DingZing — Annual Report 2025

Apr 17, 2026

DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2025 AND 2024

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For the convenience of readers and for information purpose only, the 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. 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 auditors’ report and financial statements shall prevail.

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Representation Letter

In connection with the Consolidated Financial Statements of Affiliated Enterprises of DINGZING ADVANCED MATERIALS INCORPORATED (the “Consolidated FS of the Affiliates”), we represent to you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2025 in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those required to be included in the Consolidated Financial Statements of DINGZING ADVANCED MATERIALS INCORPORATED and its subsidiaries (the “Consolidated FS of the Group”) in accordance with International Financial Reporting Standard 10. Additionally, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, DINGZING ADVANCED MATERIALS INCORPORATED does not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours,

DINGZING ADVANCED MATERIALS INCORPORATED By

Lin, Hsun-Tai, Chairman March 10, 2026

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR25004044

To the Board of Directors and Stockholders of Dingzing Advanced Materials Incorporated

Opinion

We have audited the accompanying consolidated balance sheets of Dingzing Advanced Materials Incorporated and its subsidiaries (the “Group”) as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

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

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountants 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.

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Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group’s 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters. Key audit matters for the Group’s 2025 consolidated financial statements are stated as follows:

Appropriateness of sales revenue cut-off

Description

Please refer to Note 4(25) for the accounting policies on revenue recognition.

All of the Group’s operating revenue are revenue from contracts with customers. The revenue is recognised when the control of the products has transferred and when there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Given that a manual process and judgements are involved in the process of transferring the control of the products and fulfilling the contracts, it raises concern about whether the revenue accrued near the financial period-end was recognised in an appropriate manner. Hence, the sales revenue cut-off is identified as a key audit matter.

How our audit addressed the matter

Our key audit procedures performed in respect of the above included the following:

1. Obtained an understanding, assessed and tested whether the internal controls of the sales recognition process is effectively designed and implemented.

2. Verified if the revenue is recognised in an appropriate manner by testing transactions conducted during a certain period of time immediately prior to and after the financial period end, agreeing documentation required for revenue recognition and determining the cut-off based on the terms of sales.

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Allowance for inventory valuation loss

Description

Please refer to Note 4(11) for the accounting policies on inventory valuation, Note 5 for uncertainty of accounting estimates and assumption on inventory evaluation; and Note 6(3) for the details of the inventories.

The inventories are stated at the lower of cost and net realisable value. The net realisable value is subject to management judgement when individually identifying the excess or damaged inventories among numerous items. Thus, the allowance for valuation loss is identified as a key audit matter given the estimation uncertainty.

How our audit addressed the matter

Our key audit procedures performed in respect of the above included the following:

1. Based on our understanding of the Group’s businesses and industry, assessed that the policies are reasonable relating to the allowance for inventory valuation loss, including policies associated with scrapped or sold inventories, judgement on excess or obsolete items and the consistency of policies on estimates.

2. Verified whether the reports are consistent with the Group’s accounting policy, agreed with scrapped or sold inventories by sampling the individual items of inventories and assessed whether the allowance for inventory valuation loss is appropriate.

Other matter – Parent company only financial statements

We have audited and expressed an unmodified opinion on the parent company only financial statements of Dingzing Advanced Materials Incorporated as at and for the years ended December 31, 2025 and 2024.

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Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

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

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

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

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period 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.

Wang, Chun-Kai[Liao, A-Shen ] For and on behalf of PricewaterhouseCoopers, Taiwan March 10, 2026

------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers Taiwan cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(2) and 7 6(3) 6(4) 6(5), 7 and 8 6(6) 6(7) 6(22) 8	December 31, 2025 AMOUNT % $ 576,256 12 45,522 1 423,064 8 645,802 13 42,086 1 567 - 10,609 - 1,743,906 35 - - 3,022,806 62 69,020 1 11,015 - 37,820 1 26,476 1 4,099 - 3,171,236 65 $ 4,915,142 100	December 31, 2024	December 31, 2024
		AMOUNT $ 576,256 45,522 423,064 645,802 42,086 567 10,609 1,743,906 - 3,022,806 69,020 11,015 37,820 26,476 4,099 3,171,236 $ 4,915,142	AMOUNT $ 841,277 111,230 543,560 622,801 36,204 740 16,992 2,172,804 1,183 3,051,492 75,192 9,370 40,910 24,597 5,025 3,207,769 $ 5,380,573	%
Current assets 1100 Cash and cash equivalents 1150 Notes receivable, net 1170 Accounts receivable, net 130X Inventories 1410 Prepayments 1476 Other current financial assets 1479 Other current assets, others 11XX Current Assets Non-current assets 1510 Non-current financial assets at fair value through profit or loss 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for business facilities 1920 Guarantee deposits paid 15XX Non-current assets 1XXX Total assets				16 2 10 11 1 - -
				40
				- 57 1 - 1 1 -
				60
				100

(Continued)

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DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2025 Notes AMOUNT % 6(15) $ 9,327 - 257 - 87,515 2 7 - - 6(8) 232,826 5 8,218 - 13,110 - 6(9)(10) and 8 444,567 9 6(10) 44,266 1 840,086 17 6(9) - - 6(10) and 8 106,731 2 6(22) 9,452 - 52,464 1 6(10) 12,996 1 181,643 4 1,021,729 21 6(12) 721,336 15 6(13) 980,472 20 6(14) 363,977 7 - - 1,829,753 37 ( 2,125) - 3,893,413 79 9 11 $ 4,915,142 100	December 31, 2024	December 31, 2024
		AMOUNT $ 13,928 - 38,671 48,820 249,526 116,944 12,425 124,729 52,558 657,601 420,753 238,516 5,201 60,510 13,518 738,498 1,396,099 714,507 909,012 290,152 13,336 2,055,613 1,854 3,984,474 $ 5,380,573	%
Liabilities Current liabilities 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable to related parties 2200 Other payables 2230 Current income tax liabilities 2280 Current lease liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities, others 21XX Current Liabilities Non-current liabilities 2530 Bonds payable 2540 Long-term borrowings 2570 Deferred tax liabilities 2580 Non-current lease liabilities 2630 Long-term deferred revenue 25XX Non-current liabilities 2XXX Total Liabilities Equity Share capital 3110 Share capital - common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity			- - 1 1 5 2 - 2 1
			12
			8 5 - 1 -
			14
			26
			13 17 6 - 38 -
			74
			100

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

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DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

Items

Year ended December 31 2025 2024 Notes AMOUNT % AMOUNT % 6(15) and 7 $ 2,849,596 100 $ 3,283,286 100 6(3)(7)(20)(21) and 7 ( 1,908,735) ( 67) ( 1,976,859) ( 60) 940,861 33 1,306,427 40 6(3)(7)(20)(21) ( 137,734) ( 5) ( 174,055) ( 5) ( 151,612) ( 5) ( 150,188) ( 5) ( 125,652) ( 5) ( 124,285) ( 4) 12(2) ( 4,041) - 1,882 - ( 419,039) ( 15) ( 446,646) ( 14) 521,822 18 859,781 26 6(16) 8,277 - 15,973 1 6(17) 23,382 1 22,223 1 6(18) ( 20,401) ( 1) 59,323 2 6(6)(10)(19) ( 13,320) - ( 23,892) ( 1) ( 2,062) - 73,627 3 519,760 18 933,408 29 6(22) ( 113,526) ( 4) ( 195,155) ( 6) $ 406,234 14 $ 738,253 23 ($ 3,979) - $ 15,190 - ($ 3,979) - $ 15,190 - $ 402,255 14 $ 753,443 23 $ 406,234 14 $ 738,253 23 $ 402,255 14 $ 753,443 23 6(23) $ 5.64 $ 10.44 $ 5.44 $ 9.88

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit (losses) gains 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating revenue and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will be reclassified to profit or loss 8361 Other comprehensive (loss) income, before tax, exchange differences on translation 8300 Other comprehensive (loss) income for the year, net of tax 8500 Total comprehensive income for the year Profit, attributable to 8610 Owners of the parent Comprehensive income attributable to 8710 Owners of the parent Earnings per share 9750 Total basic earnings per share 9850 Total diluted earnings per share

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

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DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Year ended December 31, 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income Total comprehensive income Appropriation 2023 earnings: Legal reserve appropriated Special reserve Cash dividends Convertible corporate debt options Balance at December 31, 2024 Year ended December 31, 2025 Balance at January 1, 2025 Profit for the year Other comprehensive loss Total comprehensive income (loss) Appropriation 2024 earnings: Legal reserve appropriated Special reserve Cash dividends Convertible corporate debt options Balance at December 31, 2025	Notes		Share capital - common stock		Capital Reserves	Capital Reserves	Capital Reserves				Retained Earnings			Financial statements translation differences of foreign operations		Total equity
					Additional paid-in capital		Employee stock warrants		Legal reserve		Special reserve		Unappropriated retained earnings
	6(14) 6(9)(12) 6(14) 6(9)(12)		$ 692,430 - - - - - - 22,077 $ 714,507 $ 714,507 - - - - - - 6,829 $ 721,336		$ 585,400 - - - - - - 262,012 $ 847,412 $ 847,412 - - - - - - 83,437 $ 930,849	$ 94,066 - - - - - - ( 32,466 ) $ 61,600 $ 61,600 - - - - - - ( 11,977 ) $ 49,623			$ 248,570 - - - 41,582 - - - $ 290,152 $ 290,152 - - - 73,825 - - - $ 363,977	$ 11,594 - - - - 1,742 - - $ 13,336 $ 13,336 - - - - ( 13,336 ) - - $ -		$ 1,637,656 738,253 - 738,253 ( 41,582 ) ( 1,742 ) ( 276,972 ) - $ 2,055,613 $ 2,055,613 406,234 - 406,234 ( 73,825 ) 13,336 ( 571,605 ) - $ 1,829,753		($ 13,336 ) - 15,190 15,190 - - - - $ 1,854 $ 1,854 - ( 3,979 ) ( 3,979 ) - - - - ($ 2,125 )	$ 3,256,380 738,253 15,190 753,443 - - ( 276,972 ) 251,623 $ 3,984,474 $ 3,984,474 406,234 ( 3,979 ) 402,255 - - ( 571,605 ) 78,289 $ 3,893,413

