DingZing — Audit Report / Information 2025

Apr 17, 2026

DINGZING ADVANCED MATERIALS INCORPORATED

PARENT COMPANY ONLY 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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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR25004043

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

Opinion

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

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

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company 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 Company’s 2025 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 parent company only 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 Company’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(10) 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 Company’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 Company’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.

Responsibilities of management and those charged with governance for the parent company only financial statements

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

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

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

Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

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

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

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

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

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

5. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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.

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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 parent company only 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 parent company only 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 parent company only 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 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 PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(2) 6(2) and 7 6(3) 6(4) 6(5) and 7 6(6), 7 and 8 6(7) 6(8) 6(22) 8	December 31, 2025 AMOUNT % $ 379,391 8 16,029 - 216,908 4 126,303 3 624,064 13 39,458 1 567 - 9,049 - 1,411,769 29 - - 303,177 6 3,020,860 62 55,996 1 11,015 - 35,974 1 26,476 1 3,648 - 3,457,146 71 $ 4,868,915 100	December 31, 2024	December 31, 2024
		AMOUNT $ 379,391 16,029 216,908 126,303 624,064 39,458 567 9,049 1,411,769 - 303,177 3,020,860 55,996 11,015 35,974 26,476 3,648 3,457,146 $ 4,868,915	AMOUNT $ 677,425 15,484 191,037 369,414 601,322 32,535 732 8,590 1,896,539 1,183 247,137 3,048,581 55,227 9,370 38,465 24,597 4,552 3,429,112 $ 5,325,651	%
Current assets 1100 Cash and cash equivalents 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties, 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 1550 Investments accounted for using equity method 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				13 - 4 7 11 1 - -
				36
				- 5 57 1 - 1 - -
				64
				100

(Continued)

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DINGZING ADVANCED MATERIALS INCORPORATED PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2025 Notes AMOUNT % 6(16) $ 7,740 - 87,515 2 7 - - 6(9) 227,419 5 3,409 - 5,417 - 6(10)(11) and 8 444,567 9 6(11) 24,301 - 800,368 16 6(10) - - 6(11) and 8 106,731 2 6(22) 9,452 - 45,955 1 6(11) 12,996 1 175,134 4 975,502 20 6(13) 721,336 15 6(14) 980,472 20 6(15) 363,977 7 - - 1,829,753 38 ( 2,125) - 3,893,413 80 9 11 $ 4,868,915 100	December 31, 2024	December 31, 2024
		AMOUNT $ 12,946 38,672 48,820 243,376 117,473 4,437 124,729 25,150 615,603 420,753 238,516 5,201 47,586 13,518 725,574 1,341,177 714,507 909,012 290,152 13,336 2,055,613 1,854 3,984,474 $ 5,325,651	%
Liabilities Current liabilities 2130 Current contract liabilities 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 income 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 -
			11
			8 5 - 1 -
			14
			25
			13 17 6 - 39 -
			75
			100

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

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DINGZING ADVANCED MATERIALS INCORPORATED PARENT COMPANY ONLY 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(16) and 7 $ 2,708,495 100 $ 3,127,884 100 6(3)(8)(20)(21) and 7 ( 1,899,586) ( 70) ( 1,947,742) ( 62) 808,909 30 1,180,142 38 6(5) 6,933 - 1,644 - 815,842 30 1,181,786 38 6(3)(8)(20)(21) and 7 ( 94,143) ( 3) ( 97,260) ( 3) ( 120,398) ( 4) ( 115,774) ( 4) ( 125,652) ( 5) ( 124,285) ( 4) 12(2) ( 3,898) - 170 - ( 344,091) ( 12) ( 337,149) ( 11) 471,751 18 844,637 27 7,627 - 14,628 1 6(17) 19,384 1 20,498 1 6(18) ( 24,208) ( 1) 66,082 2 6(7)(11)(19) ( 12,751) ( 1) ( 23,037) ( 1) 6(5) 44,481 2 2,917 - 34,533 1 81,088 3 506,284 19 925,725 30 6(22) ( 100,050) ( 4) ( 187,472) ( 6) $ 406,234 15 $ 738,253 24 6(5) ($ 3,979) - $ 15,190 - ($ 3,979) - $ 15,190 - $ 402,255 15 $ 753,443 24 6(23) $ 5.64 $ 10.44 $ 5.44 $ 9.88

4000 Sales revenue 5000 Operating costs 5900 Net operating margin 5910 Unrealized profit from sales 5950 Net operating margin, net Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 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 7070 Share of profit of subsidiaries and associates accounted for using equity method 7000 Total non-operating income 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 Basic earnings per share 9750 Total basic earnings per share 9850 Total diluted earnings per share

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

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DINGZING ADVANCED MATERIALS INCORPORATED PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

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 Year ended 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 Year ended December 31, 2025	Notes		Share capital - common stock		Capital	surplus	surplus				Retained earnings			Financial statements translation differences of foreign operations		Total equity
					Additional paid-in capital		Share options		Legal reserve		Special reserve		Unappropriated retained earnings
	6(5) 6(15) 6(10)(13) 6(5) 6(15) 6(10)(13)		$ 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 parent company only financial statements.

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DINGZING ADVANCED MATERIALS INCORPORATED

PARENT COMPANY ONLY 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 loss Depreciation expense Amortization expense Interest income Interest expense Government grant revenue (shown as deduction on operating costs) Share of loss (profit) of subsidiaries, associates and joint ventures accounted for using equity method Gain 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 profit (loss) from sales Unrealised exchange (gains) losses Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Accounts receivable - related parties Inventories Prepayments Other current financial assets Other current assets, other Changes in operating liabilities Current contract liabilities Accounts payable Accounts payable to related parties Other payables 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 $ 506,284 $ 925,725 12(2) 3,898 ( 170 ) 6(6)(7)(20) 220,690 212,290 6(8)(20) 2,831 2,258 ( 7,627 ) ( 14,628 ) 6(19) 12,751 23,037 6(3) ( 404 ) ( 308 ) 6(5) ( 44,481 ) ( 2,917 ) 6(18) 896 ( 918 ) 6(18) ( 225 ) ( 183 ) 6(8) 189 - 6(5) ( 6,933 ) ( 1,644 ) 2,112 ( 36,416 ) ( 546 ) ( 7,874 ) ( 28,612 ) 20,787 237,616 ( 68,481 ) ( 22,742 ) ( 48,649 ) ( 6,923 ) ( 14,688 ) ( 63 ) 15,825 ( 459 ) ( 98 ) ( 5,206 ) 8,230 48,756 ( 1,920 ) ( 48,305 ) 13,273 ( 20,849 ) 60,478 ( 886 ) 3,584 841,762 1,086,593 7,855 16,374 ( 5,266 ) ( 9,667 ) ( 207,372 ) ( 178,101 ) 636,979 915,199

