Stock Code: 4764

DOUBLE BOND CHEMICAL IND. CO., LTD.

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 And Independent Auditors' Report

Address: 4F, No. 959, Zhongzheng Road, Zhonghe District, New Taipei City, Taiwan (R.O.C.)

Telephone: 886-2-82281168

For the convenience of readers and for information purpose only, the independent auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China.

The independent auditors' report and the accompanying financial statements have not been audited by the public certified accountants, in the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language independent auditors' report and financial statements shall prevail.

Independent Auditors' Report

The Board of Directors and Shareholders
Double Bond Chemical Ind. Co., Ltd.

Opinion

We have audited the accompanying financial statements of Double Bond Chemical Ind. Co., Ltd. (the Company), which comprise the balance sheets as of December 31, 2025 and 2024 and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the individual financial statements, including the summary of significant accounting policies.

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

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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

Recognition of Sales Revenue

The Company's revenue is mainly contributed to from the sale of various chemical raw materials, coating monomers/oligomers, industrial additives, and specialty chemicals. Given the significant fluctuations in major customers and the potential impact of revenue amounts and variances on the users' understanding of the overall financial statements, we have identified the occurrence of revenue from major customers—specifically those with significant

year-over-year growth or newly acquired in 2025 as Key Audit Matter. Consequently, we assessed the authenticity of sales revenue from these specific customers as a Key Audit Matter. For accounting policies and information related to revenue recognition, please refer to Notes 4, and 21.

Regarding this Key Audit Matter, our primary audit procedures included:

Understanding and testing the design and operating effectiveness of key internal controls concerning the authenticity of sales revenue from major customers.
Sampling and inspecting transaction documents for major customers, including sales orders and shipping documents.
Sampling and reviewing collections from major customers to verify the authenticity of sales revenue, and confirming whether any significant sales returns occurred after the reporting period to ensure that the operating revenue actually occurred.

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

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

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

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

Auditors' Responsibilities for the Audit of the Financial Statements

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

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

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

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosure are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the individual financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence on the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit and we remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors' report are CHUANG, YEH-WEI and LEE, TUNG-FENG.

Deloitte & Touche
Taipei, Taiwan
Republic of China
March 16, 2026

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

Double Bond Chemical Ind. Co., Ltd.

Balance Sheets

December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Assets
1100	Cash (Note 6)	$ 269,754	6	$ 231,089	5
1136	Financial assets at amortized cost - current (Note 9 & 28)	8,000	-	3,000	-
1150	Notes receivable, net (Note 10 & 21)	7,337	-	9,994	-
1170	Accounts receivable, net (Note 10 & 21)	227,813	5	194,295	5
1180	Accounts receivable from related parties, net (Note 10, 21 & 27)	118,070	3	98,768	2
1200	Other receivables	621	-	8,806	-
1210	Other receivables from related parties, net (Note 27)	412	-	8,478	-
1220	Current tax assets (Note 23)	135	-	299	-
130X	Inventories, net (Note 11)	263,437	6	268,352	6
1479	Other current assets (Note 16)	31,474	1	23,597	1
11XX	Total current assets	927,053	21	846,678	19
Noncurrent Assets
1517	Financial assets at fair value through other comprehensive income - noncurrent (Note 8)	134,558	3	97,376	2
1550	Investments accounted for using equity method (Note 12)	1,704,922	38	1,645,078	37
1600	Property, plant and equipment (Note 13 & 28)	1,669,137	37	1,788,928	40
1821	Other intangible assets (Note 15)	3,133	-	4,013	-
1840	Deferred tax assets (Note 23)	53,299	1	61,213	2
1915	Prepayments for Business Facilities	952	-	1,321	-
1990	Other noncurrent assets (Note 16)	14,021	-	16,164	-
15XX	Total noncurrent assets	3,580,022	79	3,614,093	81
1XXX	Total assets	$ 4,507,075	100	$ 4,460,771	100
Liabilities and Equity
Current Liabilities
2100	Short-term borrowings (Note 17 & 28)	$ 1,123,717	25	$ 1,097,026	25
2110	Short-term bills payable (Note 17)	149,901	3	59,872	1
2120	Financial liabilities at fair value through profit or loss - current (Note 7)	250	-	-	-
2130	Contract liabilities (Note 21)	3,962	-	22,235	1
2150	Notes payable	20	-	14	-
2170	Accounts payable	81,300	2	66,230	2
2180	Accounts payable to related parties (Note 27)	68,026	1	50,271	1
2219	Other accounts payable (Note 18 & 27)	83,361	2	57,256	1
2322	Current portion of long-term borrowings (Note 17 & 28)	128,805	3	239,321	5
2399	Other current liabilities (Note 18)	18	-	20	-
21XX	Total current liabilities	1,639,360	36	1,592,245	36
Noncurrent liabilities
2540	Long-term borrowings (Note 17 & 28)	513,079	12	654,829	15
2570	Deferred tax liabilities (Note 23)	13,705	-	12,740	-
2640	Net defined benefit liabilities - noncurrent (Note 19)	1,853	-	3,169	-
2670	Other noncurrent liabilities (Note 12)	157	-	7,732	-
25XX	Total noncurrent liabilities	528,794	12	678,470	15
2XXX	Total Liabilities	2,168,154	48	2,270,715	51
Owner's equity of this Company (Note 20)
3110	Capital stock	855,421	19	855,421	19
3200	Capital surplus	358,115	8	356,700	8
Retained earnings
3310	Legal reserve	238,077	5	238,077	5
3320	Special reserve	63,242	1	122,999	3
3350	Unappropriated earnings	845,186	19	680,101	15
3300	Total retained earnings	1,146,505	25	1,041,177	23
3490	Other equity	(21,120)	-	(63,242)	(1)
3XXX	Total equity	2,338,921	52	2,190,056	49
Total liabilities and equity		$ 4,507,075	100	$ 4,460,771	100

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

Double Bond Chemical Ind. Co., Ltd.
Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars,
Except Earnings (Loss) Per Share)

Code		For the Year Ended December 31, 2025		For the Year Ended December 31, 2024
		Amount	%	Amount	%
4000	Operating revenue (Note 21 & 27)	$ 1,535,322	100	$ 1,202,421	100
5000	Operating costs (Note 11, 22, 27 & 29)	1,272,289	83	1,141,571	95
5900	Gross profit	263,033	17	60,850	5
5910	Realized (unrealized) gain from sale	90	-	( 7,525 )	-
5950	Gross profit and realized gain	263,123	17	53,325	5
	Operating expenses (Note 14, 19, 22 & 27)
6100	Sales and marketing expense	139,009	9	95,447	8
6200	General and administration expense	70,674	5	58,810	5
6300	Research and development expense	54,308	3	46,119	4
6000	Total operating expenses	263,991	17	200,376	17
6500	Other operating income and expenses (Note 29)	42,604	3	-	-
6900	Net operating profit (loss)	41,736	3	( 147,051 )	( 12 )
	Nonoperating income and expenses
7100	Interest income (Note 22 & 27)	1,906	-	2,611	-
7010	Other income (Note 22)	9,413	1	5,865	1
7020	Other gains and losses (Note 22)	3,743	-	10,925	1
7050	Financial costs (Note 22)	( 41,840 )	( 3 )	( 40,180 )	( 3 )
7070	Share of profit or loss of subsidiaries, associates, and joint ventures accounted for using the equity method (Note 12)	103,070	7	101,172	8
7000	Total nonoperating income and expenses	76,292	5	80,393	7
7900	Profit (loss) before income tax	118,028	8	( 66,658 )	( 5 )
7950	Income tax expense (revenue) (Note 23)	13,488	1	( 29,368 )	( 2 )
8200	Net profit (loss) for the year	104,540	7	( 37,290 )	( 3 )

(Carried forward)

(Brought forward)

Code		For the Year Ended December 31, 2025		For the Year Ended December 31, 2024
		Amount	%	Amount	%
8310	Other comprehensive income (loss)
	Items that will not be reclassified subsequently to profit or loss:
8311	Remeasurements of defined benefit plans (Note 19)	788	-	1,174	-
8316	Unrealized gain or loss on investments in equity instrument at fair value through other comprehensive income	37,182	3	7,726	1
8360	Items that may be reclassified subsequently to profit or loss:
8361	Exchange differences on translating foreign operations	4,940	-	52,031	4
8300	Other comprehensive income (loss) of the year	42,910	3	60,931	5
8500	Total comprehensive income of the year	147,450	10	23,641	2
	Earnings (loss) per share (Note 24)
9750	Basic	1.22		($ 0.44)
9850	Diluted	1.22		($ 0.44)

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

Double Bond Chemical Ind. Co., Ltd.
Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

Code		Ordinary Shares (Note 20)			Retained Earnings (Note 20)				Other Equity			Total Equity
		Number of Shares (thousand)	Amount	Capital Surplus (Note 4 & 20)	Legal Reserve	Special Reserve	Unappropriated Earnings	Minor Sum	Exchange Differences on Translating Foreign Operations	Unrealized gain (loss) on financial assets at fair value through other comprehensive income (Note 4)	Minor Sum
A1	Balance as of January 1, 2024	85,542	$855,421	$356,590	$238,077	$77,883	$761,333	$1,077,293	($172,299)	$49,300	($122,999)	$2,166,305
B3	Appropriation of 2023 earnings Special reserve	-	-	-	-	45,116	(45,116)	-	-	-	-	-
C17	Other changes in capital surplus	-	-	110	-	-	-	-	-	-	-	110
D1	Net profit for the year ended December 31, 2024	-	-	-	-	-	(37,290)	(37,290)	-	-	-	(37,290)
D3	Other comprehensive income (loss) after tax for the year ended December 31, 2024	-	-	-	-	-	1,174	1,174	52,031	7,726	59,757	60,931
D5	Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	(36,116)	(36,116)	52,031	7,726	59,757	23,641
Z1	Balance as of December 31, 2024	85,542	855,421	356,700	238,077	122,999	680,101	1,041,177	(120,268)	57,026	(63,242)	2,190,056
B17	Appropriation of 2024 earnings Reversal of special reserve	-	-	-	-	(59,757)	59,757	-	-	-	-	-
D1	Net profit for the year ended December 31, 2025	-	-	-	-	-	104,540	104,540	-	-	-	104,540
D3	Other comprehensive income (loss) after tax for the year ended	-	-	-	-	-	788	788	4,940	37,182	42,122	42,910
D5	Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	105,328	105,328	4,940	37,182	42,122	147,450
M5	Acquisition of partial interests in subsidiaries	-	-	1,415	-	-	-	-	-	-	-	1,415
O1	Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	-	-
Z1	Balance as of December 31, 2025	85,542	$855,421	$358,115	$238,077	$63,242	$845,186	$1,146,505	($115,328)	$94,208	($21,120)	$2,338,921

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

Double Bond Chemical Ind. Co., Ltd.