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

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DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Expected credit gains (losses) Depreciation expense Amortization expense Interest income Interest expense Government grant revenue (shown as deduction on operationg costs) Loss (gains) on financial assets at fair value through profit or loss Gain on disposal of property, plant and equipment Loss on disposal of intangible assets Unrealised exchange losses (gains) Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Inventories Prepayments Other financial assets-current Other current assets-others Changes in operating liabilities Current contract liabilities Notes payable Accounts payable Accounts payable to related parties Other payable Other current liabilities-others Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash flows from operating activities

Year ended December 31 Notes 2025 2024 $ 519,760 $ 933,408 12(2) 4,041 ( 1,882 ) 6(5)(6)(20) 228,227 221,818 6(7)(20) 2,831 2,258 6(16) ( 8,277 ) ( 15,973 ) 6(19) 13,320 23,892 6(3) ( 404 ) ( 308 ) 6(18) 896 ( 918 ) 6(18) ( 728 ) ( 104 ) 6(7) 189 - 2,112 ( 36,416 ) 63,721 ( 91,681 ) 103,972 16,236 ( 23,152 ) ( 39,368 ) ( 6,025 ) ( 15,751 ) ( 55 ) 15,818 ( 439 ) ( 6,946 ) ( 4,627 ) 6,385 255 - 48,756 ( 1,920 ) ( 48,305 ) 13,273 ( 21,534 ) 58,584 ( 7,154 ) 30,344 867,380 1,110,749 8,505 17,718 ( 5,835 ) ( 10,523 ) ( 208,512 ) ( 184,542 ) 661,538 933,402

(Continued)

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DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment Increase in prepayments for business facilities Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in refundable deposits Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments from short-term borrowings Repayments of long-term borrowings Payments of lease liabilities Cash dividends paid Net cash flows used in financing activities Net effect of changes in foreign currency exchange rates Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2025 2024 6(24) ($ 76,804 ) ($ 91,112 ) 6(24) ( 109,768 ) ( 90,403 ) 1,055 715 6(7) ( 4,010 ) ( 4,456 ) 900 726 ( 188,627 ) ( 184,530 ) 6(25) 150,000 20,000 6(25) ( 150,000 ) ( 20,000 ) 6(25) ( 161,693 ) ( 478,526 ) 6(25) ( 12,094 ) ( 13,502 ) 6(14) ( 571,605 ) ( 276,972 ) ( 745,392 ) ( 769,000 ) 7,460 17,552 ( 265,021 ) ( 2,576 ) 6(1) 841,277 843,853 6(1) $ 576,256 $ 841,277

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

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DINGZING ADVANCED MATERIALS INCORPORATED AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

• (1) Dingzing Advanced Materials Incorporated (the “Company”) was established in February 1981, formerly named Dingzing Chemical Products Co., Ltd. and renamed in May 2015 for business operation. The Company and its subsidiaries (the “Group”) are primarily engaged in the manufacture and sale of high-tech polyurethane (Thermoplastic Polyurethane, hereinafter “TPU”), wholesale of chemical raw materials and international trade.

• (2) The Company has been a listed company since May 20, 2022.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on March 10, 2026.

1. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS (1) Effect of the adoption of new issuances of or amendments to International Financial ReportingStandards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by FSC and became effective from 2025 are as follows:

are as follows:
	Effective date by
	International Accounting
New Standards,InterpretationsandAmendments	Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

New Standards,InterpretationsandAmendments	Effective date by International Accounting StandardsBoard
Specific provisions of Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’ Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature- dependent electricity’ IFRS 17, ‘Insurance contracts’	January 1, 2026 January 1, 2026 January 1, 2023

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	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	StandardsBoard
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

Accounting Standards as endorsed by the FSC are as follows:
New Standards,InterpretationsandAmendments Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 18, ‘Presentation and disclosure in financial statements’ IFRS 19, ‘Subsidiaries without public accountability: disclosures’ Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	Effective date by International Accounting StandardsBoard
	To be determined by International Accounting Standards Board January 1, 2027(Note) January 1, 2027 January 1, 2027

Note ： The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

IFRS 18, 'Presentation and disclosure in financial statements'

IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to managementdefined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

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(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. The consolidated financial statements have been prepared under the historical cost convention.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

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B. Subsidiaries included in the consolidated financial statements:

==> picture [468 x 43] intentionally omitted <==

----- Start of picture text -----

Ownership(%) Ownership(%)
Main business
Name of investor Name of subsidiary activities December 31, 2025 December 31, 2024 Description
----- End of picture text -----

The Company	SHANGHAI DINTEX	Sale of high-tech	100%	100%
	TRADING CO., LTD	polyurethane
		relative products
	DING LI	Sale of high-tech	100%	100%
	POLYURETHANE	polyurethane
	CO., LTD.	relative products
	DINGZING ADVANCED	Reinvest in various	100%	100%
	MATERIALS USA,INC.	business
	DINGZING ADVANCED	Marketing	100%	100%	Note
	MATERIALS VIETNAM
	COMPANY LIMITED
	DINGZING ADVANCED	Marketing	100%	100%
	MATERIALS EUROPE
	GmbH
DINGZING	DINGZING ADVANCED	Marketing	100%	100%
ADVANCED	MATERIALS USA LLC
MATERIALS
USA, INC.

Note : On February 10, 2026, the Company’s Board of Directors resolved to liquidate its subsidiary, DINGZING ADVANCED MATERIALS VIETNAM COMPANY LIMITED. Related procedures are still in process.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

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• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  - (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  - (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  - (c) All resulting exchange differences are recognised in other comprehensive income.

• (5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

  • (a) Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

  • (b) Assets that are held primarily for the purpose of trading;

  • (c) Assets that are expected to be realised within twelve months after the reporting period;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities for at least twelve months after the reporting period.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be paid off in the normal operating cycle;

  • (b) Liabilities that are held primarily for the purpose of trading;

  • (c) Liabilities that are due to be settled within twelve months after the reporting period;

  • (d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that were obtained within three months, and meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

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(7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

(8) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(9) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(11) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

(12) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 2 ~ 46 years Machinery and equipment 3 ~ 21 years Transportation equipment 3 ~ 10 years Office equipment 4 ~ 10 years Other equipment 3 ~ 16 years

(13) Leasing arrangements (lessee) - right-of-use assets/ lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable;

• (b) Variable lease payments that depend on an index or a rate; and

• (c) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a)The amount of the initial measurement of lease liability;

• (b)Any lease payments made at or before the commencement date;

• (c)Any initial direct costs incurred by the lessee; and

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• (d)An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(14) Intangible assets

A. Trademarks

Trademarks and licences that are separately acquired at cost, have a finite useful life and are amortised on a straight-line basis over their estimated useful lives of 2 to 10 years.

• B. Software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 2 to 5 years.

C. Patents

Patents are stated at cost and amortised on a straight-line basis over their estimated useful life of 9 to 20 years.

(15) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(16) Borrowings

• Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(17) Accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services.

• B. The short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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(18) Convertible bonds payable

Convertible bonds payable issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Group’s common shares by exchanging a fixed amount of cash for a fixed number of common shares), redemption rights, call options and put options. The Group classifies the bonds payable upon issuance as a financial asset, a financial liability or an equity instrument in accordance with the contract terms. They are accounted for as follows:

• A. The embedded redemption rights, call options and put options are recognised initially at net fair value as ‘financial assets or financial liabilities at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognised as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.

• B. The host contracts of bonds are initially recognised at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortised in profit or loss as an adjustment to ‘finance costs’ over the period of circulation using the effective interest method.

• C. The embedded conversion options which meet the definition of an equity instrument are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable as stated above. Conversion options are not subsequently remeasured.

• D. Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.

• E. When bondholders exercise conversion options, the liability component of the bonds (including bonds payable and ‘financial assets or financial liabilities at fair value through profit or loss’) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total carrying amount of the abovementioned liability component and ‘capital surplus—share options’.

(19) Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

(20) Non-hedging derivatives

Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

(21) Employee benefits

• A. Salaries and other short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

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B. Pensions

For defined contribution plans, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• C. Employees’ compensation and directors’ remuneration

• Employees’ compensation and directors’ remuneration are recognised as expenses and liabilities, provided that such recognition is required under legal obligation or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(22) Income tax

• A The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

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• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

• (23) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• (24) Dividends

Cash dividends are recorded as liabilities in the Company’s financial statements in the period in which they are resolved by the Company’s Board of Directors; stock dividends are recorded as stock dividends to be distributed in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders and are reclassified to ordinary shares on the effective date of new shares issuance.

(25) Revenue recognition

• A. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• B. Sales is recognised based on the price specified in the contract, net of the estimated volume discounts and sales discounts and allowances. Accumulated experience is used to estimate and provide for the volume discounts and sales discounts and allowances, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected volume discounts and sales rebate payable to customers (shown as other current liabilities, others) in relation to sales made until the end of the reporting period.

• As the time interval between the transfer of committed goods and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• C. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

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(26) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognised as non-current liabilities and are amortised to profit or loss over the estimated useful lives of the related assets using the straight-line method.

