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Daiken Biomedical Co., Ltd. and Subsidiaries
Consolidated Financial Statements and Auditor's Report
For the Fiscal Years 2025 and 2024
(Stock Code: 7780)

Address: 12F., No. 37, Sec. 3, Roosevelt Rd., Da'an Dist.,
Taipei City
Tel.: (02)2365-1380

Daiken Biomedical Co., Ltd. and Subsidiaries
Consolidated Financial Statements and Auditor's Report for the Fiscal Years 2025
and 2024
Table of Contents

Items	Page No.
I. Cover Page	1
II. Table of Contents	2
III. Statement of Declaration	3
IV. Independent Auditor’s Report	4 ~ 9
V. Consolidated Balance Sheets	10 ~ 11
VI. Consolidated Statements of Comprehensive Income	12
VII. Consolidated Statements of Changes in Equity	13
VIII. Consolidated Statements of Cash Flows	14
IX. Notes to the Consolidated Financial Statements	15 ~ 57
(I) Company History and Business Scope	15
(II) Financial Report Approval Date and Procedure	15
(III) Application of Newly Issued and Revised Standards and Interpretations	15 ~ 17
(IV) Summary of Significant Accounting Policies	17 ~ 30
(V) Critical Accounting Judgments and Key Sources of Estimation and Uncertainty	30 ~ 31
(VI) Explanation of Significant Accounting Items	31 ~ 47
(VII) Related Party Transactions	47 ~ 49
(VIII) Pledged Assets	49
(IX) Significant Contingent Liabilities and Unrecognized Contractual Commitments	49
(X) Significant Disaster Losses	50
(XI) Significant Matters After the Period	50
(XII) Others	50 ~ 56
(XIII) Matters to be Disclosed in the Notes	56 ~ 57
(XIV) Operating Segment Information	57

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Daiken Biomedical Co., Ltd. and Subsidiaries
Statement on Consolidated Financial Statements of Affiliated Enterprises

For the fiscal year 2025 (from January 1, 2025, to December 31, 2025), the companies required to be included in the preparation of the Consolidated Financial Statements of Affiliated Enterprises in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are the same as those required to be included in the preparation of the parent-subsidiary consolidated financial statements under IFRS 10. Furthermore, all relevant information disclosed in the Consolidated Financial Statements of Affiliated Enterprises has already been disclosed in the aforementioned parent-subsidiary consolidated financial statements. Therefore, no separate Consolidated Financial Statements of Affiliated Enterprises will be prepared.

The above is hereby formally declared by

Company Name: Daiken Biomedical Co., Ltd.

Responsible Person: Lin, Tung-Ching

March 9, 2026

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Independent Auditor’s Report

(2026)Cai-Shen-Bao-Zi No. 25004327

To Daiken Biomedical Co., Ltd.:

Audit Opinion

Daiken Biomedical Co., Ltd. and its subsidiaries (hereinafter referred to as the "Daiken Group") have had their consolidated balance sheets as of December 31, 2025 and 2024, consolidated statements of comprehensive income, consolidated statements of changes in equity, and consolidated statements of cash flows for the years January 1 to December 31, 2025 and 2024, as well as the notes to the consolidated financial statements (including a summary of significant accounting policies), audited by certified public accountants.

In the opinion of the CPAs, the above consolidated financial statements have been prepared, in all material respects, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, interpretations, and related announcements recognized and promulgated by the Financial Supervisory Commission. They fairly present the consolidated financial position of the Daiken Group as of December 31, 2025 and 2024, as well as the consolidated financial performance and consolidated cash flows for the years then ended, January 1 to December 31, 2025 and 2024.

Basis for Audit Opinion

The CPAs conducted the audit in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Auditing Standards of the Republic of China. The CPAs' responsibilities under these standards are further described in the section titled "Accountants' Responsibilities for the Audit of the Consolidated Financial Statements." Personnel of the CPAs' affiliated firm, subject to independence regulations, have maintained strict independence from Daiken Biomedical Group in accordance with the Code of Ethics for Professional Accountants of the Republic of China and have fulfilled other related responsibilities under the Code. The CPAs believe that sufficient and appropriate audit evidence has been obtained to provide a basis for the audit opinion.

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Key Audit Matters

Key audit matters refer to those matters that, in the professional judgment of the CPA, were of most significance in the audit of the consolidated financial statements of the Daiken Group for the year ended December 31, 2025. These matters were addressed in the context of the audit of the financial statements as a whole and in forming the audit opinion. The CPA does not express a separate opinion on these matters.

The key audit matters of Daiken Biomedical Co., Ltd. Group’s consolidated financial statements for the year ended December 31, 2025, are as follows:

Existence of Revenue Recognition

Description of Matters

For the accounting policy on revenue recognition, please refer to Note IV(XXV) in the Notes to the Consolidated Financial Statements; for the description of the operating revenue accounts, please refer to Note VI(XIII) in the consolidated financial statements.

Daiken Group’s primary business activities consist of the research, development, and sales of health food products. Due to the diverse sales channels, a wide range of customers, and dispersed revenue, combined with the inherently high risk associated with revenue, the CPA has identified the existence of sales revenue as a key audit matter.

Audit Procedures Implemented in Response

The CPAs have performed response procedures related to the specific aspects of the key audit matters described above as follows:

The understanding, evaluation, and testing of the internal control processes over sales transactions during the financial reporting period were conducted in accordance with the internal control system established by the Daiken Group.
Detailed sales transaction records were obtained for the financial statement period and sample verifications of related documents were conducted, including orders, invoices, shipping documents from logistics companies, and reconciliation statements from distributors.

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Other Matters — The Audit Report on the Individual Financial Statements Was Issued.

Daiken Biomedical Co., Ltd. has prepared the Individual financial statements for the years 2025 and 2024, which have been audited by our certified public accountants who issued an unqualified opinion. These statements are provided for reference.

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

The responsibility of management is to prepare consolidated financial statements that fairly present the Company's financial position in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, interpretations, and related announcements approved and issued by the Financial Supervisory Commission. Management is also responsible for maintaining necessary internal controls related to the preparation of the consolidated financial statements to ensure that the statements are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management's responsibilities also include assessing Daiken Group's ability to continue as a going concern, disclosing related matters, and adopting the going concern accounting basis, unless management intends to liquidate the Group or cease operations, or has no realistic alternative but to do so.

The governance bodies of Daiken Group, including the Audit Committee, are responsible for overseeing the financial reporting process.

Accountants' Responsibility for the Audit of the Consolidated Financial Statements

The purpose of the CPAs' examination of the consolidated financial statements is to obtain reasonable assurance about whether the statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report. Reasonable assurance is a high level of confidence; however, an audit conducted in accordance with the Auditing Standards of the Republic of China cannot guarantee the detection of all material misstatements in the consolidated financial statements. Misstatements may arise from fraud or error. A misstatement is considered material if, individually or in aggregate, it could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

In accordance with the Auditing Standards of the Republic of China, the CPAs exercised professional judgment and professional skepticism during the audit. The CPAs also performed the following procedures:

Identify and assess the risks of material misstatement in the consolidated financial statements due to fraud or error; design and perform appropriate responses to the assessed risks; and obtain sufficient and appropriate audit evidence as the basis for the audit opinion. Because fraud may involve collusion, forgery, intentional omission, false statements, or override of internal controls, the risk of not detecting a material misstatement due to fraud is higher than that due to error.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Daiken Group’s internal control.
Evaluate the appropriateness of the accounting policies adopted by management, as well as the reasonableness of the accounting estimates and related disclosures made.

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Based on the audit evidence obtained, we have concluded on the appropriateness of management's use of the going concern accounting basis and whether any significant uncertainty exists regarding events or conditions that may cast substantial doubt on Daiken Group's ability to continue as a going concern. If the auditor believes that such events or conditions involve significant uncertainty, the CPAs are required to draw users' attention to the related disclosures in the consolidated financial statements or to modify the audit opinion if such disclosures are inadequate. Our conclusion is based on audit evidence obtained up to the date of the audit report. However, future events or conditions may cause Daiken Group to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the consolidated financial statements (including the related notes), as well as whether the statements appropriately represent the relevant transactions and events.
Sufficient and appropriate audit evidence was obtained regarding the financial information of the individual entities within the Group to express an opinion on the consolidated financial statements. The CPAs were responsible for guiding, supervising, and performing the Group audit engagement, as well as for forming the Group audit opinion.

Matters communicated between the CPAs and the governance bodies include the planned scope and timing of the audit, as well as significant audit findings, including any material weaknesses in internal control identified during the audit process.

The CPAs also provided the governance body with a declaration that personnel of the CPAs' firm, subject to independence regulations, have complied with the independence requirements set forth in the Code of Ethics for Professional Accountants of the Republic of China. Furthermore, the CPAs communicated with the governance body regarding all relationships and other matters that could reasonably be considered to affect their independence, including related safeguards.

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The CPAs determined the key audit matters for the Daiken Group’s consolidated financial statements for the year 2025 based on communications with governance bodies. These matters are disclosed in the audit report unless laws or regulations prohibit the public disclosure of specific information, or in extremely rare circumstances, the CPAs decide not to communicate certain matters in the audit report because the potential negative impact of such communication would reasonably be expected to outweigh the public interest served.

