 811,244	$ 464,061	$ 105,143	$ 2,764	$ 204,703	$ 500	$(4,434)	$ 1,583,981
Appropriation of 2022 earnings
Legal reserve	-	-	-	18,045	-	(18,045)	-	-	-
Special reserve	-	-	-	-	1,170	(1,170)	-	-	-
Cash dividends distributed by the Company	-	-	-	-	-	(165,249)	-	-	(165,249)
Net profit for the year ended December 31, 2023	-	-	-	-	-	254,624	-	-	254,624
Other comprehensive income (loss) for the year ended December 31, 2023	-	-	-	-	-	(897)	-	(3,066)	(3,963)
Issuance of ordinary shares for cash	1,500	15,000	112,500	-	-	-	-	-	127,500
BALANCE AT DECEMBER 31, 2023	82,624	826,244	576,561	123,188	3,934	273,966	500	(7,500)	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)
Changes in associates accounted for using the equity method	-	-	556	-	-	-	-	-	556
Net profit for the year ended December 31, 2024	-	-	-	-	-	408,955	-	-	408,955
Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	682	106	(15,914)	(15,126)
Issuance of ordinary shares for cash	9,264	92,636	691,875	-	-	-	-	-	784,511
BALANCE AT DECEMBER 31, 2024	91,888	$ 918,880	$ 1,268,992	$ 148,561	$ 7,000	$ 415,553	$ 606	$(23,414)	$ 2,736,178

The accompanying notes are an integral part of the parent company only financial statements.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$ 510,273	$ 317,875
Adjustments for:
Depreciation expenses	137,627	130,197
Amortization expense	269	262
Expected credit loss (reversal gain)	46	(19)
Finance costs	33,726	33,118
Interest income	(10,604)	(7,403)
Share of profit in subsidiaries and associates accounted for under the equity method	(4,002)	(1,920)
(Gain) loss on disposal of property, plant and equipment	(268)	60
Amortization of deferred revenue	(1,051)	(1,007)
Changes in operating assets and liabilities
Contract assets	(196,852)	(108,901)
Notes and trade receivables	(27,802)	(12,104)
Inventories	11,806	(20,817)
Prepayments	1,974	(3,486)
Other current assets	(182)	314
Costs to fulfil a contract	328	1,035
Net defined benefit assets	(404)	(449)
Contract liabilities	(911)	9,974
Notes and trade payables	(35,607)	145,642
Trade payables to related parties	(8,180)	12,305
Other payables	1,266	24,455
Other current liabilities	(566)	(792)
Deferred revenue - non-current	787	-
Cash generated from operations	411,673	518,339
Interest received	10,152	7,403
Interest paid	(33,722)	(32,868)
Income tax paid	(96,044)	(46,092)
Net cash generated from operating activities	292,059	446,782
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	-	(150,000)
Purchase of financial assets at amortized cost	-	(87,755)
Proceeds from sale of financial assets at amortized cost	83,000	-
Payments for property, plant and equipment	(187,548)	(117,494)
Proceeds from disposal of property, plant and equipment	1,500	-
Increase in refundable deposits	(8,912)	(1,187)
Decrease in refundable deposits	6,477	5,381
Payments for intangible assets	(420)	(450)
Dividends received	1,200	1,200
Net cash used in investing activities	(104,703)	(350,305)

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

	2024	2023
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	$ -	$ 65,000
Repayments of short-term borrowings	(133,000)	-
Proceeds from long-term borrowings	24,064	-
Repayments of long-term borrowings	(260,200)	(100,976)
Repayment of the principal portion of lease liabilities	(1,188)	(1,539)
Dividends paid to owners of the Company	(239,611)	(165,249)
Proceeds from issuance of ordinary shares	784,511	127,500
Net cash generated from (used in) financing activities	174,576	(75,264)
NET INCREASE IN CASH AND CASH EQUIVALENTS	361,932	21,213
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	228,534	207,321
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 590,466	$ 228,534

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

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NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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 parent company only financial statements are presented in the Company's functional currency, the New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the Company's board of directors on March 11, 2025.

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

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

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IAS 21 “Lack of Exchangeability”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets	January 1, 2025 (Note 1)
January 1, 2026 (Note 2)

Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Company shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

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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)
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of derecognition of financial liabilities	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
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 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027

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

IFRS 18 "Presentation and Disclosure in Financial Statements"

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
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 Company 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 Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company 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 Company as a whole, the Company 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.

Except for the above impact, as of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company'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 parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

The parent company only 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.

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.

When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the basis of consolidation were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these parent company only financial statements.

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.
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Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period; and
Liabilities for which the Company 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. Foreign currencies

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.

e. Inventories

f. Investments in subsidiaries

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

A subsidiary is an entity that is controlled by the Company.

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

Changes in the Company's ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

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Any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues recognizing its share of further loss, if any.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business 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 Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Company.

g. Investments in associates

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

The Company uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company’s share of the equity of associates attributable to the Company.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of an associate 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 Company’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 at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company 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 Company’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required 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.

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

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

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.

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.

i. Intangible assets

1) Intangible assets acquired separately

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.

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j. Assets related to contract costs

If direct related expenditures of the waste disposal services provided by the Company 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 Company 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 Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Before the Company 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 Company 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.

Financial instruments

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

1) Financial assets

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

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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.

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

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 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.

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ii. Investments in equity instruments at FVTOCI

On initial recognition, the Company 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.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company’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 Company 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 Company always recognizes lifetime expected credit losses (ECLs) for notes receivable, trade receivables and contract assets. For all other financial instruments, the Company 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 Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

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

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

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

c) Derecognition of financial assets

The Company 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.

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2) Equity instruments

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

3) Financial liabilities

a) Subsequent measurement

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

b) Derecognition of financial liabilities

m. Revenue recognition

The Company 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 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 company’s wastes 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.

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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 Company; therefore, the Company recognizes revenue as the performance obligation is gradually satisfied. The Company 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 Company 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 Company 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 aware of the changed circumstances and makes the corrections.

n. Leases

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

The Company as lessee

The Company 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.

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.

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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 Company 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

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 Company 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 Company recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Company 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 Company 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.

2) Retirement benefits

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

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Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company’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

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 recognized for taxable temporary differences associated with investments in subsidiaries, except where the Company 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.

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 Company 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

23 -
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5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’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.