(27) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Group’s Chief Operating Decision-Maker is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The related information is addressed below:

Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of December 31, 2025, the carrying amount of inventories was $645,802.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand and petty cash Checking accounts and demand deposits Cash and cash equivalents	December31,2025 2,244 $ 460,521 113,491 576,256 $	December 31, 2024
		2,456 $ 516,782 322,039
		841,277 $

• A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. The Group has no cash and cash equivalents pledged to others.

• C. The aforementioned time deposits had maturities within three months and were classified as cash equivalents based on their nature.

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(2) Notes and accounts receivable, net

Notes and accounts receivable, net
			December31,2025			December31,2024
Notes receivable		$	45,538		$	111,246
Less:Allowance for uncollectible accounts	(		16)	(		16)
		$	45,522		$	111,230
Accounts receivable		$	429,238		$	545,724
Less:Allowance for uncollectible accounts	(		6,174)	(		2,164)
		$	423,064		$	543,560

A. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

Not past due Past due: Up to 30 days 31 to 90 days 91 to 180 days Over 181 days	Notesreceivable Accounts receivable 45,538 $ 402,462 $ - 16,703 - 5,664 - 6 - 4,403 45,538 $ 429,238 $ December31,2025	December31,2024	December31,2024
		Notesreceivable Accountsreceivable 111,246 $ 500,468 $ - 38,260 - 6,029 - 695 - 272 111,246 $ 545,724 $
			500,468 $ 38,260 6,029 695 272
			545,724 $

The above ageing analysis was based on past due date.

• B. As of December 31, 2025 and 2024, notes and accounts receivable were all from contracts with customers. And as of January 1, 2024, the balance of receivables from contracts with customers amounted to $546,399.

• C. As of December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the notes and accounts receivable held by the Group was $468,586 and $654,790, respectively.

• D. Information relating to credit risk of notes and accounts receivable is provided in Note 12(2).

(3) Inventories

• A. Details of inventories are as follows:

entories Details of inventories are as	follows:
Raw materials Work in progress Finished goods Materials in transit		December31,2025
	Cost 450,434 $ 44,633 275,512 2,328 772,907 $	Allowance forvaluation loss 91,089) ($ 1,575) ( 34,441) ( - 127,105) ($	Bookvalue
			359,345 $ 43,058 241,071 2,328
			645,802 $

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December 31, 2024

	December31,2024
Raw materials Work in progress Finished goods Materials in transit	Cost Allowance forvaluation loss 400,022 $ 79,632) ($ 58,402 3,091) ( 271,671 30,314) ( 5,743 - 735,838 $ 113,037) ($	Bookvalue
		320,390 $ 55,311 241,357 5,743 622,801 $

B. The cost of inventories recognised as expense for the period:

The cost of inventories recognised as expense for the period:
Year ended December 31, 2025 Cost of goods sold 1,908,735 $ Recognised as marketing, research and development expenses 97,589 2,006,324 $	Year ended December31,2024
	1,976,859 $ 93,209
	2,070,068 $

The Group wrote down from cost of inventories to net realisable value and scrapping accounted for as cost of goods sold and government grant revenue in the amounts of $14,068 and $16,605 ； $404 and $308 for the years ended December 31, 2025 and 2024, respectively.

C. The Group has no inventory pledged to others.

(4) Non-current financial assets at fair value through profit or loss

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Item December 31, 2025 December 31, 2024
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Item	December31,2025	December 31, 2024
Financial assets mandatorily measured as fair value through profit or loss Redemption rights of convertible corporate bonds Valuation adjustment	531 $ 531) ( - $	652 $ 531
		1,183 $

• A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are provided in Note 6(18).

• B. Details of the terms of the first secured convertible bonds and the second domestic unsecured convertible bonds issued by the Company are provided in Note 6(9).

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(5) Property, plant and equipment

Property, plant and equipment
At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions Disposals - cost Transfer Depreciation charge Disposals - accumulated depreciation Effects of foreign exchange Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation			2025
	Buildings and Machinery and Transportation Land structures equipment equipment Office equipment Other equipment 772,146 $ 1,783,309 $ 3,063,841 $ 24,013 $ 7,563 $ 391,884 $ - 512,595) ( 2,304,178) ( 14,627) ( 5,249) ( 237,982) ( 772,146 $ 1,270,714 $ 759,663 $ 9,386 $ 2,314 $ 153,902 $ 772,146 $ 1,270,714 $ 759,663 $ 9,386 $ 2,314 $ 153,902 $ - 18,726 53,549 - 300 6,549 - - 9,083) ( 1,209) ( - 2,817) ( - 2,737 65,569 - 200 103 - 66,318) ( 122,197) ( 2,562) ( 528) ( 25,747) ( - - 9,083 882 - 2,817 - - - 21) ( - - 772,146 $ 1,225,859 $ 756,584 $ 6,476 $ 2,286 $ 134,807 $ 772,146 $ 1,804,772 $ 3,173,876 $ 22,788 $ 8,030 $ 395,722 $ - 578,913) ( 2,417,292) ( 16,312) ( 5,744) ( 260,915) ( 772,146 $ 1,225,859 $ 756,584 $ 6,476 $ 2,286 $ 134,807 $				Unfinished construction Total 83,367 $ 6,126,123 $ - 3,074,631) ( 83,367 $ 3,051,492 $ 83,367 $ 3,051,492 $ 2,656 81,780 - 13,109) ( 38,625 107,234 - 217,352) ( - 12,782 - 21) ( 124,648 $ 3,022,806 $ 124,648 $ 6,301,982 $ - 3,279,176) ( 124,648 $ 3,022,806 $	Total
						6,126,123 $ 3,074,631) (
						3,051,492 $
						3,022,806 $
						6,301,982 $ 3,279,176) (
						3,022,806 $

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2024

	2024
At January 1 Cost Accumulated depreciation Accumulated impairment Opening net book amount as at January 1 Additions Disposals - cost Transfer Depreciation charge Disposals - accumulated depreciation Impairment loss Effects of foreign exchange Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation	Buildings and Machinery and Transportation Unfinished Land structures equipment equipment Office equipment Otherequipment construction Total 750,807 $ 1,726,886 $ 2,999,438 $ 18,009 $ 6,179 $ 367,109 $ 99,135 $ 5,967,563 $ - 451,423) ( 2,202,639) ( 13,696) ( 5,166) ( 211,973) ( - 2,884,897) ( - 2,047) ( - - - - - 2,047) ( 750,807 $ 1,273,416 $ 796,799 $ 4,313 $ 1,013 $ 155,136 $ 99,135 $ 3,080,619 $ 750,807 $ 1,273,416 $ 796,799 $ 4,313 $ 1,013 $ 155,136 $ 99,135 $ 3,080,619 $ 21,339 14,546 47,699 2,928 904 7,169 716 95,301 - 216) ( 17,979) ( 1,932) ( 253) ( 13) ( - 20,393) ( - 42,085 34,654 4,847 637 17,600 16,484) ( 83,339 - 61,380) ( 118,995) ( 2,665) ( 223) ( 26,006) ( - 209,269) ( - 216 17,474 1,849 230 13 - 19,782 - 2,047 - - - - - 2,047 - - 11 46 6 3 - 66 772,146 $ 1,270,714 $ 759,663 $ 9,386 $ 2,314 $ 153,902 $ 83,367 $ 3,051,492 $ 772,146 $ 1,783,309 $ 3,063,841 $ 24,013 $ 7,563 $ 391,884 $ 83,367 $ 6,126,123 $ - 512,595) ( 2,304,178) ( 14,627) ( 5,249) ( 237,982) ( - 3,074,631) ( 772,146 $ 1,270,714 $ 759,663 $ 9,386 $ 2,314 $ 153,902 $ 83,367 $ 3,051,492 $	Total
		3,051,492 $
		6,126,123 $ 3,074,631) (
		3,051,492 $

A. The Group has no borrowing costs capitalised as part of property, plant and equipment for the years ended December 31, 2025 and 2024.

B. The significant components of buildings include main plants, partition and maintenance and repairment constructions, which are depreciated over 30 to 46 years and 2 to 16 years, respectively.

• C. On September 22, 2023, the Group was affected by the significant fire incident of a nearby factory, resulting in an impairment in certain buildings and structures. The Group recognized

related impairment loss amounting to $2,047 for the year ended December 31, 2023. Due to subsequent restoration, the loss is reversed.

D. Purchase of real estate, delivery rooms and equipment from related parties. Please refer to Note 7 for details of related party transactions.

E. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8, ‘Pledged assets’.

• F. Please refer to Note 9, for the details of significant contingent liabilities and unrecognised contract commitments..

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(6) Leasing arrangements

• A. Lessee

• (a) The Group leases various assets including land, buildings, transportation equipment and other equipment. Rental contracts are made for periods of 3 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• (b) The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings and structures Transportation equipment Other equipment Land Buildings and structures Transportation equipment Other equipment	December31,2025 Carryingamount 50,740 $ 12,332 5,871 77 69,020 $ Year ended December31,2025 Depreciationcharge 1,201 $ 7,268 2,094 312 10,875 $	December31,2024
		Carrying amount
		51,941 $ 21,235 1,627 389
		75,192 $
		Year ended December31,2024
		Depreciationcharge
		1,197 $ 8,808 2,232 312
		12,549 $

• (c) For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $5,803 and $3,286, respectively. For the years ended December 31, 2025 and 2024, an increase of $418 and $1,648 in the right-of-use assets and lease liabilities was recognised due to the lease modification.

• (d) Information on profit or loss in relation to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	Year ended December31,2025 1,184 $ 2,672	Year ended December31,2024
		1,498 $ 2,657

• (e) For the years ended December 31, 2025 and 2024, the Group’s total cash outflow for leases were $15,950 and $17,657, respectively.

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(f) Variable lease payments

• i. Some of the Group’s lease contracts contain variable lease payment terms that are linked to announced land value.