(Continued)

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DINGZING ADVANCED MATERIALS INCORPORATED

PARENT COMPANY ONLY 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 investments accounted for using the equity method Proceeds from disposal of investments accounted for using the equity method 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 guarantee deposits paid 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 (cash dividends from capital surplus) Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase 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(5) ($ 8,605 ) ($ 4,810 ) 6(5) - 32,695 6(24) ( 76,804 ) ( 88,724 ) 6(24) ( 109,768 ) ( 90,403 ) 225 430 6(8) ( 4,010 ) ( 4,456 ) 904 821 ( 198,058 ) ( 154,447 ) 6(25) 150,000 20,000 6(25) ( 150,000 ) ( 20,000 ) 6(25) ( 161,693 ) ( 478,526 ) 6(25) ( 5,375 ) ( 5,382 ) 6(15) ( 571,605 ) ( 276,972 ) ( 738,673 ) ( 760,880 ) 1,718 15,173 ( 298,034 ) 15,045 6(1) 677,425 662,380 6(1) $ 379,391 $ 677,425

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

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DINGZING ADVANCED MATERIALS INCORPORATED NOTES TO THE PARENT COMPANY ONLY 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 is primarily engaged in 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 PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

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

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

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

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

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

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

but not yet adopted by the Company New standards, interpretations and amendments endorsed by FSC and are as follows:	became effective from 2
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
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’	January 1, 2026 January 1, 2026

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	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
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 Company’s financial condition and financial performance based on the Company’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:

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

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 related impacts of the following standards and interpretations that have not yet been

assessed, 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 SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only 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 parent company only financial statements of the Company have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(2) Basis of preparation

• A. The parent company only financial statements have been prepared under the historical cost convention.

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

(3) Foreign currency translation

The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional 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.

• (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 Company 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.

(4) 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;

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• (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 repoting period to defer settlement of the liability at least twelve months after the reporting period.

(5) 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.

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

• A. Financial assets not measured at amortized cost or at fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

• C. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(7) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company 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.

(8) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Company 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 Company recognises the impairment provision for lifetime ECLs.

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(9) Derecognition of financial assets

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

(10) 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.

(11) Investments accounted for under the equity method / subsidiaries

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to effect those returns through its power over the entity.

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

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

• D. Pursuant to the Rules Governing the Preparation of Financial Statements by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

(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 Company 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.

• 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.

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• 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 5 ~ 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 Company. 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 Company 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

• (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.

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(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 Company 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 notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(18) Convertible bonds payable

Convertible bonds payable issued by the Company contain conversion options (that is, the bondholders have the right to convert the bonds into the Company’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 Company 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:

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• 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.

• B. Pensions

Defined contribution plans

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.

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• 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 Company 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 operates and generates 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 parent company only 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. 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 Company 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.

• 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.

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(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 Company 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 Company 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.

(26) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company 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 Company 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.

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5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’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 Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Company 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 $624,064.

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 equivalents-time deposits	December31,2025 1,977 $ 263,923 113,491 379,391 $	December 31, 2024
		2,022 $ 353,364 322,039
		677,425 $

• A. The Company 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 Company has no cash and cash equivalents pledged to others.

(2) Notes and accounts receivable, net

Notes receivable Less:Allowance for uncollectible accounts ( Accounts receivable Less:Allowance for uncollectible accounts ( Accounts receivable - related parties	December31,2025 16,045 $ 16) ( 16,029 $ 221,372 $ 4,464) ( 216,908 $ 126,303 $	December31,2024 15,500 $ 16) 15,484 $ 191,603 $ 566) 191,037 $ 369,414 $

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

		December	31,2025			December	31,2024
		Notesreceivable	Accounts	receivable		Notes receivable	Accounts	receivable
Not past due	$	16,045	$	340,058	$	15,500	$	552,158
Past due:
Up to 30 days		-		3,201		-		8,727
31 to 90 days		-		85		-		6
91 to 180 days		-		-		-		-
Over 181 days		-		4,331		-		126
	$	16,045	$	347,675	$	15,500	$	561,017

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 $497,124.

• 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 Company was $359,240 and $575,935, 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:

December 31, 2025

		December31,2025
Raw materials Work in progress Finished goods Materials in transit Raw materials Work in progress Finished goods Materials in transit	Cost 450,434 $ 44,633 247,032 2,328 744,427 $	Allowance for valuation loss 91,089) ($ 1,574) ( 27,700) ( - 120,363) ($ December31,2024	Bookvalue
			359,345 $ 43,059 219,332 2,328
			624,064 $
	Cost 400,022 $ 58,402 241,363 5,743 705,530 $		Bookvalue
			320,390 $ 55,311 219,878 5,743
			601,322 $

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

The cost of inventories recognised as expense for the period:
Year ended December31,2025 Cost of goods sold 1,899,586 $ Recognised as marketing, research and development expenses 96,770 1,996,356 $	Year ended December31,2024
	1,947,742 $ 89,241
	2,036,983 $

The Company 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 $16,155, $8,791, $404 and $308 for the years ended December 31, 2025 and 2024, respectively.

C. The Company has no inventory pledged to others.

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

Financial assets mandatorily measured at fair value through profit or loss Redemption rights embedded in convertible bonds Valuation adjustment (	December31,2025 531 $ 531) - $	December31,2024 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).

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(10).

(5) Investments accounted for using equity method

A. Details of investments accounted for under equity method are as follows:

At January 1 Addition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method (Note 1) Share of profit or loss of investments accounted for using equity method Net unrealised (loss) profit from sales on downstream transactions Changes in other equity interest ( At December 31	2025 2024 247,137 $ 255,271 $ 8,605 4,810 - 32,695) ( 44,481 2,917 6,933 1,644 3,979) 15,190 303,177 $ 247,137 $

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

Investee Companies December 31, 2025 December 31, 2024
Subsidiaries:
DING LI POLYURETHANE CO., LTD. $ 102,703 $ 77,863
SHANGHAI DINTEX TRADING CO., LTD. 24,110 21,535
DINGZING ADVANCED MATERIALS 167,074 139,816
USA, INC.
DINGZING ADVANCED MATERIALS 1,675 4,747
VIETNAM COMPANY LIMITED (Note 2)
DINGZING ADVANCED MATERIALS
EUROPE GmbH 7,615 3,176
$ 303,177 $ 247,137
----- End of picture text -----

Note 1: The subsidiary SHANGHAI DINTEX TRADING CO., LTD. reduced its capital in 2024, and the company recovered the investment of US$1,000,000.