PricewaterhouseCoopers Taiwan

Hsu Chieh-ju

CPA

Hu Chih-hua

Financial Supervisory Commission

Approval Document No.:

Jin-Guan-Zheng-Shen-Zi No. 1100348083

Jin-Guan-Zheng-Shen-Zi No. 1120348565

March 9, 2026

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Daiken Biomedical Co., Ltd. and Subsidiaries
Consolidated Balance Sheets
December 31, 2025 and December 31, 2024
Unit: NT$ thousands

	Assets	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents	VI (I)	$ 2,236,290	38	$ 1,139,724	74
1136	Financial assets at amortized cost - current	VI(II)	3,025,776	51	-	-
1170	Net accounts receivable	VI (III)	136,315	2	93,500	6
1200	Other receivables	VII	7,272	-	653	-
130X	Inventories	VI (IV)	416,003	7	245,705	16
1410	Prepayments	VII	41,410	1	31,886	2
11XX	Total current assets		5,863,066	99	1,511,468	98
Non-current assets
1600	Property, plant and equipment	VII	1,073	-	1,038	-
1755	Right-of-use assets	VI(V)	18,180	1	2,246	-
1780	Intangible assets		3,964	-	3,739	-
1840	Deferred tax assets	VI(XVIII)	13,073	-	11,691	1
1900	Other non-current assets		13,295	-	7,619	1
15XX	Total non-current assets		49,585	1	26,333	2
1XXX	Total assets		$ 5,912,651	100	$ 1,537,801	100

(Continued on the next page)

Daiken Biomedical Co., Ltd. and Subsidiaries
Consolidated Balance Sheets
December 31, 2025 and December 31, 2024
Unit: NT$ thousands

Liabilities and equity	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Liabilities
Current liabilities
2100	Short-term borrowings	VI (VI)	$ 100,000	2	$ -	-
2130	Contract liabilities - current	VI (XIII)	10,183	-	7,255	1
2150	Notes payable		4,630	-	2,142	-
2170	Accounts payable		149,700	3	71,608	5
2200	Other payables	VI (VII)	92,983	2	114,286	7
2220	Other payables - related parties	VII	224	-	6,116	-
2230	Current tax liabilities		63,918	1	9,372	1
2280	Lease liabilities - current		3,195	-	1,819	-
2365	Refund liabilities - current	VI (XIII)	21,306	-	16,867	1
2399	Other current liabilities - other		733	-	901	-
21XX	Total current liabilities		446,872	8	230,366	15
Non-current liabilities
2570	Deferred income tax liabilities	VI(XVIII)	7,897	-	-	-
2580	Lease liabilities - non-current		15,178	-	446	-
25XX	Total non-current liabilities		23,075	-	446	-
2XXX	Total liabilities		469,947	8	230,812	15
Equity
	Capital stock	VI (X)
3110	Capital common stock		810,024	14	600,024	39
	Capital surplus	VI (XI)
3200	Capital surplus		4,414,952	75	624,060	40
	Retained earnings	VI (XII)
3310	Legal reserve		55,218	1	28,354	2
3320	Special reserve		7,513	-	-	-
3350	Undistributed earnings		124,644	2	55,410	4
	Other equity
3400	Other equity		30,353	-	( 859)	-
3XXX	Total equity		5,442,704	92	1,306,989	85
	Significant contingent liabilities and unrecognized contractual commitments	IX
	Significant matters after the period XI
3X2X	Total liabilities and equity		$ 5,912,651	100	$ 1,537,801	100

The accompanying Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements. Please refer to them together.

Chairman: Lin, Tung-Ching
Manager: Lin, Tung-Ching
Chief Accounting Officer: Hung, Tzu-Chun

Daiken Biomedical Co., Ltd. and Subsidiaries
Consolidated Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024

Unit: NT$ thousands
(Except earnings per share)

Items	Notes	2025		2024
		Amount	%	Amount	%
4000 Operating income	VI (XIII)	$ 1,895,089	100	$ 1,362,387	100
5000 Operating costs	VI (IV) and VII	( 689,360)	( 36)	( 506,170)	( 37)
5900 Operating gross profit		1,205,729	64	856,217	63
Operating expenses	VI(XVI), (XVII), and VII
6100 Marketing costs and expenses		( 785,638)	( 42)	( 615,855)	( 45)
6200 Administration expenses		( 120,575)	( 6)	( 80,402)	( 6)
6300 Research and development costs		( 11,281)	( 1)	( 10,164)	( 1)
6450 Estimated credit impairment loss	XII (II)	( 23)	-	( 881)	-
6000 Total operating expenses		( 917,517)	( 49)	( 707,302)	( 52)
6900 Operating profit		288,212	15	148,915	11
Non-operating income and expenses
7100 Interest income		32,893	2	28,425	2
7010 Other income	VI (XIV)	89,694	5	109	-
7020 Other gains and losses	VI(XV)	7,278	-	( 31,845)	( 2)
7050 Financial costs		( 595)	-	( 6,003)	( 1)
7000 Total non-operating income and expenses		129,270	7	( 9,314)	( 1)
7900 Net income before tax		417,482	22	139,601	10
7950 Income tax expense	VI(XVIII)	( 79,615)	( 4)	( 33,022)	( 2)
8200 Net profit for the period		$ 337,867	18	$ 106,579	8
Items that may be reclassified subsequently to profit or loss
8361 Foreign exchange differences arising on translation of foreign operations		$ 38,799	2	($ 859)	-
8399 Income tax related to items that may be reclassified	VI(XVIII)	( 7,587)	( 1)	-	-
8360 Total amount of items that may be reclassified subsequently to profit or loss		31,212	1	( 859)	-
8300 Other comprehensive profit or loss (net)		$ 31,212	1	($ 859)	-
8500 Total consolidated profit or loss for the period		$ 369,079	19	$ 105,720	8
Net profit (loss) attributable to:
8610 Owners of the parent company		$ 337,867	18	$ 106,579	8
Total comprehensive income attributable to:
8710 Owners of the parent company		$ 369,079	19	$ 105,720	8
Earnings per share	VI (XIX)
9750 Basic earnings per share		$ 0.51		$ 0.24
9850 Diluted earnings per share		$ 0.51		$ 0.24

The accompanying Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements. Please refer to them together.

Chairman: Lin, Tung-Ching
Manager: Lin, Tung-Ching
Chief Accounting Officer: Hung, Tzu-Chun

Daiken Biomedical Co., Ltd. and Subsidiaries
Consolidated Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024
Unit: NT$ thousands

	Notes	Equity attributable to owners of the parent company
Retained earnings	Foreign exchange differences arising on translation of foreign operations	Total equity
Capital common stock	Capital surplus	Legal reserve
2024
Balance as of January 1, 2024		$ 155,400
Net profit for the period		-
Other comprehensive income for the period		-
Total consolidated profit or loss for the period		-
Cash capital increase	VI(X), (XI)	375,940
Earnings allocation and distribution:	VI (XII)
Legal reserves		-
Cash dividends		-
Share dividends		68,684
Balance as of December 31, 2024		$ 600,024
2025
Balance as of January 1, 2025		$ 600,024
Net profit for the period		-
Other comprehensive income for the period		-
Total consolidated profit or loss for the period		-
Cash capital increase	VI(X), (XI)	210,000
Earnings allocation and distribution:	VI (XII)
Legal reserves		-
Special reserve		-
Cash dividends		-
Capital surplus distributed as cash	VI (XI)	-
Recognition of changes in ownership interests in subsidiaries	VI (XI)	-
Balance as of December 31, 2025		$ 810,024

The accompanying Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements. Please refer to them together.

Chairman: Lin, Tung-Ching
Manager: Lin, Tung-Ching
Chief Accounting Officer: Hung, Tzu-Chun

Daiken Biomedical Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
Unit: NT$ thousands

	Notes	January 1 to December 31, 2025	January 1 to December 31, 2024
Cash flow from operating activities
Net profit before tax for the period		$ 417,482	$ 139,601
Adjustment items
Income loss items
Depreciation expenses	VI (XVI)	3,778	2,896
Amortization fee	VI (XVI)	3,173	1,318
Interest expenses		595	6,003
Interest income		( 32,893 )	( 28,425 )
Estimated credit impairment loss	XII (II)	23	881
Changes in assets/liabilities related to business activities
Net change in assets related to business activities
Net accounts receivable		( 42,838 )	( 26,194 )
Other receivables		439	2,674
Inventories		( 170,298 )	16,946
Prepayments		( 9,524 )	( 12,497 )
Net change in liabilities related to operating activities
Contract liabilities – current		2,928	( 22,971 )
Notes payable		2,488	( 4,750 )
Accounts payable		78,092	25,355
Other Payables		21,667	( 8,479 )
Other payables - related parties		( 5,892 )	( 14,583 )
Refund liabilities - current		4,439	7,941
Other current liabilities		( 168 )	572
Cash inflow from operations		273,491	86,288
Interest charged		25,835	28,425
Interest paid		( 595 )	( 6,003 )
Income taxes paid		( 26,141 )	( 56,959 )
Net cash generated by operating activities		272,590	51,751
Cash flows from investing activities
Increase in financial assets at amortized cost - current		( 3,025,776 )	( 424,920 )
Decrease in financial assets at amortized cost - current		-	517,035
Acquisition of property, plant and equipment	VII	( 385 )	( 1,251 )
Acquisition of intangible assets		( 3,398 )	( 1,971 )
Increase in refundable deposits		( 4,296 )	( 3,213 )
Increase in other non-current assets		( 1,380 )	( 1,588 )
Net cash (outflow) inflow from investing activities		( 3,035,235 )	84,092
Cash flows from financing activities
Increase in short-term borrowings	VI(XXI)	120,000	470,000
Decrease in short-term borrowings	VI(XXI)	( 20,000 )	( 628,000 )
Repayment of long term loans	VI(XXI)	-	( 118,578 )
Repayment of lease principal	VI(XXI)	( 3,254 )	( 2,664 )
Distribution of cash dividends and cash distribution from capital surplus	VI(XXI)	( 589,226 )	( 3,083 )
Cash capital increase	VI (X)	4,312,526	1,000,000
Net cash inflows from financing activities		3,820,046	717,675
Effects of foreign exchange rate		39,165	( 859 )
Increase in cash and cash equivalents for the period		1,096,566	852,659
Cash and cash equivalents at beginning of year		1,139,724	287,065
Cash and cash equivalents at the end of the period		$ 2,236,290	$ 1,139,724

The accompanying Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements. Please refer to them together.

Chairman: Lin, Tung-Ching
Manager: Lin, Tung-Ching
Chief Accounting Officer: Hung, Tzu-Chun

Daiken Biomedical Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements
For the Fiscal Years 2025 and 2024
Unit: NT$ thousands
(Unless otherwise specified)

I. Company History and Business Scope

Daiken Biomedical Co., Ltd. (hereinafter referred to as "the Company") was established with the approval of the Ministry of Economic Affairs on June 20, 2018. The Company and its subsidiaries (hereinafter collectively referred to as "the Group") are primarily engaged in the research, development, and sales of health food products. In June 2025, the Company was approved for registration as an emerging stock by the Taiwan Stock Exchange, listing on said exchange on September 9, 2025. Sunfun Info Co., Ltd. holds 68.72% equity interest in the Company and is the ultimate parent company.

II. Financial Report Approval Date and Procedure

These consolidated financial statements were approved and issued by the Board of Directors on March 9, 2026.

III. Application of Newly Issued and Revised Standards and Interpretations

(I) Impact of the adoption of newly issued and amended IFRS accounting standards approved and promulgated by the Financial Supervisory Commission (hereinafter referred to as the "FSC")

The table below summarizes the new, amended, and revised IFRS accounting standards and interpretations applicable for the year 2025, as approved and promulgated by the FSC.

Newly Issued/Amended/Revised Standards and Interpretations	Effective Date Issued by the International Accounting Standards Board
Amendment to IAS 21: "Lack of Exchangeability"	January 1, 2025

The Group has assessed the above standards and interpretations and concluded that they have no material impact on the Group's financial position or financial performance.