• ii.For the years ended December 31, 2025 and 2024, the net increase in the remeasured lease liabilities was $418 and $1,432, respectively, with a corresponding adjustment to right-ofuse assets.

• (g) Extension and termination options

• i. Extension options are included in the Group’s lease contracts pertaining to land.

• ii.In determining the lease term, the Group takes into consideration facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

(7) Intangible assets

==> picture [505 x 221] intentionally omitted <==

----- Start of picture text -----

2025
Opening net Closing net book
book amount Amortisation amount as at
as at January 1 Additions charge Transfer Disposals December 31
Software $ 3,025 $ 3,108 ($ 1,894) $ 655 $ - $ 4,894
Trademarks 3,791 865 ( 743) - - 3,913
Patents 2,554 37 ( 194) - ( 189) 2,208
$ 9,370 $ 4,010 ($ 2,831) $ 655 ($ 189) $ 11,015
2024
Opening net Closing net book
book amount Amortisation amount as at
as at January 1 Additions charge Transfer Disposals December 31
Software $ 893 $ 1,845 ($ 1,481) $ 1,768 $ - $ 3,025
Trademarks 2,719 1,695 ( 623) - - 3,791
Patents 1,792 916 ( 154) - - 2,554
$ 5,404 $ 4,456 ($ 2,258) $ 1,768 $ - $ 9,370
----- End of picture text -----

• A. Details of amortisation on intangible assets are as follows:

Operating costs Selling expenses Administrative expenses Research and development expenses	Year ended December31,2025 213 $ 28 2,574 16 2,831 $	Year ended December31,2024
		108 $ 28 2,112 10
		2,258 $

B. The Group has no intangible assets pledged to others.

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(8) Other payables

Bonds payable December31,2025 Salaries and bonus payable 144,655 $ Payable on machinery and equipment 16,687 Others 71,484 232,826 $ December31,2025 Secured convertible bonds 273,100 $ Unsecured convertible bonds 80,600 Less: Discount on bonds payable 5,179) ( ( 348,521 Less: Current portion 348,521) ( - $	December31,2024 174,683 $ 11,711 63,132 249,526 $ December 31, 2024 341,700 $ 92,900 13,847) 420,753 - 420,753 $

(9) Bonds payable

• A. The terms of the first domestic secured convertible bonds issued by the Company are as follows:

• (a) The Company issued $500,000, 0% first domestic secured convertible bonds, as approved by the regulatory authority. The bonds were issued at 111.96% of face value and mature 3 years from the issue date (October 26, 2023 ~ October 26, 2026). The bonds held by the Company’s bondholders will be redeemed in cash at face value within 10 trading days from the date after the maturity date. The bonds were listed on the Taipei Exchange on October 26, 2023.

• (b) The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue (January 27, 2024) to the maturity date (October 26, 2026), except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

• (c) The conversion price of the bonds is set up based on the pricing model specified in the terms of the bonds. The conversion price is NT$120.9 (in dollars) per share at issuance and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price will be recalculated based on the pricing model specified in the terms of the bonds on each effective date regulated by the terms. If the recalculated conversion price is lower than the conversion price before the recalculation, the conversion price will be adjusted; however, it will not be adjusted if it is higher. As of December 31, 2025, the conversion price of this convertible corporate bond has been adjusted to NT$110.9 per share.

• (d) The Company may repurchase all the bonds outstanding in cash at the bonds’ face value within 30 trading days or at any time after the following events occur: (i) the closing price of the Company common shares is above the then conversion price by 30% (including 30%) for 30 consecutive trading days during the period from the date after three months of the bonds issue (January 27, 2024) to 40 days before the maturity date (September 16, 2026), or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount.

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• (e) Under the terms of the bonds, all bonds redeemed, matured and converted are retired and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

• (f) Regarding the issuance of the first domestic secured convertible bonds, the equity conversion options amounting to $81,801 were separated from the liability component and were recognised in ‘capital surplus—share options’ in accordance with IAS 32. The redemption rights embedded in bonds payable were separated from their host contracts and were recognised in ‘financial assets at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts. The effective interest rates of the bonds payable after such separation was 1.7102%.

• (g) As of December 31, 2025, the par value of the Convertible Corporate Bonds totaling $226,900 has been converted into 1,895 common shares; "Capital Reserve - Stock Options" was converted to $11,223 due to the conversion of corporate bonds; please also refer to Note 6, (12) for a detailed description of share capital .

• B. The terms of the second domestic unsecured convertible bonds issued by the Company are as follows:

• (a) The Company issued $200,000, 0% second domestic unsecured convertible bonds, as approved by the regulatory authority. The bonds were issued at 101% of face value and mature 3 years from the issue date (October 27, 2023 ~ October 27, 2026). The bonds held by the Company’s bondholders will be redeemed in cash at face value within 10 trading days from the date after the maturity date. The bonds were listed on the Taipei Exchange on October 26, 2023.

• (b) The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue (January 28, 2024) to the maturity date (October 27, 2026), except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

• (c) The conversion price of the bonds is set up based on the pricing model specified in the terms of the bonds. The conversion price is NT$120.6 (in dollars) per share at issuance and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price will be recalculated based on the pricing model in the terms of the bonds on each effective date regulated by the terms. If the recalculated conversion price is lower than the conversion price before the recalculation, the conversion price will be adjusted; however, it will not be adjusted if it is higher. As of December 31, 2025, the conversion price of this convertible corporate bond has been adjusted to NT$110.7 per share.

• (d) The Company may repurchase all the bonds outstanding in cash at the bonds’ face value within 30 trading days or at any time after the following events occur: (i) the closing price of the Company common shares is above the then conversion price by 30% (including 30%) for 30 consecutive trading days during the period from the date after three months of the bonds issue (January 28, 2024) to 40 days before the maturity date (September 17, 2026), or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount.

• (e) Under the terms of the bonds, all bonds redeemed, matured and converted are retired and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

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• (f) Regarding the issuance of the second domestic unsecured convertible bonds, the equity conversion options amounting to $12,265 were separated from the liability component and were recognised in ‘capital surplus—share options’ in accordance with IAS 32. The redemption rights embedded in bonds payable were separated from their host contracts and were recognised in ‘financial assets at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts. The effective interest rates of the bonds payable after such separation was 1.9787%.

• (g) As of December 31, 2025, the par value of the Convertible Corporate Bonds of $119,400 has been converted into 996 common shares. The "Capital Reserve - Stock Options" was converted into $754 as a result of the conversion of the Corporate Bonds. Please also refer to Note 6, (12) for a detailed description of the share capital.

• (10) Long term borrowings (including current portion)

Type ofborrowings	Borrowing period andrepayment term	Interest rate range	Collateral	December 31,2025
Long-term bank borrowings Unsecured borrowings Type ofborrowings Less: Current portion	The borrowing term is from May 2021 to September 2029. Starting from October 2022, the borrower will make monthly fixed payments on principal and pay interest calculated on a monthly basis. Borrowing period and repayment term	1.375% (Note) Interest rate range	None Collateral	202,777 $ 96,046) (
				106,731 $
				December 31,2024
Long-term bank borrowings Unsecured borrowings Less: Current portion	The borrowing term is from July 2020 to September 2029. Starting from October 2022, the borrower will make monthly fixed payments on principal and pay interest calculated on a monthly basis.	1.375% (Note)	None	363,245 $ 124,729) (
				238,516 $

• Note: In accordance with the “Guidelines of Project Loans for Returning Overseas Taiwanese Businesses” of National Development Fund, Executive Yuan, the interest rate for the first 5 years of the loan is the 2-year term floating rate of postal savings interest rate less 0.245%~0.345%. If the requirements in the guidelines are not met during the loan period, the interest rate will be adjusted to the 2-year term floating rate of postal savings interest rate plus 0.155%~0.255%.

• A. Interest expense recognised in profit or loss amounted to $5,285 and $13,696 for the years ended December 31, 2025 and 2024, respectively.

• B. For the information of collaterals for long-term borrowings, please refer to Note 8, ‘Pledged assets’.

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• C. The abovementioned borrowings which were related to government grants were recognised by the Group as follows:

the Group as follows:
		December 31, 2025		December 31, 2024
Deferred revenue	$	437	$	319
(shown as other current liabilities)
Long-term deferred revenue		12,996		13,518
	$	13,433	$	13,837

Please refer to Note 6(3) for the details of the recognition of government grant revenue.

D. Details of the aforementioned repayment in advance are provided in Note 12(2)C(c).

(11) Pensions

• A. Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount at least 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

• B. SHANGHAI DINTEX TRADING CO., LTD. and DING LI POLYURETHANE CO., LTD. have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

• C. DINGZING ADVANCED MATERIALS VIETNAM COMPANY LIMITED has a defined contribution pension plan. Monthly contributions to an independent fund administered by the local government in accordance with the social insurance regulations in the local government are based on certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

• D. DINGZING ADVANCED MATERIALS USA LLC has a 401K pension plan. Monthly contributions to an independent fund administered by the local government in accordance with the regulations are based on certain percentage of employees’ monthly salaries and wages. Employees are responsible for their own profits and losses on the pension investment. Other than the monthly contributions, the Group has no further obligations.

• E. The pension costs under defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024, were $28,117 and $27,706, respectively.

(12) Share capital

• A. As of December 31, 2025, the Group’s authorised capital was $1,000,000, consisting of 100,000 thousand shares of ordinary stock (including 9,000 thousand shares reserved for employee stock options), and the paid-in capital was $721,336, consisting of 72,134 thousand shares of ordinary stock, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

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B. Movements in the number of the Company’s ordinary shares outstanding are as follows:

2025 At January 1 71,451 $ Corporate bond conversion (Note) 683 At December 31 72,134 $	Shares in thousands 2024 69,243 $ 2,208 71,451 $

Note: For the years ended December 31, 2025 and 2024, the convertible corporate bonds of the Company were converted into 683,000 and 2,208,000 common shares, respectively, each with a par value of NT$10 per share, and the registration for change has been completed.