Note 2: 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.

• B. Share of profit or loss of subsidiaries accounted for using equity method:

			Year ended			Year ended
			December31,2025			December 31, 2024
DING LI POLYURETHANE CO., LTD.		$	17,472	($		1,030)
SHANGHAI DINTEX TRADING CO., LTD.			1,785	(		6,430)
DINGZING ADVANCED MATERIALS			32,768			18,861
USA, INC.
DINGZING ADVANCED MATERIALS	(		2,736)	(		4,295)
VIETNAM COMPANY LIMITED
DINGZING ADVANCED MATERIALS
EUROPE GmbH	(		4,808)	(		4,189)
		$	44,481		$	2,917

For the years ended December 31, 2025 and 2024, there were sales to subsidiaries resulting in (unrealised) realised gross profit from sales on downstream as follows:

Beginning unrealised gross profit from sales which were realised during the year Ending unrealised gross profit from sales (	Year ended December31,2025 7,317 $ 384) ( 6,933 $	Year ended December31,2024 8,961 $ 7,317) 1,644 $

• C. Refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2025 for the information relating to the subsidiaries of the Company.

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(6) Property, plant and equipment

2025

At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions Disposals - cost Reclassifications Depreciation charge Disposals - accumulated depreciation Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation	Buildings and Machinery and Transportation Land structures equipment equipment Office equipment Otherequipment 772,146 $ 1,783,309 $ 3,063,839 $ 18,130 $ 5,697 $ 391,334 $ - 512,595) ( 2,304,177) ( 11,488) ( 3,495) ( 237,486) ( 772,146 $ 1,270,714 $ 759,662 $ 6,642 $ 2,202 $ 153,848 $ 772,146 $ 1,270,714 $ 759,662 $ 6,642 $ 2,202 $ 153,848 $ - 18,726 53,549 - 300 6,549 - - 9,082) ( 51) ( - 2,817) ( - 2,737 65,570 - 200 102 - 66,318) ( 122,197) ( 1,982) ( 503) ( 25,735) ( - - 9,082 51 - 2,817 772,146 $ 1,225,859 $ 756,584 $ 4,660 $ 2,199 $ 134,764 $ 772,146 $ 1,804,772 $ 3,173,876 $ 18,079 $ 6,197 $ 395,168 $ - 578,913) ( 2,417,292) ( 13,419) ( 3,998) ( 260,404) ( 772,146 $ 1,225,859 $ 756,584 $ 4,660 $ 2,199 $ 134,764 $	Unfinished construction Total 83,367 $ 6,117,822 $ - 3,069,241) ( 83,367 $ 3,048,581 $ 83,367 $ 3,048,581 $ 2,656 81,780 - 11,950) ( 38,625 107,234 - 216,735) ( - 11,950 124,648 $ 3,020,860 $ 124,648 $ 6,294,886 $ - 3,274,026) ( 124,648 $ 3,020,860 $

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2024

At January 1 Cost Accumulated depreciation Accumulated impairment Opening net book amount as at January 1 Additions Disposals - cost Reclassifications Depreciation charge Disposals - accumulated depreciation Impairment losses 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 Other equipment construction Total 750,807 $ 1,726,678 $ 2,998,697 $ 13,510 $ 4,156 $ 366,565 $ 99,135 $ 5,959,548 $ - 451,215) ( 2,202,194) ( 10,310) ( 3,339) ( 211,503) ( - 2,878,561) ( - 2,047) ( - - - - - 2,047) ( 750,807 $ 1,273,416 $ 796,503 $ 3,200 $ 817 $ 155,062 $ 99,135 $ 3,078,940 $ 750,807 $ 1,273,416 $ 796,503 $ 3,200 $ 817 $ 155,062 $ 99,135 $ 3,078,940 $ 21,339 14,546 47,699 540 904 7,169 716 92,913 - - 17,211) ( 767) ( - - - 17,978) ( - 42,085 34,654 4,847 637 17,600 16,484) ( 83,339 - 61,380) ( 118,947) ( 1,945) ( 156) ( 25,983) ( - 208,411) ( - - 16,964 767 - - - 17,731 - 2,047 - - - - - 2,047 772,146 $ 1,270,714 $ 759,662 $ 6,642 $ 2,202 $ 153,848 $ 83,367 $ 3,048,581 $ 772,146 $ 1,783,309 $ 3,063,839 $ 18,130 $ 5,697 $ 391,334 $ 83,367 $ 6,117,822 $ - 512,595) ( 2,304,177) ( 11,488) ( 3,495) ( 237,486) ( - 3,069,241) ( 772,146 $ 1,270,714 $ 759,662 $ 6,642 $ 2,202 $ 153,848 $ 83,367 $ 3,048,581 $

A. The Company 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 Company was affected by the significant fire incident of a nearby factory, resulting in an impairment in certain buildings and structures. The Company recognised related impairment loss amounting to $2,047 for the year ended December 31, 2023. Due to subsequent restoration, the loss was 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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(7) Leasing arrangements

A. Lessee

• (a) The Company 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 $ 1,401 3,778 77 55,996 $ Year ended December31,2025 Depreciationcharge 1,201 $ 731 1,711 312 3,955 $	December31,2024
		Carrying amount
		51,941 $ 2,132 765 389
		55,227 $
		Year ended December31,2024
		Depreciationcharge
		1,197 $ 731 1,639 312
		3,879 $

• (c) For the years ended December 31, 2025 and 2024, additions to right-of-use assets amounted to $3,671 and $0, respectively. For the years ended December 31, 2025 and 2024, an increase of $1,053 and $1,733 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 615 $ 1,265	Year ended December31,2024
		643 $ 1,415

• (e)For the years ended December 31, 2025 and 2024, the Company’s total cash outflow for leases were $7,255 and $7,440, respectively.