Statements of Cash Flows

For the Years Ended December 31, 2025 and 2024

| Code | Cash Flows from Operating Activities | (In Thousands of New Taiwan Dollars)
For the Year Ended December 31, 2025 | For the Year Ended December 31, 2024 |
| --- | --- | --- | --- |
| A00010 | Loss before income tax | $ 118,028 | ($ 66,658) |
| A20010 | Adjustments for: | | |
| A20100 | Depreciation expense | 142,765 | 142,911 |
| A20200 | Amortization expense | 3,112 | 2,981 |
| A20400 | Net loss on fair value changes of financial assets and liabilities at fair value through profit or loss | 785 | - |
| A20900 | Financial cost | 41,840 | 40,180 |
| A21200 | Interest income | ( 1,906) | ( 2,611) |
| A21300 | Dividend revenue | ( 2,112) | ( 2,112) |
| A22300 | Share of profits or losses of subsidiaries and associates accounted for using the equity method | ( 103,070) | ( 101,172) |
| A22500 | Gain (Loss) on disposal of property, plant and equipment | 759 | 2,866 |
| A23800 | Loss for (Gain on reversal of) market price decline and obsolete and slow-moving inventories | ( 3,814) | ( 16,339) |
| A23900 | Unrealized (Realized) gain on transactions with subsidiaries | ( 90) | 7,525 |
| A24100 | Unrealized gain on foreign exchange | ( 5,720) | ( 259) |
| A29900 | Fire loss | - | 62,832 |
| A30000 | Net changes in operating assets and liabilities | | |
| A31110 | Financial assets and liabilities at fair value through profit or loss | ( 535) | - |
| A31130 | Notes receivable | 2,657 | 1,198 |
| A31150 | Accounts receivable | ( 26,846) | ( 86,437) |
| A31160 | Accounts receivable from related parties | ( 19,302) | ( 25,152) |
| A31180 | Other receivable | 8,188 | 21,794 |
| A31200 | Inventories | 8,729 | ( 112,404) |
| A31240 | Other current assets | ( 7,877) | ( 2,983) |
| A32125 | Contract liabilities | ( 18,273) | 19,476 |
| A32130 | Notes payable | 6 | - |
| A32150 | Accounts payable | 14,119 | 11,576 |
| A32160 | Accounts payable to related parties | 17,755 | 101 |
| A32180 | Other accounts payable | 26,707 | 19,282 |
| A32230 | Other current liabilities | ( 2) | 2 |
| A32240 | Net defined benefit liabilities | ( 528) | ( 815) |

(Carried forward)

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(Brought forward)

Code		For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
A33000	Cash generated from (used in) operating activities	$ 195,375	($ 84,218)
A33100	Interest received	1,903	2,610
A33200	Stock dividend received	2,112	2,112
A33300	Interest paid	( 42,442 )	( 39,625 )
A33500	Income taxes paid (received)	( 4,445 )	4,955
AAAA	Net cash generated from (used in) operating activities	152,503	( 114,166 )
	Cash Flows from Investing Activities
B00040	Increase in financial assets at amortized cost	( 5,000 )	-
B02700	Purchase of property, plant and equipment	( 19,442 )	( 22,894 )
B02800	Disposal of property, plant and equipment	7	131
B03700	Decrease (increase) in refundable deposits	( 33 )	196
B04500	Purchase of intangible assets	( 55 )	( 38 )
B05900	Decrease in other receivables from related parties	8,066	4,197
B07100	Increase in prepayments for business facilities	( 3,929 )	( 235 )
B07600	Collection of subsidiary stock dividends	45,221	44,610
BBBB	Net cash generated from investing activities	24,835	25,967
	Cash Flows from Financing Activities
C00500	Increase in short-term bills payable	90,029	59,872
C00100	Increase in short-term borrowings	26,691	242,026
C05400	Acquisition of additional interests in subsidiary	( 3,127 )	( 4,852 )
C01600	Decrease in long-term borrowings	( 252,266 )	( 163,122 )
C09900	Other changes in capital surplus	-	110
CCCC	Net cash generated from (used in) financing activities	( 138,673 )	134,034
EEEE	Net increase in cash of the year	38,665	45,835
E00100	Cash at the beginning of the year	231,089	185,254
E00200	Cash at the end of the year	$ 269,754	$ 231,089

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

Double Bond Chemical Ind. Co., Ltd.
Notes to Financial Statements
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars, unless stated otherwise)

I. General Information

Established on February 17, 1994, Double Bond Chemical Ind. Co., Ltd. (hereinafter referred to as "the Company") mainly engages in the production and sales of various chemical raw materials, monomer-polymers for coating, industrial additives and special chemicals.

In October 2016, the Company was authorized to trade its stocks on the over-the-counter (OTC) securities exchange in Taiwan. In January 4, 2018, the Company's stock ceased to be OTC traded and the Company later obtained authorization to have its stocks listed on the Taiwan Stock Exchange.

The functional currency of the Company is New Taiwan Dollar.

II. Approval of Financial Statements

The financial statements were approved by the Company's board of directors on March 13, 2026.

III. Application of New, Amended and Revised Standards and Interpretations

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

Amendments to IAS 21 "Lack of Exchangeability"

The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Group's accounting policies.

(II) The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

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

Up to the date these financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a

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material impact on the Group’s financial position and financial performance.

(III) The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

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

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

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

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

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

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

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

The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.

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

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

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of Preparation

The accompanying parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and the net defined benefit liabilities recognized by the present value of the defined benefit obligation less the fair value of the project assets.

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

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

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

When preparing the parent company only financial statements, the Company account for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent only basis and the consolidated basis are adjusted under the heading of "investments accounted for using equity method", "share of profits of subsidiaries and associates", and "share of other comprehensive income of subsidiaries and associates in the parent company only financial statements".

(III) Classification of Current and Noncurrent Assets and Liabilities

Current assets include:

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

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue; and
Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the opinion of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Assets and liabilities that are not classified as current are classified as noncurrent.

(IV) Foreign Currencies

In preparing the parent company only financial statements, transactions in currencies other than the entity's functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the date of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year in which they arise.

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

15 -

directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.

For the purposes of presenting parent company only financial statements, the assets and liabilities of the Company's foreign operations (including the subsidiaries and associates in other countries or currencies used are different from the functional currency of the Company) are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity.

If the company disposes of all interests of foreign operating agency, or dispose of part of the interests of a subsidiary to a foreign operating agency but lose control, or the retained interest after the disposal of the affiliated enterprise of the foreign operating agency is a financial asset treated in accordance with the accounting policy of the financial instrument, all accumulated exchange differences associated with this foreign operating agency will be reclassified to profit or loss.

If a partial disposal of a subsidiary to a foreign operating agency does not result in loss of control, the accumulated exchange difference is incorporated into the equity transaction calculation on a pro rata basis, but is not recognized as profit or loss. For all other partial disposals of foreign operating agency, the accumulated exchange difference is reclassified to profit or loss according to the proportion of the disposal.

Goodwill and fair value adjustments recognized on identifiable assets and liabilities of acquired foreign operation are treated as assets and liabilities of the foreign operation and translated at the rates of exchange prevailing at the end of each reporting period. Exchange differences are recognized in other comprehensive income.

(V) Inventories

Inventories consist of raw materials and finished goods and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

(VI) Investment in Subsidiaries

Investments accounted for using the equity method include investments in subsidiaries. A subsidiary is an entity that is controlled by the Company.

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

16 -

Changes in the Company's ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.

When the Company's share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for by the equity method and long-term interests that, in substance, form part of the Company's net investment in the subsidiary), the Company continues recognizing its share of future losses.

The amount of the acquisition cost exceeding the net fair value of the identifiable assets and liabilities of the subsidiaries that constitutes a business acquired by the Company at the date of acquisition is classified as goodwill, which is included in the carrying amount of the investment and may not be amortized. Any excess of the Company's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition at the date of acquisition is recognized immediately in profit or loss.

When the Company evaluates the impairment, it considers the cash-generating unit as a whole in the financial report and compares its recoverable amount with the carrying value. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized net of amortization had no impairment loss been recognized in prior years. The impairment loss attributable to goodwill shall not be reversed during the subsequent period.

When the Company losses control of a subsidiary, any retained investment of the former subsidy is measured at the fair value at that date. A gain or loss is recognized in profit or loss and calculated as the difference between (a) the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and (b) the previous carrying amount of the investments in such subsidiary. In addition, the Company shall account for all amounts previously recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the subsidiary had directly disposed of the related assets and liabilities.

When the Company transacts with its subsidiaries, profits and losses resulting from the downstream transactions with the subsidiaries shall be eliminated if they are not realized in the Company's parent company only financial statements. On the other hand, profits and losses resulting from the upstream & sidestream transactions with the subsidiaries are recognized in the Company's parent company only financial statements only to the extent of interests in the subsidiaries that are not owned by the Company.

(VII) Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciation and

17 -

accumulated impairment.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

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

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

(VIII) Intangible Assets

Separate Acquisition

Other separately acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Derecognition

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

(IX) Impairment of property, plant and equipment, right-of-use asset, and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset, and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to

18 -

its recoverable amount. An impairment loss is recognized in profit or loss.

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

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

(X) Financial Instruments

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

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

Financial Assets

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

(1) Measurement category

Financial assets held by the Company can be categorized into financial assets measured at amortized cost and investment in equity instrument measured at fair value through other comprehensive income.

A. Financial assets measured at amortized cost

If the Company's investment in financial assets meets the following 2 criteria, it will be classified as financial assets measured at amortized cost.

a. Financial assets are held under a business model in which the purpose of the model is to hold financial assets so that the contractual cash flows can be

19 -

collected;

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

Financial asset measured at amortized cost (including cash and cash equivalents, notes receivable at amortized cost, accounts receivable, accounts receivable from related parties, other receivables, other receivables from related parties and refundable deposits) is measured at the total carrying value determined by the effective interest method less amortized cost of any impairment loss after initial recognition, while any gains and losses generated from foreign currency exchange are recognized in profit or loss.

Except for the following two cases, interest income is calculated by multiplying the effective interest rate by the total carrying value of the financial assets:

a. The interest income of purchased or originated credit-impaired financial assets is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of financial assets.

b. For non-purchased or originated credit-impaired financial assets that subsequently become credit-impaired financial assets, the interest income should be calculated by multiplying the effective interest rate by the amortized cost of the financial assets from the second reporting period after the credit impairment.

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

a. Significant financial difficulty of the issuer or the borrower;

b. Breach of contract, such as a default;

c. It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or

d. The disappearance of an active market for that financial asset because of financial difficulties.

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

B. Investments in equity instruments measured at fair value through other comprehensive income

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

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

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

(2) Impairment of financial assets

At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable).

The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost and investments in debt instruments that are measured at FVTOCI, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument.

The expected credit loss is the weighted average credit loss measured by the risk of default; the 12-month expected credit loss represents the expected credit loss arising from the possible default of the financial instrument within 12 months after the reporting date; the expected credit losses during the lifetime represent the expected credit losses arising from all possible defaults of the financial instrument over its expected lifetime.

The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

(3) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to other entity.

On derecognition of a financial asset at amortized cost in its entirety, the

21 -

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

2. Equity instruments

Debt and equity instruments issued by the Company are classified either as financial liability or as equity in accordance with the substance of the contractual agreement and the definitions of a financial liability and an equity instrument.

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

Repurchase of the Company's own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.

3. Financial liabilities

(1) Subsequent measurement

Except for financial liabilities at fair value through profit or loss, all financial liabilities are measured at amortized cost using the effective interest method.

A. Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are either held for trading or are designated as at FVTPL.

Fair value is determined in the manner described in Note 7.

(2) Derecognition of financial liabilities

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

(XI) Revenue recognition

After identifying the performance obligation in a customer contract, the company distributes the transaction price to each one of the performance obligations and recognizes the revenue when the performance obligations are met.

Sale of goods

Sale of goods mainly comes from the sale of various chemical raw materials, coating monomers/oligomers, industrial additives and specialty chemicals for textile. Since the customer has the right to set the price and dispose of the goods and has the primary

22 -

responsibility for reselling and bearing the risk of obsolete goods when the goods are delivered to the customer's designated location or the goods are shipped, the company will recognize revenue and accounts receivable at these timings. Sale of goods collected in advance is recognized as contract liabilities before the good arrives.