(13) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(14) Retained earnings

• A. Under the Company's Articles of Incorporation adopted by the shareholders during their meeting, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the amount of legal reserve is equal to the amount of total capital. After appropriating or reversing special reserve in accordance with related regulations, the remaining earnings along with beginning balance of unappropriated earnings are distributable net profit for stockholders, the appropriation is proposed by the Board of Directors and to be approved at the stockholders’ meeting.

When the Company appropriates special reserve in accordance with the laws, an equivalent amount of special reserve shall be set aside from the undistributed earnings of the prior year based on the cumulative decrease of equity and increased amount in fair value of investment property of the prior year. If it is insufficient to be set aside, the current post-tax profit plus the amount other than the current post-tax profit are included in the appropriation of the current unappropriated earnings.

The Company’s dividend distribution policy is based on the Company's current and future investment environment, future capital requirements, global competition and capital budget, shareholders’ benefits, balanced dividends and the Company’s long-term financial plan. The principle of dividend distribution is at least 30% of ‘distributable retained earnings for current year’. However, the Company may choose not to distribute dividends if ‘distributable retained earnings for current year’ is lower than 5% of paid-in capital. Cash dividends shall not be less than 10% of the total dividends distributed to shareholders.

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The aforementioned ‘distributable retained earnings for current year’ refers to the current year’s earnings after paying all taxes, offsetting prior years’ operating losses, setting aside legal reserve and appropriating or reversing special reserve in accordance with the regulation mentioned in paragraph A. The beginning balance of unappropriated earnings is not added.

The Board of Directors distributed all or part of the distributable dividends and bonus, capital surplus or legal reserve in the form of cash as resolved by a majority vote at their meeting attended by at least two-thirds of the total number of directors and reported to the shareholders. The aforementioned regulation of requiring resolution from the shareholders is not applicable.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• D. On March 4, 2025, the Board of Directors resolved that total dividends for the distribution of earnings for the year of 2024 was $571,605 at NT$8 (in dollars) per share. The resolutions had been reported to the shareholders on May 27, 2025. On March 5, 2024, the Board of Directors resolved that total dividends for the distribution of earnings for the year of 2023 was $276,972 at NT$4 (in dollars) per share. The resolutions had been reported to the shareholders on May 30, 2024.

• E. On March 10, 2026, the Board of Directors resolved that total dividends for the distribution of earnings for the year of 2025 was $324,601 at NT$4.5 (in dollars) per share.

• (15) Operating revenue

All of the Group’s operating revenue are revenue from contracts with customers.

• A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods at a point in time in the following geographical regions:

The Group derives revenue from the transfer geographical regions:	of goods at a point in	time in the following
Taiwan Mainland China U.S.A Others	Year ended December31,2025 302,024 $ 864,906 764,183 918,483 2,849,596 $	Year ended December31,2024
		367,179 $ 939,219 1,023,011 953,877
		3,283,286 $

~38~

B. Contract liabilities

• (a) The Group has recognised the following revenue-related contract liabilities:

	December	31, 2025	December	31,2024		January1,2024
Current contract liabilities	$	9,327	$	13,928	$	7,458

• (b) Revenue recognised that was included in the contract liability balance at the beginning of the year amounted to $13,928 and $7,458 for the years ended December 31, 2025 and 2024, respectively.

(16) Interest income

respectively. Interest income
Year ended December 31, 2025 Interest income from bank deposits 8,244 $ Other interest income 33 8,277 $	Year ended December 31, 2024
	15,941 $ 32
	15,973 $

(17) Other income

Other income Interest income from bank deposits Other interest income	December 31, 2025 8,244 $ 33 8,277 $	December 31, 2024 15,941 $ 32 15,973 $
Renewable energy electricity sales income Others	Year ended December31,2025 7,277 $ 16,105 23,382 $	Year ended December31,2024
		6,849 $ 15,374
		22,223 $

(18) Other gains and losses

Other gains and losses December31,2025 Renewable energy electricity sales income 7,277 $ Others 16,105 23,382 $	December31,2024 6,849 $ 15,374 22,223 $
Year ended December31,2025 Gains on disposals of property, plant and equipment 728 $ (Loss) gain on financial assets ar fair value through profit or loss 896) ( Currency exchange (losses) gain 19,608) ( Other losses 625) ( ( 20,401) ($	Year ended December 31, 2024
	104 $ 918 59,011 710)
	59,323 $

(19) Finance costs

Finance costs
Interest expense: Bank borrowings Bonds Lease liability	Year ended December31,2025 5,793 $ 6,343 1,184 13,320 $	Year ended December31,2024
		13,714 $ 8,680 1,498
		23,892 $

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(20) Expenses by nature

Employee benefit expense Change in inventory of finished goods and work in process Raw materials used Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Amortisation charges on intangible assets Utilities expense Research and development material cost Package fees Insurance expense Repairs and maintenance expense Consumables Processing fees Operating leases expenses Other expenses Operating cost and operating expenses Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses

Year ended Year ended December31,2025 December31,2024 9,928 $ 56,857) ($ 757,035 929,487 691,952 709,788 217,352 209,269 10,875 12,549 2,831 2,258 183,108 167,643 100,263 97,878 71,781 85,791 74,158 70,250 55,393 50,030 49,540 38,557 10,520 6,825 2,672 2,657 90,366 97,380 2,327,774 $ 2,423,505 $ Year ended Year ended December31,2025 December31,2024 585,376 $ 602,441 $ 54,078 51,300 28,117 27,706 7,617 11,692 16,764 16,649 691,952 $ 709,788 $

(21) Employee benefit expense

• A. According to the provisions of the Company's Articles of Incorporation, the Company shall distribute employee remuneration amounting to no less than 1% of the annual profit, of which no less than 30% shall be allocated as remuneration to rank-and-file employees, and distribute directors' remuneration at a rate not exceeding 5% of the annual profit. However, if the Company has accumulated losses, these shall be compensated first.

Employees’ compensation can be distributed in cash or shares and shall be distributed to the employees who meet certain specific requirements.

~40~

• B. For the years ended December 31, 2025 and 2024, employees’ compensation was accrued at $29,984 and $41,735, respectively; directors’ remuneration was accrued at $5,417 and $9,772, respectively. The aforementioned amounts were recognised in salary expenses.

For the year ended December 31, 2025, the employees’ compensation and directors’ remuneration were estimated at 6% and 1%, respectively. Employees’ compensation and directors’ remuneration of 2025 as resolved at the meeting of Board of Directors were in agreement with those amounts recognised in the 2025 financial statements. The employees’ compensation will be distributed in the form of cash.

Employees’ compensation and directors’ remuneration of 2024 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2024 financial statements.

Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(22) Income tax

• A. Components of income tax expense

ome tax Components of income tax expense
			Year ended		Year ended
			December31,2025		December 31, 2024
Current tax:
Current tax on profits for the year	$		106,158	$	185,661
Prior year income tax under (over) estimation			27	(	84)
Total current tax			106,185		185,577
Deferred tax:
Origination and reversal of temporary
differences			7,341		9,578
Income tax expense	$		113,526	$	195,155
Reconciliation between income tax expense and accounting profit
			Year ended		Year ended
			December31,2025		December31,2024
Tax calculated based on profit before		$	112,848	$	187,744
tax and statutory tax rate (Note)
Off-the-book adjusted items by tax regulation	(		6,383)		2,216
Taxable loss not recognised as deferred tax			1,269		2,653
assets
Prior year income tax under (over) estimation			27	(	84)
Effect of different tax rates in countries
in which the group operates			5,765		2,626
Income tax expense		$	113,526	$	195,155

• B. Reconciliation between income tax expense and accounting profit

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate.

~41~

C. Amounts of deferred tax assets as a result of temporary difference and tax losses are as follows:

			YearendedDecember 31,2025	YearendedDecember 31,2025	YearendedDecember 31,2025	YearendedDecember 31,2025	YearendedDecember 31,2025	YearendedDecember 31,2025
				Recognised in
			January1		profitor loss			December 31
Deferred tax assets:
－Temporary differences:
Allowance for valuation loss		$	23,049		$	2,709		$	25,758
Tax difference of deferred sales revenue			6,531	(		3,549)			2,982
Estimated sales discounts and allowances			4,394			60			4,454
Unrealised gain on inter-affiliate accounts			1,463	(		1,387)			76
Unused compensated absences			2,254			21			2,275
Loss allowance			354			703			1,057
Others			2,865	(		1,647)			1,218
		$	40,910	($		3,090)		$	37,820
Deferred tax liabilities:
－Temporary differences:
Unrealised exchange gain	(		1,422)			422	(		1,000)
Investment gain	(		3,779)	(		4,673)	(		8,452)
	($		5,201)	($		4,251)	($		9,452)
			YearendedDecember31,2024
				Recognised in
			January1		profitor loss			December31
Deferred tax assets:
－Temporary differences:
Allowance for valuation loss		$	21,164		$	1,885		$	23,049
Unrealized exchange loss			5,861	(		5,861)			-
Tax difference of deferred sales revenue			3,350			3,181			6,531
Investment losses			5,097	(		5,097)			-
Estimated sales discounts and allowances			3,493			901			4,394
Unrealised gain on inter-affiliate accounts			1,792	(		329)			1,463
Unused compensated absences			2,118			136			2,254
Loss allowance			886	(		532)			354
Others			1,526			1,339			2,865
		$	45,287	($		4,377)		$	40,910
Deferred tax liabilities:
－Temporary differences:
Unrealised exchange gain			-	(		1,422)	(		1,422)
Investment gain			-	(		3,779)	(		3,779)
		$	-	($		5,201)	($		5,201)