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(II) Impact of newly issued or revised IFRS accounting standards approved by the FSC not yet adopted

The table below summarizes the new, amended, and revised IFRS accounting standards and interpretations applicable for the year 2026, as approved and promulgated by the FSC.

Newly Issued/Amended/Revised Standards and Interpretations	Effective Date Issued by the International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7: "Classification and Measurement of Financial Instruments"	January 1, 2026
Amendments to IFRS 9 and 7: "Contracts Involving Natural Electricity"	January 1, 2026
IFRS 17, "Insurance Contracts"	January 1, 2023
Amendments to IFRS 17: "Insurance Contracts"	January 1, 2023
Amendments to IFRS 17: “Initial Application of IFRS 17 and IFRS 9—Comparative Information”	January 1, 2023
Annual Improvements to IFRS – Volume 11	January 1, 2026

The Group has assessed the above standards and interpretations and concluded that they have no material impact on the Group’s financial position or financial performance.

(III) Impact of IRFSs issued by the international accounting standards board but not yet approved by the FSC

The following table summarizes the newly issued, amended, and revised IFRS standards and interpretations issued by the International Accounting Standards Board that have not yet been adopted by the Financial Supervisory Commission.

Newly Issued/Amended/Revised Standards and Interpretations	Effective Date Issued by the International Accounting Standards Board
Amendments to IFRS 10 and IAS 28: "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"	Pending the decision of the International Accounting Standards Board.
IFRS 18: “Presentation and Disclosure of Financial Statements”	January 1, 2027 (Note)
IFRS No. 19: "Disclosure of Subsidiaries That Are Not Publicly Accountable"	January 1, 2027
Amendment to IAS 21: "Financial Reporting in Hyperinflationary Economies"	January 1, 2027

Note: In a press release dated September 25, 2025, the Financial Supervisory Commission announced that publicly listed companies will be required to apply International Financial Reporting Standard 18 (hereinafter referred to as IFRS 18) starting in fiscal year 2028. Additionally, companies with a need to adopt IFRS 18 earlier may choose to do so upon the Commission’s approval of IFRS 18.

Except as otherwise stated below, the Group has assessed that the aforementioned standards and interpretations have no significant impact on the Group’s financial position and financial performance. Any related impact amounts will be disclosed upon completion of the assessment.

IFRS 18: “Presentation and Disclosure of Financial Statements”

IFRS 18, "Presentation and Disclosure of Financial Statements," replaces IAS 1 and updates the structure of the comprehensive income statement. It also introduces disclosures related to management performance measurement and strengthens the principles for aggregation and disaggregation applied to the primary financial statements and notes.

IV. Summary of Significant Accounting Policies

The accounting policies adopted in the preparation of these consolidated financial statements are described as follows. Unless otherwise stated, these policies have been applied consistently throughout all reporting periods.

(I) Compliance statement

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, Interpretations, and Interpretive Announcements (hereinafter referred to as IFRSs) recognized and promulgated by the Financial Supervisory Commission.

(II) Basis of preparation

These consolidated financial statements were prepared on a historical cost basis.
The preparation of consolidated financial statements in accordance with IFRSs requires the use of significant accounting estimates. The application of the Group’s accounting policies also involves management’s judgment in areas of high judgment or complexity, as well as significant assumptions and estimates related to the consolidated financial statements. For details, please refer to Note V.

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(III) Basis of consolidation

Principles for the Preparation of Consolidated Financial Statements

(1) The Group includes all subsidiaries in the preparation of consolidated financial statements. A subsidiary refers to an entity controlled by the Group (including structured entities). The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are included in the consolidated financial statements from the date the Group obtains control and are excluded from consolidation from the date control is lost.

(2) Intercompany transactions, balances, and unrealized gains and losses within the Group have been eliminated. The accounting policies of the subsidiaries have been adjusted as necessary to conform with those adopted by the Group.

(3) The components of profit or loss and other comprehensive income are attributable to the owners of the parent company and non-controlling interests. The total comprehensive income is also attributable to the owners of the parent company and non-controlling interests, even if this results in a deficit balance in the non-controlling interests.

(4) Changes in ownership interests in subsidiaries that do not result in a loss of control (transactions with non-controlling interests) are accounted for as equity transactions, that is, as transactions with the owners. The difference between the adjustment amount of non-controlling interests and the fair value of the consideration paid or received is directly recognized in equity.

(5) When the Group loses control of a subsidiary, any remaining investment in the former subsidiary is remeasured at fair value and recognized as the fair value of the originally recognized financial asset or as the cost of the originally recognized investment in an associate or joint venture. The difference between the fair value and the carrying amount is recognized in profit or loss for the current period. For all amounts previously recognized in other comprehensive income related to the subsidiary, the accounting treatment is consistent with the Group's approach if it had directly disposed of the related assets or liabilities. Specifically, if the gains or losses were previously recognized in other comprehensive income and would be reclassified to profit or loss upon disposal of the related assets or liabilities, then upon loss of control of the subsidiary, such gains or losses are reclassified from equity to profit or loss.

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Subsidiaries Included in the Consolidated Financial Statements:

Name of Investing Company	Subsidiary Name	Nature of Business	Percentage of Stake Held		Explanation
			December 31, 2025	December 31, 2024
The Company	Daiken Biomedical Co.,Ltd. (Japan)	Biotechnology and Medical Care	100	100
The Company	Daiken Biomedical HK Limited	Information Software Services	100	100
The Company	Daiken Investment Australia Pty Ltd.	Investment Holding	-	100	(2)
The Company	Daiken Biomedical Australia Pty Ltd.	Biotechnology and Medical Care	100	100
The Company	Daiken Investment Co., Ltd.	Investment	100	-	(1)
The Company	Daiken Wellness Village Co., Ltd.	Investment	100	-	(1)
Daiken Wellness Village Co., Ltd.	Daiken Investment Australia Pty Ltd.	Investment Holding	100	-	(2)

(1) The Company established Daiken Wellness Village Co., Ltd. and Daiken Biomedical Investment and Acquisition Co., Ltd. in October 2025 and has included them in the consolidated financial statements since their respective dates of establishment.

(2) On November 7, 2025, the Company's Board of Directors resolved to dispose of 300,000 shares of Daiken Investment Australia Pty Ltd., with a disposal amount of AU$293,475 (NT$6,332). These shares were repurchased by the subsidiary, Daiken Wellness Village Co., Ltd. Upon completion of this transaction, the subsidiary Daiken Wellness Village Co., Ltd. held 100% ownership of the shares.

Subsidiaries not included in the consolidated financial statements: None.

Adjustments and treatments for subsidiaries with different accounting periods: None.
Significant restrictions: None.
Subsidiaries whose non-controlling interest had materiality to the Group: None.

(IV) Foreign currency translation

The financial statements of each entity within the Group are measured using the currency of the primary economic environment in which the entity operates (i.e., the functional currency). This consolidated financial report is presented in the Company's functional currency, the New Taiwan Dollar (NT$).

Foreign Currency Transactions and Balances

(1) Foreign currency transactions are translated into the functional currency using the spot exchange rate on the transaction date or measurement date. Exchange differences arising from such translations are recognized in profit or loss for the current period.
(2) Foreign currency monetary assets and liabilities are revalued at the spot exchange rate on the balance sheet date. Exchange differences arising from such revaluation are recognized in profit or loss for the current period.
(3) Foreign currency non-monetary assets and liabilities measured at fair value through profit or loss are revalued at the spot exchange rate on the balance sheet date, with any resulting exchange differences recognized in current profit or loss. Those measured at fair value through other comprehensive income are revalued at the spot exchange rate on the balance sheet date, with any resulting exchange differences recognized in other comprehensive income. Items not measured at fair value are measured at the historical exchange rate on the initial transaction date.
(4) All foreign exchange gains and losses are reported under "Other gains and losses" in the income statement.

Translation of Foreign Operations

(1) For all group entities and associates whose functional currency differs from the presentation currency, their operating results and financial position are translated into the presentation currency as follows:

A. Assets and liabilities presented in each balance sheet are translated at the closing exchange rate on the date of that balance sheet;

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B. Revenues and expenses presented in each consolidated statement of comprehensive income are translated using the average exchange rate for the period; and

C. All exchange differences arising from translation are recognized in other comprehensive income.

(2) When a foreign operation that is partially disposed of or sold is an associate or joint venture, the exchange differences recognized under other comprehensive income are reclassified proportionally to profit or loss in the current period as part of the gain or loss on disposal. However, if the Group retains a partial interest in the former associate or joint venture but has lost significant influence over the foreign operation as an associate or joint control over the foreign operation as a joint venture, the disposal is treated as a disposal of the entire interest in the foreign operation.

(3) When a foreign operation disposed of or sold is a subsidiary, the cumulative translation differences previously recognized in other comprehensive income are reattributed proportionally to the non-controlling interests of that foreign operation. However, if the Group loses control over the foreign operation as a subsidiary, even while retaining partial interest in the former subsidiary, the disposal is treated as a disposal of the entire interest in the foreign operation.

(V) Classification criteria for current and non-current assets and liabilities

Assets meeting any of the following criteria are classified as current assets:

(1) Expected to be realized within the normal operating cycle, or intended to be sold or consumed.

(2) Primarily held for trading purposes.

(3) Expected to be realized within twelve months after the reporting period.

(4) Cash or cash equivalents, except for those restricted from being exchanged or used to settle liabilities for at least twelve months after the reporting period.

The Group classifies all assets that do not meet the above criteria as non-current.

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Liabilities meeting any of the following conditions are classified as current liabilities:

(1) Expected to be settled within the normal operating cycle.
(2) Primarily held for trading purposes.
(3) Amounts due for repayment within twelve months after the reporting period.
(4) Entities without the right to defer the settlement of liabilities for at least twelve months beyond the reporting period.

The Group classifies all liabilities that do not meet the above criteria as non-current.

(VI) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to a known amount of cash and carry an insignificant risk of changes in value. Time deposits that meet the above definition and are held for the purpose of satisfying short-term cash commitments in operations are classified as cash equivalents.

(VII) Financial assets at amortized cost

Refers to those which simultaneously meet the following conditions:

(1) Held the financial asset under a business model with the objective of collecting contractual cash flows.
(2) The contractual terms of the financial asset give rise to cash flows on specified dates that consist solely of payments of principal and interest on the outstanding principal amount.