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• (f) Variable lease payments

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

• ii. The remeasurements amounted to $1,053 and $1,733 for the years ended December 31, 2025 and 2024, respectively.

• (g) Extension and termination options

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

• ii. In determining the lease term, the Company 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.

(8) Intangible assets

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2025
Opening net Closing net book
book amount Amortisation amount as at
as at January 1 Additions charge Reclassifications 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 Reclassifications 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:

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 Company has no intangible assets pledged to others.

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(9) Other payables

Salaries and bonus payable Payable on machinery and equipment Others	December31,2025 December31,2024 142,653 $ 171,924 $ 16,687 11,711 68,079 59,741 227,419 $ 243,376 $

(10) Bonds payable

Secured convertible bonds Unsecured convertible bonds Less: Discount on bonds payable Less: Current portion	December31,2025 273,100 $ 80,600 5,179) ( ( 348,521 (348,521) - $	December 31, 2024 341,700 $ 92,900 13,847) 420,753 - 420,753 $

• 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 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, (13) 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 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$110.7 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% 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.

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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 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 surplus-share options" was converted into $754 as a result of the conversion of the corporate bonds. Please also refer to Note 6, (13) for a detailed description of the share capital.

- (11) Long term borrowings (including current portion)

Type ofborrowings	Borrowing period andrepayment term 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 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.	Interest rate range 1.375% (Note) Interest raterange 1.375% (Note)	Collateral None Collateral None	December 31,2025
Long-term bank borrowings Unsecured borrowings Type of borrowings Less: Current portion				202,777 $ 96,046) (
				106,731 $
				December 31, 2024
Long-term bank borrowings Unsecured borrowings Less: Current portion				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 saving 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 saving 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 Company as follows:

the Company as follows:
		December 31, 2025		December31,2024
Deferred revenue	$	437	$	319
(shown as other current liabilities, others)
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).

(12) Pensions

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. The pension costs under the defined contribution pension plans of the Company for the years ended December 31, 2025 and 2024 were $25,804 and $24,768, respectively.

(13) Share capital

As of December 31, 2025, the Company’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.

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

At January 1 Corporate bond conversion (Note) At December 31	2025 71,451 $ 683 72,134 $	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.

(14) 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.

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(15) 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.

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 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.

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• 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.

(16) Operating revenue

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

• A. Disaggregation of revenue from contracts with customers

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

geographical regions:
Year ended December 31, 2025 Taiwan 302,024 $ Mainland China 794,581 U.S.A 1,189,780 Others 422,110 2,708,495 $	Year ended December 31, 2024
	367,179 $ 872,333 1,441,919 446,453
	3,127,884 $

B. Contract liabilities

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

Current contract liabilities	December31,2025 7,740 $	December31,2024 January 1, 2024 12,946 $ 4,716 $

• (b) Revenue recognised that was included in the contract liability balance at the beginning of the year amounted to $12,946 and $4,716 for the years ended December 31, 2025 and 2024, respectively.

(17) Other income

Renewable energy electricity sales income Others	Year ended December31,2025 7,277 $ 12,107 19,384 $	Year ended December31,2024 6,849 $ 13,649 20,498 $

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(18) Other gains and losses

Year ended December 31, 2025 Gains on disposal of property, plant and equipment 225 $ (Losses) gains on financial assets at fair value through profit or loss 896) ( Currency exchange (losses) gains 23,069) ( Others 468) ( ( 24,208) ($	Year ended December 31, 2024 183 $ 918 65,436 455) 66,082 $

(19) Finance costs

Expenses by nature Interest expense: Bank borrowings Bond Lease liability 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

Year ended Year ended December31,2025 December31,2024 5,793 $ 13,714 $ 6,343 8,680 615 643 12,751 $ 23,037 $ Year ended Year ended December31,2025 December31,2024 8,100 $ 64,346) ($ 757,035 929,487 648,602 661,339 216,735 208,411 3,955 3,879 2,831 2,258 182,801 167,272 100,263 97,878 71,525 85,293 65,833 59,843 55,316 49,926 49,540 38,557 10,520 6,825 1,265 1,415 69,356 36,854 2,243,677 $ 2,284,891 $

(20) Expenses by nature

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(21) Employee benefit expense

Employee benefit expense
		Year ended		Year ended
		December 31, 2025		December 31, 2024
Wages and salaries	$	547,407	$	560,658
Labour and health insurance fees		51,835		48,798
Pension costs		25,804		24,768
Directors’ remuneration		7,617		11,692
Other personnel expenses		15,939		15,423
	$	648,602	$	661,339

• 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.

• 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 as 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

Current tax: Current tax on profits for the year Prior year income tax over estimation Total current tax Deferred tax: Origination and reversal of temporary differences Income tax expense	Year ended December31,2025 93,249 $ 59 93,308 6,742 100,050 $	Year ended December31,2024
		178,105 $ 159
		178,264
		9,208
		187,472 $

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B. Reconciliation between income tax expense and accounting profit

Reconciliation between income tax expense and accounting profit
Year ended December31,2025 Tax calculated based on profit before tax and statutory tax rate 101,257 $ Off-the-book adjusted items by tax regulation 1,266) ( Prior year income tax over estimation 59 Income tax expense 100,050 $	Year ended December31,2024
	185,145 $ 2,168 159
	187,472 $

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

			YearendedDecember	YearendedDecember	YearendedDecember	YearendedDecember	31,	31,	2025
				Recognised in
		January1				profitor loss		December31
Temporary differences:
－Deferred tax assets:
Allowance for valuation loss		$	20,842		$	3,231		$	24,073
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			116			780			896
Others			2,865	(		1,647)			1,218
		$	38,465	($		2,491)		$	35,974
－Deferred tax liabilities:
Unrealised exchange gain	($		1,422)		$	422	($		1,000)
Investment gains	(		3,779)	(		4,673)	(		8,452)
	($		5,201)	($		4,251)	($		9,452)

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Temporary differences: －Deferred tax assets: Allowance for valuation loss Unrealized exchange loss Tax difference of deferred sales revenue Investment losses Estimated sales discounts and allowances Unrealised gain on inter-affiliate accounts Unused compensated absences Loss allowance Others Deferred tax liabilities: Unrealised exchange gain Investment gains	Recognised in January1 profitor loss December31 19,083 $ 1,759 $ 20,842 $ 5,861 5,861) ( - 3,350 3,181 6,531 5,097 5,097) ( - 3,493 901 4,394 1,792 329) ( 1,463 2,118 136 2,254 150 34) ( 116 1,528 1,337 2,865 42,472 $ 4,007) ($ 38,465 $ - $ 1,422) ($ 1,422) ($ - 3,779) ( 3,779) ( - $ 5,201) ($ 5,201) ($ YearendedDecember31,2024