When material processing is performed, the control of the ownership of the processed product is neither transferred nor recognized.

(XII) Leasing

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

The Company as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments less any lease incentives payable from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

The Company as a lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the parent company only balance sheets.

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

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

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. Lease liabilities are presented on a separate line in the parent company only balance sheets.

(XIII) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are

23 -

substantially ready for their intended use or sale.

In accordance with the requirements, investment income earned from the temporary investment of specific borrowings prior to the occurrence of capital expenditures is deducted from the borrowing costs eligible for capitalization.

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

(XIV) Government grants

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

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

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

Government grants that take the form of a transfer of a non-monetary asset for the use of the entity are recognized and measured at the fair value of the non-monetary asset.

The benefit of a government loan received at a below-market rate of interest is treated as a government grant measured as the difference between the proceeds received and the fair value of the loan based on prevailing market interest rates.

(XV) Employee benefits

Short-term employee benefits

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

Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions. Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected until credit method. Service cost (including current service cost and past service cost) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement (comprising actuarial gains and losses and the return on plan assets less interest) is recognized in

24 -

other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Company's defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

(XVI) Share-based payment: employee stock options

Employee stock options

Employee stock options are recognized on a straight-line basis over the lifetime based on the fair value of equity instrument and estimated optimal quantity on the grant date. At the same time, the capital surplus - employee stock options are also adjusted and recognized on the grant date. It is recognized as an expense in full at the grant date if vested immediately. Organizing capital increase by cash and retaining employee subscription, the Company defined the date of notification as the grant date

The Company revised the estimated number of expected employee stock options at the end of each reporting period. If the original estimated quantity is rectified, the effect is recognized as profit and loss so that the cumulative expenses reflect the revised estimate and the capital surplus-employee stock option is adjusted relatively.

(XVII) Taxation

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

Current tax

According to the Income Tax Law in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

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

Deferred tax

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

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, unused loss carryforward, unused tax credits for purchases of machinery and equipment, research and development expenditure and personnel training expenditures to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets

25 -

arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

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

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

Current tax and deferred tax for the year

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

V. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

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

The Company considers the possible impact of inflation, interest rate fluctuations and volatility in foreign currency markets when making its critical accounting estimates on cash flows, growth rates, discount rates, profitabilities, etc. The estimates and underlying assumptions are reviewed on an ongoing basis.

VI. Cash

	December 31, 2025	December 31, 2024
Cash on hand	$ 419	$ 375
Checking accounts and demand deposits	269,335	230,714
	$269,754	$231,089

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VII. Financial Instruments at Fair Value Through Profit or Loss

	December 31, 2025	December 31, 2024
Financial liabilities at FVTPL - current
Financial liabilities designated as at FVTPL
Derivative instruments (not designated as hedging instruments)
- Foreign exchange forward contracts	$ 250	$ -

At the end of the year, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

December 31, 2025

	Currency	Maturity Date	Notional Amount(In Thousands)
Sell	USD/NTD	2026.01.06-2026.01.29	USD 267/NTD 8,137

The Company entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

VIII. Financial assets measured at fair value through other comprehensive income

	December 31, 2025	December 31, 2024
Noncurrent
Domestic investment
Unlisted stock
Sin Hun Chemical Co., Ltd. - common stock	$134,558	$ 97,376

The Company invests in Sin Hun Chemical Co., Ltd. common stock for medium and long-term strategic purposes and expects to make a profit through long-term investments. The management of the Company believes that if the short-term fair value fluctuations of these investments are recognized in profit and loss, it is inconsistent with the aforementioned long-term investment plan. Therefore, the choice of designating such investments is measured at fair value through other comprehensive income.

IX. Financial assets measured at amortized cost

	December 31, 2025	December 31, 2024
Current
Domestic investment
Time deposits pledged as collateral	$ 8,000	$ 3,000

For information on the pledge of financial assets measured at amortized cost, please refer to Note 28.

X. Notes receivable and accounts receivable (including related parties)

	December 31, 2025	December 31, 2024
Notes receivable
Incurred from business operation	$ 7,337	$ 9,994

(Carried forward)

(Brought forward)

	December 31, 2025	December 31, 2024
Accounts receivable
Total carrying value measured at amortized cost	$ 230,222	$ 197,060
Less: loss allowance	( 2,409 )	( 2,765 )
	$ 227,813	$ 194,295
Accounts receivable from related party
Total carrying value measured at amortized cost	$ 118,070	$ 98,768
Less: loss allowance	-	-
	$ 118,070	$ 98,768

The average credit period of the Company's sales of goods is 60 days, and the accounts receivable are not interest-bearing. The impairment assessment of receivables is based on the past default history of the counterparty and its current financial position to estimate the amount that cannot be recovered.

In order to reduce credit risk, the management of the Company assigns a dedicated team responsible for deciding credit lines, credit approvals and other monitoring procedures so that appropriate actions are taken to recover overdue receivables. In addition, the Company also reviews the recoverable amount of the receivables progressively at the end of the reporting period to ensure that the receivables that cannot be recovered have been recognized in impairment losses. For this, the management of the Company believes that the credit risk of the Company has been significantly reduced.

The Company recognizes the loss allowance for accounts receivables based on expected credit losses during the lifetime. The expected credit loss during the lifetime is calculated using the preparation matrix, which takes into account the customer's past default record, current financial status, and industrial economic situation. Due to the historical experience of credit loss of the Company, there is no significant difference in the loss patterns of different customer groups. Therefore, the preparation matrix does not further segregate the customer base but set the expected credit loss rate based on the overdue days of accounts receivable.

If there is evidence that the counterparty is facing serious financial difficulties and the company cannot reasonably expect the recoverable amount, the company directly writes off the relevant accounts receivable. However, the recourse will continue to be pursued and the amount recovered will be recognized in profit or loss.

The Company's loss allowance for the notes and accounts receivable is based on the preparation matrix as follows:

December 31, 2025

	Not Past Due	Past Due 1 to 30 days	Past Due 31 to 60 days	Past Due 61 to 90 days	Past Due 91 to 120 days	Past Due 121 to 150 days	Past Due 151 to 180 days	Past Due 181 days or more	Total
Expected credit loss rate	-	-	-	-	-	-	-	100%	0.68%
Total carrying value	$335,352	$17,710	$ 158	$ -	$ -	$ -	$ -	$ 2,409	$355,629
Loss allowance (expected credit loss during the lifetime)	-	-	-	-	-	-	-	( 2,409 )	( 2,409 )
Amortized cost	$335,352	$17,710	$ 158	$ -	$ -	$ -	$ -	$ -	$353,220

December 31, 2024

	Not Past Due	Past Due 1 to 30 days	Past Due 31 to 60 days	Past Due 61 to 90 days	Past Due 91 to 120 days	Past Due 121 to 150 days	Past Due 151 to 180 days	Past Due 181 days or more	Total
Expected credit loss rate	-	-	-	-	-	-	-	100%	0.90%
Total carrying value	$278,137	$22,885	$794	$1,238	$3	$-	$-	$2,765	$305,822
Loss allowance (expected credit loss during the lifetime)	-	-	-	-	-	-	-	($2,765)	($2,765)
Amortized cost	$278,137	$22,885	$794	$1,238	$3	$-	$-	$-	$303,057

The changes in loss allowance of notes and accounts receivable are as follows:

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Beginning of year balance	$ 2,765	$ 2,765
Less: actual write-off this year	(356)	-
End of year balance	$ 2,409	$ 2,765

XI. Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 86,955	$ 91,946
Finished products	176,482	176,406
	$263,437	$268,352

The nature of the cost of goods sold is as follows:

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Cost of inventories sold	$1,276,103	$1,095,078
Fire loss (Note 29)	-	62,832
Inventory write-downs reversed	(3,814)	(16,339)
	$1,272,289	$1,141,571

The operating costs related to inventory of the Company include gain on reversal of inventory price decline recognized due to an increase in the net realizable value of inventory, and the reversal of allowance for inventory valuation losses from the disposal of obsolete inventory.

Our company's leased warehouse in Guishan District, Taoyuan City, was severely damaged by a fire in July 2024, resulting in the destruction of some inventory. The fire loss amounted to NT$62,832 thousand (included under operating costs). For further details, please refer to Note 29.

XII. Investment accounted for using equity method

	December 31, 2025	December 31, 2024
Investment in subsidiaries	$1,704,922	$1,645,078
DBC Group Co., Ltd.	$1,648,989	$1,604,630
PT. Double Bond Chemindo	12,567	6,422
DBC Europe Holding AG	19,255	11,597
Double Bond Chemical Ind. USA, Inc.	(157)	(7,732)
Double Bond Chemical Vietnam Co., Ltd.	16,667	15,112
DBC Korea Co., Ltd.	4,202	4,865
DBC Europe GmbH	1,933	1,574
Double Bond Chemical (Thailand) Co., Ltd.	1,309	878
	1,704,765	1,637,346
Add: long-term equity investment credit balance reclassified as other noncurrent liabilities	157	7,732
	$1,704,922	$1,645,078

At the end of the reporting period, the percentages of ownership and voting rights in subsidiaries held by the Company were as follows:

	December 31, 2025	December 31, 2024
DBC Group Co., Ltd.	100.00%	100.00%
PT. Double Bond Chemindo	99.96%	67.00%
DBC Europe Holding AG	100.00%	100.00%
Double Bond Chemical Ind. USA, Inc.	100.00%	100.00%
Double Bond Chemical Vietnam Co., Ltd.	100.00%	100.00%
DBC Korea Co., Ltd.	99.98%	99.98%
DBC Europe GmbH	100.00%	100.00%
Double Bond Chemical (Thailand) Co., Ltd.	49.00%	49.00%

The company holds a 49% share in DBC Thailand Co., Ltd. on December 31, 2025 and December 31, 2024. However, according to the agreement between shareholders, the company has the right to appoint more than half of the members of the board of directors and has the ability to lead its activities, making it a listed subsidiary.

On September 1, 2025, the Company and its subsidiary, DBC Group, acquired additional equity interests in PT.DBC from other non-controlling interests for NT$3,127 thousand (US$102 thousand) and NT$3 thousand (US$0.1 thousand), respectively. The Company's ownership interest increased from 67% to 99.96%, and the DBC Group's ownership interest increased from 0% to 0.04%. The increases in the net value of equity, amounting to NT$1,413 thousand and NT$2 thousand, respectively, were adjusted under capital surplus. The Company handled capital increase by cash for DBC USA by NT$4,852 thousand (US$150 thousand) on June 6, 2024 and subscribed 100% with a shareholding ratio of 100%.

DBC Group held a board meeting on July 24, 2025 and June 3, 2024 to decide the distribution of cash dividends of NT$45,221 thousand (RMB 11,000 thousand) and NT$44,610 thousand (RMB 10,000 thousand), respectively.

30 -

By using the equity method, the profit and loss of the subsidiaries and other comprehensive income in the years ended December 31, 2025 and 2024 were recognized based on the financial reports audited by the accountants of each subsidiary in the same period.