The Group applies trade date accounting for financial assets measured at amortized cost in accordance with customary trading practices.
The Group initially measures financial assets at fair value plus transaction costs. Subsequently, interest income is recognized over the holding period using the effective interest method based on amortized cost. Impairment losses are also recognized when applicable. Upon derecognition, any gains or losses are recorded in profit or loss.
The Group holds time deposits that do not qualify as cash equivalents. Due to the short holding period, the impact of discounting is not significant, and these deposits are measured at investment cost.

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(VIII) Accounts receivable

Accounts receivable refer to amounts contractually agreed upon and unconditionally collectible as consideration for the transfer of goods or services.
These are short-term accounts receivable without accrued interest. Due to the minimal impact of discounting, the Group measures them at the original invoice amount.

(IX) Impairment of financial assets

As of each balance sheet date, the Group measures the allowance for losses on financial assets measured at amortized cost and trade receivables with significant financing components by considering all reasonable and supportable information, including forward-looking data. For those whose credit risk has not significantly increased since initial recognition, the allowance is measured based on the 12-month expected credit loss (ECL). For those whose credit risk has significantly increased since initial recognition, the allowance is measured based on the lifetime ECL. For trade receivables without significant financing components, the loss allowance is measured based on the lifetime ECL.

(X) Derecognition of financial assets

When the Group’s contractual rights to receive cash flows from a financial asset expire, the financial asset will be derecognized.

(XI) Inventories

Inventories are measured at the lower of cost and net realizable value, with cost determined using the first-in, first-out (FIFO) method. The cost of finished goods includes raw materials and production-related expenses. When comparing cost and net realizable value, the comparison is made on an item-by-item basis. Net realizable value refers to the estimated selling price in the ordinary course of business, less the estimated costs to complete and the estimated costs necessary to make the sale.

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(XII) Property, plant and equipment

Property, plant, and equipment are recorded at acquisition cost, with related interest during the construction period capitalized.
Subsequent costs are included in the carrying amount of an asset or recognized as a separate asset only when it is highly probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part shall be derecognized. All other repair and maintenance expenses are recognized as current period expenses when incurred.
Subsequent measurement of property, plant, and equipment is carried out using the cost model. Except for land, which is not depreciated, depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Significant components of property, plant, and equipment are depreciated separately.
The Group reviews the residual values, useful lives, and depreciation methods of its assets at the end of each financial year. If the expected residual values or useful lives differ from previous estimates, or if there is a significant change in the anticipated pattern of future economic benefits embodied in the assets, such changes are accounted for as changes in accounting estimates in accordance with IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors," effective from the date the change occurs. The useful lives of the various assets are as follows:

Office equipment and production machinery useful life	1 to 5 years
Leasehold improvements	10 years

(XIII) Lessee’s lease transactions - Right-of-use assets/lease liabilities

Right-of-use assets and lease liabilities are recognized on the date the leased assets become available for use by the Group. For leases classified as short-term or leases of low-value assets, lease payments are recognized as expenses on a straight-line basis over the lease term.
Lease liabilities are recognized at the present value of the unpaid lease payments on the lease commencement date, discounted using the Group’s incremental borrowing rate. Lease payments include:

(1) Fixed payments, less any lease incentives receivable;
(2) Lease payments that depend on changes in an index or a rate;
(3) The amount the Group expects to pay under the residual value guarantee;

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(4) If the lessee can reasonably determine that the purchase option will be exercised at the exercise price of the purchase option; and

(5) If the lease term reflects that the lessee will exercise the option to terminate the lease, the penalty payable for lease termination shall be recognized.

Subsequently, the lease liability is measured using the effective interest method at amortized cost, with interest expense recognized over the lease term. When changes in the lease term or lease payments are not due to contract modifications, the lease liability is remeasured, and the remeasured amount is adjusted against the right-of-use asset.

Right-of-use assets are recognized at cost on the lease commencement date. The cost includes:

(1) The initial measurement amount of the lease liabilities;

(2) Any lease payments made on or before the commencement date;

(3) Any original direct costs incurred; and

(4) The estimated costs for dismantling and removing the asset, restoring its location, or restoring the asset to the condition required under the terms and conditions of the lease.

Subsequently measured using the cost model, depreciation expense is recognized over the shorter of the useful life of the right-of-use asset or the lease term. When the lease liability is remeasured, the right-of-use asset is adjusted by the amount of any remeasurement of the lease liability.

(XIV) Intangible assets

Trademark rights

Trademarks acquired individually are recognized at acquisition cost. Trademarks are finite-lived assets and are amortized on a straight-line basis over an estimated useful life of 10 years.

Computer software

Computer software is recognized at acquisition cost and amortized on a straight-line basis over the estimated useful life of 1 to 3 years.

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(XV) Impairment of non-financial assets

As of the balance sheet date, the Group estimates the recoverable amount of assets showing signs of impairment. An impairment loss is recognized when the recoverable amount is less than the carrying amount. The recoverable amount is defined as the higher of an asset’s fair value less costs of disposal and its value in use. If the circumstances that previously led to the recognition of an impairment loss no longer exist or have decreased, the impairment loss is reversed. However, the carrying amount of the asset after reversal shall not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized.

(XVI) Borrowings

Borrowings refers to short-term borrowings from banks. The Group initially measures these borrowings at their fair value less transaction costs. Subsequently, any difference between the amount net of transaction costs and the redemption value is amortized over the term using the effective interest method, with interest expense recognized in profit or loss.

(XVII) Notes and accounts payable

Refers to liabilities arising from the purchase of goods or services on credit, as well as notes payable and accounts payable incurred from both operating and non-operating activities.
These are short-term notes and accounts payable without accrued interest. Due to the minimal impact of discounting, the Group measures them at the original invoice amount.

(XVIII) Derecognition of financial liabilities

The Company derecognizes financial liabilities upon fulfillment, cancellation, or expiration of contractual obligations.

(XIX) Offsetting of financial assets and liabilities

Financial assets and liabilities shall be offset and presented on a net basis in the balance sheet only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously.

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(XX) Employee benefits

Short-term employee benefits

Short-term employee benefits are measured at the expected undiscounted amount to be paid and are recognized as expenses when the related services are rendered.

Defined contribution plan

For defined contribution plans, the retirement fund contributions payable are recognized as pension expenses for the current period on an accrual basis. Prepaid contributions are recognized as assets to the extent that they are refundable in cash or can be used to reduce future payments.

Employee compensation and director/supervisor remuneration

Employee, director, and supervisor compensation is recognized as an expense and liability when a legal or constructive obligation exists and the amount can be reasonably estimated. If the actual amount distributed subsequently differs from the estimated amount, the difference is accounted for as a change in accounting estimate.

(XXI) Employee stock-based compensation

Equity-settled share-based payment agreements are measured at the grant date based on the fair value of the equity instruments granted in exchange for employee services. The related compensation cost is recognized over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments reflects the impact of both market-based and non-market vesting conditions. The recognized compensation cost is adjusted according to the expected number of awards that will meet the service conditions and non-market vesting conditions, until the final amount is recognized based on the number of awards vested at the vesting date.

(XXII) Income tax

Income tax expense includes both current and deferred income taxes. Except for income taxes related to items recognized in other comprehensive income or directly in equity, which are separately recorded in other comprehensive income or directly in equity, income tax is recognized in profit or loss.

The Group calculates current income tax based on the tax rates that have been legislated or substantively enacted in the countries where taxable income is generated as of the balance sheet date. Management regularly evaluates the status of income tax filings in accordance with applicable tax laws and, when appropriate, recognizes income tax liabilities based on the estimated taxes payable to tax authorities. Income tax on undistributed earnings, as imposed by the Income Tax Act, is recognized as income tax expense in the year following the earnings generation, after the shareholders’ meeting approves the earnings distribution, and is recorded based on the actual distribution of earnings.
Deferred income tax is recognized using the balance sheet liability method, based on temporary differences arising from the tax bases of assets and liabilities and their carrying amounts on the balance sheet. Deferred tax liabilities resulting from goodwill originally recognized are not recognized. Deferred income tax arising from the initial recognition of assets or liabilities in a transaction (excluding business combinations) that, at the time of the transaction, does not affect accounting profit or taxable income (tax loss) and does not give rise to equivalent taxable or deductible temporary differences, is not recognized. For temporary differences arising from investments in subsidiaries and associates, if the Group controls the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future, deferred tax is not recognized. Deferred income tax is measured using the tax rates (and tax laws) that have been enacted or substantively enacted as of the balance sheet date and are expected to apply when the related deferred tax assets are realized or deferred tax liabilities are settled.
Deferred tax assets arising from temporary differences are recognized to the extent that it is probable they will be utilized to offset future taxable income. Unrecognized and recognized deferred tax assets are reassessed at each balance sheet date.
When there is a legally enforceable right to offset current income tax assets and liabilities, and there is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously, current income tax assets and current income tax liabilities are offset. Deferred income tax assets and liabilities are offset only when there is a legally enforceable right to offset current income tax assets and liabilities, and the deferred income tax assets and liabilities are levied by the same tax authority on the same taxable entity, or arise from different taxable entities that intend to settle on a net basis or to realize the asset and settle the liability simultaneously.

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(XXIII) Capital stock

Common stock is classified as equity. The incremental costs directly attributable to the issuance of new shares or stock options, net of income tax, are presented as a deduction from the proceeds within equity.

(XXIV) Dividend distribution

Cash dividends distributed to the shareholders of the Company are recognized as a liability in the financial statements upon resolution by the Company’s Board of Directors. Stock dividends distributed to the shareholders of the Company are recognized as distributable stock dividends in the financial statements upon resolution by the Company’s shareholders’ meeting, and are reclassified to common stock on the record date of the new share issuance.

(XXV) Revenue recognition

Product sales

The Group manufactures and sells health supplements. Sales revenue is recognized when control of the product is transferred to the customer, which occurs upon delivery of the product to the customer. At this point, the customer has discretion over the sales channel and pricing, and the Group has no remaining performance obligations that could affect the customer’s acceptance of the product. Risk of obsolescence and loss transfers to the customer when the product is delivered to the designated location, and the customer accepts the product in accordance with the sales contract or when there is objective evidence that all acceptance criteria have been met, thereby constituting delivery of the goods.
Accounts receivable are recognized when goods are delivered to customers, as the Group obtains an unconditional right to the contract price at that time and only the passage of time is required to collect payment from the customer. Customers pay the contract price according to the agreed payment schedule. If the amount payable by the customer exceeds the goods delivered by the Group, contract liabilities are recognized.
Revenue from product sales is recognized at contract prices net of estimated price concessions. Price concessions granted to customers are generally calculated based on cumulative sales volume. The Group estimates price concessions using the expected value method, recognizing revenue only to the extent that significant reversals are highly unlikely in the future. These estimates are updated at each balance sheet date. Estimated liabilities for customer price concessions related to sales as of the balance sheet date are recognized as refund liabilities.