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• D. Expiration dates and cash amounts of DINGZING ADVANCED MATERIALS VIETNAM COMPANY’s unused tax losses are as follows:

December 31, 2025

Year incurred 2021 2022 2023 2024 2025	Amount filed/assessed Amount filed Amount filed Amount filed Amount filed Estimated filed amount	Unusedamount 2,856 $ 3,162 3,716 3,985 2,736 16,455 $	Unrecognised deferredtax 2,856 $ 3,162 3,716 3,985 2,736 16,455 $	Expiry year
				2022～2026 2023～2027 2024～2028 2025～2029 2026～2030

December 31, 2024

Year incurred 2020 2021 2022 2023 2024	Amount filed/assessed Amount filed Amount filed Amount filed Amount filed Estimated filed amount	Unusedamount 2,977 $ 2,856 3,162 3,716 4,295 17,006 $	Unrecognised deferredtax 2,977 $ 2,856 3,162 3,716 4,295 17,006 $	Expiry year
				2021～2025 2022～2026 2023～2027 2024～2028 2025～2029

• E. Expiration dates and related amounts of unused tax losses of Mainland China subsidiaries are as follows:

December 31, 2025

Year incurred 2022 2023 2024	Amount filed/assessed Amount filed Amount filed Amount filed	Unusedamount 526 $ 9,142 7,127 16,795 $	Unrecognised deferredtax 526 $ 9,142 7,127 16,795 $	Expiry year
				2023～2027 2024～2028 2025～2029

December 31, 2024

Year incurred 2022 2023 2024	Amount filed/assessed Amount filed Amount filed Estimated filed amount	Unusedamount 2,438 $ 9,958 7,174 19,570 $	Unrecognised deferredtax 2,438 $ 9,958 7,174 19,570 $	Expiry year
				2023～2027 2024～2028 2025～2029

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F. The German subsidiary’s expiration dates and amounts of unused tax losses are as follows:

December 31, 2025

==> picture [460 x 248] intentionally omitted <==

----- Start of picture text -----

Unrecognised
Year incurred Amount filed/ assessed Unused amount deferred tax Expiry year
2022 Amount filed $ 1,825 $ 1,825 Indefinitely
2023 Amount filed 551 551 Indefinitely
2024 Estimated filed amount 4,189 4,189 Indefinitely
2025 Estimated filed amount 4,808 4,808 Indefinitely
$ 11,373 $ 11,373
December 31, 2024
Unrecognised
Year incurred Amount filed/ assessed Unused amount deferred tax Expiry year
2022 Amount filed $ 1,825 $ 1,825 Indefinitely
2023 Estimated filed amount 1,225 1,225 Indefinitely
2024 Estimated filed amount 4,189 4,189 Indefinitely
$ 7,239 $ 7,239
----- End of picture text -----

• G. The Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority. The Group does not have any administrative remedy as of the reporting date.

(23) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Covertible bonds Employees’ compensation		Year ended December 31,2025
		Amount after tax 406,234 $ 406,234 5,791 - 412,025 $	Weighted average number of ordinary shares outstanding (sharein thousands) 72,049 72,049 3,282 381 75,712	Earnings per share (indollars) 5.64 $ 5.44 $

~44~

(24)

Supplemental cash flow information A. Investing activities with partial cash payments Weighted average number of ordinary Earnings per Amount shares outstanding share after tax (sharein thousands) (indollars) Basic earnings per share Profit attributable to ordinary shareholders 738,253 $ 70,707 10.44 $ of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent 738,253 70,707 Assumed conversion of all dilutive potential ordinary shares Covertible bonds 6,210 4,372 Employees’ compensation - 297 744,463 $ 75,376 9.88 $ Year ended December 31,2024 Year ended Year ended December31,2025 December31,2024 Increase in property, plant and equipment 81,780 $ 95,301 $ Add: Opening balance of payable on equipment (Note) 11,711 7,522 Less: Ending balance of payable on equipment (Note) 16,687) ( 11,711) ( 76,804 $ 91,112 $ Year ended Year ended December31,2025 December31,2024 ‘Prepayments for business facilities’ 107,234 $ 83,339 $ reclassified as ‘property, plant and equipment’ ‘Prepayments for business facilities’ 655 1,768 reclassified as ‘Intangible assets’ Less: Opening balance of prepayments for 24,597) ( 19,301) ( business facilities Add: Ending balance of prepayments for business facilities 26,476 24,597 109,768 $ 90,403 $

Note: Payable on equipment was listed as ‘other payables’.

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B. Investing activities and financing activities with no cash flow effects

			Year ended			Year ended
		December31,2025			December31,2024
Increase in right-of-use assets		$	5,803		$	3,286
Less: Increase in lease liabilities	(		5,803)	(		3,286)
		$	-		$	-
Increase in lease liabilities		$	418		$	1,648
due to remeasurement
Less: Increase in right-of-use
assets due to remeasurement	(		418)	(		1,648)
		$	-		$	-
Current portion of bonds payable		$	348,521		$	-
Current portion of long-term bank borrowings		$	96,046		$	124,729
Convertible corporate bonds into equity
and capital surplus		$	78,289		$	251,623

(25) Changes in liabilities from financing activities

Bonds payable (Note 1) Long-term borrowings (Note 1) Lease liability (Notes 2 and 3) Liabilities from financing activities-gross Bonds payable Long-term borrowings (Note 1) Lease liability (Notes 2 and 3) Liabilities from financing activities-gross		2025
	Changes in foreign Others January1 Cash flows exchangerate (Note 4) 420,753 $ - $ - $ 72,232) ($ 363,245 161,693) ( - 1,225 72,935 12,094) ( 573) ( 5,306 856,933 $ 173,787) ($ 573) ($ 65,701) ($ Changes in foreign Others January1 Cash flows exchange rate (Note 4) 665,471 $ - $ - $ 244,718) ($ 836,824 478,526) ( - 4,947 83,283 13,502) ( 1,287 1,867 1,585,578 $ 492,028) ($ 1,287 $ 237,904) ($ Changes in non-cash items 2024 Changes in non-cash items		December 31
			348,521 $ 202,777 65,574
			616,872 $
			December 31
			420,753 363,245 72,935
			856,933 $

Note 1: Including current portion of long-term liabilities.

Note 2: Including current and non-current.

Note 3: Please refer to Note 6(24).

Note 4: Including amortisation on convertible bonds, conversion rights and changes in lease liabilities, etc.

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Relationship with the Company MITSUBISHI CORPORATION Other related party (Note) Lin, Hsun-Tai The Company's directors

Note: On May 27, 2025, the entity’s management resigned as a director of the entity, and has not been a related party since May 27, 2025.

(2) Significant related party transactions

A. Operating revenue

Sales of goods: MITSUBISHI CORPORATION	Year ended Year ended December31,2025 December31,2024 2,115 $ 7,850 $

Goods are sold based on mutual agreements and the price lists in force and terms that would be available to third parties.

B. Purchases

Purchases of goods: MITSUBISHI CORPORATION	Year ended December31,2025 140,703 $	Year ended December31,2024 371,678 $

Goods are purchased from the related party on normal commercial terms and conditions based on the price lists in force and terms that would be available to third parties.

C. Receivables from related parties

As of December 31, 2025: None.

Accounts receivable MITSUBISHI CORPORATION	December31,2024
	660 $

The receivables from related parties arise mainly from sale transactions. The receivables are due 60 days after monthly billings. The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

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D. Payables from related parties

As of December 31, 2025: None.

December 31, 2024

Accounts payable MITSUBISHI CORPORATION $ 48,820

The payables to related parties arise mainly from purchase transactions and are due 60 days after monthly billings. The payables bear no interest.

E. Property Transactions

Acquisition of property, plant and equipment

In 2024, the Company purchased $21,325 of land from Chairman Lin Hsun-Tai for the purpose of factory planning. As of December 31, 2024, the payment has been made and the ownership transfer registration has been completed.

(3) Key management compensation

Salaries and other short-term employee benefits Post-employment benefits	Year ended Year ended December31,2025 December 31, 2024 40,159 $ 50,419 $ 269 293 40,428 $ 50,712 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Bookvalue Bookvalue Pledgedasset December 31,2025 December 31,2024 Land 750,807 $ 750,807 $ Buildings and structures, net 1,225,859 1,270,714 Guarantee deposits paid 4,099 5,025 1,980,765 $ 2,026,546 $	Purpose
	Guarantee for credit line for short-term and long-term borrowings Guarantee for credit line for short-term and long-term borrowings Performance guarantee

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

• A. As of December 31, 2025 and 2024, the Group’s secured notes payable due to borrowing from bank amounted to $510,000 and $610,000, respectively.

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• B. As of December 31, 2025 and 2024, the amount of the guaranteed promissory notes issued by the Group to the bank for the issuance of bonds was $273,100 and 341,700, respectively.

• C. Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:

December31,2025 Property, plant and equipment 76,714 $ Other assets 20,725 97,439 $	December31,2024
	64,378 $ - 64,378 $

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• A. The Board of Directors of the Company during their meeting on March 10, 2026 resolved to distribute cash dividends from 2025 earning appropriations. Details are provided in Note 6(14).

• B. On March 10, 2026, employees’ compensation and directors’ remuneration of the Company for the year ended December 31, 2025, were resolved by the Board of Directors. Refer to Note 6(21) for details.

• C. On February 10, 2026, the Company’s Board of Directors resolved to liquidate its subsidiary, DINGZING ADVANCED MATERIALS VIETNAM COMPANY LIMITED. Related procedures are still in process.

12. Other

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital.