XIII. Property, plant and equipment

	Land	Buildings and Structure	Machinery Equipment	Transportation Equipment	Office Equipment	Other Equipment	Construction in Progress	Total
Cost
Balance at January 1, 2024	$486,190	$533,945	$452,906	$21,993	$5,338	$641,419	$-	$2,141,791
Additions	-	-	5,666	-	-	6,191	11,037	22,894
Disposals	-	-	(4,096)	-	-	(3,378)	-	(7,474)
Reclassification	-	-	-	-	-	2,415	(2,415)	-
Balance at December 31, 2024	$486,190	$533,945	$454,476	$21,993	$5,338	$646,647	$8,622	$2,157,211
Accumulated Depreciation
Balance at January 1, 2024	$-	$39,734	$119,133	$9,346	$2,727	$58,909	$-	$229,849
Disposals	-	-	(3,849)	-	-	(628)	-	(4,477)
Depreciation Expense	-	13,666	50,869	2,734	434	75,208	-	142,911
Balance at December 31, 2024	$-	$53,400	$166,153	$12,080	$3,161	$133,489	$-	$368,283
Carrying amount at December 31, 2024	$486,190	$480,545	$288,323	$9,913	$2,177	$513,158	$8,622	$1,788,928
Cost
Balance at January 1, 2025	$486,190	$533,945	$454,476	$21,993	$5,338	$646,647	$8,622	$2,157,211
Additions	-	1,833	2,859	-	238	7,611	6,901	19,442
Disposals	-	(707)	(517)	-	(15)	-	-	(1,239)
Reclassification	-	6,560	2,858	-	-	4,950	(10,070)	4,298
Balance at December 31, 2025	$486,190	$541,631	$459,676	$21,993	$5,561	$659,208	$5,453	$2,179,712
Accumulated Depreciation
Balance at January 1, 2025	$-	$53,400	$166,153	$12,080	$3,161	$133,489	$-	$368,283
Disposals	-	(32)	(426)	-	(15)	-	-	(473)
Depreciation Expense	-	13,998	49,443	2,406	419	76,499	-	142,765
Balance at December 31, 2025	$-	$67,366	$215,170	$14,486	$3,565	$209,988	$-	$510,575
Carrying amount at December 31, 2025	$486,190	$474,265	$244,506	$7,507	$1,996	$449,220	$5,453	$1,669,137

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

Buildings and Structure: 3 to 50 years
Machinery and Equipment: 3 to 15 years
Transportation Equipment: 5 to 15 years
Office Equipment: 3 to 12 years
Other Equipment: 3 to 20 years

Please refer to Note 28 for the carrying amount of property, plant and equipment that had been pledged by the Company to secure long-term borrowings.

XIV. Lease Arrangements

Other lease information

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Expenses relating to short-term leases	$ 2,636	$ 1,173
Total cash outflow for leases	( $ 2,636 )	( $ 1,173 )

The Company leases certain offices, which qualify as short-term leases. The Company has elected to apply the recognition exemption and thus did not recognize right-of-use assets and lease liabilities for these leases.

XV. Other Intangible Asset

	Trademark	Patent	Computer Software Cost	Total
Cost
Balance at January 1, 2024	$ 4,464	$ 2,911	$ 6,148	$ 13,523
Separate Acquisition	38	-	-	38
Balance at December 31, 2024	$ 4,502	$ 2,911	$ 6,148	$ 13,561
Accumulated Amortization
Balance at January 1, 2024	$ 3,643	$ 2,747	$ 2,354	$ 8,744
Amortization Expense	177	17	610	804
Balance at December 31, 2024	$ 3,820	$ 2,764	$ 2,964	$ 9,548
Carrying amount at December 31, 2024	$ 682	$ 147	$ 3,184	$ 4,013
Cost
Balance at January 1, 2025	$ 4,502	$ 2,911	$ 6,148	$ 13,561
Separate Acquisition	55	-	-	55
Balance at December 31, 2025	$ 4,557	$ 2,911	$ 6,148	$ 13,616
Accumulated Amortization
Balance at January 1, 2025	$ 3,820	$ 2,764	$ 2,964	$ 9,548
Amortization Expense	179	147	609	935
Balance at December 31, 2025	$ 3,999	$ 2,911	$ 3,573	$ 10,483
Carrying amount at December 31, 2025	$ 558	$ -	$ 2,575	$ 3,133

32 -

The amortization cost is recognized on the straight-line basis for the following number of years:

Trademark 10 years

Patent 15 to 20 years

Computer Software Cost 5 years

XVI. Other Assets

	December 31, 2025	December 31, 2024
Current
Prepaid account	$ 19,663	$ 17,048
Prepaid expense	5,811	4,465
Others	6,000	2,084
	$ 31,474	$ 23,597
Noncurrent
Refundable deposits	$ 57	$ 24
Other deferred expenses	13,964	16,140
	$ 14,021	$ 16,164

XVII. Borrowings

(I) Short-term borrowings

	December 31, 2025	December 31, 2024
Secured loan (Note 28)
Bank loan	$ 420,000	$ 380,000
Unsecured loan
Bank loan	703,717	717,026
	$1,123,717	$1,097,026

The annual interest rates of bank transition loans were 0.75%~2.33% and 1.90%~2.242% on December 31, 2025, and 2024, respectively.

(II) Short-term bills payable

	December 31, 2025	December 31, 2024
Commercial paper	$150,000	$ 60,000
Less: Unamortized discounts on bills payable	( 99) $149,901	( 128) $ 59,872
Interest Rate	1.60%~1.83%	1.53%

(III) Long-term borrowings

	December 31, 2025	December 31, 2024
Secured loan (Note 28)
Bank loan	$ 641,884	$ 880,780
Unsecured loan
Bank loan	-	13,370
Less: listed as part of long-term loans due within one year	( 128,805 )	( 239,321 )
	$ 513,079	$ 654,829

The Company borrows from the bank with its own land and building mortgage guarantee (see Note 28). The maturity dates of the Company's long-term borrowings in the form of secured loan are from April 22, 2026, to February 17, 2040. As of December 31, 2025, and 2024, the annual interest rates of the Company's long-term borrowings in the form of secured loan are $2.08245\% \sim 2.60\%$ and $2.08245\% \sim 2.596\%$ , respectively.

As of December 31, 2024, the annual interest rate of the Company's long-term borrowings in the form of unsecured loan are $2.17\%$ .

XVIII. Other Liabilities

	December 31, 2025	December 31, 2024
Current
Other payables
Salaries and bonuses payable	$ 29,202	$ 12,066
Other payables from related parties	8,494	4,867
Director remuneration payable	6,000	-
Employee remuneration payable	4,000	-
Other fees payable	35,665	40,323
	$ 83,361	$ 57,256
Other liabilities
deposits received	$ 7	$ 7
Receipts under custody	11	13
	$ 18	$ 20

XIX. Retirement Benefit Plans

(I) Defined Contribution Plans

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

(II) Defined Benefit Plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are

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

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

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 12,676	$ 12,890
Fair value of plan assets	( 10,823 )	( 9,721 )
Net defined benefit liability	$ 1,853	$ 3,169

Movements in net defined benefit liability (asset) were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liability (Asset)
Balance at January 1, 2024	$ 19,313	($ 14,155)	$ 5,158
Service cost
Current service cost	288	-	288
Net interest expense (income)	266	( 202 )	64
Recognized in profit or loss	554	( 202 )	352
Remeasurement
Return on plan assets	-	1,076	1,076
Actuarial loss
- changes in financial assumptions	( 375 )	-	( 375 )
- experience adjustments	( 1,875 )	-	( 1,875 )
Recognized in other comprehensive income	( 2,250 )	1,076	( 1,174 )
Contribution from the employer	-	( 1,167 )	( 1,167 )
Benefits paid	( 4,727 )	4,727	-
Balance at December 31, 2024	12,890	( 9,721 )	3,169
Service cost
Current service cost	509	-	509
Net interest expense (income)	210	( 167 )	43
Recognized in profit or loss	719	( 167 )	552
(Carried forward)

(Brought forward)

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liability (Asset)
Remeasurement
Return on plan assets	-	( 865 )	( 865 )
Actuarial loss
- changes in financial assumptions	331	-	331
- experience adjustments	( 254 )	-	( 254 )
Recognized in other comprehensive income	77	( 865 )	( 788 )
Contribution from the employer	-	( 1,080 )	( 1,080 )
Benefits paid	( 1,010 )	1,010	-
Balance at December 31, 2025	$ 12,676	($ 10,823)	$ 1,853

Defined benefit plans are recognized in profit or loss as summarized by function:

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Marketing expenses	$ 184	$ 118
Management expenses	184	118
R&D expenses	184	116
	$ 552	$ 352

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

Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau of Labor Funds or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
Interest risk: A decrease in the government/corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investment.
Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

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

	December 31, 2025	December 31, 2024
Discount rate(s)	1.375%	1.625%
Expected rate(s) of salary increase	4.00%	4.00%

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

	December 31, 2025	December 31, 2024
Discount rate(s)
0.25% increase	($ 330)	($ 360)
0.25% decrease	$ 343	$ 375
Expected rate(s) of salary increase
0.25% increase	$ 329	$ 360
0.25% decrease	($ 318)	($ 348)

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

	December 31, 2025	December 31, 2024
The expected contributions to the plan for the next year	$ 1,080	$ 1,080
The average duration of the defined benefit obligation	15.5 years	19.2 years

XX. Equity

(I) Share Capital

Ordinary Share

	December 31, 2025	December 31, 2024
Number of shares authorized (in thousands)	120,000	120,000
Shares authorized	$1,200,000	$1,200,000
Number of shares issued and fully paid (in thousands)	85,542	85,542
Shares issued	$ 855,421	$ 855,421

38 -

(II) Capital Surplus

	December 31, 2025	December 31, 2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Share premium	$338,998	$338,998
Stock option	17,493	17,493
The difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition	1,415	-
May only be used to offset a deficit
disgorgements	209	209
	$358,115	$356,700

The capital surplus arising from shares issued in excess of par may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

According to the requirement under Section 157 Short swing Trading of the Securities and Exchange Act, the capital surplus arising from the gain of claim for disagreements is only used to offset a deficit.

(III) Retained Earnings and Dividend Policy

According to the Company's dividend policy, stipulating that the Company's surplus allocation or loss compensation shall be made after the end of each half fiscal year. If the surplus is distributed in cash, the Board of Directors shall make a resolution, and the board of shareholders shall make a resolution when issuing new shares.

If the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years and setting aside as legal reserve 10% of the remaining profit. However, if the legal reserve has reached the Company’s paid-in capital, no further appropriation is required. The remaining earnings shall then be setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholder’s meeting for distribution of dividends and bonus to shareholders. If the dividends, legal reserves and capital reserves referred to in the preceding paragraph are distributed in cash, the Board of Directors may be authorized to attend by more than two thirds of the directors and adopt a resolution by more than half of the directors present and report to the shareholders' meeting.

For the policies on distribution of employees’ compensation and remuneration of directors, refer to “Employee’s compensation and remuneration of directors” in Note

22 (8).

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

The appropriation of losses for 2024 and 2023 were approved by the Company's shareholders in its meetings held on June 25, 2025 and June 28, 2024, respectively. The details of the loss offsetting were as follows:

	Appropriation of Earnings
	For the Year Ended December 31, 2024	For the Year Ended December 31, 2023
Loss off setting	($ 36,116)	($ 85,943)
(Reversal of) Special capital reserve	($ 59,757)	$ 45,116

The Company's appropriation of earnings for 2025 had been approved in the meeting of the Board of Directors held on March 13, 2026. The loss off-setting proposal was as follows:

	For the Year Ended December 31, 2025
Legal reserve	$ 10,533
Reversal of special capital reserves	( $ 42,122 )
Cash dividends	$ 85,542
Cash dividends per share (NT$)	$ 1

The above appropriation for cash dividends has been resolved by the Company's board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting to be held on June 25, 2026.