D. The Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority. The Company 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 Convertible bonds Employees’ compensation		YearendedDecember31,2025
		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 $

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(24)	Supplemental cash flow information A. Investing activities with partial cash payments 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 Convertible bonds Employees’ compensation Increase in property, plant and equipment Add: Opening balance of payable on equipment (Note) Less: Ending balance of payable on equipment (Note) ‘Prepayments for business facilities’ reclassified as ‘Property, plant and equipment’ ‘Prepayments for business facilities’ reclassified as ‘Intangible assets' Less: Opening balance of prepayments for business facilities Add: Ending balance of prepayments for business facilities	Weighted average number of ordinary Earnings per Amount shares outstanding share after tax (sharein thousands) (indollars) 738,253 $ 70,707 10.44 $ 738,253 70,707 6,210 4,372 - 297 744,463 $ 75,376 9.88 $ YearendedDecember31,2024 Year ended Year ended December31,2025 December31,2024 81,780 $ 92,913 $ 11,711 7,522 16,687) ( 11,711) ( 76,804 $ 88,724 $ Year ended Year ended December31,2025 December31,2024 107,234 $ 83,339 $ 655 1,768 24,597) ( 19,301) ( 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		$	3,671		$	-
Less: Increase in lease liabilities	(		3,671)			-
		$	-		$	-
(Decrease) increase in lease liabilities due to		$	1,053		$	1,733
remeasurement
Less: Decrease (increase) in right-of-use assets
due to remeasurement	(		1,053)	(		1,733)
		$	-		$	-
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
	January1 Cash flows 420,753 $ - $ 363,245 161,693) ( 52,023 5,375) ( 836,021 $ 167,068) ($		Changes in foreign Others exchangerate (Note4) - $ 72,232) ($ - 1,225 - 4,724 - $ 66,283) ($ Changesin non-cash items 2024	December 31
				348,521 $ 202,777 51,372
				602,670 $
	January1 Cash flows 665,471 $ - $ 836,824 478,526) ( 55,672 5,382) ( 1,557,967 $ 483,908) ($		Changes in foreign Others exchangerate (Note4) - $ 244,718) ($ - 4,947 - 1,733 - $ 238,038) ($ Changesin non-cash items	December 31
				420,753 $ 363,245 52,023
				836,021 $

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 SHANGHAI DINTEX TRADING CO., LTD. Subsidiary of the Company DING LI POLYURETHANE CO., LTD. Subsidiary of the Company DINGZING ADVANCED MATERIALS USA, INC. Subsidiary of the Company DINGZING ADVANCED MATERIALS USA LLC Subsidiary of the Company DINGZING ADVANCED MATERIALS VIETNAM Subsidiary of the Company COMPANY LIMITED DINGZING ADVANCED MATERIALS EUPORE GmbH Subsidiary of the Company MITSUBISHI CORPORATION (Note) Other related parties

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

a related party since May 27, 2025. gnificant related party transactions Operating revenue
Sales of goods: Subsidiary DINGZING ADVANCED MATERIALS USA LLC DING LI POLYURETHANE CO., LTD. SHANGHAI DINTEX TRADING CO., LTD. DINGZING ADVANCED MATERIALS VIETNAM COMPANY LIMITED Other related party MITSUBISHI CORPORATION	Year ended Year ended December31,2025 December 31, 2024 1,081,393 $ 1,342,467 $ 240,924 433,403 40,779 43,180 235 330 2,115 7,850 1,365,446 $ 1,827,230 $
		1,342,467 $ 433,403 43,180 330 7,850
		1,827,230 $

The transaction prices of goods sold to subsidiaries are determined based on the market prices in the location where subsidiaries located in and the collection term is 180 days after monthly billings; while the transaction prices of goods sold to other relative parties are based on mutual agreements and the collection term is 60 days after monthly billings, which would be available to third parties.

B. Purchases

Purchases of goods: Other related party MITSUBISHI CORPORATION Subsidiary DING LI POLYURETHANE CO., LTD.	Year ended December31,2025 140,703 $ 900 141,603 $	Year ended December31,2024
		371,678 $ 1,852
		373,530 $

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Purchases of services (commission expense): Subsidiary DINGZING ADVANCED MATERIALS VIETNAM COMPANY LIMITED	Year ended Year ended December31,2025 December31,2024 298 $ - $

Goods are purchased from the related party on normal commercial terms and conditions based on the price lists in force and terms term is 60 days after monthly billings that would be available to third parties. Commission expenses are determined in accordance with mutual agreement, and the payment term is 180 days after monthly billings.

C. Receivables from related parties

Accounts receivable Subsidiary DINGZING ADVANCED MATERIALS USA LLC DING LI POLYURETHANE CO., LTD. SHANGHAI DINTEX TRADING CO., LTD. Other related party MITSUBISHI CORPORATION	December31,2025 100,018 $ 23,243 3,042 - 126,303 $	December31,2024
		241,686 $ 124,082 2,986 660
		369,414 $

The receivables from related parties arise mainly from sale transactions. The receivables are due 60~180 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.

D. Payables from related parties

Payables from related parties
Accounts payable Other related party MITSUBISHI CORPORATION	December31,2025 - $	December31,2024
		48,820 $

The payables to related parties arise mainly from purchase transactions and commission expense 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.

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F. Other

The Company recovered the investment funds of its 100%-owned subsidiary SHANGHAI DINTEX TRADING CO., LTD. in 2024. Please refer to Note 6(5) for details on the investment using the equity method.

(3) Key management compensation

using the equity method. Key management compensation
		Year ended		Year ended
		December 31, 2025		December31,2024
Salaries and other short-term employee benefits	$	27,487	$	36,501
Post-employment benefits		269		293
	$	27,756	$	36,794

8. PLEDGED ASSETS

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

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Book value
Pledged asset December 31, 2025 December 31, 2024 Purpose
----- End of picture text -----

Land Buildings and structures , net Guarantee deposits paid	750,807 $ 1,225,859 3,648 1,980,314 $	750,807 $ Guarantee for credit line for short-term and long-term borrowings 1,270,715 Guarantee for credit line for short-term and long-term borrowings 4,552 Performance guarantee 2,026,074 $

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

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

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

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

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

10. SIGNIFICANT DISASTER LOSS

None.