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The Group’s sales policy grants customers the right to return products; therefore, the Group recognizes a refund liability for products expected to be returned. The estimate of sales returns is determined at the time of sale using the expected value method based on historical experience. The quantity of returned products has remained stable over the years; thus, the Group assesses that the recognized cumulative revenue is highly unlikely to be subject to significant reversal. The validity of the assumptions is reassessed at each subsequent balance sheet date, and the estimated refund liability is updated accordingly.
The Group operates a customer loyalty program for retail clients, awarding customers reward points at the time of transaction. These reward points can be redeemed to offset purchase amounts. Since the reward points grant customers significant rights that cannot be obtained without the original transaction, the reward points constitute a separate performance obligation. The transaction price is allocated between the product and the reward points based on their relative standalone selling prices. The standalone selling price of the reward points is estimated based on the discounts customers receive. The standalone selling price of the product is estimated based on the retail price. The portion of the transaction price allocated to the reward points is recognized as a contract liability until the points are redeemed by the customer or expire, at which time it is recognized as revenue.

(XXVI) Operating segment

The Group's operating segment information is reported consistently with the internal management reports provided to the chief operating decision maker. The chief operating decision maker is responsible for allocating resources to operating segments and evaluating their performance.

V. Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

In preparing this financial report, management has exercised judgment in selecting the accounting policies applied and has made accounting estimates and assumptions based on reasonable expectations of future events as of the balance sheet date. Significant accounting estimates and assumptions may differ from actual results and are subject to ongoing evaluation and adjustment, taking into account historical experience and other factors. These estimates and assumptions carry the risk of causing material adjustments to the carrying amounts of assets and liabilities in the next financial year. Please refer below for a detailed explanation of significant accounting judgments, estimates, and uncertainties.

(I) Significant judgments in the application of accounting policies

N/A.

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(II) Significant accounting estimates and assumptions

Revenue recognition – refund liability

Refund liabilities related to sales revenue are estimated based on historical experience and other known factors regarding potential product returns. These are recorded as deductions from revenue in the current period. The Group regularly reviews the reasonableness of these estimates. For details on the refund liabilities recognized in relation to returns, please refer to Note VI(XIII).

VI. Explanation of Significant Accounting Items

(I) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 90	$ 80
Demand deposits	1,818,923	474,250
Term deposits	417,277	665,394
	$ 2,236,290	$ 1,139,724

Regarding the Group’s transfer of time deposits with maturities over three months and restrictions to "Financial assets measured at amortized cost – current," please refer to Note VI(II).

(II) Financial assets at amortized cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with maturities over three months	$ 3,025,776	$ -

The details of financial assets measured at amortized cost recognized in profit or loss are as follows:

	2025	2024
Interest income	$ 7,188	$ 6,356

Without considering any collateral held or other credit enhancements, the maximum credit risk exposure of the Group’s financial assets measured at amortized cost, which best represents the credit risk as of December 31, 2025 and 2024, respectively, is equal to the carrying amount for the period.

(III) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 136,361	$ 94,394
Less: Loss allowance	( 46)	( 894)
	$ 136,315	$ 93,500

The Group did not hold any collateral.
The accounts receivable balances as of December 31, 2025 and 2024 were generated from customer contracts. Additionally, the accounts receivable balance from customer contracts as of January 1, 2024 was NT$68,200.
For detailed information on the aging analysis of related accounts receivable and credit risk, please refer to Note XII(II).

(IV) Inventories

	December 31, 2025
	Cost	Allowance for inventory write-downs	Book value
Raw materials	$ 5,904	$ -	$ 5,904
Unfinished product	27,321	-	27,321
Finished product	387,188	( 4,410)	382,778
Total	$ 420,413	($ 4,410)	$ 416,003
	December 31, 2024
	Cost	Allowance for inventory write-downs	Book value
Unfinished product	$ 11,715	$ -	$ 11,715
Finished product	235,662	( 1,672)	233,990
Total	$ 247,377	($ 1,672)	$ 245,705

The inventory costs recognized as expenses by the Group during the current period:

	2025	2024
Operating costs	$ 686,617	$ 479,511
Loss on disposal	5	25,618
Loss on valuation	2,738	1,041
	$ 689,360	$ 506,170

(V) Lease (Lessee)

The Group’s leased assets consist of buildings, with lease terms typically ranging from 3 to 6 years. Lease agreements are individually negotiated and include various terms and conditions. Apart from the restriction that leased assets may not be used as collateral for borrowing, no other limitations are imposed.
The lease terms for certain offices and warehouses leased by the Group do not exceed 12 months.
The carrying amount of right-of-use assets and the recognized depreciation expenses are as follows:

	December 31, 2025	December 31, 2024
	Book value	Book value
Buildings	$ 18,180	$ 2,246
	2025	2024
	Depreciation expenses	Depreciation expenses
Buildings	$ 3,428	$ 2,684

The Group’s additions to right-of-use assets amounted to NT$19,362 and NT$8,517 for the years 2025 and 2024, respectively.
The information on profit and loss items related to lease contracts is as follows:

	2025	2024
Items affecting current period profit and loss
Interest expenses on lease liabilities	$ 226	$ 56
Expenses related to short-term lease contracts	$ 3,592	$ 2,308

The Group's total cash outflows for leases amounted to NT$7,072 and NT$5,028 for the years 2025 and 2024, respectively.

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(VI) Short-term Borrowings

Nature of Borrowings	December 31, 2025	Interest rate range	Collateral
Bank loans
Secured loans	$ 80,000	2.16%	Credit guarantee fund
Credit borrowings	20,000	2.24%	No
	$ 100,000

As of December 31, 2024: None.
Regarding the credit facility for short-term borrowings, joint guarantees are provided by related parties. Please refer to Note VII in the financial statements.

(VII) Other payables

	December 31, 2025	December 31, 2024
Advertising expenses payable	$ 44,489	$ 43,087
Salaries and bonuses payable	24,195	11,215
Business tax payable	11,794	8,747
Dividends payable	-	42,970
Others	12,505	8,267
	$ 92,983	$ 114,286

(VIII) Pensions

Since July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution retirement plan in accordance with the Labor Pension Act, applicable to employees of Taiwanese nationality. Under the portion of the labor pension system chosen by employees pursuant to the Labor Pension Act, the Company and its domestic subsidiaries contribute 6% of the monthly salary to the employees' individual pension accounts at the Bureau of Labor Insurance. Payment of employee pensions is made either as a monthly pension or a lump-sum retirement payment, based on the balance and accumulated earnings in each employee's individual pension account.
Other foreign subsidiaries of the Group make pension contributions in accordance with local legal requirements.
For the years 2025 and 2024, the Group recognized pension costs of NT$2,808 and NT$1,815, respectively, in accordance with the aforementioned pension plan.

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(IX) Stock-based compensation

In the fiscal year 2025, the Group’s stock-based payment agreements are as follows:

(2024: None)

Type of Agreement	Date Granted	Quantity Granted	Contract Term	Vesting Conditions
Cash Capital Increase Reserved for Employee Subscription	2025.8.29	2,100,000 shares	N/A	Immediate Vesting

The detailed information regarding the above-mentioned stock-based payment agreements is as follows:

	2025
	Number of shares (thousands)	Exercise price (NT$)
Outstanding Stock Options as of January 1	-	$ -
Stock options granted during the period	2,100	158
Subscription of stock options executed during the period	( 2,100)	158
Outstanding Stock Options as of December 31	-	-

On July 17, 2025, the Board of Directors of the Group approved a cash capital increase through the issuance of new shares, reserving 10% for employee subscription. The remuneration cost recognized for the fiscal year 2025 was NT$0.
The Group estimates the fair value of stock options granted as of the grant date using the Black-Scholes option pricing model. The relevant information is as follows:

Type of Agreement	Date Granted	Stock Price (NT$)	Exercise price (NT$)	Expected Volatility	Expected Duration of Continuance	Expected Dividends	Risk-free Rate	Fair Value per Unit (NT$)
Cash Capital Increase Reserved for Employee Subscription	2025.8.29	$143.11 (Note 1)	$158	8.54% (Note 2)	0.019 years	0%	1.23%	$ -

Note 1: The Group’s stock price is determined by averaging the results of four valuation methods: the price-to-earnings ratio method, the price-to-book ratio method, the Emerging Stock Market price adjustment method, and the auction price method.

Note 2: The expected volatility is calculated by annualizing the standard deviation of daily stock return rates over the approximate remaining duration, based on the industry peer valuation benchmark date.

(X) Capital stock

As of December 31, 2025, the Company's authorized capital was NT$1,000,000, divided into 81,002,000 common shares with a par value of NT$10 per share. The paid-in capital amounted to NT$810,024. All issued shares have been fully paid.

The reconciliation of the number of common shares outstanding at the beginning and end of the period is as follows:

	2025	2024
	Number of shares (thousands)	Number of shares (thousands)
January 1	60,002	15,540
Cash capital increase	21,000	37,594
Capitalization of earnings	-	6,868
December 31	81,002	60,002

The Company resolved at the Board of Directors meeting on May 23, 2024, to proceed with a cash capital increase in the amount of NT$1,000,000, issuing 37,594,000 shares. The record date for the capital increase was set as June 6, 2024, with a subscription price of NT$26.6 per share. The registration of the change was completed on July 11, 2024.
On July 17, 2025, the Board of Directors of Daiken Biomedical Co., Ltd. resolved to conduct a cash capital increase by issuing 21,000,000 common shares in connection with the Company's initial public offering. The issuance comprised 18,900,000 shares through public underwriting and competitive auction, and 2,100,000 shares reserved for employee subscription. The shares issued via public underwriting and employee subscription were priced at a premium of NT$158 per share, while those issued through competitive auction were priced at a premium based on the weighted average winning bid of NT$223.97 per share. The capital increase was based on the record date of September 5, 2025, with a total gross capital increase amounting to NT$4,315,526,000. After deducting issuance costs of NT$3,000,000, the net proceeds totaled NT$4,312,526,000. All subscription payments for the issued shares have been fully collected, and the registration of the capital increase was completed on September 24, 2025. For details regarding the remuneration costs recognized for employee subscriptions reserved in the cash capital increase, please refer to Note VI(IX) on share-based payments.