XXI. Revenue

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Revenue from contracts with customers
Sales revenue	$1,535,322	$1,202,421

(I) Contract Balance

	December 31, 2025	December 31, 2024	January 1, 2024
Net Notes Receivable (Note 10)	$ 7,337	$ 9,994	$ 11,192
Net Accounts Receivable (Note 10)	227,813	194,295	107,321
Net Accounts Receivable from Related Party (Note 10)	118,070	98,768	73,616
	$ 353,220	$ 303,057	$ 192,129
Contract liabilities
Sale of Goods	$ 3,962	$ 22,235	$ 2,759

(II) Classification of revenue from contracts with customers

For classification of revenue from contracts with customers, please refer to Table 8 of the operating income statement.

XXII. Net Profit From Continuing Operation

Net profit from continuing operation includes the follows:

(I) Interest income

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Interest income	$ 1,906	$ 2,611

(II) Other income

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Dividend income	$ 2,112	$ 2,112
Others	7,301	3,753
	$ 9,413	$ 5,865

(III) Other gains and losses

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Fair value changes of financial assets and financial liabilities
Financial assets mandatorily classified as at FVTPL	($ 785)	$ -
Loss on disposal of property, plant and equipment	( 759)	( 2,866)
Exchange gain, net	5,887	14,031
Others	( 600)	( 240)
	$ 3,743	$ 10,925

(IV) Financial costs

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Interest on bank loan	$ 41,840	$ 40,180

(V) Impairment losses recognized (reversed)

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Inventories (included in operating costs)	($ 3,814)	($ 16,339)

(VI) Depreciation and amortization

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Property, plant and equipment	$142,765	$142,911
Intangible assets and deferred expenses	3,112	2,981
	$145,877	$145,892
An analysis of depreciation by function
Operating costs	$131,967	$129,995
Operating expenses	10,798	12,916
	$142,765	$142,911
An analysis of amortization by function
Operating costs	$ 2,177	$ 2,177
Operating expenses	935	804
	$ 3,112	$ 2,981

(VII) Personnel Expenses

	2025			2024
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Personnel expenses
Salaries	$ 62,443	$ 81,045	$143,488	$ 61,954	$ 70,160	$132,114
Labor insurance and health insurance	7,533	7,078	14,611	6,055	7,167	13,222
Pension cost
Defined contribution plan	2,365	3,420	5,785	2,032	3,589	5,621
Defined benefit plan (Note 18)	-	552	552	-	352	352
Director's remuneration	-	8,570	8,570	-	2,565	2,565
Others	5,062	4,049	9,111	4,289	3,858	8,147
	$ 77,403	$104,714	$182,117	$ 74,330	$ 87,691	$162,021

The average number of employees in this year and the previous year were 194 and 189 respectively, including 6 directors who were not part-time employees. This year's average employee welfare cost is NT$ 922 thousands; The average employee welfare cost in the previous year was NT$ 871 thousands.

This year's average employee salary cost is NT$ 763 thousands; The average employee salary cost in the previous year was NT$ 721 thousands. The change of adjustments to average employee salary and expenses 5.83%.

The Company did not have supervisors for 2025 and 2024, so there was no remuneration to supervisors.

Remunerations to employees of the Company are determined and adjusted based on their relevant professional experience and performance and after general pay levels in the industry are taken into account. In addition to salaries provided every month as part of remunerations to employees, bonuses and compensations are also given to employees based on the status of corporate operation and profitability. The amount

of the bonus and compensation given to each employee depends on the duties, contribution and performance of the employee.

Remunerations to managers of the Company are determined on their duties and performance and the business result and future operation plan of the Company are taken into account. Remunerations to managers shall be reviewed by the remuneration committee and then resolved by the board of directors.

Remunerations to directors of the Company are provided in accordance with the Regulations for Management of Directors' Remuneration, which detail fixed remunerations and earning-based remunerations to directors. The total amount of remunerations to directors, as provided in the articles of incorporation, shall not exceed 5% of the Company's annual profit. An independent director receives a fixed remuneration and does not participate in distribution of the directors' remuneration. Chairman receives not only a fixed remuneration every month but also a year-end bonus distributed based on the business result of the Company, and participates in distribution of the directors' remuneration. Instead of receiving fixed remunerations, other directors receive the remunerations distributed to them based on their duties and levels of their participation in corporate business. Remunerations to directors shall be reviewed by the remuneration committee and then resolved by the board of directors.

(VIII) Employee's compensation and remuneration to directors

The Company accrued employees' compensation and remuneration of directors at the rates no less than 1% and no higher than 5%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate that no less than 50% of the total compensation of employees shall be allocated as compensation distributions for non-executive employees. The compensation of employees and remuneration of directors for 2025 were estimated as follows; no such amounts were accrued for 2024 as the Company incurred a net loss:

Estimated ratio

	For the Year Ended December 31, 2025
Employee's compensation	3.12%
Remuneration to director	4.69%

Amount

	For the Year Ended December 31, 2025
Employee's compensation	$ 4,000
Remuneration to director	6,000

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

There is no difference between the actual amounts of compensation of employees and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on the employees' compensation and remuneration of directors resolved by the Company's board of directors in 2025 and 2024 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

XXIII. Income Taxes Relating To Continuing Operations

(I) Income tax recognized in profit or loss

The major components of tax expense (revenue) were as follows:

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Current tax
In respect of the current period	$ 4,609	$ 4,643
In respect of prior periods	-	( 9,685 )
	4,609	( 5,042 )
Deferred Tax
In respect of the current period	6,099	( 24,596 )
In respect of prior periods	2,780	270
	8,879	( 24,326 )
Income tax expense (revenue) recognized in profit or loss	$13,488	($ 29,368 )

A reconciliation of accounting profits and income tax expense (revenue) is as follows:

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Profit (loss) from continuing operation before income tax	$118,028	($ 66,658 )
Income tax expense (revenue) calculated at statutory rate	$ 23,606	($ 13,332 )
Fees that cannot be deducted from taxes	167	117
Adjustments to prior year's income tax expense (profit)	2,780	( 9,415 )
Tax exempt income	( 422 )	( 422 )
Temporary difference that has not yet been recognized	( 11,804 )	( 9,662 )
Tax incentives	( 1,356 )	( 1,718 )
Others	517	5,064
Income tax expense (revenue) recognized in profit or loss	$ 13,488	($ 29,368 )

44 -

(II) Current tax liabilities

	December 31, 2025	December 31, 2024
Current tax assets
Income tax receivable	$ 135	$ 299

(III) Deferred tax assets and liabilities

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

For the year ended December 31, 2025

Deferred tax assets	Opening Balance	Recognized in Profit or Loss	Closing Balance
Temporary differences
Allowance for inventory write down	$ 8,650	($ 763)	$ 7,887
Unrealized loss on foreign exchange	-	50	50
Unrealized gain from inter-affiliate accounts	730	(18)	712
Others	5,237	(2,116)	3,121
	14,617	(2,847)	11,770
Loss deduct	46,596	(5,067)	41,529
	$ 61,213	($ 7,914)	$ 53,299
Deferred tax liabilities
Temporary differences
Unrealized gain on foreign exchange	$ 52	$ 1,092	$ 1,144
Investment income recognized under equity method	12,118	(234)	11,884
Others	570	107	677
	$ 12,740	$ 965	$ 13,705

For the year ended December 31, 2024

	Opening Balance	Recognized in Profit or Loss	Closing Balance
Deferred tax assets
Temporary differences
Allowance for inventory write down	$ 11,918	($ 3,268)	$ 8,650
Unrealized loss on foreign exchange	225	( 225)	-
Unrealized gain from inter-affiliate accounts	-	730	730
Others	3,923	1,314	5,237
	16,066	( 1,449)	14,617
Loss deduct	19,732	26,864	46,596
	$ 35,798	$ 25,415	$ 61,213
Deferred tax liabilities
Temporary differences
Unrealized gain on foreign exchange	$ -	$ 52	$ 52
Investment income recognized under equity method	10,467	1,651	12,118
Unrealized loss from inter-affiliate	775	( 775)	-
Others	409	161	570
	$ 11,651	$ 1,089	$ 12,740

(IV) Information about unused loss carryforwards

Loss carryforwards as of December 31, 2025 comprised:

Unused Amount	Expiry Year
$ 73,535	2033
134,112	2034
$ 207,647

(V) Income tax assessments

The tax authorities have examined income tax returns of the Company through 2023. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.

XXIV. Earnings (Loss) Per Share

	For the Year Ended December 31, 2025	Unit: NT$/Share For the Year Ended December 31, 2024
Basic earnings (loss) per share of continuing operation units	$ 1.22	($ 0.44)
Diluted earnings (loss) per share of continuing operation units	$ 1.22	($ 0.44)

The loss and weighted average number of ordinary shares outstanding in the computation of loss per share were as follows:

Net Profit (Loss) for the Period

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Net Profit (loss)	$ 104,540	($ 37,290)

Ordinary Shares Outstanding

	For the Year Ended December 31, 2025	Unit: thousand shares For the Year Ended December 31, 2024
Weighted average number of ordinary shares in computation of basic earnings (loss) per share	85,542	85,542
Effects of dilutive potential ordinary shares on earnings:
Employee compensations	38	-
Weighted average number of ordinary shares used in the computation of diluted earnings (loss) per share	85,580	85,542

If the company has to choose to pay employee compensation in stock or cash, it is assumed that the employee's compensation will be paid in stock when calculating the diluted earnings per share. When the potential ordinary shares have a dilution effect, the weighted average number of shares outstanding is included to calculate the diluted earnings per share. The dilution effect of these potential ordinary shares will continue to be considered when calculating the diluted earnings per share before deciding the employee's compensation and stock issuance for the next year.

XXV. Capital risk management

Based on the current industrial operations, future company development, and external environmental changes, the Company plans its future capital, R&D expenses, and dividends payment, etc. so that the companies within the group can continue as a going concern while their shareholder value can be further improved by optimizing the balance of debt and equity to maintain an optimal capital structure.

The key management of the Company has re-examined the capital structure of the Group from one time to another. The content of the review includes consideration of the cost of various types of capital and related risks. Based on the recommendations of the key management, the Company will balance its overall capital structure by paying dividends, issuing new shares, buying back shares, issuing new debts, or repaying old debts.

XXVI. Financial Instrument

(I) Fair value - financial instruments not measured at fair value

The management considers that the carrying amounts of financial assets recognized in the financial statements approximate their fair values.

(II) Fair value - financial instruments measured at fair value on a recurring basis

1. Fair Value Hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through other comprehensive income	$ -	$ -	$134,558	$134,558
Investment in equity instruments
Domestic unlisted common stocks
Financial liabilities at fair value through profit or loss	$ -	$ 250	$ -	$ 250
Foreign exchange forward contracts

December 31, 2024

	Level 1	Level 2	Level 3
Financial assets measured at fair value through other comprehensive income	$ -	$ 97,376	$97,376
Investment in equity instruments
Domestic unlisted common stocks

For the year ended December 31, 2025 and 2024, there was no transfer of fair value measurement between the first level and the second level.

2. Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instrument	Valuation Technique and Inputs
Derivatives - foreign exchange forward contracts	Discounted cash flow: future cash flows are estimated based on observable forward exchange rates at the end of the year and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

Pricing models and input values for the third level of fair value measurement

The fair values of unlisted equity securities were determined using the market approach.

The market approach estimates the fair value of the investment by referencing transaction prices and relevant information of comparable market participants.