6. CASH AND CASH EQUIVALENTS

	December 31
	2024	2023
Cash on hand	$ 533	$ 468
Checking accounts and demand deposits	57,973	63,948
Cash equivalents
Time deposits with original maturities of 3 months or less	531,960	164,118
	$ 590,466	$ 228,534

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
	2024	2023
Time deposits with original maturities of 3 months or less	1.40%-4.65%	5.24%-5.30%

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2024	2023
Non-current
Domestic investments
Unlisted shares
Cleanaway Energy Company Limited. (Cleanaway Energy)	$ 201,636	$ 217,550

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

In 2023, the Company participated in capital increase for Cleanaway Energy under original percentage amounting to $150,000 thousand in cash.

In March 2024, the Taoyuan City Government revoked the consent letter of park entry for Taoyuan development project of Cleanaway Energy due to non-qualification. Cleanway Energy 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, Cleanaway Energy received a formal letter from the Taoyuan City Government to revoke the consent letter of park entry for renewable energy industry projects. Cleanaway Energy further filed 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, which has revoked the administrative sanction of Taoyuan Municipal Government to revoke the consent letter of park entry of Cleanaway Energy which occurred in August 2024 was revoked. The Taoyuan development project of Cleanaway Energy is in progress; in addition, the Company 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
	2024	2023
Current
Time deposits with original maturities of more than 3 months	$ 15,005	$ 28,715
Restricted demand deposit	-	83,390
	$ 15,005	$ 112,105
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, 2024 and 2023 was both NT$0. The amortized cost and the carrying amount are consistent.

The debt instrument investment policy adopted by the Company serves only to invests in debt instruments with low credit risk issued by reputable financial institutions in the form of time deposit certificates. The Company 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 Company 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 2024 and 2023 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
	2024	2023
Time deposits with original maturities of more than 3 months	1.69%-1.70%	1.565%-1.575%
Restricted demand deposit	-	0.58%
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
	2024	2023
Notes receivable - operating	$ 1,957	$ 395
Trade receivables	181,481	155,241
	183,438	155,636
Less: Allowance for impairment loss	(202)	(156)
	$ 183,236	$ 155,480

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 Company 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 Company 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 Company's credit risk was significantly reduced.

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

a. In principle, government institutions do not have credit quality concern. 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 Company 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 Company'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 company'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 Company 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 Company's provision matrix:

	Government Institutions	General Companies		Total
		1-120 days	More than 121 Days
Expected credit loss rate	0%	0.1%-0.2%	100%
Gross carrying amount	$ 28,767	$ 154,671	$ -	$ 183,438
Loss allowance (Lifetime ECL)	-	(202)	-	(202)
Amortized cost	$ 28,767	$ 154,469	$ -	$ 183,236

December 31, 2023

	Government Institutions	General Companies		Total
		1 - 120 days	More than 121 Days
Expected credit loss rate	0%	0.1%-0.2%	100%
Gross carrying amount	$ 19,311	$ 136,325	$ -	$ 155,636
Loss allowance (Lifetime ECL)	-	(156)	-	(156)
Amortized cost	$ 19,311	$ 136,169	$ -	$ 155,480

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

	For the Year Ended December 31
	2024	2023
Balance at January 1	$ 156	$ 348
Add: Recognize impairment loss in the current period	46	-
Less: Reverse impairment loss in the current period	-	(19)
Less: Amounts written off	-	(173)
Balance at December 31	$ 202	$ 156

10. INVENTORIES

	December 31
	2024	2023
Merchandise	$ 606	$ 769
Raw materials	629	2,865
Finished goods	20,736	30,143
	$ 21,971	$ 33,777

For the years ended December 31, 2024 and 2023, the allowance for write-down of inventories was $2,401 thousand and $2,172 thousand, respectively.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2024	2023
Investments in subsidiaries	$ 2,551	$ 2,506
Investments in associates	18,808	15,389
	$ 21,359	$ 17,895

a. Investments in subsidiaries

Subsidiaries	December 31
	2024		2023
	Percentage of Ownership	Amount	Percentage of Ownership	Amount
CHUNG TAI INVESTMENT CO., LTD.	100	$ 1,634	100	$ 1,569
Ke Jiou Co. Ltd.	100	917	100	937
		$ 2,551		$ 2,506

On October 6, 2012, the Company jointly established CHUNG TAI INVESTMENT CO., LTD. with CHINA ELECTRIC MFG. CORP., with 50% of ownership respectively. CHUNG TAI INVESTMENT CO., LTD. indirectly invested in CHUNG TAI METAL INVESTMENT CO., LIMITED, which subsequently indirectly invested in Zhejiang Taiwei Environmental Technology Limited. in China on March 1, 2013. In March 2018, the Company acquired the 100% ownership of CHUNG TAI INVESTMENT CO., LTD. from CHINA ELECTRIC MFG. CORP. with consideration of $1,278 thousand, thus converting the joint venture into a wholly-owned subsidiary. Later in November 2023, CHUNG TAI METAL INVESTMENT CO., LIMITED has completed its liquidation. As of December 31, 2024 and 2023, the Company both held 100% of ownership in CHUNG TAI INVESTMENT CO., LTD.

To expand business, the Company invested in the establishment of Ke Jiou Co. Ltd. on January 21, 2020, with 100% of ownership.

Share of profit or (losses) of subsidiaries accounted for using the equity method for 2024 and 2023 were as follows:

	For the Year Ended December 31
	2024	2023
Investment loss accounted for using the equity method	$ (61)	$ (29)
Other comprehensive income accounted for using the equity method	$ -	$ -

The share of profits and loss and share of other comprehensive income in subsidiaries accounted for using the equity method is based on subsidiaries' financial statements for the same periods that have been audited by an independent auditor.

b. Investments in associates

		December 31
		2024	2023
Material associate
CHASE SUSTAINABILITY TECHNOLOGY CO., LTD (CHASE)		$ 18,808	$ 15,389
		Percentage of Ownership and Voting Rights Held by Non-controlling Interests
		December 31
Name of Subsidiary	Principal Place of Business	2024	2023
CHASE	Environmental technology and sustainable services	14.12	15.00

In December 2018, the Company acquired 1,200 thousand shares of 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, while also integrating AIoT (The Artificial Intelligence of Things) with the environmental protection industry alliance. CHASE provides customers with integrated, intelligent one-stop waste management and environmental protection solutions. Following several capital increases, the Company 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
	2024	2023
Current assets	$ 504,440	$ 373,064
Non-current assets	31,209	45,492
Current liabilities	(353,635)	(302,319)
Non-current liabilities	(54,720)	(19,225)
Equity	$ 127,294	$ 97,012
Percentage of ownership	14.12%	15.00%
Equity attributable to the Company	$ 17,970	$ 14,551
Investment premium	838	838
Carrying amount	$ 18,808	$ 15,389

For the Year Ended December 31

	2024	2023
Operating revenue	$ 307,955	$ 206,210
Net profit (loss) for the year	$ 28,711	$ 12,998
Other comprehensive income (loss)	-	-
Total comprehensive income (loss) for the year	$ 28,711	$ 12,998

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

The Company recognized its share of profit in associate accounted for using the equity method in 2024 and 2023 amounting to $4,063 thousand and $1,949 thousand, respectively. The amounts were recognized based on the associate's audited financial statements for the same periods.