At the extraordinary shareholders' meeting held on November 6, 2025, Daiken Biomedical Co., Ltd. resolved to change the par value of its common stock from NT$10 per share to NT$1 per share. This change was approved by the competent authority on November 18, 2025, and the registration of the change has been completed. The Taiwan Stock Exchange approved the par value adjustment on November 27, 2025, and the Board of Directors resolved on December 22, 2025, to set January 17, 2026, as the effective date for the stock reissuance.

(XI) Capital surplus

In accordance with the Company Act, capital surplus arising from the issuance of shares above par value and from received donations may, aside from being used to offset losses, be distributed as new shares or cash to shareholders in proportion to their existing shareholdings when the company has no accumulated losses. Furthermore, pursuant to relevant provisions of the Securities and Exchange Act, the annual amount of capital surplus allocated to capital stock shall not exceed 10% of the paid-in capital in total. The company shall not use capital surplus to cover capital deficits unless retained earnings are insufficient to do so.

	2025
	Issuance premium	Recognition of changes in ownership interests in subsidiaries	Total
January 1	$ 624,060	$ -	$ 624,060
Cash capital increase	4,102,526	-	4,102,526
Capital surplus distributed as cash	( 312,000)	- (	312,000)
Recognition of changes in ownership interests in subsidiaries	-	366	366
December 31	$ 4,414,586	$ 366	$ 4,414,952
	2024
---	---	---	---
	Issuance premium	Recognition of changes in ownership interests in subsidiaries	Total
January 1	$ -	$ -	$ -
Cash capital increase	624,060	-	624,060
December 31	$ 624,060	$ -	$ 624,060

The Company resolved at the Board of Directors meetings on March 6, 2025, May 13, 2025, and August 8, 2025, to distribute cash dividends from capital surplus at NT$2.5, NT$0.6166, and NT$2.08 per share, respectively, totaling NT$150,000, NT$37,000, and NT$125,000.
On November 2025, the Company sold 100% equity of Daiken Investment Australia Pty Ltd. to its subsidiary Daiken Wellness Village Co., Ltd., resulting in a capital surplus change of NT$366.

(XII) Retained earnings

In accordance with the Articles of Incorporation, the Company’s distribution of surplus earnings or offsetting of losses shall be carried out after the end of each quarter. For the first three quarters, if there is a proposal for the distribution of surplus earnings or offsetting of losses, it shall, together with the business report and financial statements, be submitted to the supervisors for review and then proposed to the Board of Directors for resolution before the end of the following quarter. When there is a surplus at the end of a quarter, the Company shall first estimate and reserve taxes payable and cover accumulated losses in accordance with the law, then allocate 10% as the legal reserve (provided that when the legal reserve has reached the Company’s paid-in capital, no further provision shall be required if the legal reserve has reached the Company’s total paid-in capital), and set aside or reverse special reserves as required by law or regulations of the competent authority. Any remaining surplus, together with the accumulated undistributed earnings from prior quarters, shall constitute dividends for shareholders, and the Board of Directors shall propose a distribution plan. Distribution in the form of new shares shall be conducted in accordance with Article 240 of the Company Act; distribution in cash shall be approved by the Board of Directors.
The legal reserve shall not be used except to cover company losses and to distribute new shares or cash in proportion to the shareholders’ original shareholdings. However, the distribution of new shares or cash is limited to the portion of the reserve exceeding 25% of the paid-in capital.

~38~

The Company's proposal for the distribution of earnings for the fiscal year 2023 and the cash dividends per share were resolved by the Board of Directors as follows:

	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Date of Board of Directors' Resolution	March 8, 2024	November 10, 2023	July 20, 2023	April 28, 2023
Legal reserve	$ 7,631	$ 3,736	$ 1,918	$ 2,750
Cash dividends	$ -	$ 33,621	$ 17,265	$ 24,749
Cash Dividend per Share (NT$)	$ -	$ 2.16	$ 1.11	$ 1.59
Cash Dividend Distribution Date	N/A	December 25, 2023	July 27, 2023	May 16, 2023

On March 8, 2024, the Company resolved at the shareholders' meeting (acted on behalf by the Board of Directors) to distribute a stock dividend of NT$4.42 per share, totaling NT$68,684. The record date for the capital increase was March 11, 2024.

The Company's proposal for the distribution of earnings for the fiscal year 2024 and the cash dividends per share were resolved by the Board of Directors as follows:

	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Date of Board of Directors' Resolution	March 6, 2025	November 7, 2024	August 8, 2024	May 9, 2024
Legal reserve	$ 5,542	$ 4,774	$ 342	$ -
Special reserve	$ 859	$ -	$ -	$ -
Cash dividends	$ 49,009	$ 42,970	$ 3,083	$ -
Cash Dividend per Share (NT$)	$ 0.82	$ 0.72	$ 0.05	$ -
Cash Dividend Distribution Date	July 4, 2025	April 2, 2025	August 29, 2024	N/A

The Company's proposal for the distribution of earnings for the fiscal year 2025 and the cash dividends per share were resolved by the Board of Directors as follows:

	Q4 2025	Q3 2025	Q2 2025	Q1 2025
Date of Board of Directors' Resolution	March 9, 2026	November 7, 2025	August 11, 2025	May 13, 2025
Legal reserve	$ 12,465	$ 6,942	$ 3,880	$ 10,500
Special reserve	($ 7,513)	($ 6,198)	$ 12,852	$ -
Cash dividends	$ 119,692	$ 68,679	$ 22,066	$ 94,502
Cash Dividend per Share (NT$)	$ 0.15	$ 0.85	$ 0.37	$ 1.57
Cash Dividend Distribution Date	Not yet resolved	December 30, 2025	September 15, 2025	August 15, 2025

The Company completed the stock par value adjustment on January 17, 2026, changing the par value per share from NT$10 to NT$1. Accordingly, the cash dividends per share for the fourth quarter of 2025 have been retrospectively adjusted to reflect the impact of the stock par value change.

For information regarding the Board of Directors' and Shareholders' resolutions on earnings distribution, please refer to the Taiwan Stock Exchange's Market Observation Post System.

(XIII) Operating income

The Group's revenue primarily arises from the transfer of goods at a specific point in time.

	2025	2024
Sales revenue	$ 1,895,089	$ 1,362,387

Contract liabilities

The Group recognized contract liabilities related to customer contract revenue as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities	$ 10,183	$ 7,255	$ 30,226

Refund liabilities

The Group recognized refund liabilities related to returns and allowances as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Refund liabilities	$ 21,306	$ 16,867	$ 8,926

(XIV) Other income

	2025	2024
Compensation income	$ 89,581	$ -
Others	113	109
Total	$ 89,694	$ 109

~41~

(XV) Other gains and losses

	2025	2024
Net foreign currency exchange profit (loss)	$ 7,278	($ 31,845)

(XVI) Additional information on expense nature

Additional disclosures regarding operating costs and operating expenses are as follows:

	2025	2024
Advertising expenses	$ 450,139	$ 380,075
Employee benefits expenses	108,927	73,815
Depreciation expenses	3,778	2,896
Amortization fee	3,173	1,318
	$ 566,017	$ 458,104

(XVII) Employee benefits expenses

	2025	2024
Salaries and wages expenses	$ 90,839	$ 66,371
Labor and health insurance expenses	5,841	3,953
Pension expenses	2,808	1,815
Remuneration of Directors and Supervisors	3,595	180
Other employee expenses	5,844	1,496
	$ 108,927	$ 73,815

Pursuant to the Company's Articles of Incorporation, after deducting accumulated losses from the annual profit, if a surplus remains, the Company shall allocate employee compensation of no less than 2% and director compensation of no more than 3%. Starting from the fiscal year 2025, after deducting accumulated losses from the annual profit, if a surplus remains, the Company shall allocate employee compensation of no less than 2% (of which 1% is designated for distribution to frontline employees) and director compensation of no more than 3%.

The estimated employee compensation expenses for the Company for the years 2025 and 2024 were NT$10,600 and NT$4,052, respectively. The estimated remuneration for directors and supervisors was NT$2,160 and NT$0 for 2025 and 2024 respectively. The aforementioned amounts were recorded under salary expenses. The estimates for 2025 and 2024 were made in accordance with the Company's Articles of Incorporation based on the profit situation as of the end of each respective period.
The employee, director, and supervisor remuneration for the years 2025 and 2024, as resolved by the Board of Directors, are consistent with the amounts recognized in the financial statements for the years 2025 and 2024. Employee, director, and supervisor remuneration for the years 2025 and 2024 was paid in cash.
Information regarding employee and director compensation approved by the Company's Board of Directors is available for reference on the Market Observation Post System.

(XVIII) Income tax

Income tax expense:

(1) Components of income tax expense:

	2025	2024
Income tax for the current period:
Income tax arising from the current period's income	$ 81,414	$ 33,096
Underestimation of income tax in prior years	( 727)	5,083
Total income tax for the period	80,687	38,179
Deferred income tax:
Origination and reversal of temporary differences	( 1,072)	( 5,157)
Income tax expense	$ 79,615	$ 33,022

(2) Income tax related to other comprehensive income:

	2025	2024
Foreign operations translation adjustments	$ 7,587	$ -

Relationship between income tax expense and accounting profit

	2025	2024
Income tax on profit before tax was calculated at the statutory tax rate.	$ 83,496	$ 27,920
Expenses Required to Be Excluded Pursuant to the Tax Law	-	19
Income Exempt from Taxation under Tax Regulations	( 3,154)	-
(Overestimation)	( 727)	5,083
Underestimation of income tax in prior years
Income tax expense	79,615	33,022
Change in Deferred Tax Assets	1,072	5,157
Overestimation	727	( 5,083)
(Underestimation) of income tax in prior years
Prepaid taxes	( 17,496)	( 23,724)
Current tax liabilities	$ 63,918	$ 9,372

The amounts of deferred tax assets arising from temporary differences are as follows:

	2025
	January 1	Recognized in profit or loss	Recognized in Other Comprehensive Income	December 31
Temporary difference:
- Deferred tax assets:
Contract liabilities	$ 1,352	$ 408	$ -	$ 1,760
Refund liabilities	3,373	888	-	4,261
Unrealized exchange loss	5,129	( 5,129)	-	-
Loss on long-term equity investments	1,220	4,795	-	6,015
Others	617	420	-	1,037
Subtotal	$ 11,691	$ 1,382	$ -	$ 13,073

~44~

	2025
	January 1	Recognized in profit or loss	Recognized in Other Comprehensive Income	December 31
-Deferred income tax liabilities:
Unrealized exchange gains	$ -	($ 310)	$ -	($ 310)
Foreign exchange differences of overseas operating units	-	-	( 7,587)	( 7,587)
Subtotal	$ -	($ 310)	($ 7,587)	($ 7,897)
Total	$ 11,691	$ 1,072	($ 7,587)	$ 5,176
	2024
	January 1	Recognized in profit or loss	Recognized in Other Comprehensive Income	December 31
Temporary difference:
-Deferred tax assets:
Contract liabilities	$ 4,688	($ 3,336)	$ -	$ 1,352
Refund liabilities	-	3,373	-	3,373
Unrealized exchange loss	1,650	3,479		5,129
Others	196	1,641	-	1,837
Total	$ 6,534	$ 5,157	$ -	$ 11,691

The Company’s income tax for profit-seeking enterprises has been assessed by the tax authorities through the 2023 fiscal year.