As the Group has met the capital requirement to expand and enhance plant and equipment, the Group’s capital management is to ensure it has sufficient financial resource and operating plans to meet operational capital for future needs, capital expenditure, research and development expense, obligation repayment and dividend distribution within the next year.

The Group controls capital by using the debt ratio. The Group’s strategy is to maintain a stable debt ratio. The debt ratio is as follows:

Debt ratio	December31,2025 21%	December31,2024
		26%

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(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
December31,2025 Financial assets loss, mandatorily measured at fair value - $ and receivables Cash and cash equivalents 576,256 $ Notes receivable 45,522 Accounts receivable 423,064 Other financial assets 567 Guarantee deposits paid 4,099 1,049,508 $ December31,2025 Financial liabilities Notes payable 257 $ Accounts payable (including related parties) 87,515 Other payables 232,826 Bonds payable (including current portion) 348,521 Long-term borrowings 202,777 (including current portion) 871,896 $ Lease liability (including current and non-current) 65,574 $ Financial assets at fair value through profit or loss Financial assets at fair value through profit or Financial assets at amortised cost/Loans Financial liabilities at amortised cost	December31,2024
	1,183 $
	841,277 $ 111,230 543,560 740 5,025
	1,501,832 $
	December 31, 2024
	- $ 87,491 249,526 420,753 363,245
	1,121,015 $
	72,935 $

B. Risk management policies

The Group’s objective on market risk management are to achieve the optimal risk position, maintain an optimal level of liquidity and centralise risk management operations, with consideration of the economic environment, competitive status and market value risk. For risk management purpose, the Group mostly uses a natural hedge strategy.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

i. The Group’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD; other subsidiaries’ functional currency: RMB, EUR, USD, and VND). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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----- Start of picture text -----

December 31, 2025
Foreign
currency amount Exchange Book value
(In thousands) rate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD $ 10,093 31.44 $ 317,324
EUR:NTD 858 36.90 31,660
RMB:NTD 6,160 4.50 27,720
Financial liabilities
Monetary items
USD:NTD $ 1,722 31.44 $ 54,140
USD:RMB 836 6.99 26,296
December 31, 2024
Foreign
currency amount Exchange Book value
(In thousands) rate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD $ 18,503 32.78 $ 606,528
EUR:NTD 2,087 34.13 71,229
RMB:NTD 7,827 4.48 35,065
Financial liabilities
Monetary items
USD:NTD $ 2,012 32.78 $ 65,953
USD:RMB 3,876 7.32 127,108
----- End of picture text -----

ii. Total exchange (loss) gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to ($19,608) and $59,011, respectively.

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iii. Analysis of foreign currency market risk arising from significant foreign exchange variation:

Price risk Degree of variation Effect on profit or loss Effect on other comprehensiveincome Financial assets Monetary items USD:NTD 1% 3,173 $ - $ EUR:NTD 1% 317 - RMB:NTD 1% 277 - Financial liabilities Monetary items USD:NTD 1% 541 $ - $ USD:RMB 1% 263 - Year ended December 31,2025 Sensitivityanalysis (Foreign currency: functional currency) Degree of variation Effect on profit or loss Effect on other comprehensiveincome Financial assets Monetary items USD:NTD 1% 6,065 $ - $ EUR:NTD 1% 712 - RMB:NTD 1% 351 - Financial liabilities Monetary items USD:NTD 1% 660 $ - $ USD:RMB 1% 1,271 - Year ended December 31,2024 Sensitivityanalysis (Foreign currency: functional currency)	Year ended December 31,2025	Year ended December 31,2025	Year ended December 31,2025
		Sensitivityanalysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensiveincome
		Sensitivityanalysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensiveincome
		6,065 $ 712 351 660 $ 1,271	- $ - - - $ -

The Group was not exposed to any significant price risk.

~52~

Cash flow and fair value interest rate risk

The Group’s interest rate risk arises from short-term and long-term borrowings with floating rate which exposes the Group under cash flow interest rate risk. At December 31, 2025 and 2024, if interest rates had been 1% higher/lower with all other variables held constant, borrowing with floating rate for the years ended December 31, 2025 and 2024 would cause post-tax profit to be $2,137 and $3,473 lower/higher, respectively.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortised cost.

• ii. The Group manages their credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

• iii. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• iv. In line with credit risk management, when the contract payments were past due within 180 days, the payments are within normal collection period. However, the default occurs when the contract payments are past due over 181 days.

• v. The Group applies the simplified approach to estimate the impairment losses of notes and accounts receivable under the provision matrix basis.

• vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

• vii. The Group’s provision matrix used the forecastability of the economic condition in the next one year to adjust historical credit loss experience and the time value of money to assess the default possibility of notes and accounts receivable. The provision matrix is as follows:

~53~

Notpastdue Expected loss rate 0.1%	Up to 90 91~180 Over 181 days pastdue days pastdue days pastdue 3% 10% 100%

• viii. As of December 31, 2025 and 2024, notes and accounts receivable of the top two customers accounted for 34% and 46% of the Group’s total notes and accounts receivable, respectively, and the credit concentration risk of the remaining notes and accounts receivable was relatively insignificant.

• ix. Movements in relation to the Group applying the simplified approach to provide loss allowance for notes and accounts receivable are as follows:

			Year ended			Year ended
			December 31, 2025			December 31, 2024
At January 1		$	2,180		$	3,946
Provision for impairment (write-offs)			4,041	(		1,882)
Effect of exchange rate changes	(		31)			116
At December 31		$	6,190		$	2,180

For the years ended December 31, 2025 and 2024, for provisioned loss, the impairment losses (gain on reversal of impairment losses) arising from customers’ contracts are $4,041 and ($1,882), respectively.

(c) Liquidity risk

• i. The Group’s treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

• ii. The table below analyses the Group’s non-derivative financial liabilities based on the remaining period at the balance sheet date to the expected maturity date. The contractual cash flow are not discounted.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
December 31, 2025 Notes payable Accounts payable (including related parties) Other payables Lease liability (including current and non-current) Bonds payable (including current portion) Long-term borrowings (including current portion)	Less than 1year 257 $ 87,515 232,826 14,082 353,700 98,167	Between 1 and 3 years - $ - - 13,164 - 81,749	Over3 years
			- $ - - 43,200 - 29,911

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----- Start of picture text -----

Less than Between 1
December 31, 2024 1 year and 3 years Over 3 years
----- End of picture text -----

December 31, 2024		1year	an	d 3 years	Ov	er3 years
Accounts payable (including related	$	87,491	$	-	$	-
parties)
Other payables		249,526		-		-
Lease liability (including current		13,630		21,176		46,055
and non-current)
Bonds payable		-		434,600		-
Long-term borrowings		128,825		160,256		87,987
(including current portion)

Derivative financial liabilities:

As of December 31, 2025 and 2024, the Group has no derivative financial liabilities.

As of December 31, 2024, of the principal of $19,714 and $17,250 (with related interest of $1,032 and $296, respectively) disclosed in the 2024 borrowings columns ‘Between 1 and 3 years’, and ‘Over 3 years’ the Company prepaid principal and interest totaling $39,167. Apart from this, the Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis to be significantly earlier, nor does the actual cash flow amount to be significantly different.

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1:Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3:Unobservable inputs for the asset or liability. The fair value of options embedded in convertible bonds held by the Company is included in Level 3.

• B. Financial instruments not measured at fair value:

• (a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables due from related parties, current other financial assets, guarantee deposits paid, short-term borrowings, accounts payable (including related parties), other payables, lease liabilities (including current and non-current) and long-term borrowings (including current portion) are approximate to their fair values.

~55~

Financial liabilities: Bonds payable (Including current portion) Financial liabilities: Bonds payable	Bookvalue 348,521 $ Bookvalue 420,753 $	Level 1 - $ Level 1 - $ December December	Level 2 Level3 - $ 349,325 $ Level 2 Level3 - $ 421,069 $ 31,2025 Fairvalue 31, 2024 Fairvalue

• (b) The methods and assumptions the Group used to measure fair value are as follows:

Bonds payable: They are measured at present value, which is calculated based on the cash flow expected to be paid and discounted using a market rate prevailing at balance sheet date.

• C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets at December 31, 2025 and 2024 are as follows:

• (a) The related information of natures of the assets is as follows:

December31,2025 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Redemption rights embedded in convertible bonds December31,2024 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Redemption rights embedded in convertible bonds	Level 1 - $ Level 1 - $	Level 2 - $ Level 2 - $	Level3 - $ Level3 1,183 $	Total
				- $
				Total
				1,183 $

• (b) The methods and assumptions the Group used to measure fair value are as follows:

Certain inputs used in the valuation model by the Group to measure the fair value of debt instruments with embedded derivatives are not observable at market, and the Group must make reasonable estimates based on its assumptions. The effect of unobservable inputs to the valuation of financial instruments is provided in Note 12(3)G.

• D. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

~56~

• E. The following chart is the movement of Level 3 for the years ended December 31,2025 and 2024:

			2025			2024
At January 1		$	1,183		$	2,040
Gains and losses recognised in profit or loss (Note)	(		896)			918
Transfer for the year	(		287)	(		1,775)
At December 31		$	-		$	1,183

Note: shown as other gains and losses.

• F. For the years ended December 31, 2025 and 2024, other than as described in E, there was no transfer into or out from Level 3.