In 2024 and 2023, the Company received cash dividends of NT$1,200 thousand from associates, respectively.

12. PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Machinery and Equipment	Office Equipment	Transportation Equipment	Other Equipment	Construction in Progress and Equipment Under Acceptance	Total
Cent
Balance at 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 at 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 at 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 at December 31, 2024	$ -	$ 240,191	$ 309,242	$ 31,497	$ 24,936	$ 25,431	$ -	$ 631,297
Carrying amount at December 31, 2024	$ 909,685	$ 910,925	$ 991,091	$ 2,273	$ 26,028	$ 22,018	$ 165,470	$ 3,027,490
Cent
Balance at January 1, 2023	$ 909,685	$ 1,151,262	$ 1,221,051	$ 33,770	$ 38,465	$ 39,735	$ 6,098	$ 3,400,066
Additions	-	6,005	67,279	-	11,046	8,037	25,167	117,534
Disposals	-	(8,538)	(25,209)	-	(2,559)	(11,175)	-	(47,481)
Reclassification	-	-	4,695	-	100	1,303	(6,098)	-
Balance at December 31, 2023	$ 909,685	$ 1,148,729	$ 1,267,816	$ 33,770	$ 47,052	$ 37,900	$ 25,167	$ 3,470,119
Accumulated depreciation and impairment
Balance at January 1, 2023	$ -	$ 189,707	$ 165,109	$ 28,327	$ 14,681	$ 17,284	$ -	$ 415,108
Depreciation expenses	-	29,388	82,210	1,728	6,029	9,125	-	128,480
Disposals	-	(8,538)	(25,209)	-	(2,499)	(11,175)	-	(47,421)
Balance at December 31, 2023	$ -	$ 210,557	$ 222,110	$ 30,055	$ 18,211	$ 15,234	$ -	$ 496,167
Carrying amount at December 31, 2023	$ 909,685	$ 938,172	$ 1,045,706	$ 3,715	$ 28,841	$ 22,666	$ 25,167	$ 2,973,952

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

Buildings
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

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

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

	For the Year Ended December 31
	2024	2023
Additions to property, plant, and equipment	$ 191,001	$ 117,534
Non-cash investing activities
Net change in payables for equipment	(3,453)	(40)
Payments for property, plant and equipment	$ 187,548	$ 117,494

No impairment assessment was performed for the years ended December 31, 2024 and 2023 as there was no indication of impairment.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2024	2023
Carrying amount
Transportation equipment	$ 188	$ 610
Machinery equipment	5,485	6,208
	$ 5,673	$ 6,818
	For the Year Ended December 31
	2024	2023
Additions to right-of-use assets	$ 251	$ 618
Depreciation charge for right-of-use assets
Transportation equipment	$ 673	$ 994
Machinery equipment	723	723
	$ 1,396	$ 1,717

b. Lease liabilities

	December 31
	2024	2023
Carrying amounts
Current	$ 744	$ 1,119
Non-current	$ 5,496	$ 6,058

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

	December 31
	2024	2023
Transportation equipment	8.00%	8.00%-11.86%
Machinery equipment	10.0%	10.00%

c. Other lease information

	For the Year Ended December 31
	2024	2023
Expenses relating to short-term leases	$ 690	$ 730
Expenses relating to low-value asset leases	$ 145	$ 124
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ 165	$ 193
Total cash outflow for leases	$ (2,844)	$ (3,330)

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

OTHER INTANGIBLE ASSETS - COMPUTER SOFTWARE

	For the Year Ended December 31
	2024	2023
Cost
Beginning balance	$ 901	$ 717
Additions	420	450
Disposals	-	(266)
Ending balance	$ 1,321	$ 901
Accumulated amortization
Beginning balance	$ 362	$ 366
Amortization	269	262
Disposals	-	(266)
Ending balance	$ 631	$ 362
Net balance at year-end	$ 690	$ 539

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
	2024	2023
Secured borrowings (Note 28)
Mega International Commercial Bank	$ -	$ 50,000
Unsecured borrowings
Cathay United Bank	-	60,000
Yuanta Commercial Bank	-	23,000
	-	83,000
	$ -	$ 133,000

The interest rate range interval for revolving loan facility as of December 31, 2023 was 1.70% to 1.72%

b. Long-term borrowings

	December 31
	2024	2023
Secured borrowings (Note 28)
Hua Nan Commercial Bank (2)	$ 1,311,995	$ 1,458,131
Taiwan Cooperative Bank (1)	-	90,000
Less: Current portion	(171,887)	(170,200)
Less: Unamortized deferred loan origination fees	(976)	(1,106)
	$ 1,139,132	$ 1,376,825

To meet the funding requirements for the establishment of the CHUNG TAI Green Energy Circular Economy Innovation Research and Development Center, the Company has entered into long-term loans with banks.

1) The Company has entered into a loan agreement with Taiwan Cooperative Bank, which is secured by the Company's freehold land (refer to Note 28). The loan is due on December 28, 2027, with facility amount of $90,000 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. The Company has made an early repayment in September 2024.

2) The Company has entered into a loan agreement with Hua Nan Commercial Bank, which is secured by the Company'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 Company has acquired the Ministry of Economic Affairs' SME Accelerated Investment Program on October 21, 2019. In February 2020, the Company 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 Company 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
	2024	2023
The factory financing loan	$ 725,207	$ 786,493
The SME accelerated investment equipment loan	562,724	671,638
Other	24,064	-
	$ 1,311,995	$ 1,458,131

16. NOTES PAYABLE AND TRADE PAYABLES

	December 31
	2024	2023
Notes payable	$ 3,130	$ 5,994
Trade payables	16,887	25,529
Payable for environmental construction services	124,414	148,515
	$ 144,431	$ 180,038

35 -

17. OTHER PAYABLES FROM UNRELATED PARTIES

	December 31
	2024	2023
Accrued compensation and bonus	$ 48,588	$ 44,112
Payable for equipment	10,471	7,018
Others	56,384	59,720
	$ 115,443	$ 110,850

18. DEFERRED REVENUE - NON-CURRENT

	December 31
	2024	2023
Government grants	$ 12,390	$ 13,287
Other	2,104	1,471
	$ 14,494	$ 14,758

In order to promote the development of the environmental protection industry, Taoyuan Government has signed an environmental technology park subsidy agreement with the Company in December 2006. After the Company completed the land acquisition and obtained the permit in August 2008, the government subsidized the Company 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, 2024 and 2023 were $408 thousand, respectively (recorded under other income and net gain/loss).