(III) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets measured at amortized cost (Note 1)	$ 632,064	$ 554,454
Financial assets measured at fair value through other comprehensive income
Investment in equity instruments	134,558	97,376
Financial liabilities
Fair value through profit or loss
Mandatorily at fair value through profit or loss	250	-
Financial liabilities measured at amortized cost (Note 2)	2,148,209	2,224,819

Note 1: The balances included cash, financial assets measured at amortized cost - current, net notes receivables, net accounts receivable, net accounts receivable from related parties, other receivables, other receivables from related parties, refundable deposits, and other financial assets measured at amortized cost.

Note 2: The balances included short-term borrowings, short-term bills payable, notes payable, accounts payable, accounts payable by related parties, other accounts payable, long-term borrowings that are due within one year, long-term borrowings, and other financial liabilities measured at amortized cost.

(IV) Financial risk management objectives and policies

The Company's major financial instruments included accounts receivable, accounts payable, borrowings and lease liabilities. The Company's financial risk management objectives include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk, and liquidity risk related to management and operational activities.

Market risk

The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates (see (1) below), interest rates (see (2) below) and other price risk (see (3) below).

The Company's exposure to the risk of financial instrument market and the

management and measurement of these exposures have not changed.

(1) Foreign currency risk

The Company had foreign currency sales and purchases, which exposed the Company to foreign currency risk.

For the carrying amount of monetary assets and monetary liabilities denominated in the non-functional currency at the end of the reporting period, see Note 30.

Sensitivity analysis

The Company was mainly exposed to USD, RMB and EUR.

The following table details the Company's sensitivity to a 1% increase and decrease in New Taiwan Dollars (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management's assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items at the end of the reporting period. A positive number below indicates an increase in pre-tax profit (loss) when New Taiwan Dollars weakened by 1% against the relevant currency. For a 1% strengthening of New Taiwan Dollars against the relevant currency, there would be an equal and opposite impact on pre-tax profit (loss) and balances below would be negative.

	USD Impact		RMB Impact		EUR Impact
	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Profit or loss	$ 1,768	$ 1,619	($ 187)	($ 143)	$ 779	$ 1,018

The impact of foreign currency on profit and loss as stated in the above table was mainly attributable to the non-derivative financial assets and liabilities denominated in USD, RMB and EUR that were outstanding but with no cash flow hedge at the end of the reporting period.

(2) Interest rate risk

The Company regularly evaluated hedging activities to align with interest rate perspectives and existing risk preferences to ensure that the most cost-effective hedging strategies were adopted.

The carrying amounts of the Company's financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31, 2025	December 31, 2024
Fair value interest rate risk
— Financial assets	$ 8,000	$ 3,000
— Financial liabilities	884,901	709,872
Cash flow with interest rate risk
— Financial assets	269,335	230,714
— Financial liabilities	1,030,601	1,341,176

Sensitivity Analysis

The following sensitivity analysis is based on the interest rate risk of non-derivatives at the end of the reporting period. For floating rate liabilities, the analysis is based on the assumption that the amount of liabilities outstanding at the end of the reporting period are outstanding during the reporting period. The rate of change used by the Company to report interest rate to the key management is the interest rate increased or decreased by 100 basis points. This also represents the management's assessment of the reasonably possible range of interest rates.

If the interest rate increases/decreases by 100 basis points, the Company's net profit before tax for 2025 will decrease/increase by NT$7,613 thousand, and the Company's net loss before tax for 2024 will increase/decrease by NT$11,105 thousand if all other variables remain unchanged. The main reason is the Company's net position in variable-rate bank deposits and borrowings, which results in exposure to fair value interest rate risk.

(3) Other price risk

The company was exposed to equity price risk through its investments in equity securities. The Company has appointed a special staff to monitor the price risk and evaluate the possible solutions.

Sensitivity Analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the year.

If equity prices had been 1% higher/lower, the pre-tax other comprehensive income for 2025 and 2024 would have increased/decreased by $1,346 thousand and $974 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the

reporting period, the Company's maximum exposure to credit risk approximates the carrying amount of the financial assets recognized in the balance sheets.

In order to mitigate credit risk, the management of the Company assigns a dedicated team responsible for credit line decisions, credit approvals and other monitoring procedures to ensure that appropriate actions are taken for the recovery of overdue receivables. In addition, the Company will review the recoverable amount of the receivables one by one at the end of the reporting period to ensure that the receivables that cannot be recovered have been recognized as impairment losses. For this, the management of the Company believes that the credit risk of the Company has been significantly reduced.

Trade receivables consisted of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of customers in view of trade receivables.

Since the counterparty of liquidity and derivative financial instruments are financial institutions and corporate organizations with good credit ratings, the credit risk is quite limited.

3. Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Company had available unutilized bank loan facilities set out in (3) financing facilities below.

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

The analysis of the remaining contractual maturity of non-derivative financial liabilities is prepared based on the un-discounted cash flows of financial liabilities (including principal and estimated interest) and the earliest date on which the Company may be required to repay. Therefore, the bank borrowings that the Company can be required to repay immediately should be included in the earliest period of the following table, with disregard to the probability that the bank will immediately execute the right; The analysis of the maturity of other non-derivative financial liabilities is prepared in accordance with the agreed repayment date.

51 -

December 31, 2025

	On Demand or Less Than 1 Month	1 to 3 Months	3 Months to 1 Year	1 Year to 5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing	$ 56,212	$151,478	$ 25,017	$ -	$ -
Fixed rate instrument	531,208	355,430	-	-	-
Floating rate instrument	98,940	296,685	135,959	219,916	359,737
	$686,360	$803,593	$160,976	$219,916	$359,737

December 31, 2024

	On Demand or Less Than 1 Month	1 to 3 Months	3 Months to 1 Year	1 Year to 5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing	$ 63,415	$ 91,156	$ 19,200	$ -	$ -
Fixed rate instrument	381,497	330,017	-	-	-
Floating rate instrument	52,571	411,582	241,187	293,629	399,672
	$497,483	$832,755	$260,387	$293,629	$399,672

(2) Liquidity and interest rate risk table for derivative financial liabilities

The following table details the Group's liquidity analysis of its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed is determined by reference to the projected interest rates as illustrated by the yield curves at the end of the year.

December 31, 2025

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Gross settled
Foreign exchange forward contracts
Inflows	$ 8,137	$ -	$ -	$ -	$ -
Outflows	( 8,387)	-	-	-	-
	($ 250)	$ -	$ -	$ -	$ -

(3) Financing Facilities

	December 31, 2025	December 31, 2024
Secured bank facilities
—Amount used	$ 2,469,017	$ 2,826,826
—Amount unused	167,283	283,974
	$ 2,636,300	$ 3,110,800

XXVII. Related-Party Transactions

The transactions between the company and its related parties are as follows.

(I) Names and relationships of the related parties

Related Party	Relationship with the Company
Double Bond Chemical (Shanghai) Co., Ltd.	Subsidiary
DAFENG XIN YUAN DA CHEMICAL CO., LTD.	Subsidiary
DBC Korea Co., Ltd.	Subsidiary
DBC Switzerland AG	Subsidiary
DBC Europe GmbH	Subsidiary
Double Bond Chemical Ind. USA, Inc.	Subsidiary
PT. Double Bond Chemindo	Subsidiary
Double Bond Chemical (Thailand) Co., Ltd.	Subsidiary
Double Bond Chemical Vietnam Co., Ltd.	Subsidiary
FDC, Lees Co., Ltd.	Substantive Related Party
Yi Ying Chemical Industry Co., Ltd.	Substantive Related Party
HG Co., Ltd.	Substantive Related Party
DOUBLEBOND CHEMICAL (TAIXING) CO., LTD.	Substantive Related Party
Innonyx International Co., Ltd.	Substantive Related Party
Sin Hun Chemical Co., Ltd.	Other Related Party (Note)

Note: A juridical person of the company.

(II) Sales

Related Parties / Name	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Subsidiaries
DBC Switzerland AG	$143,699	$136,845
Others	204,529	177,880
Substantive related parties	376	1,318
Other related parties	-	1,046
	$348,604	$317,089

The Company has no significant difference in the transaction price and collection terms for the related parties mentioned above than for the general customers.

(III) Purchase of goods

Related Parties / Name	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Subsidiaries
Double Bond Chemical (Shanghai) Co., Ltd.	$118,831	$ 136,293
Others	77,928	80,907
Substantive related parties	71,596	71,328
Other related parties	37,838	37,606
	$306,193	$ 326,134

The Company has no significant difference in the transaction price and payment terms for the related parties mentioned above than for the general manufacturers.

(IV) Accounts receivable from related parties (excluding loans to related parties and contract assets)

Account	Related Parties/Name	December 31, 2025	December 31, 2024
Accounts receivable from related parties	Subsidiaries
	DBC Switzerland AG	$ 43,093	$ 41,501
	Double Bond Chemical Ind. USA, Inc.	28,082	19,505
	DAFENG XIN YUAN DA CHEMICAL CO., LTD.	19,111	8,884
	PT. Double Bond Chemindo	14,107	10,321
	Others	13,677	17,904
	Substantive related parties	-	653
		$ 118,070	$ 98,768
Other receivables from related parties	Subsidiaries
	Double Bond Chemical Ind. USA, Inc.	$ 412	$ -

There are no guarantees for outstanding receivable from related parties.

(V) Accounts payable to related parties

Account	Related Parties/Name	December 31, 2025	December 31, 2024
Accounts payable to related parties	Subsidiaries
	Double Bond	$ 29,997	$ 16,091
	Chemical (Shanghai) Co., Ltd.
	DAFENG XIN YUAN	17,889	11,913
	DA CHEMICAL CO., LTD.
	Other Related Party
	SIN HUN	18,101	11,807
	CHEMICAL CO., LTD.
	Substantive related party
	FDC, Lees Co., Ltd.	2,028	10,338
	Others	11	122
		$ 68,026	$ 50,271

There are no guarantees for the balance of outstanding payable to related parties.

(VI) Loans to related parties

Related Parties/Name	December 31, 2025	December 31, 2024
Other receivable from related parties
Subsidiaries
PT. Double Bond Chemindo	$ -	$ 8,478

Interest income

Related Parties/Name	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Subsidiaries
PT. Double Bond Chemindo	$ 382	$ 938

(VII) Other transactions with related parties

Credit and debt at the end of the term

The balance of other payables to related parties at the end of the reporting period is as follows:

Related Parties/Name	December 31, 2025	December 31, 2024
Other accounts payable
Subsidiaries	$ 8,494	$ 4,867

Other transactions

Account	Related Parties / Name	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
Commission expense	Subsidiaries
	DBC Korea Co., Ltd.	$ 3,506	$ 7,190
	Double Bond Chemical Ind. USA, Inc.	8,757	-
	DBC Europe GmbH	8,630	8,050
		$ 20,893	$ 15,240
Subcontracting Costs	Other related parties SIN HUN CHEMICAL CO., LTD.	$ 5,501	$ 6,160

The terms of the commission expense and subcontracting costs between the Company and related parties is determined by mutual agreement.

(VIII) Compensation of key management personnel

	December 31, 2025	December 31, 2024
Short-term benefits	$ 24,185	$ 14,645
Post-employment benefits	417	420
	$ 24,602	$ 15,065

The remuneration of directors and key executives, as determined by the remuneration committee, was based on the performance of individuals and market trends.

XXVIII. Assets Pledged as Collateral or for Security

The following assets were provided as collateral for bank borrowings and tariff guarantee:

	December 31, 2025	December 31, 2024
Property, plant and equipment	$869,921	$881,755
Financial assets measured at amortized cost-current	8,000	3,000
	$877,921	$884,755

XXIX. Significant losses from disasters

In July 2024, a leased warehouse of the Company located in Guishan District, Taoyuan City, was severely damaged by fire, resulting in the destruction of a portion of inventory. The Company recognized a fire loss of NT$62,832 thousand in 2024, which was recorded under other gains and losses. The Company maintained fire insurance coverage and subsequently received insurance settlement proceeds of NT$42,604 thousand in 2025, which was recognized as insurance claim income.