(XIX) Earnings per share

At the extraordinary shareholders’ meeting held on November 6, 2025, Daiken Biomedical Co., Ltd. resolved to change the par value of its common stock from NT$10 per share to NT$1 per share. This change was approved by the competent authority on November 18, 2025, and the registration of the change has been completed. The Taiwan Stock Exchange approved the par value adjustment on November 27, 2025, and the Board of Directors resolved on December 22, 2025, to set January 17, 2026, as the effective date for the stock reissuance. Basic and diluted earnings per share for 2024 and 2023 have been retrospectively adjusted to reflect the impact of the par value change. For further details, please refer to Note VI(X).

	2025
	Value after tax	Weighted average number of shares outstanding (in thousands)	Earnings per share (NT$)
Basic earnings per share
Net income for the current period attributable to common shareholders of the parent company	$ 337,867	667,339	$ 0.51
Diluted earnings per share
Net income for the current period attributable to common shareholders of the parent company	$ 337,867	667,339
Effect of potential dilutive common shares
Employee compensation	-	630
Net income for the current period attributable to the parent company’s common shareholders for the period, including the effect of potential common shares	$ 337,867	667,969	$ 0.51

	2024
	Value after tax	Weighted average number of shares outstanding (in thousands)	Earnings per share (NT$)
Basic earnings per share
Net income for the current period attributable to common shareholders of the parent company	$ 106,579	438,760	$ 0.24
Diluted earnings per share
Net income for the current period attributable to common shareholders of the parent company	$ 106,579	438,760
Effect of potential dilutive common shares
Employee compensation	-	359
Net income for the current period attributable to the parent company’s common shareholders for the period, including the effect of potential common shares	$ 106,579	439,119	$ 0.24

(XX) Supplementary information on cash flows

Financing activities that do not affect cash flow:

	2025	2024
Declared but unpaid cash dividends	$ -	$ 42,970
Share dividends	$ -	$ 68,684

(XXI) Changes in liabilities from financing activities

	2025
	Short-term Borrowings	Lease liabilities	Dividends Payable (Note 2)	Total liabilities arising from financing activities
January 1	$ -	$ 2,265	$ 42,970	$ 45,235
Changes in cash flows from financing activities	100,000	( 3,254)	( 589,226)	( 492,480)
Other non-cash changes	-	19,362	546,256	565,618
December 31	$ 100,000	$ 18,373	$ -	$ 118,373

~47~

	2024
	Short-term Borrowings	Long-term borrowings (note 1)	Lease liabilities	Dividends payable	Total liabilities arising from financing activities
January 1	$158,000	$118,578	$-	$-	$276,578
Changes in cash flows from financing activities	(158,000)	(118,578)	(2,664)	(3,083)	(282,325)
Other non-cash changes	-	-	4,929	46,053	50,982
December 31	$-	$-	$2,265	$42,970	$45,235

Note 1: Including long-term liabilities due within one year or one business cycle.
Note 2: Includes cash dividends payable and cash distributions payable from capital surplus.

VII. Related Party Transactions

(I) Names and relationships of related parties

Name of related party/parties	Relationship with the Company
Sunfun Info Co., Ltd. (Sunfun)	Parent company of the Company
Sweet Tech Ltd. (Sweet Tech)	Fellow subsidiary
Masa Digital Ltd. (Masa)	Fellow subsidiary
WeTouch Ltd. (WeTouch)	Fellow subsidiary
Sunfun Tech Limited (Sunfun Tech)	Fellow subsidiary
Lin, Tung-Ching	President of the Company
Chang, Chia-Ming	Chairman of the Company

(II) Significant transactions with related parties

1. Purchases

	2025	2024
Purchase of goods: WeTouch	$ -	$ 4,174

There are no comparable transactions for the purchase of goods; the prices and payment terms are determined through mutual negotiation between both parties.

2. Other receivables - related parties

	December 31, 2025	December 31, 2024
Masa	$ -	$ 462

Other receivables from related parties represent funds collected and paid on behalf of the aforementioned related parties.

~48~

Prepaid expenses and related party receivables

	December 31, 2025	December 31, 2024
Sunfun	$ -	$ 5,832
Sweet Tech	-	5,600
Total	$ -	$ 11,432

Prepaid related party expenses represent payments made to the aforementioned related party for advertising fees.

Other payables - related parties

	December 31, 2025	December 31, 2024
Sunfun	$ 224	$ 194
Sunfun Tech	-	5,709
Fellow subsidiary	-	213
Total	$ 224	$ 6,116

Other payables to related parties consist of management service fees paid to the aforementioned related parties and funds collected or disbursed on their behalf.

Management service fees

	2025	2024
Sunfun	$ 1,489	$ 11,649

The price and payment terms of the management service fee were determined through negotiation between the two parties.

Advertising expenses

	2025	2024
Sunfun	$ 3,777	$ 8,760
Sweet Tech	3,500	8,400
Total	$ 7,277	$ 17,160

The price and payment terms for advertising fees are determined through mutual negotiation.

~49~

Property transactions

Acquisition of property, plant and equipment

	2025		2024
Sunfun	$	-	$	351

Endorsements and guarantees

The short-term and long-term borrowings of the Group for the years 2025 and 2024 were jointly guaranteed by related parties Lin, Tung-Ching and Chang, Chia-Ming.

(III) Key management compensation information

	2025	2024
Short-term employee benefits	$ 9,425	$ 5,906

VIII. Pledged Assets

N/A.

IX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

(I) Contingent liabilities

On February 14, 2025, the Company received a civil class action complaint filed by the Taiwan Consumer Protection Association on September 27, 2024. The complaint involves 55 consumers who claimed to have been harmed in the Kobayashi Pharmaceutical red yeast rice incident in Japan. Among them, 29 consumers filed claims against the Company and its responsible persons seeking NT$349 in property damage and NT$119,012 in unspecified emotional distress compensation. This dispute arises from Daiken Biomedical Co., Ltd.’s prior importation of red yeast rice raw materials from Kobayashi Pharmaceutical Co., Japan, which triggered the aforementioned incident. The Company has engaged legal counsel and taken appropriate response measures, and it is estimated that there will be no material impact on the Company’s operations or financial condition. Preparatory proceedings were held on April 1, 2025, and June 16, 2025, with the court scheduling a continuation of the preparatory proceedings on March 31, 2026. As the case is still under review and the final outcome remains uncertain, the related financial impact cannot be reliably estimated at this time; therefore, the Company has not recognized any liability provision in connection with this litigation.

(II) Commitments

N/A.

~50~

X. Significant Disaster Losses

N/A.

XI. Significant Matters After the Period

(I) The Company's profit distribution plan for the fourth quarter of 2025, as resolved by the Board of Directors on March 9, 2026, is detailed in Note VI(XII).

(II) On March 9, 2026, the Company was informed of the passing of Chairman Chia-Ming Chang and promptly convened a board meeting to elect a new chairman. All business operations are managed by professional managers at various levels, and there has been no impact on the Company's operations.

XII. Others

(I) Capital management

The Board of Directors' policy is to maintain a sound capital base to sustain the confidence of investors, creditors, and the market, as well as to support future operational development. Capital comprises the Group's share capital, capital surplus, and retained earnings. The Board controls the level of common stock dividends. Net debt is calculated as total borrowings (including "current and non-current borrowings" reported on the balance sheet) less cash and cash equivalents. Total capital is calculated as equity reported on the balance sheet plus net debt.

(II) Financial instruments

Types of Financial Instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortized cost	$ 5,416,591	$ 1,240,519
	December 31, 2025	December 31, 2024
Financial Liabilities
Financial liabilities at amortized cost	$ 347,537	$ 194,152
Lease liabilities	$ 18,373	$ 2,265

(1) Financial assets measured at amortized cost include cash and cash equivalents, financial assets measured at amortized cost—current, accounts receivable, other receivables (including related parties), and security deposits.

(2) Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts payable, and other payables (including related parties).

Risk Management Policy

The Group's daily operations are subject to various financial risks, including market risk (comprising foreign exchange risk, interest rate risk, and price risk), credit risk, and liquidity risk.

The Board of Directors serves as the highest authority for risk management within the Group, approving risk management policies, directions, and systems.

The Group’s Risk Management Policy is established to identify and analyze the risks it faces and to oversee compliance with risk controls. Internal audit personnel regularly review the implementation of the risk management system and periodically provide recommendations to the Board of Directors. The Group does not engage in financial instrument transactions (including derivative financial instruments) for investment purposes.

Nature and Extent of Significant Financial Risks

(1) Market Risk

Exchange Rate Risk

A. The Group is exposed to foreign exchange risk arising from sales transactions denominated in currencies other than the Group’s functional currency. The Group’s functional currency is the New Taiwan Dollar (NT$). The primary foreign currency involved in these transactions is the US Dollar (US$).

B. The Group's monetary assets denominated in foreign currencies are managed by buying or selling foreign currencies at real-time exchange rates to ensure that net exposure remains at an acceptable level.

C. The Group’s operations involve several non-functional currencies (the functional currencies of the Company and certain subsidiaries are New Taiwan dollars, while the functional currencies of other subsidiaries are Hong Kong dollars, Australian dollars, and Japanese yen). As a result, the Group is exposed to exchange rate fluctuations. Information on foreign currency assets and liabilities subject to significant exchange rate volatility is as follows:

~51~

	December 31, 2025
	Foreign Currency (in thousands)	Exchange rate	Book value (NT$)
(Foreign currency:Functional currency)
Financial assets
Monetary item
HKD:TWD	$ 1,681	4.04	$ 6,787
AUD:TWD	304	21.01	6,395
Impact of Foreign Currency on Consolidated and Standalone Net Assets
AUD:TWD	$ 83,776	21.01	$ 1,760,132
JPY:TWD	329,836	0.2	66,186
	December 31, 2024
	Foreign Currency (in thousands)	Exchange rate	Book value (NT$)
(Foreign currency:Functional currency)
Financial assets
Monetary item
JPY:TWD	$ 282,702	0.21	$ 59,339
AUD:TWD	12,484	20.39	254,553

D. The total foreign exchange gains and losses (including realized and unrealized) recognized on the Group's monetary items due to exchange rate fluctuations amounted to a gain of NT$7,278 and a loss of NT$31,845 for the years ended December 31, 2025 and 2024, respectively.