The Company 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 $8,357 thousand and $9,574 thousand for the years ended December 31, 2024 and 2023, respectively (recognized under other income and net gain/loss).

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

b. Defined benefit plans

The amounts included in the parent company only balance sheets in respect of the Company's defined benefit plans were as follows:

	December 31
	2024	2023
Present value of defined benefit obligation	$ (7,523)	$ (7,125)
Fair value of plan assets	12,845	11,191
Net defined benefit assets	$ 5,322	$ 4,066

Movements in net defined benefit (assets) liabilities were as follows:

37 -

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
	2024	2023
Operating costs	$ -	$ -
Operating expenses	136	91
	$ 136	$ 91

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

	December 31
	2024	2023
Discount rate(s)	1.375%	1.125%
Expected rate(s) of salary increase	3.750%	3.750%

	December 31
	2024	2023
Discount rate(s)
0.25% increase	$ (76)	$ (77)
0.25% decrease	$ 78	$ 78
Expected rate(s) of salary increase
0.25% increase	$ 75	$ 76
0.25% decrease	$ (74)	$ (75)

	December 31
	2024	2023
Expected contributions to the plans for the next year	$ 540	$ 540
Average duration of the defined benefit obligation	4 years	4.3 years

20. EQUITY

a. Ordinary shares

	December 31
	2024	2023
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)	91,888	82,624
Shares issued and fully paid	$ 918,880	$ 826,244

To enhance its financial structure, the Company executed a cash capital increase in January 2023, issuing 1,500 thousand shares with par value of NT$10 per share at a premium issuance price of $85 per share. The total amount raised was $127,500 thousand. The base date of the capital increase date was January 13, 2023, and the relevant registration was completed in February 2023.

The Company's board of directors resolved to issue 9,264 thousand ordinary shares with $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 he 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. As of December 31, 2024, and December 31, 2023, the Company's paid-in

capital was $918,880 thousand and $826,244 thousand, respectively, with a par value of NT$10 per share, all of which were ordinary shares.

b. Capital surplus

	December 31
	2024	2023
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Issuance of ordinary shares (1)	$ 1,268,018	$ 576,143
May only be used to offset a deficit
Changes in percentage of ownership interests in subsidiaries or associates (2)	974	418
	$ 1,268,992	$ 576,561

c. Retained earnings and dividends policy

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 not 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 not less than 10% of the total dividends distributed from the earnings of the current year.

39 -

The appropriations of earnings for 2023 and 2022, which were approved in the shareholders' meetings on June 20, 2024 and June 16, 2023, respectively, were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 25,373	$ 18,045
Special reserve	$ 3,066	$ 1,170
Cash dividends	$ 239,611	$ 165,249
Cash dividends per share ($)	$ 2.90	$ 2.00

The appropriation of earnings for 2024, which will be proposed by the Company's board of directors on March 11, 2025, was as follows:

	For the Year Ended December 31, 2024
Legal reserve	$ 40,964
Special reserve	$ 15,808
Cash dividends	$ 321,608
Distribution of cash from capital surplus	$ 45,944
Cash dividends per share ($)	$ 3.5
Distribution of cash from capital surplus per share ($)	$ 0.5

The appropriation of earnings and the distribution of cash from capital surplus for 2024 will be resolved by shareholders' meeting to be held in 2025.

21. REVENUE

	For the Year Ended December 31
	2024	2023
Revenue from the waste services	$ 978,288	$ 919,926
Revenue from the environmental construction	544,557	206,659
Revenue from the sale of goods	191,984	145,284
Others	1,916	588
	$ 1,716,745	$ 1,272,457

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, 2024	December 31, 2023	January 1, 2023
Notes and trade receivables (Note 9)	$ 183,438	$ 155,636	$ 143,705
Contract assets
Environmental construction
The cost input has not yet reached the right to payment	$ 273,147	$ 108,901	$ -
Construction retention	32,606	-	-
	$ 305,753	$ 108,901	$ -
Contract liabilities
Revenue from waste disposal	$ 16,787	$ 17,698	$ 7,724

The credit risk characteristics of contract assets are identical to those of accounts receivable generated from similar contracts. Consequently, the Company 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
	2024	2023
Beginning balance	$ 762	$ 1,797
Addition	11,015	703
Recognized as operating costs	(11,343)	(1,738)
Ending balance	$ 434	$ 762

Contracts with customers that have not been fully completed

As of December 31, 2024 and 2023, amounts allocated to unfulfilled performance obligations were NT$49,398 thousand and NT$770,913 thousand, respectively. The Company shall recognize revenue based on the progress of environmental construction projects. The contracts for environmental construction projects will be completed since 2024 to 2026.

41 -
42 -

22. NET PROFIT

a. Other income and expense

	For the Year Ended December 31
	2024	2023
Grants income (Note 18)	$ 10,597	$ 10,562
Revenue from the disposal of scraps	286	144
Others	266	432
	$ 11,149	$ 11,138

b. Other operating gains and losses

	For the Year Ended December 31
	2024	2023
Net foreign exchange gains (losses)	$ 14,538	$ (1,116)
Gain (loss) on disposal of property, plant and equipment	268	(60)
	$ 14,806	$ (1,176)

c. Finance costs

	For the Year Ended December 31
	2024	2023
Interest on bank loans	$ 33,070	$ 32,374
Interest on lease liabilities	656	744
	$ 33,726	$ 33,118

d. Depreciation and amortization

	For the Year Ended December 31
	2024	2023
Property, plant and equipment	$ 136,231	$ 128,480
Right-of-use assets	1,396	1,717
Intangible assets	269	262
	$ 137,896	$ 130,459
An analysis of depreciation by function
Operating costs	$ 134,237	$ 127,094
Operating expenses	3,390	3,103
	$ 137,627	$ 130,197
An analysis of amortization by function
Operating costs	$ -	$ -
Operating expenses	269	262
	$ 269	$ 262

e. Employee benefits expense

	For the Year Ended December 31
	2024	2023
Post-employment benefits (Note 19)
Defined contribution plan	$ 4,876	$ 4,693
Defined benefit plans	136	91
	5,012	4,784
Salary expenses	169,625	158,639
Employee insurance expenses	12,984	11,833
Other employee benefits	18,876	18,132
Total employee benefits expense	$ 206,497	$ 193,388
An analysis of employee benefits expense by function
Operating costs	$ 143,469	$ 144,048
Operating expenses	63,028	49,340
	$ 206,497	$ 193,388