XXX. Significant events after the reporting period

(I) On March 13, 2026, the Company’s Board of Directors resolved to issue 6,000 thousand common shares through a cash capital increase, with a par value of NT$10 per share. The shares are tentatively expected to be issued at a premium of NT$115 per share, with a total projected amount of NT$690,000 thousand to be raised. The Chairman has been authorized to determine the record date of the capital increase.

(II) On March 13, 2026, the Company’s Board of Directors resolved to issue the second domestic secured convertible bonds. A total of 5,000 units will be issued, with a par value of NT$100 thousand per unit, for a total face value of NT$500,000 thousand.

XXXI. Significant assets and liabilities denominated in foreign currencies

The Company’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies are as follows:

December 31, 2025

	Foreign Currencies	Exchange Rate	Carrying Amount
Financial Assets
Monetary items
USD	$ 6,603	31.43 (USD : NTD)	$ 207,532
RMB	6,555	4.496 (RMB: NTD)	29,471
EUR	2,140	36.9 (EUR : NTD)	78,966
Financial Liabilities
Monetary items
USD	979	31.43 (USD : NTD)	30,770
RMB	10,708	4.496 (RMB: NTD)	48,143
EUR	29	36.9 (EUR : NTD)	1,070

December 31, 2024

	Foreign Currencies	Exchange Rate	Carrying Amount
Financial Assets
Monetary items
USD	$ 6,503	32.785 (USD : NTD)	$ 213,201
RMB	3,202	4.478 (RMB: NTD)	14,339
EUR	3,007	34.14 (EUR : NTD)	102,659
Financial Liabilities
Monetary items
USD	1,566	32.785 (USD : NTD)	51,341
RMB	6,406	4.478 (RMB: NTD)	28,686
EUR	26	34.14 (EUR : NTD)	888

The group's realized and unrealized foreign exchange gains and losses for the year ended December 31, 2025 and 2024 are disclosed in Note 22. Due to the variety of foreign currency transactions and the group's functional currencies, it is not possible to disclose exchange gains and losses separately for each major currency.

XXXII. Separately disclosed items

(I) Related information about significant transactions:

Financing provided to others (Annex 1).
Endorsements/guarantees provided (None).
Significant marketable securities held at the end of the year (Annex 2).
Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in-capital (None).
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Annex 3).
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None).

(II) Information on investees (Annex 4):

(III) Information on investments in mainland China:

Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Annex 5).
Any of the following significant transactions with investees companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Annex 3 and 5).

(1) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
(2) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
(3) The amount of property transactions and the amount of the resultant gains and losses.
(4) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
(5) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
(6) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.

58 -

Double Bond Chemical Ind. Co., Ltd. and Subsidiaries
Financing Provided to Others
For the Year Ended December 31, 2025

Annex 1

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

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate %	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Notes 1 and 2)	Aggregate Financing Limit (Notes 1 and 2)
													Item	Value
0	Double Bond Chemical Ind. Co., Ltd.	PT. Double Bond Chemindo	Other Receivables from Related Parties	Yes	$ 7,858 (US$250,000)	$ -	$ -	8.8%	Short-term Financing	$ -	Operating Capital	$ -	-	-	$ 350,838	$ 935,568

Note 1: According to the Company's policy, the aggregated financing amount provided to others shall not exceed 40% of its net worth. If there is a need for short-term financing due to the business relationship with the Company, each of the financing amounts shall not exceed 15% of the Company's net worth.
Note 2: The loan and the loan limits are calculated based on the financial statements most recently audited by the accountant.
Note 3: The exchange rate is based on the average purchase/sell rate of the Bank of Taiwan on December 31, 2025.

59 -

Double Bond Chemical Ind. Co., Ltd. and Subsidiaries
Marketable Securities Held
For the Year Ended December 31, 2025

Annex 2
(In Thousands of Shares / Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025				Note
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Double Bond Chemical Ind. Co., Ltd.	SIN HUN CHEMICAL CO., LTD.	Juridical person of this Company	Financial assets measured at fair value through other comprehensive income - noncurrent	3,520	$ 134,558	9.78%	$ 134,558	-

Note: For information on the investments in subsidiaries and associates, please refer to Annex 4 and Annex 5.

60 -

Double Bond Chemical Ind. Co., Ltd. and Subsidiaries

Total Purchases from or Sales to Related Parties Amounting to at Least NT$100 Million or 20% of the Paid-in Capital

For the Year Ended December 31, 2025

Annex 3

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

Buyer/Seller	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable(Payable)		Note
			Purchase / Sale	Amount	% to Total Purchase / Sale	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total Notes/Account Receivable (Payable)
Double Bond Chemical (Shanghai) Co., Ltd.	DAFENG XIN YUAN DA CHEMICAL CO., LTD.	Associate	Purchase	$ 144,426	13%	-	-	-	($ 56,481)	( 21%)	Note 1
DAFENG XIN YUAN DA CHEMICAL CO., LTD.	Double Bond Chemical (Shanghai) Co., Ltd.	Associate	Sale	( 144,426 )	( 63%)	-	-	-	56,481	76%	Note 1
Double Bond Chemical Ind. Co., Ltd.	Double Bond Chemical (Shanghai) Co., Ltd.	Parent Company	Purchase	118,831	12%	-	-	-	( 29,997 )	( 20%)	Note 1
Double Bond Chemical (Shanghai) Co., Ltd.	Double Bond Chemical Ind. Co., Ltd.	Subsidiary	Sale	( 118,831 )	( 9%)	-	-	-	29,997	10%	Note 1
Double Bond Chemical Ind. Co., Ltd.	DBC Switzerland AG	Parent Company	Sale	( 143,699 )	( 9%)	-	-	-	43,093	12%	Note 1
DBC Switzerland AG	Double Bond Chemical Ind. Co., Ltd.	sub-subsidiary	Purchase	143,699	100%	-	-	-	( 43,093 )	( 100%)	Note 1

Note 1: There is no significant difference in the transaction price and payment terms of purchase/sale made by the related parties than by the general suppliers.

Double Bond Chemical Ind. Co., Ltd. and Subsidiaries

Information on Investees

For the Year Ended December 31, 2025

Annex 4

(In Thousands of Shares / Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee	Share of Profit (Loss) (Note1)	Note
				December 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Double Bond Chemical Ind. Co., Ltd.	DBC Group Co., Ltd.	Samoan Islands	Investment industry	$ 317,065	$ 317,065	10,430	100	$ 1,648,989	$ 90,895	$ 85,183	Note 1 & 2
	DBC Europe Holding AG	Switzerland	Investment industry	2,982	2,982	0.1	100	19,255	6,241	6,241	Note 2
	DBC Europe GmbH	Germany	Chemical industry	3,599	3,599	-	100	1,933	221	221	Note 2
	DBC Korea Co., Ltd.	Korea	Chemical industry	4,457	4,457	59.477	99.98	4,202	( 573 )	( 573 )	Note 2
	Double Bond Chemical Ind. USA, Inc.	America	Chemical industry	45,530	45,530	2	100	( 157 )	6,647	6,647	Note 2
	PT. Double Bond Chemindo	Indonesia	Chemical industry	13,155	10,028	2.499	99.96	12,567	2,989	2,163	Note 2
	Double Bond Chemical (Thailand) Co., Ltd.	Thailand	Chemical industry	907	907	9.8	49	1,309	766	375	Note 2
	Double Bond Chemical Vietnam Co., Ltd.	Vietnam	Chemical industry	22,118	22,118	-	100	16,667	2,813	2,813	Note 2
DBC Group Co., LTD.	Double Bond Chemical Global Co., Ltd.	Samoan Islands	Investment industry	79,338	79,338	2,530	100	1,199,373	106,840	106,840	Note 2
	Total Triumph Limited	Samoan Islands	Investment industry	237,595	237,595	7,900	100	462,353	( 15,944 )	( 15,944 )	Note 2
	PT. Double Bond Chemindo	Indonesia	Chemical industry	3	-	0.001	0.04	6	2,989	-
DBC Europe Holding AG	DBC Switzerland AG	Switzerland	Chemical industry	2,679	2,679	0.08	80	11,880	8,048	6,438	Note 2

Note 1: According to the shareholding ratio, the net profit of investee company is NT$90,895 thousand plus the balance of unrealized and realized gain adjustments of (NT$5,712) thousand for sidestream and upstream transaction.
Note 2: As calculated in accordance with the financial statements of investee company audited by the accountant in 2025.

Double Bond Chemical Ind. Co., Ltd. and Subsidiaries

Information on Investments in Mainland China

For the Year Ended December 31, 2025

Annex 5

(In Thousands of New Taiwan Dollars/Thousands of RMB/Thousands of USD)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 3)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025	Note
					Outward	Inward
Double Bond Chemical (Shanghai) Co., Ltd. DAFENG XIN YUAN DA CHEMICAL CO., LTD.	Chemical Chemical	$ 79,518 (USD 2,530) 283,162 (RMB62,981)	Note 1 Note 1	$ 79,518 (USD 2,530) 207,585 (RMB46,171)	$ -	$ -	$ 79,518 (USD 2,530) 207,585 (RMB 46,171)	$ 106,136 (RMB 24,495) (15,948) (RMB -3,681)	100 100	$ 106,136 (15,948)	$ 1,199,343 461,461	$ 656,486 -	- Note 4
Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025	Investment Amount Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
---	---	---
$ 287,103
(RMB 46,171)
(USD 2,530)	$ 409,664
(RMB 73,431)
(USD 2,530)	No upper limit on the amount of investment

Note 1: Investing by setting up a company in the third region before reinvesting in the mainland companies.
Note 2: The exchange rate is based on the average purchase/sell rate of the Bank of Taiwan on December 31, 2025.
Note 3: As calculated in accordance with the financial statement of investee company audited by the accountant in 2025.
Note 4: Regarding DAFENG XIN YUAN DA CHEMICAL CO., LTD., the difference between the accumulated outward remittance for investment from Taiwan of 207,585 (RMB 46,171) and the paid-up capital of 283,162 (RMB 62,981) at the end of the current period was due to the capital increase out of earnings.
Note 5: According to the regulations of Investment Commission, MOEA, the Company is not subject to an upper limit due to obtaining supporting document within the validity period for operation headquarters of the company issued by Industrial Development Bureau, MOEA.

§Schedule Lists of Significant Financial Statement Accounts§

SCHEDULE LISTS	Number/Index
Assets, liabilities and owner's equity
Cash	Table 1
Accounts receivable	Table 2
Inventory	Table 3
Other current assets	Note 16
Changes in investments by using equity method	Table 4
Changes in property, plant and equipment	Note 13
Changes in accumulated depreciation of property, plant and equipment	Note 13
Deferred income tax assets	Note 23
Changes in other intangible assets	Note 15
Other noncurrent assets	Note 16
Accounts payable	Table 5
Short-term borrowings	Table 6
Long-term borrowings	Table 7
Deferred income tax liabilities	Note 23
Profit and loss
Operating revenue	Table 8
Operating cost	Table 9
Operating expense	Table 10
Depreciation, amortization and employee benefit expense this term	Note 22

64 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Cash and Cash Equivalents
December 31, 2025

Table 1 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Account	Summary	Amount
Cash on hand and revolving funds	Note 1	$ 419
Bank check and demand deposit	Note 2	269,335
		$ 269,754

Note 1: Including USD 3 thousand, RMB 28 thousand, JPY 192 thousand and HKD 7 thousand, which were converted to NT$ at exchange rates of 31.43, 4.496, 0.2008 and 4.038, respectively.
Note 2: Including USD 2,558 thousand, RMB 1,476 thousand, JPY 36,332 thousand and EUR 362 thousand, which were converted to NT$ at exchange rates of 31.43, 4.496, 0.2008 and 36.9, respectively.