E. The Group’s analysis of foreign currency market risk due to significant exchange rate fluctuations is as follows:

	2025
	Sensitivity Analysis
	Extent of Change	Impact on Profit and Loss	Impact on Other Comprehensive Income
(Foreign currency: Functional currency)
Financial assets
Monetary item
HKD:TWD	1%	68	-
AUD:TWD	1%	64	-
	2024
	Sensitivity Analysis
	Extent of Change	Impact on Profit and Loss	Impact on Other Comprehensive Income
(Foreign currency: Functional currency)
Financial assets
Monetary item
JPY:TWD	1%	$ 593	$ -
AUD:TWD	1%	2,546	-

Price Risk

The Group does not engage in investments subject to price risk; therefore, it is not exposed to significant market risk from price fluctuations.

Cash Flow and Fair Value Interest Rate Risk

A. The Group's interest rate risk arises from long-term borrowings, exposing the Group to cash flow interest rate risk. The Group's management policy is to ensure that it does not bear excessive risk in the event of significant interest rate fluctuations and to maintain interest rates at a generally fixed level.

B. If short-term and long-term loan interest rates increase or decrease by 1%, with all other factors remaining constant, the net profit after tax for the years 2025 and 2024 would respectively increase or decrease by NT$800 and NT$0.

(2) Credit Risk

A. The Group's credit risk arises from the possibility that customers or counterparties to financial instruments may fail to fulfill their contractual obligations, resulting in financial losses. This risk primarily stems from counterparties' inability to settle accounts receivable according to payment terms. Only banks with good credit standing and financial institutions with investment-grade ratings or higher are accepted as counterparties. In accordance with the Group's internal credit policy, a management and credit risk assessment is conducted for each new customer before establishing payment terms and delivery conditions. Internal risk control involves evaluating the customer's credit quality by considering their financial condition, past experience, and other relevant factors. Individual risk limits are established by the Board of Directors based on internal or external ratings and are regularly monitored for credit limit utilization.

B. The indicators used by the Group to determine credit impairment of debt instrument investments are as follows:

(A) The issuer has encountered significant financial difficulties and faces a substantially increased likelihood of bankruptcy or other financial restructuring.

(B) The issuer's financial difficulties have caused the active market for the financial asset to disappear;

(D) Adverse changes in national or regional economic conditions that lead to the issuer's default.

C. The aging analysis of accounts receivable is as follows:

	December 31, 2025	December 31, 2024
Not past due	$ 135,798	$ 92,948
Within 90 days	563	1,446
	$ 136,361	$ 94,394

The above is an aging analysis based on the number of days past due.

D. The Group estimates expected credit losses on accounts receivable from customers by operating segment, using a simplified approach based on a provision matrix. Financial assets are considered to have experienced a significant increase in credit risk if contract payments are overdue by more than 90 days past the agreed payment terms. Based on historical experience, contract payments overdue by more than 360 days past the agreed payment terms are considered to be in default. This assessment incorporates forward-looking adjustments by applying loss rates established from historical and current information over specific periods. As of December 31, 2025 and 2024, the loss rate method and provision matrix are as follows:

	Group A	Group B	Total
December 31,2025
Expected loss rate	0.05%	0.06%~0.64%
Total book value	$ 102,381	$ 33,980	$ 136,361
Loss allowance	$ 17	$ 29	$ 46
	Group A	Group B	Total
December 31,2024
Expected loss rate	0.05%	0.05%~100%
Total book value	$ 74,543	$ 19,851	$ 94,394
Loss allowance	$ 23	$ 871	$ 894

Group A: Domestic leading e-commerce websites or physical retail stores.

Group B: Other Customers.

E. The following table presents the changes in the allowance for doubtful accounts using the simplified approach:

	2025		2024
January 1	$	894	$	13
Impairment Loss Provision		23		881
Offset	(	871)		-
December 31	$	46	$	894

(3) Liquidity Risk

A. Cash flow forecasts are prepared by each operating unit within the Group and consolidated by the Group Finance Department. The Group Finance Department monitors the forecasted liquidity requirements to ensure that sufficient funds are available to support operational needs and to prevent any breach of debt-related agreements.

B. The Group’s non-derivative financial liabilities are categorized according to their respective maturity dates. These non-derivative financial liabilities are analyzed based on the remaining period from the balance sheet date to the contract maturity date. The contractual cash flow amounts disclosed in the table below are undiscounted.

Except for those listed in the table below, the Group's non-derivative financial liabilities (including short-term borrowings, notes payable, accounts payable, and other payables) all have maturities of less than one year.

Non-derivative financial liabilities:	Within 1 year	1 year and over	Total
December 31, 2025	$ 3,565	$ 15,943	$ 19,508
Lease liabilities
Non-derivative financial liabilities:	Within 1 year	1 year and over	Total
---	---	---	---
December 31, 2024	$ 1,839	$ 454	$ 2,293
Lease liabilities

(III) Fair value information

As of December 31, 2025 and 2024, the Group had no financial assets or financial liabilities measured at fair value.

XIII. Matters to be Disclosed in the Notes

(I) Information related to significant transactions

Loans to Others: None.
Endorsements and Guarantees for Others: None.

~56~

Securities Held at Period End (Excluding Investments in Subsidiaries, Associates, and Joint Ventures): None.
Transactions with related parties involving purchases or sales amounting to NT$100 million or more, or exceeding 20% of the paid-in capital: None.
Receivables from related parties amounting to NT$100 million or 20% or more of the paid-in capital: None.
Intercompany Transactions and Significant Business Dealings Between Parent and Subsidiaries: None.

(II) Information on equity-method investees
Information on the names and locations of investee companies (excluding investee companies in Mainland China) is detailed in Appendix 1.

(III) Information on investments in mainland China
N/A.

XIV. Operating Segment Information

(I) General information
The Group’s reportable operating segment consists solely of the e-commerce division. The e-commerce division primarily engages in the research, development, and sales of health supplements.

(II) Reconciliation information of segment profit and loss
The Group’s segment profit and loss, segment assets, and segment liabilities information are consistent with the financial statements. Please refer to the Consolidated Balance Sheet and Consolidated Statement of Comprehensive Income for details.

(III) Financial information by region
The Group’s primary operating segment is located in Taiwan. Financial information for other regions is not material to the Group and, therefore, is not disclosed separately.

(IV) Key customer information
None.

~57~

Daiken Biomedical Co., Ltd. and Subsidiaries

Information on the names and locations of investee companies (excluding investee companies in Mainland China)

As of December 31, 2025

Table 1.

Unit: NT$ thousands

(Unless otherwise specified)

Name of Investing Company	Name of Investee Company	Location	Principal Business Activities	Original Investment Amount		Held at the End of the Period			Profit or Loss of the Investee Company for the Current Period	Investment Gains and Losses Recognized in the Current Period
				End of the current period	End of last year	Number of Shares	Percentage	Book value
Daiken Biomedical Co., Ltd.	Daiken Biomedical Co., Ltd. (Japan)	Japan	Biotechnology and Medical Care	$103,210	$ 20,352	49,000	100%	$ 66,186	($ 27,920)	($ 27,920)
Daiken Biomedical Co., Ltd.	Daiken Biomedical HK Limited	Hong Kong	Information Software Services	830	830	200,000	100%	( 108)	( 560)	( 560)
Daiken Biomedical Co., Ltd.	Daiken Investment Australia Pty Ltd.	Australia	Investment Holding	-	6,457	-	-	-	( 58)	( 58)
Daiken Biomedical Co., Ltd.	Daiken Biomedical Australia Pty Ltd.	Australia	Biotechnology and Medical Care	307,268	6,457	15,000,000	100%	319,817	4,564	4,564
Daiken Biomedical Co., Ltd.	Daiken Wellness Village Co., Ltd.	Taiwan	Investment	1,400,000	-	140,000,000	100%	1,445,522	11,752	11,752
Daiken Biomedical Co., Ltd.	Daiken Investment Co., Ltd.	Taiwan	Investment	1,400,000	-	140,000,000	100%	1,404,022	4,022	4,022
Daiken Wellness Village Co., Ltd.	Daiken Investment Australia Pty Ltd.	Australia	Investment Holding	1,401,326	-	68,300,000	100%	1,440,315	5,219	5,219

AI assistant

DAIKEN Audit Report / Information 2025

52697_rns_2026-04-29_9977fd71-2fa4-4ae0-8406-ff521154a4bf.pdf

Audit Opinion

Basis for Audit Opinion

Key Audit Matters

Existence of Revenue Recognition

Description of Matters

Audit Procedures Implemented in Response

Other Matters — The Audit Report on the Individual Financial Statements Was Issued.

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

Accountants' Responsibility for the Audit of the Consolidated Financial Statements

IV. Summary of Significant Accounting Policies

(I) Compliance statement

(II) Basis of preparation

(XIII) Operating income

(XIV) Other income

VII. Related Party Transactions

(I) Names and relationships of related parties

(II) Significant transactions with related parties

1. Purchases

2. Other receivables - related parties

X. Significant Disaster Losses

XI. Significant Matters After the Period

XII. Others

Daiken Biomedical Co., Ltd. and Subsidiaries

Information on the names and locations of investee companies (excluding investee companies in Mainland China)

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DAIKEN — Audit Report / Information 2025

52697_rns_2026-04-29_9977fd71-2fa4-4ae0-8406-ff521154a4bf.pdf

Audit Opinion

Basis for Audit Opinion

Key Audit Matters

Existence of Revenue Recognition

Description of Matters

Audit Procedures Implemented in Response

Other Matters — The Audit Report on the Individual Financial Statements Was Issued.

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

Accountants' Responsibility for the Audit of the Consolidated Financial Statements

IV. Summary of Significant Accounting Policies

(I) Compliance statement

(II) Basis of preparation

(XIII) Operating income

(XIV) Other income

VII. Related Party Transactions

(I) Names and relationships of related parties

(II) Significant transactions with related parties

1. Purchases

2. Other receivables - related parties

X. Significant Disaster Losses

XI. Significant Matters After the Period

XII. Others

Daiken Biomedical Co., Ltd. and Subsidiaries

Information on the names and locations of investee companies (excluding investee companies in Mainland China)

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DAIKEN Audit Report / Information 2025