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 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. The compensation of employees and the remuneration of directors for the years ended December 31, 2024 and 2023, which were approved by the Company's board of directors on March 11, 2025 and March 13, 2024, respectively, were as follows:

Estimated ratio

	For the Year Ended December 31
	2024	2023
Compensation of employees	1.93%	1.94%
Remuneration of directors	0.50%	0.67%

Amount

	For the Year Ended December 31
	2024		2023
	Cash	Shares	Cash	Shares
Compensation of employees	$ 10,084	$ -	$ 6,328	$ -
Remuneration of directors	2,600	-	2,200	-

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 parent company only financial statements for the years ended December 31, 2024 and 2023.

INCOME TAXES

a. Income tax expense recognized in profit or loss

	For the Year Ended December 31
	2024	2023
Current tax
In respect of the current year	$ 101,275	$ 63,855
Adjustments for prior year	(7)	(2)
	101,268	63,853
Deferred tax
In respect of the current year	50	(602)
Income tax expense recognized in profit or loss	$ 101,318	$ 63,251

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

	For the Year Ended December 31
	2024	2023
Profit before tax from continuing operations	$ 510,273	$ 317,875
Income tax expense calculated at the statutory rate	$ 102,063	$ 63,572
Nondeductible expenses in determining taxable income	75	71
Unrealized share of profits of subsidiaries and associates accounted for using equity method	(813)	(390)
Adjustments for prior year - current tax	(7)	(2)
Income tax expense recognized in profit or loss	$ 101,318	$ 63,251

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2024	2023
Deferred tax (expenses) benefits
In respect of the current year
Remeasurement of defined benefit plans	$ (170)	$ 224

c. Current tax liabilities

	December 31
	2024	2023
Current tax liabilities
Income taxes payable	$ 68,405	$ 63,181

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, 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
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
				(Continued)

46 -

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax liabilities
Temporary differences
Defined benefit retirement plan	$ 813	$ 82	$ 170	$ 1,065
Unrealized foreign exchange gains	-	82	-	82
	$ 813	$ 164	$ 170	$ 1,147 (Concluded)
For the year ended December 31, 2023
	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Payables for annual leave	$ 677	$ 145	$ -	$ 822
Allowance to reduce inventory to market	-	434	-	434
Unrealized foreign exchange losses	-	125	-	125
Property, plant and equipment	21	-	-	21
Other Employee Benefits Payable	40	(20)	-	20
	$ 738	$ 684	$ -	$ 1,422
Deferred tax liabilities
Temporary differences
Defined benefit retirement plan	$ 948	$ 89	$ (224)	$ 813
Unrealized foreign exchange gains	7	(7)	-	-
	$ 955	$ 82	$ (224)	$ 813

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

	For the Year Ended December 31
	2024	2023
Deductible temporary differences
Investment in subsidiaries	$ 30,600	$ 14,731

f. Income tax assessments

The income tax returns of the Company through 2022 have been assessed by the tax authorities.

47 -

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
	2024	2023
Basic earnings per share	$ 408,955	$ 254,624
Diluted earnings per share	$ 408,955	$ 254,624
Number of Shares
	For the Year Ended December 31
	2024	2023
Weighted average number of ordinary shares used in the computation of basic earnings per share	$85,155	$82,575
Effect of potentially dilutive ordinary shares Compensation of employees	143	142
Weighted average number of ordinary shares used in the computation of diluted earnings per share	85,298	82,717

25. CAPITAL MANAGEMENT

The Company's capital management is designed to ensure that the Company will be able to continue as going concerns while maximizing the return to stakeholders. Key management personnel of the Company 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 Company may adjust the amount of dividends paid to shareholders, the number of new shares issued.

The Company 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 Company which are not measured at fair value, are all financial instruments at amortized cost.

The management of the Company 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 - 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

	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
December 31, 2023
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive gains or losses
Investments in equity instruments Unlisted shares	$ -	$ -	$ 217,550	$ 217,550

In 2024 and 2023, 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
	2024	2023
Equity instruments of financial assets at fair value through other comprehensive gains or losses
Beginning balance	$ 217,550	$ 70,616
Purchase	-	150,000
Recognized in other comprehensive gains or losses
(unrealized valuation gains or losses on financial assets at fair value through other comprehensive gains or losses)	(15,914)	(3,066)
Ending balance	$ 201,636	$ 217,550
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 Company were the adjustment of the difference between replacement cost and repurchase cost.

c. Financial risk management objectives and policies

The Company's main financial instruments include cash and cash equivalents, financial assets at amortized cost, contract assets, notes and trade receivable, refundable deposits, borrowings (including current portion), notes and trade payables, accounts payable from related parties, and other payables. The financial management department of the Company 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 Company 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 Company. 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 Company engages in foreign currency-denominated sales transactions, causing the Company 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 Company 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.

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

The following table details the sensitivity analysis of the Company 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
2024	2023
$1,635*	$1,838*

Mainly attributable to the Company's outstanding U.S. dollar-denominated cash and approximately equivalent cash, notes receivable and accounts, margin deposits and other payables as at the balance sheet date.
49 -

b) Interest rate risk

The Company is exposed to interest rate risk because the Company borrow funds at both fixed and floating interest rates. The Company is exposed to fair value interest rate risk from fixed rate borrowings while the Company 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 Company that were exposed to interest rate risks on the balance sheet date were as follows:

	December 31
	2024	2023
Fair value interest rate risk
Financial assets	$ 561,065	$ 112,105
Cash flow interest rate risk
Financial assets	56,990	222,489
Financial liabilities	1,311,019	1,680,025

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 Company's net profit before tax in 2024 and 2023 will decrease or increase by $12,540 thousand and $14,575 thousand, respectively.

2) Credit risk

Credit risk refers to the risk of financial loss to the company 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 company (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 parent only balance sheet.

The accounts receivable and notes receivable of the Company are concentrated with a few customers, but these companies are not related. To maintain the quality of accounts receivable and notes receivable, the Company'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 Company'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 Company manages and maintains sufficient cash and cash equivalents to support operations and reduce the impact of cash flow fluctuations. The management of the Company supervises the use of bank facilities and ensures compliance with the terms of the loan contract, so as to address new investment plan.