~46~

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(15).

• 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. Refer to Note 6(5) for details.

12. Other

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’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 Company has met the capital requirement to expand and enhance plant and equipment, the Company’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 Company controls capital by using the debt ratio. The Company’s strategy is to maintain a stable debt ratio. The debt ratio is as follows:

Financial instruments A. Financial instruments by category Debt ratio Financial assets Financial assets at fair value throuh profit or loss Financial assets mandated to be measured at fair value through profit or loss Cash and cash equivalents Notes receivable Accounts receivable (including related parties) Other financial assets Guarantee deposits paid Financial assets at amortised cost/Loans and receivables	December31,2025 December31,2024 20% 25% December31,2025 December31,2024 - $ 1,183 $ 379,391 $ 677,425 $ 16,029 15,484 343,211 560,451 567 732 3,648 4,552 742,846 $ 1,258,644 $	December31,2025 December31,2024 20% 25% December31,2025 December31,2024 - $ 1,183 $ 379,391 $ 677,425 $ 16,029 15,484 343,211 560,451 567 732 3,648 4,552 742,846 $ 1,258,644 $
		1,183 $
		677,425 $ 15,484 560,451 732 4,552
		1,258,644 $

(2) Financial instruments

~47~

	December	31,2025	December31,2024	December31,2024
Financial liabilities
Financial liabilities at amortised cost
Accounts payable (including related parties)	$	87,515	$	87,492
Other payables		227,419		243,376
Bond payables (including current portion)		348,521		420,753
Long-term borrowings (including current portion)		202,777		363,245
	$	866,232	$	1,114,866
Lease liability (including current and non-current)	$	51,372	$	52,023

B. Risk management policies

The Company’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 Company mostly uses a natural hedge strategy.

• C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

• i. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

exchange rate fluctuations is as follows:
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD EUR:NTD RMB:NTD Non-monetary items RMB:NTD EUR:NTD USD:NTD VND:NTD Financial liabilities Monetary items USD:NTD	December 31,2025
	Foreign currency amount (In thousands) 10,093 $ 858 6,160 28,211 206 5,326 1,410,707 1,722 $	Exchange rate 31.44 36.90 4.50 4.50 36.90 31.44 0.0012 31.44	Book value (NTD)
			317,324 $ 31,660 27,720 126,950 7,601 167,449 1,693 54,140 $

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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
Non-monetary items
RMB:NTD 23,768 4.48 106,481
EUR:NTD 93 34.13 3,174
USD:NTD 4,275 32.78 140,135
VND:NTD 3,729,567 0.0013 4,848
Financial liabilities
Monetary items
USD:NTD $ 2,012 32.78 $ 65,953
----- 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 Company for the years ended December 31, 2025 and 2024, amounted to ($23,069) and $65,436, respectively.

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

i. Analysis of foreign currency market risk arising from significant foreign exchange variation:	ket risk arising from significant foreign exchange variation:	ket risk arising from significant foreign exchange variation:	ket risk arising from significant foreign exchange variation:
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 - Non-monetary items RMB:NTD 1% - 1,270 EUR:NTD 1% - 76 USD:NTD 1% - 1,674 VND:NTD 1% - 17 Financial liabilities Monetary items USD:NTD 1% 541 $ - $ Year ended December 31,2025 Sensitivityanalysis (Foreign currency: functional currency)	Year ended December 31,2025
		Sensitivityanalysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensiveincome
		3,173 $ 317 277 - - - - 541 $	- $ - - 1,270 76 1,674 17 - $

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

Year ended December 31, 2024
Sensitivity analysis
Degree of Effect on profit Effect on other
variation or loss comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 1% $ 6,065 $ -
EUR:NTD 1% 712 -
RMB:NTD 1% 351 -
Non-monetary items
RMB:NTD 1% - 1,065
EUR:NTD 1% - 32
USD:NTD 1% - 1,401
VND:NTD 1% - 48
Financial liabilities
Monetary items
USD:NTD 1% $ 660 $ -
----- End of picture text -----

Price risk

The Company was not exposed to any significant price risk.

Cash flow and fair value interest rate risk

The Company’s interest rate risk arises from short-term and long-term borrowings with floating rate which exposes the Company 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 Company 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 Company manages their credit risk taking into consideration the entire group’s concern. According to the Company’s credit policy, each local entity in the Company 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:

~50~

• (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 Company applies the simplified approach to estimate the impairment losses of notes and accounts receivable under the provision matrix basis.

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

• vii. The Company’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:

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

• viii. As of December 31, 2025 and 2024, notes and accounts receivable of the top two customers accounted for 36% and 64% of the Company’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 Company applying the simplified approach to provide loss allowance for notes and accounts receivable are as follows:

At January 1 Provision for impairment (write-offs) At December 31	Year ended December31,2025 582 $ 3,898 ( 4,480 $	Year ended December31,2024 752 $ 170) 582 $

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 $3,898 and ($170), respectively.

~51~

(c) Liquidity risk

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

• ii. The table below analyses the Company’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 Accounts payable Other payables Lease liability Bond payables (including current portion) Long-term borrowings (including current portion) December 31, 2024 Accounts payable (including related parties) Other payables Lease liability Bond payables Long-term borrowings (including current portion)	Less than 1year 87,515 $ 227,419 5,997 353,700 98,167 Less than 1year 87,492 243,376 5,025 - 128,825	Between 1 and 3 years - $ - 7,618 - 81,749 Between 1 and 3 years - - 8,372 434,600 160,256	Over3 years
			- $ - 42,023 - 29,911 Over3 years
			- - 45,486 - 87,987

Derivative financial liabilities:

As of December 31, 2025 and 2024, the Company 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.

~52~

• 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.

Financial liabilities: Bonds payable (including current portion) Financial liabilities: Bonds payable		December	31, 2025
	Bookvalue 348,521 $ Bookvalue 420,753 $		Fairvalue
		Level 1 - $ December	Level 2 - $ 31,2024 Fair value	Level3
				349,325 $
		Level 1 - $	Level 2 - $	Level 3
				421,069 $

• (b) The methods and assumptions the Company 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	Level 1 - $	Level 2 - $	Level3 - $	Total
				- $

~53~

December 31, 2024 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through profit or loss Redemption rights embedded in $ - $ - $ 1,183 $ 1,183 convertible bonds

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

Certain inputs used in the valuation model by the Company to measure the fair value of debt instruments with embedded derivatives are not observable at market, and the Company 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.