65 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Accounts Receivable
December 31, 2025

Table 2
(In Thousands of New Taiwan Dollars)

Customer Name	Summary	Amount
Non-related parties
A	Sales revenue	$ 119,192
Others (Note)	Sales revenue	111,030
Less: allowance for doubtful accounts		( 2,409 )
Minor Sum		227,813
Related parties
DBC Switzerland AG	Sales revenue	43,093
Double Bond Chemical Ind. USA, Inc.	Sales revenue	28,082
PT. Double Bond Chemindo	Sales revenue	14,107
DAFENG XIN YUAN DA CHEMICAL CO., LTD.	Sales revenue	19,111
Others (Note)	Sales revenue	13,677
Minor Sum		118,070
		$ 345,883

Note: Individual balance has not reached 5 percent of the balance under this financial statement account.

66 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Inventory
December 31, 2025

Table 3
(In Thousands of New Taiwan Dollars)

Account	Cost	Market Price (Note)
Raw materials	$102,936	$ 86,984
Finished products	199,940	218,563
Less: allowance to reduce inventory to market	( 39,439 )	-
	$263,437	$305,547

Note: The market price is calculated based on the net realizable value.

67 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Changes in Investments Accounted for Using Equity Method
For the Year Ended December 31, 2025

(In Thousands of Shares / Thousands of New Taiwan Dollars)

Table 4

Name	Opening Balance		Increment This Year		Decrement This Year		Adjustment Number for Cumulative Conversion	Profit and Loss on Investment	Realized (unrealized) gain from sale	Closing Balance			Market Price or Net Worth of Shareholders' Equity (Note 1)
	Number of share	Amount	Number of Share	Invested Amount	Number of Share	Amount				Closing Number of Share	Shareholding Percentage %	Closing Amount	Total	Pledge
Investment accounted for using equity method
DBC Group Co., Ltd.	10,430	$1,604,630		$ -		($ 45,221)	$ 4,820	$ 85,183	($ 423)	10,430	100	$1,648,989	$1,648,989	None
DBC Europe Holding AG	0.1	11,597		-		-	1,417	6,241	-	0.1	100	19,255	19,255	None
DBC Europe GmbH	-	1,574		-		-	138	221	-	-	100	1,933	1,933	None
DBC Korea Co., Ltd.	59.477	4,865		-		-	( 94)	( 573)	4	59.477	99.98	4,202	4,202	None
Double Bond Chemical Ind. USA., Inc.	2	( 7,732)		-		-	349	6,647	579	2	100	( 157)	( 157)	None
PT. Double Bond Chemindo	1.675	6,422	0.824	4,540		-	( 646)	2,163	88	2.499	99.96	12,567	12,567	None
Double Bond Chemical (Thailand) Co., Ltd.	9.8	878		-		-	55	375	1	9.8	49	1,309	1,309	None
Double Bond Chemical Vietnam Co., Ltd.	-	15,112		-		-	( 1,099)	2,813	( 159)	-	100	16,667	16,667	None
		1,637,346		$ 4,540		($ 45,221)	$ 4,940	$ 103,070	$ 90			1,704,765	$1,704,765
Add: long-term equity investment credit balance reclassified as other noncurrent liabilities		7,732										7,732
		$1,645,078										$1,712,497

Note 1: Net worth of shareholder's equity is mainly calculated based on the financial statements of the investee company and the shareholding ratio of the company.

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Accounts Payable
December 31, 2025

Table 5
(In Thousands of New Taiwan Dollars)

Customer Name	Summary	Amount
Non-related parties
C	Sales Revenue	$ 31,264
Others (Note)	Sales Revenue	50,036
		81,300
Related parties
Double Bond Chemical (Shanghai) Co., Ltd.	Sales Revenue	29,997
DAFENG XIN YUAN DA CHEMICAL CO., LTD.	Sales Revenue	17,889
Sin Hun Chemical Co., Ltd.	Sales Revenue	18,101
Others (Note)	Sales Revenue	2,039
		68,026
		$ 149,326

Note: Individual balance has not reached 5 percent of the balance under this financial statement account.

69 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Short-term Borrowings
December 31, 2025

Table 6
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Loan Type and Creditor	Balance, End of Year	Contract Period	Range of interest rates (%)	Loan Commitment	Pledge or Collateral
Bank secured loan
E.SUN Commercial Bank	$ 170,000	2025.11.27-2026.03.27	2.17%	$ 200,000	Property, plant and equipment
Land Bank of Taiwan	150,000	2025.12.03-2026.01.02	1.95%	150,000	Property, plant and equipment
CTBC Bank Co., Ltd	100,000	2025.11.20-2026.03.04	0.75%	171,000	Property, plant and equipment
Bank unsecured loan
Yuanta Commercial Bank Co., Ltd.	200,000	2025.12.03-2026.03.03	1.90%	200,000	None
Taipei Fubon Bank	185,000	2025.08.29-2026.02.25	2.2%-2.33%	200,000	None
Cathay United Commercial Bank	90,000	2025.10.13-2026.01.26	2.02%	100,000	None
Shanghai Commercial and Savings Bank	128,717	2025.08.07-2026.08.07	2.175%	150,000	None
First Commercial Bank Co., Ltd.	100,000	2025.12.12-2026.01.12	2.10%	120,000	None
Total short-term borrowings	$1,123,717			$1,291,000

Note: As of the end of 2025, the company had NT$ 167,283 thousand unused loan commitment to short-term bank borrowings.

70 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Long-term Borrowings
December 31, 2025

Table 7
(In Thousands of New Taiwan Dollars)

Name	Borrowing Period	Annual Interest Rate (%)	Original Borrowing Amount	Loan Commitment (Note 2)	Carrying Amount			Pledge or Collateral	Note
					Due within One Year	Due after One Year	Total
Bank secured loan
Land Bank of Taiwan	2022.12.24-2030.03.24	2.18288%	$ 82,500	$ 82,500	$ 3,847	$ 13,100	$ 16,947	Property, plant and equipment	Note 1
Land Bank of Taiwan	2020.02.17-2040.02.17	2.08245%	566,000	566,000	29,190	449,979	479,169	Property, plant and equipment	Note 1
Land Bank of Taiwan	2021.05.13-2026.04.22	2.125%	146,800	182,000	16,768	-	16,768	Property, plant and equipment	Note 1
CTBC Bank Co., Ltd	2021.09.26-2026.11.26	2.60%	300,000	300,000	29,000	-	29,000	Property, plant and equipment	Note 1
E.SUN Commercial Bank	2024.12.26-2028.12.26	2.47%	100,000	100,000	50,000	50,000	100,000	Property, plant and equipment	Note 1
			$ 1,195,300	$ 1,230,500	$ 128,805	$ 513,079	$ 641,884

Note 1: The interest is paid on a monthly basis, and the principal and interest are repaid to the maturity date of the loan in monthly installment.
Note 2: As of the end of 2025, the company had NT$ 0 thousand unused loan commitment to long-term bank borrowings.

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Operating Revenue
For the Year Ended December 31, 2025

Table 8
(In Thousands of New Taiwan Dollars /Metric Ton)

Account	Quantity	Amount
Plastics additives	5,919	$ 717,790
UV curable materials	1,613	338,783
Electronic materials	630	402,467
Others (Note)		76,282
Total Sales Revenue		$1,535,322

Note: Individual amount has not reached 10 percent of the amount under this financial statement account.

72 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Operating Cost
For the Year Ended December 31, 2025

Table 9
(In Thousands of New Taiwan Dollars)

Account	Amount
Raw materials at the beginning of the year	$ 108,575
Add: incoming materials	172,359
Transfer-in of finished goods	( 10,355 )
Loss on disposal and impairment	( 56 )
Inventory overage	27
Reclassified expenses and others	( 15,577 )
Less: raw materials at the end of the year	( 102,936 )
Direct material consumption	152,037
Direct labor	79,245
Manufacturing expenses	109,669
Manufacturing costs	340,951
Add: Finished products at the beginning of the year	203,030
Finished products purchased	813,444
Transfer-in of raw materials	10,355
Loss on impairment	( 720 )
Inventory overage	7
Reclassified expenses and others	( 1,349 )
Less: finished products at the end of the year	( 199,940 )
Cost of goods sold	1,165,778
Inventory write-downs reversed	( 3,814 )
Inventory overage	( 34 )
Loss on disposal and impairment	776
Other operating cost	109,583
Total operating cost	$ 1,272,289

73 -

Double Bond Chemical Ind. Co., Ltd.
Schedule List of Operating Expense
For the Year Ended December 31, 2025

Table 10
(Unless otherwise specified, all amounts are expressed in Thousands of New Taiwan Dollars)

	Marketing Expense	Management Expense	R&D Expense	Total
Salary	$ 26,743	$ 41,508	$ 25,335	$ 93,586
Freight	58,945	84	-	59,029
Insurance	2,855	2,933	2,736	8,524
Research and development	-	-	9,981	9,981
Depreciation	2,004	4,830	3,964	10,798
Commission	29,434	-	-	29,434
Other expenses	19,028	21,319	12,292	52,639
Total	$139,009	$ 70,674	$ 54,308	$263,991

74 -

AI assistant

DBC Audit Report / Information 2025

52428_rns_2026-06-05_b7709ba5-cfc5-4403-99f7-aa5ba3f3313e.pdf

DOUBLE BOND CHEMICAL IND. CO., LTD.

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

Auditors' Responsibilities for the Audit of the Financial Statements

2. Equity instruments

3. Financial liabilities

(1) Subsequent measurement

(2) Derecognition of financial liabilities

(XI) Revenue recognition

Sale of goods

XI. Inventories

XIII. Property, plant and equipment

XX. Equity

(I) Share Capital

Ordinary Share

XXIII. Income Taxes Relating To Continuing Operations

(I) Income tax recognized in profit or loss

(IV) Information about unused loss carryforwards

(V) Income tax assessments

XXV. Capital risk management

XXVI. Financial Instrument

1. Fair Value Hierarchy

2. Valuation techniques and inputs applied for Level 2 fair value measurement

Sensitivity Analysis

(3) Other price risk

Sensitivity Analysis

2. Credit risk

3. Liquidity risk

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

XXXII. Separately disclosed items

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DOUBLE BOND CHEMICAL IND. CO., LTD.

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

Auditors' Responsibilities for the Audit of the Financial Statements

2. Equity instruments

3. Financial liabilities

(1) Subsequent measurement

(2) Derecognition of financial liabilities

(XI) Revenue recognition

Sale of goods

XI. Inventories

XIII. Property, plant and equipment

XX. Equity

(I) Share Capital

Ordinary Share

XXIII. Income Taxes Relating To Continuing Operations

(I) Income tax recognized in profit or loss

(IV) Information about unused loss carryforwards

(V) Income tax assessments

XXV. Capital risk management

XXVI. Financial Instrument

1. Fair Value Hierarchy

2. Valuation techniques and inputs applied for Level 2 fair value measurement

Sensitivity Analysis

(3) Other price risk

Sensitivity Analysis

2. Credit risk

3. Liquidity risk

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

XXXII. Separately disclosed items

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