50 -

Borrowings loans are important to liquidity for the Company. For the Company'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 Company may be required to make repayments and the undiscounted cash flows of financial liabilities (including principal and estimated future interest). Therefore, the Company 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, 2024
Non-derivative financial liabilities		$ 219,830	$ -	$ -	$ 219,830
Lease liabilities	8-10	744	5,496	-	6,240
Variable interest rate liabilities	0.5-2.16	172,139	703,175	435,957	1,311,271
		$ 392,713	$ 708,671	$ 435,957	$ 1,537,341
December 31, 2023
Non-derivative financial liabilities	-	$ 261,420	$ -	$ -	$ 261,420
Lease liabilities	8-11.86	1,119	6,058	-	7,177
Variable interest rate liabilities	0.55-2.223	303,578	770,798	606,027	1,680,403
		$ 566,117	$ 776,856	$ 606,027	$ 1,949,000

b) Financing facilities

The classification by collateral was as follows:

	December 31
	2024	2023
Unsecured bank facilities
Amount used	$ -	$ 83,000
Amount unused	310,000	277,000
	$ 310,000	$ 360,000
Secured bank facilities
Amount used	$ 1,311,995	$ 1,598,131
Amount unused	160,000	60,000
	$ 1,471,995	$ 1,658,131

The classification by repayment period was as follows:

	December 31
	2024	2023
Short-term borrowings from financial institutions
Amount used	$ -	$ 133,000
Amount unused	470,000	337,000
	$ 470,000	$ 470,000
Medium and long-term borrowings from financial institutions
Amount used	$ 1,311,995	$ 1,548,131
Amount unused	-	-
	$ 1,311,995	$ 1,548,131

c) Guarantee facilities provided by financial institution for contract,

	December 31
	2024	2023
Secured guarantee from financial institutions
Amount used	$ 177,863	$ 256,613
Amount unused	-	-
	$ 177,863	$ 256,613

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 Company 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
Da Ning Company Limited (Da Ning)	Subsidiary of the investor with significant influence (Cleanaway)
Kang Lien Enterprise Company Limited (Kang Lien Enterprise)	Subsidiary of the investor with significant influence (Cleanaway)
Cleanaway Energy Company Limited (Cleanaway Energy)	Subsidiary of the investor with significant influence (Cleanaway)
Chase Sustainability Technology Co., Ltd. (Chase) (Note 11)	Associates

b. Significant transactions with related parties

1) Operating revenue

	For the Year Ended December 31
	2024	2023
Chase	$ 163,656	$ 135,154
Cleanaway	257	11,684
Others	540	576
	$ 164,453	$ 147,414

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

2) Operating costs

	For the Year Ended December 31
	2024	2023
Chase	$ 37,542	$ 39,588
Chi Wei	30,642	-
Kang Lien Enterprise	8,319	3,634
Cleanaway Energy	4,202	-
Cleanaway	-	165
	$ 80,705	$ 43,387

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
	2024	2023
Chase	$ 29,335	$ 29,415
Cleanaway	-	791
	$ 29,335	$ 30,206

4) Payables to related parties

	December 31
	2024	2023
Chi Wei	$ 5,214	$ -
Chase	2,392	16,686
Kang Lien Enterprise	1,190	290
	$ 8,796	$ 16,976

The payables were generated from waste disposal service costs.

c. Remuneration of key management personnel

The total remuneration of key management personnel for the years ended December 31, 2024 and 2023, respectively was as follows:

	For the Year Ended December 31
	2024	2023
Short-term employee benefits	$ 30,284	$ 21,866
Post-employment benefits	378	378
	$ 30,662	$ 22,244

ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

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

	December 31
	2024	2023
Restricted demand deposit (recognized as financial assets at amortized cost - current)	$ -	$ 83,390
Pledged certificate of deposit (recognized as financial assets at amortized cost)	29,105	22,340
Property, plant and equipment, net	2,611,005	2,682,899
	$ 2,640,110	$ 2,788,629

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Unrecognized commitments were as follows:

	December 31
	2024	2023
Acquisition of property, plant and equipment	$ 282,380	$ 12,820

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 Company. 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:

	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
December 31, 2023
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items USD	$ 6,038	30.71	$ 185,407
Financial liabilities
Monetary items USD	51	30.71	1,560

31. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others (None)
2) Endorsements/guarantees provided (None)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 1)

4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)

5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (Table 2)

6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)

7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)

8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)

9) Trading in derivative instruments (None)

10) Intercompany relationships and significant intercompany transactions (Table 4)

b. Information on investments in mainland China

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

56 -

TABLE 1

MARKETABLE SECURITIES HELD

DECEMBER 31, 2024

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2024
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
CHUNG TAI RESOURCE TECHNOLOGY CORP.	Stock - ordinary share
Cleanaway Energy Company Limited	Subsidiary of the investor with significant influence (Cleanaway)	Financial assets at fair value through other comprehensive income	10,500,000	$ 201,636	15	$ 201,636	-

57 -

TABLE 2

ACQUISITION OF INDIVIDUAL REAL ESTATE AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

Buyer	Property	Event Date	Transaction Amount	Payment Status	Counterparty	Relationship	Information on Previous Title Transfer If Counterparty Is A Related Party				Pricing Reference	Purpose of Acquisition	Other Terms
							Property Owner	Relationship	Transaction Date	Amount
CHUNG TAI RESOURCE TECHNOLOGY CORP.	CHUNG TAI plant 1, phase 2 - civil engineering	July 17, 2024	$ 335,242	Cumulative payments of $153,261 thousand, made in accordance with the payment schedule in the contract	Fan Da Construction Co., Ltd.	Non-related party	-	-	-	$ -	Price comparison and negotiation	In response to the needs for future operations and business development.	-

TABLE 3

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

Seller/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	$ 163,655	10	Determined by the contract	-	-	$ 29,335	16

TABLE 4

INFORMATION ON INVESTEES

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2024			Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2024	December 31, 2023	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	$ 1,634	$ (41)	$ (41)	Subsidiary of the Company
	Ke Jiou Co. Ltd.	No. 326, Huanke Rd., Guanyin Dist., Taoyuan City	Waste collection and product distribution business	1,000	1,000	100,000	100.00	917	(20)	(20)	Subsidiary of the Company
	Chase Sustainability Technology Co., Ltd	IF., 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	18,808	28,711	4,063	Associate of the Company