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

Year ended December31,2025 At January 1 1,183 $ Gains and losses recognised in profit or loss (Note) 896) ( Transfer for the year 287) ( ( At December 31 - $	Year ended December31,2024 2,040 $ 918 1,775) 1,183 $

Note: shown as other gains and losses.

• F. For the years ended December 31, 2025 and 2024, other than as described in item E above, 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:

~54~

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

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

• I. The Company 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 Financial assets Hybrid instrument	Input	Change	December 31, 2025	December 31, 2025
			Recognised in profit or loss
			Favourable change	Unfavourable change
	Stock price volatility Input	±5% Change ±5%		$ -
			Recognised inprofit or loss
			Favourable change	Unfavourable change
	Stock price volatility		$ 382	($279)

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.

~55~

• 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

None.

~56~

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

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 1 Item Description Cash： Cash on hand and Petty cash Bank deposits Demand deposits - NTD Demand deposits - USD (US $1,277 thousand, exchange rate 31.44) Demand deposits - EUR (EUR €415 thousand, exchange rate 36.9) Demand deposits - RMB (RMB￥475 thousand, exchange rate 4.5) Cash equivalents Time deposits - NTD (Expiration dates in January 2026, interest rate 1.6%) Time deposits - RMB (RMB￥3,000 thousand, exchange rate 4.497 expiration dates in January 2026, interest rate 1.3%)	Amount
	1,977 $ 206,336 40,136 15,314 2,137 100,000 13,491
	379,391 $

Statement 1, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 2

ClientName Description Amount Customer T Sales revenue 61,056 $ Customer E Sales revenue 18,389 Customer A Sales revenue 15,468 Customer L Sales revenue 11,568 Customer R Sales revenue 11,543 Customer S Sales revenue 11,257 Customer K Sales revenue 10,957 Others (balance of each client has not exceeded Sales revenue 5% of total account balance) 81,134 221,372 Less: Allowance for bad debts 4,464) ( 216,908 $

Note

Statement 2, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF INVENTORIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 3

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

Amount
Net Realisable
Item Description Cost Value Note
----- End of picture text -----

Raw materials Work in progress Finished goods Materials and supplies in transit Less: Allowance for inventory valuation losses (	450,434 $ 44,633 247,032 2,328 744,427 120,363) 624,064 $	353,878 $ The lower of cost and 43,059 net realisable value 276,988 2,328 676,253 $

Statement 3, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 4

Statement 4
Name	Shares Amount - 77,863 $ - 21,535 100 139,816 - 4,747 250,000 3,176 247,137 $ BeginningBalance	Additio	Amount 24,840 $ 2,575 27,258 - 4,439 59,112 $ n(Note)	Decreas	Amount - $ - - 3,072) ( - 3,072) ($ e (Note)	Percentage Shares ofOwnership - 100% - 100% 100 100% - 100% 500,000 100% EndingBalance	Amount 102,703 $ 24,110 167,074 1,675 7,615 303,177 $	MarketValue or	Total Amount 102,921 $ 23,945 167,415 1,665 7,615 303,561 $ Net Assets Value	Collateral None None None None None	Notes
	Shares - - 100 - 250,000	Shares - - - - 250,000		Shares - - - - -				Unit Price (indollars) - $ - - - -
DING LI POLYURETHANE CO., LTD. SHANGHAI DINTEX TRADING CO., LTD DINGZING ADVANCED MATERIALS USA,INC. DINGZING ADVANCED MATERIALS VIETNAM COMPANY LIMITED DINGZING ADVANCED MATERIALS EUROPE GmbH

Note : It included additions of investments accounted for using equity method, profit or loss on investments accounted for using equity method, earnings distribution of investments accounted for using equity method,

unrealised gain (loss) arising from inter-company transactions and currency translation differences, etc.

Statement 4, Page1

DINGZING ADVANCED MATERIALS INCORPORATED

STATEMENT OF CHANGES IN COST OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 5 Item Land Building and structures Transportation equipment Miscellaneous equipment Total	Beginning Balance 63,305 $ 6,367 4,995 3,114 77,781 $	Addition Decrease - $ - $ - - 4,724 3,424) ( - - 4,724 $ 3,424) ($	EndingBalance
			63,305 $ 6,367 6,295 3,114
			79,081 $

Statement 5, Page1

DINGZING ADVANCED MATERIALS INCORPORATED

STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 6

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Item Beginning Balance Addition Decrease Ending Balance
Land $ 11,364 $ 1,201 $ - $ 12,565
Building and structures 4,235 731 - 4,966
Transportation equipment 4,230 1,711 ( 3,424) 2,517
Miscellaneous equipment 2,725 312 - 3,037
Total $ 22,554 $ 3,955 ($ 3,424) $ 23,085
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Statement 6, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

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Statement 7
Vendor name Description Amount Note
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Company 9 Purchases and outsource Company 6 Purchases and outsource Company 1 Purchases and outsource Company 8 Purchases and outsource Others (balance of each vendor has not Purchases and outsource exceeded 5% of total account balance)	27,584 $ 25,679 9,169 5,795 19,288 87,515 $

Statement 7, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF BONDS PAYABLE

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 8

Statement 8
The first domestic secured convertible bonds The second domestic unsecured convertible bonds Bonds Name	First Commercial Bank First Commercial Bank Trustee	2023.10.26 2023.10.27 IssuanceDate	Interest Payment Date	Total Issuance Amount Note 1 500,000 $ Note 1 200,000 Coupon Rate	Repayment Paid	Ending Balance Amount	Unamortized Premiums (Discounts)	Carrying Amount	Repayment Term	Collateral
			- -		226,900) ($ 119,400) (	273,100 $ 3,862) ($ 80,600 1,317) ( Less: Maturity within one year		269,238 $ 79,283	Note 1 Note 1	Note 2 None
								348,521 348,521) ( - $

Note 1: Details are provided in Note 6(10).

Note 2: The Company commissioned First Commercial Bank, Ltd., Kaohsiung Branch as the guarantor bank.