• G . Finance and accounting segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments based on the actuarial reports issued by external experts. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

• H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Hybrid instrument: Options embedded in convertible bonds Hybrid instrument: Options embedded in convertible bonds	December 31, 2025 Fairvalue	Valuation technique	Input	(Weighted average)
	- $ December 31, 2024 Fairvalue	The Binomial-Tree approach to convertible bonds Valuation technique	Stock price Volatility Risk discount rate Input	88 dollars 41.97% 1.5219%、1.5596% (Weightedaverage)
	1,183 $	The Binomial-Tree approach to convertible bonds	Stock price Volatility Risk discount rate	145.5 dollars 48.99% 1.7043%、1.9296%

• I. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

Financial assets Hybrid instrument	Input Stock price volatility	Change ±5%		December	31,2025
				Recognised in	profit or loss
				Favourable change 35 $	Unfavourable change
					- $

~57~

Input Financial assets Hybrid instrument Stock price volatility	Change ±5%	Favourable change Unfavourable change 382 $ 279) ($ December 31,2024 Recognised inprofit or loss

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): None.

• D. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: Please refer to table 1.

• E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 2.

• F. Significant inter-company transactions during the reporting period: Please refer to table 3.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 4.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 5.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 6.

14. SEGMENT INFORMATION

(1) Measurement of general and segment information and information on products and services

The Group primarily engages in the manufacture, development and sales of high-tech polyurethane (Thermoplastic Polyurethane, abbreviation: “TPU”). The Chief Operating Decision-Maker considers the Group as one reportable operating segment, and allocates resources and assesses performance of the Group as a whole. As there is no inter-segment revenue, revenue from external customers is all from the sales of the high-tech polyurethane products, the measuring information used is the same as the financial statements, the income, assets and liabilities of operating segments are not disclosed.

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(2) Reconciliation for segment income (loss)

The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income. A reconciliation of the income/(loss) before tax from continuing operations was non-operating income and expenses of ($2,062) and $73,627 for the years ended December 31, 2025 and 2024, respectively.

(3) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

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----- Start of picture text -----

Year ended December 31, 2025 Year ended December 31, 2024
Non-current Non-current
Revenue (Note) assets Revenue (Note) assets
China $ 864,906 $ 6,752 $ 939,219 $ 12,683
Taiwan 302,024 3,114,347 367,179 3,137,775
U.S.A 764,183 8,218 1,023,011 10,193
- -
Others 918,483 953,877
$ 2,849,596 $ 3,129,317 $ 3,283,286 $ 3,160,651
----- End of picture text -----

Note: Revenue was classified based on the country the customer is located.

(4) Major customer information

Major customer information of the Group for the years ended December 31, 2025 and 2024 is as follows:

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----- Start of picture text -----

Year ended December 31
2025 2024
----- End of picture text -----

Clients Client P Client R	Revenue 636,745 $ 494,632 1,131,377 $	Percentage of totalsales 22% 17%	Revenue 898,117 $ 510,043 1,408,160 $	Percentage of totalsales
				27% 16%

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Dingzing Advanced Materials Incorporated

Table 1

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

Year ended December 31, 2025

Expressed in thousands of NTD (Except as otherwise indicated)

Differences in transaction terms

							Differences in transaction terms	Differences in transaction terms
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			transactions compared to third party				Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Dingzing Advanced Materials Incorporated Dingzing Advanced Materials Incorporated DINGZING ADVANCED MATERIALS USA LLC Ding Li Polyurethane Co., Ltd. Dingzing Advanced Materials Incorporated	DINGZING ADVANCED MATERIALS USA LLC Ding Li Polyurethane Co., Ltd. Dingzing Advanced Materials Incorporated Dingzing Advanced Materials Incorporated Mitsubishi Corporation	Subsidiary Subsidiary Parent company Parent company Other related party	(Sales) (Sales) Purchases Purchases Purchases	1,081,393) ($ 240,924) ( 1,081,393 240,924 140,703	(40%) (9%) 100% 94% 17%	Based on mutual agreement Based on mutual agreement Based on mutual agreement Based on mutual agreement Based on mutual agreement	Note Note Note Note Note	Note Note Note Note Note	100,018 $ 23,243 100,018) ( 23,243) ( -	28% 6% (100%) (100%) -

Note: Based on mutual agreement, terms of related party transactions are not different from third-party transactions.

Table 1, Page 1

Dingzing Advanced Materials Incorporated

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

December 31, 2025

Table 2

Expressed in thousands of NTD

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025	Tumover rate	Amount Action taken Overdue receivables	Amount Action taken Overdue receivables	Amount collected subsequent to the balance sheetdate	Allowance for doubtful accounts
Dingzing Advanced Materials Incorporated	DINGZING ADVANCED MATERIALS USA LLC	Subsidiary	100,018 $	6.33	- $	-	99,303 $	-

Table 2, Page 1

Dingzing Advanced Materials Incorporated

Significant inter-company transactions during the reporting periods

Year ended December 31, 2025

Table 3

Significant inter-company transactions reaching NTD 10 million are listed and disclosed as described in Note 2 as follows, counterpary transactions will not be disclosed again.

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note1)	Companyname	Counterparty	Relationship (Note2)			Transaction
				General ledgeraccount	Amount	Transaction terms	Percentage of consolidated total operating revenues or totalassets (Note 3)
0 0 0 0 0	Dingzing Advanced Materials Incorporated " " " "	Dingzing Advanced Materials USA LLC Ding Li Polyurethane Co., Ltd. Shanghai Dintex Trading Co., Ltd. Dingzing Advanced Materials USA LLC Ding Li Polyurethane Co., Ltd.	1 1 1 1 1	Sale Sale Sale Account receivable to related parties Account receivable to related parties	1,081,393 $ 240,924 40,779 100,018 23,243	Based on mutual agreement Based on mutual agreement Based on mutual agreement Based on mutual agreement Based on mutual agreement	38% 8% 1% 2% 0%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1)Parent company is ‘0’;

• (2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.)

• (1)Parent company to subsidiary;

• (2)Subsidiary to parent company;

• (3)Subsidiary to subsidiary.

• Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Table 3, Page 1

Dingzing Advanced Materials Incorporated

Information on investees

Table 4

Expressed in thousands of NTD

Year ended December 31, 2025

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as at Decem	ber 31,2025	Net profit (loss) of the investee for the year ended December 31,2025	Investment income(loss) recognised by the Company for the year ended December 31,2025	Footnote
				Balance as at December 31,2025	Balance as at December 31,2024	Number of shares	Ownership (%)	Book value
DINGZING ADVANCED MATERIALS INCORPORATED DINGZING ADVANCED MATERIALS INCORPORATED DINGZING ADVANCED MATERIALS INCORPORATED DINGZING ADVANCED MATERIALS USA, INC.	DINGZING ADVANCED MATERIALS USA, INC. DINGZING ADVANCED MATERIALS VIETNAM COMPANY LIMITED DINGZING ADVANCED MATERIALS EUROPE GmbH DINGZING ADVANCED MATERIALS USA LLC	U.S.A. Vietnam Germany U.S.A.	Reinvests in various businesses Marketing Marketing Marketing	89,738 27,754 16,426 89,738	89,738 27,754 7,822 89,738	100 - 500,000 -	100 100 100 100	167,074 1,675 7,615 196,328	32,768 2,736) ( 4,808) ( 45,088	32,768 2,736) ( 4,808) ( -	Note 1 Notes 1 and 2

Note 1:Unissued shares, not applicable.

Note 2:The investee accounted for using equity method was included in the profit or loss of the Company and investment income (loss) was calculated and recognised by the Company.

Table 4, Page 1

Information on investments in Mainland China

Dingzing Advanced Materials Incorporated

Year ended December 31, 2025

Table 5 Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	ended December 31,2025 Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year	ended December 31,2025 Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee as of December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Book value of investments in Mainland China as of December 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31,2025 Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Accumulated amount of investment income remitted back to Taiwan as of December 31,2025 Footnote Expressed in thousands of NTD (Except as otherwise indicated)
					Remitted to Mainland China	Remitted back to Taiwan
Ding Li Polyurethane Co., Ltd. Shanghai Dintex Trading Co., Ltd Companyname	Sale of high-tech polyurethane relative products Sale of high-tech polyurethane relative products 31,2025 Accumulated amount of remittance from Taiwan to Mainland China as of December	91,746 $ 26,017 (MOEA) Investment amount approved by the Investment Commission of the Ministry of Economic Affairs	Note 1 Note1 (Note 3) Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA	91,746 $ 37,760	- $ -	- $ -	91,746 $ 37,760	17,472 $ 1,785	100 100	17,472 $ 1,785	102,703 $ 24,110	17,800 $ 17,848	Note 2 Note 2
Dingzing Advanced Materials Incorporated	129,506 $	129,506 $	2,336,047 $

Note1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

1. Directly invest in a company in Mainland China

2. Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

3. Through investing in an existing company in the Mainland China, which then invested in the investee in Mainland China.

Note 2: The ‘Investment income (loss) recognised by the Company for the year ended December 31, 2025 in the financial statements are audited and attested by R.O.C. parent company’s CPA. Note 3: The amount disclosed was 60% of net assets and based on Investment Commission, MOEA Regulation No. 09704604680 announced on August 29, 2008.

Table 5, Page 1

Dingzing Advanced Materials Incorporated

Significant transactions , either directly or indirectly through a third area, with investee companies in the Mainland Area

Year ended December 31, 2025

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Sale(purchase)	Sale(purchase)	(payable) Accounts receivable	(payable) Accounts receivable	or collaterals Provision of endorsements/guarantees	or collaterals Provision of endorsements/guarantees		Financing	Financing		Other
	Amount	%	Balance at December 31,2025	%	Balance at December 31,2025	Purpose	Maximum balance during the year ended December 31,2025	Balance at December 31,2025	Interest rate	Interest during the year ended December 31,2025
Ding Li Polyurethane Co., Ltd. Shanghai Dintex Trading Co., Ltd	240,924 $ 40,779	9% 2%	23,243 $ 3,042	6% 1%	- $ -	- -	- $ -	- $ -	- -	- $ -	- $ -

Table 6, Page 1