TABLE 5

INFORMATION OF MAJOR SHAREHOLDERS

DECEMBER 31, 2024

Name of Major Shareholder	Shares
	Number of Shares	Percentage of Ownership (%)
Cleanaway Company Limited	16,447,000	17.89
Yong-Fa, Yang	12,155,755	13.22

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item	Number/Index
Statements of Assets, Liabilities and Equity Items
Statement of cash and cash equivalents	Note 6
Statements of financial assets measured at fair value through other comprehensive income	Notes 7 and 26
Statements of financial assets measured at amortized cost	Note 8
Statement of notes and trade receivables	1
Statement of inventories	Note 10
Statement of changes in investments accounted for under the equity method	2
Statement of changes in property, plant, and equipment	Note 12
Statement of changes in accumulated depreciation of property, plant, and equipment	Note 12
Statement of changes in right-of-use assets	3
Statement of changes in accumulated depreciation of right-of-use assets	4
Statement of changes in intangible assets	Note 14
Statement of deferred income tax assets	Note 23
Statement of short-term borrowings	Notes 15 and 26
Statement of notes and trade payables	5
Statement of trade payables from related parties	Note 27
Statement of other payables	Note 17
Statement of lease liabilities	6
Statement of long-term borrowings	Notes 15 and 26
Statement of deferred taxes liabilities	Note 23
Statement of long-term deferred income	Note 18
Statement of Profit or Loss Items
Statement of operating revenue	Note 21
Statement of operating costs	7
Statement of manufacturing expenses	8
Statement of operating expenses	9
Statement of employee benefits and depreciation and amortization expenses by function	10

62 -

STATEMENT 1

STATEMENT OF NOTES and TRADE RECEIVABLES

Customer Name	Summary	Amount
Notes receivable
Others (Note)		$ 1,957
Trade receivables from unrelated parties
Chase	Waste disposal revenue	29,335
Ohkuchi Electronics	Sales	29,507
HC company	Waste disposal revenue	22,667
Ministry of Environment, Resource Circulation Administration	Revenue from certification of waste lighting source recycling and treatment	13,193
Others (Note)		86,779
		181,481
		183,438
Less: Allowance for impairment loss		(202)
		$ 183,236

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

STATEMENT 2

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD

Investee Company	Beginning Balances		Increase in This Year		Decrease in This Year		Ending Balances			Market Value/Net Equity		Evaluation Basis	Guarantee or Pledge
	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount	Shares (In Thousands)	Shareholding %	Amount	Unit Price Per Share (NT$)	Total Price
CHUNG TAI INVESTMENT CO., LTD. (Note 1)	20,000,000	$ 1,569	-	$ 106	-	$ (41)	20,000,000	100.00	$ 1,634	0.08	$ 1,634	Equity method	None
Ke Jiou Co. Ltd. (Note 2)	100,000	937	-	-	-	(20)	100,000	100.00	917	9.17	917	Equity method	None
Chase Sustainability Technology Co., Ltd. (Note 3)	1,200,000	15,389	-	4,619	-	(1,200)	1,200,000	14.12	18,808	15.67	18,808	Equity method	None
		$ 17,895		$ 4,725		$ (1,261)			$ 21,359		$ 21,359

Note:1 The increase was $106 thousand of exchange differences on translation of financial statements of foreign operations; in addition, the decrease was $41 thousand of share of losses from subsidiaries recognized using the equity method.
Note 2: The decrease was $20 thousand of share of losses from subsidiaries recognized using the equity method.
Note 3: The increase was $4,063 thousand of share of profits from associates accounted for using the equity method and $556 thousand of change in associates accounted for using the equity method resulting from not participating in capital increase based on the percentage of ownership. The decrease was $1,200 thousand attributable to distribution of cash dividends.

STATEMENT 3

STATEMENT OF COST CHANGES IN RIGHT-OF-USE ASSETS

Item	Beginning Balance	Increased in This Year	Decrease in This Year	Ending Balance
Cost
Transportation equipment	$ 1,207	$ 251	$ (1,207)	$ 251
Machinery equipment	7,172	-	-	7,172
	$ 8,379	$ 251	$ (1,207)	$ 7,423

STATEMENT 4

STATEMENT OF ACCUMULATED DEPRECIATION CHANGES IN RIGHT-OF-USE ASSETS

Item	Beginning Balance	Increased in This Year	Decrease in This Year	Ending Balance
Accumulated depreciation
Transportation equipment	$ 597	$ 673	$ (1,207)	$ 63
Machinery equipment	964	723	-	1,687
	$ 1,561	$ 1,396	$ (1,207)	$ 1,750

STATEMENT 5

STATEMENT OF NOTES and TRADE PAYABLES

Name of Supplier	Summary	Amount
Notes and trade payables
HG company	Environmental construction project costs	$ 109,523
MCC company	Environmental construction project costs	14,891
Others (Note)		20,017
		$ 144,431

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

67 -

STATEMENT 6

STATEMENT OF LEASE LIABILITIES

Item	Content	Period	Discount Rate	Ending Balance	Note
Transportation equipment	1 Company vehicle	From September 29, 2024, to September 28, 2025	8.0%	$ 182
Machinery equipment	Wastewater treatment equipment	From September 1, 2022, to July 31, 2032	10.0%	$ 6,058

STATEMENT 7

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2024

Item	Amount
Sales of purchased goods
Add: Beginning balance of goods	$ 769
Add: Purchase of goods	1,395
Less: Ending balance of merchandise	(606)
Others	(163)
Costs of goods sold	1,395
Processing and manufacturing costs
Raw materials used
Beginning balance of raw materials	5,037
Add: Purchase of raw materials	96,870
Less: Ending balance of raw materials	(1,430)
Others	(28)
	100,449
Direct labor	117,453
Manufacturing expenses (Statement 8)	470,267
Manufacturing costs	688,169
Add: Beginning balance of finished goods	30,143
Less: Ending balance of finished goods	(22,336)
Subtotal of processing and manufacturing costs	695,976
Inventory valuation loss	229
Cost of services
Cost of services	419,182
Operating costs	$ 1,116,782

STATEMENT 8

STATEMENT OF MANUFACTURING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2024

Item	Amount
Depreciation expenses	$ 134,237
Utilities expense	56,704
Waste disposal expenses	56,032
Transportation expenses	51,856
Materials and consumables	50,879
Professional service fees	39,009
Repair and maintenance expense	29,504
Others	52,046
	$ 470,267