Statement 8, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF LONG-TERM BORROWINGS DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 9

Statement 9
Creditor Description First Commercial Bank 2021.05~2029.09, Pays interest monthly, Starting from October 2022, the borrower will make monthly fixed payments on principal and pay interest calculated on a monthly basis. Less: Maturity within one year		Borrowing Amount Contract Period 202,777 $ 2021.05~ 2029.09 96,046) 106,731 $	Range of Interest Rate	Mortgaged or Guaranteed	Note
	(		1.375%	None

Statement 9, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 10

Item Land Building and structures Transportation equipment	Description Lease Period Discount Rate 2018.4.9~2028.4.8 1.18% 2019.1.1~2027.11.30 1.18% 2022.10.26~2028.5.6 1.02%~1.375% Less: Maturity within one year	Ending Balance Note 46,157 $ 1,429 3,786 51,372 5,417) ( 45,955 $

Statement 10, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 11

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Item Volume Amount Note
Thin films 85,933 thousand yards $ 2,486,561
Oil seals 10,691 thousand pieces 165,678
Belt pipes 4,151 thousand meters 92,231
Other service revenue 1,839
2,746,309
Less: Sales returns and discounts ( 37,814)
Net sales revenue $ 2,708,495
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Statement 11, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 12

Statement 12
Item Subtotal Total Beginning raw materials 405,765 $ Add:Raw materials purchased 841,401 $ Less: Raw materials to sell 115) ( Less:Raw materials reclassified as expenses, etc. 37,369) ( 803,917 Ending raw materials 452,762) ( Raw materials used 756,920 Direct labour 239,881 Manufacturing expense 981,746 Manufacturing cost 1,978,547 Beginning work in progress 58,402 Ending work in progress 44,633) ( Cost of finished goods 1,992,316 Beginning finished goods 241,363 Add: Current finished goods 142 $ Less: Current finished goods retirement 3,627) ( Less: Finished goods reclassified as expenses, etc. 100,924) ( 104,409) ( Ending finished goods 247,032) ( Cost of goods sold 1,882,238 Loss on inventories scrapped 3,627 Add: Cost of materials sales 115 Add: Allowance for inventory valuation 16,155 Add: Other 2,549) ( Total 1,899,586 $ Amount	Note

Statement 12, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF MANUFACTURING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 13

Statement 13
Item Wages and salaries Depreciation expense Utilities expense Package expense Insurance expense Repair expense Consumables Other expenses	Description Balance of individual accounts has not exceeded 5% of total account balance	Amount 223,111 $ 211,686 179,544 71,525 56,786 54,122 49,356 135,616 981,746 $	Note

Statement 13, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 14

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Item Description Amount Note
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Wages and salaries Import and export expense Freight Sample expense Other expenses Balance of individual accounts has not exceeded 5% of total account balance	34,561 $ 21,882 5,725 5,334 26,641 94,143 $

Statement 14, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 15

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Item Description Amount Note
Wages and salaries $ 63,866
Other expenses Balance of individual accounts has not
exceeded 5% of total account balance 56,532
$ 120,398
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Statement 15, Page1

DINGZING ADVANCED MATERIALS INCORPORATED STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 16 Item Description Research and development expense Wages and salaries Other expenses Balance of individual accounts has not exceeded 5% of total account balance	Amount 97,871 $ 19,409 8,372 125,652 $	Note

Statement 16, Page1

DINGZING ADVANCED MATERIALS INCORPORATED SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Statement 17

Statement 17
Nature Function	Year ended December 31,2025
	Classified as cost of sales	Classified as operatingexpenses	Total
Employee Benefit Expense (Note)	521,442 $	127,160 $	648,602 $
Wages and salaries	441,330	106,077	547,407
Labour and health insurance fees	44,391	7,444	51,835
Pension costs	21,662	4,142	25,804
Board compensation	-	7,617	7,617
Others	14,059	1,880	15,939
Depreciation Expense	211,686	9,004	220,690
Amortisation Expense	213	2,618	2,831
Nature Function	Year ended December 31,2024
	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee Benefit Expense (Note)	520,972 $	140,367 $	661,339 $
Wages and salaries	444,679	115,979	560,658
Labour and health insurance fees	41,649	7,149	48,798
Pension costs	20,755	4,013	24,768
Board compensation	-	11,692	11,692
Others	13,889	1,534	15,423
Depreciation Expense	205,961	6,329	212,290
Amortisation Expense	108	2,150	2,258

Note:

• A.As of December 31, 2025 and 2024, the Company had 643 and 636 employees , including 6 non-employee directors, respectively.

• B.(a) For the years ended December 31, 2025 and 2024, average employee benefit expense was $1,006 and $1,031, respectively.

• (b) For the years ended December 31, 2025 and 2024, average employee salary was $859 and $890,

• (c) Changes of adjustments of average employees’ salary was(3.48%).

• (d) For the years ended December 31, 2025 and 2024, supervisors’ remuneration was both $0(Note).

• (e) The Company has a salary and remuneration committee which sets and periodically reviews directors’ and managers’ performance assessment standards, annual and long-term performance target and policies, mechanics, standards and structures of salary and remuneration, periodically assesses the achievement of directors’ and managers’ performance targets and set the content and amount of salary and remuneration based on the assessment results from the performance assessment standards. In accordance with the Articles of Incorporation, the remuneration of the Company’s directors and supervisors, a ratio of distributable profit of the current year, if any, shall be appropriated as employees' compensation and directors' and supervisors' remuneration. The ratio shall not be lower than 1% for employees’compensation which can be in the form of shares or in cash and shall not be higher than 5% for directors' remuneration.

Statement 17, Page1

DINGZING ADVANCED MATERIALS INCORPORATED SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION (Cont.) FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Statement 17

If the Company has an accumulated deficit, earnings should be reserved to cover deficit. The employees’ salaries of the Company are determined by reference to the Table of Salary Range for Each Job Classification and Position, which is set out by considering the complexity, level of responsibility and professional skills required for the job. Except for the regulations stipulated in the laws or items agreed with employees, the employees’ salaries shall be paid in full amount. The compensation paid to employees during the normal working period shall not be less than the minimum wage. In addition, the Company distributes employees’ bonuses and employees’ compensation in order to motivate employees for achieving operation objectives and improve the Company’s earnings. The distribution standard of employees’ bonuses is based on the announced rules of bonuses, and the distribution of the employees’ compensation is based on the Company’s Articles of Incorporation.

Note: The Company has an audit committee, thus, there was no remuneration of supervisors.

Statement 17, Page2