70 -

STATEMENT 9

STATEMENT OF OPERATING EXPENSES

Item	Selling and Marketing Expenses	General and Administrative Expenses	Research and Development Expenses	Allowance for Expected Credit Losses	Total
Salary and bonus (include remuneration paid to directors)	$ 3,601	$ 50,694	$ 1,749	$ -	$ 56,044
Professional service fees	-	8,289	2,826	-	11,115
Entertainment expense	8	5,745	-	-	5,753
Donation expense	-	4,205	-	-	4,205
Insurance expense	559	2,645	192	-	3,396
Depreciation expenses	1,035	2,277	78	-	3,390
Advertising expense	2,002	12	-	-	2,014
Employee benefits	65	1,530	39	-	1,634
Export expenses	-	1,517	-	-	1,517
Pensions	200	826	114	-	1,140
Allowance for expected credit losses	-	-	-	46	46
Others	384	5,740	147	-	6,271
	$ 7,854	$ 83,480	$ 5,145	$ 46	$ 96,525

STATEMENT 10

STATEMENT OF EMPLOYEE BENEFITS AND DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION

Item	2024			2023
	Cost of Goods Sold	Operating Expenses	Total	Cost of Goods Sold	Operating Expenses	Total
Employee benefits expense
Salaries and bonus	$ 113,581	$ 38,442	$ 152,023	$ 115,764	$ 29,730	$ 145,494
Employee insurance expenses	9,945	3,039	12,984	9,736	2,097	11,833
Pension	3,872	1,140	5,012	3,730	1,054	4,784
Remuneration paid to directors	-	17,602	17,602	-	13,145	13,145
Others	16,071	2,805	18,876	14,818	3,314	18,132
	$ 143,469	$ 63,028	$ 206,497	$ 144,048	$ 49,340	$ 193,388
Depreciation expenses	$ 134,237	$ 3,390	$ 137,627	$ 127,094	$ 3,103	$ 130,197
Amortization expenses	$ -	$ 269	$ 269	$ -	$ 262	$ 262

Note 1: The number of employees in 2024 and 2023 were 199 and 197, respectively, of which the number of directors who was not employees were 9 in both years.
Note 2: a. Average employee benefits for the years ended December 31, 2024 and 2023 were $944 thousand and $959 thousand, respectively.
b. Average salary for the years ended December 31, 2024 and 2023 were $800 thousand and $774 thousand, respectively.
c. The average salary increased by 3.36% year over year.
d. The remuneration for directors and managers was based on each individual's extent of participation in the Company's operation, the value of their contribution, the Company's de facto operating performance, and the relevance and reasonableness of future risks; the remuneration also made reference to the industry standards, and was proposed by the Remuneration Committee and resolved by the Board of Directors. The Company's remuneration to employees was determined by the authorized executives based on the Company's salary-approval regulations, an employee's education and experience, the nature and type of a job, market standards, and the Company's internal balance.

149

Chung Tai Resource Technology Corp.

Chairman: Cheng, Kuang-Chieh

AI assistant

ctrt — Annual Report 2024

52663_rns_2026-05-06_026f3db7-f222-4aaf-81a1-36d9a66260a5.pdf

112年度年報

中台資源科技股份有限公司

CHUNG TAI RESOURCE TECHNOLOGY CORP.

Table of Contents

Chapter 5 Review and Analysis of Financial Status, Operating Results, and Risk Factors ... 134

Chapter 6 Special Recorded Items ... 147

Chapter 7 Significant Impact Events ... 148

Chapter 1 Letter to Shareholders

I. Operating Results for Year 2024

II. Industry Trends and Development Opportunities for 2025

III. Facing Challenges and Response Strategies

IV. Conclusion

3. Remuneration of President and Vice President

II. Corporate Governance Operations

(I) Board of Directors Operations

(II) Operation of the Audit Committee

III. Certified Public Accountant Fee Information

IV. Change of CPA information: Not applicable.

VII. Information on the relationship between the top ten shareholders, whether they are related parties or spouses, relatives within the second degree of kinship

Chapter 3 Funding Status

I. Capital and Shares

(II) List of Major Shareholders

2022 Cash Capital Increase

2024 Cash Capital Increase

1. Plan Details

2. Implementation Status

3. Evaluation of Implementation Benefits

Chapter 4 Operational Overview

I. Business Content

(I) Business Scope

1. Main contents of business operations:

2. Business Proportion of Main Products

3. Current Products (Services) Items

(2) Overview of Taiwan's Waste Treatment Industry

A. Industrial Waste Industry

Industrial Waste Treatment Status Over the Past Five Years

Sales Revenue of Pollution Remediation Industry in the Past Five Years

(III) Technology and Research & Development Overview

1. Technology Level and Research Development of Business Operations

(1) Research and Development Personnel and Their Educational and Professional Background:

2. Long-term business development plan

II. Market and Production/Sales Overview

(I) Market Analysis

1. Main Product (Service) Sales (Provision) Regions

2. Market Share

(1) Recycling and Treatment of Waste Lighting

(2) Waste Printed Circuit Board Processing

4. Competitive Advantage

(1) Implementation of Smart Tools and Information Systems in Each Plant

B. PC Board Industry Fluctuations Affecting Raw Material Supply

Response Strategies:

C. Copper Price Market Fluctuations Affecting Copper Powder Sales

Response Strategies:

D. Difficulty in Acquiring Talent

Response Strategies

(II) Main Products' Important Uses and Production Processes

2. Production Process

(1) Integrated Waste-to-Energy and Resource Recovery Treatment

(2) Resource Recovery Treatment for Waste Lighting Sources and Mercury-Containing Waste

(3) Resource Recovery Treatment for Waste Composite Materials

(4) Resource Recovery Treatment for Waste Printed Circuit Boards

III. Information on employees in the last two years and up to the printing date of the annual report

IV. Environmental protection expenditure information

VI. Information Security Management

2. Information Security Policies and Specific Management Programs

Chapter 5 Review and Analysis of Financial Status, Operating Results, and Risk Factors

I. Financial Status Comparative Analysis Table

II. Financial Performance Comparative Analysis Table

III. Cash Flow Comparison Analysis Table

(I) Analysis of Cash Flow Changes in the Most Recent Year

IV. Impact of Major Capital Expenditures in the Most Recent Year on Financial and Business Operations

V. Investment Policy in the Most Recent Year, Main Reasons for Profit or Loss, Improvement Plans, and Investment Plan for the Coming Year

VI. Risk analysis and assessment for the most recent year up to the printing date of the annual report

Sensitivity analysis

2. Workplace Safety Incident

Chapter 6 Special Recorded Items

Chapter 7 Significant Impact Events

ctrt Annual Report 2024