DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

(Stock Code: 6952)

Address: No. 68-30, Pingshan Rd., Wanlong Village, Xinpi Township, Pingtung County
Telephone: 886-8-787-1888

Notice to Readers

The English consolidated financial statements are not reviewed nor audited by independent auditors. They have been translated into English from the original Chinese version which has been audited by independent auditors. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese version shall prevail.

Table of Contents

Item	Page
1. Cover	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4-7
5. Consolidated Balance Sheets	8-9
6. Consolidated Statements of Comprehensive Income	10
7. Consolidated Statements of Changes in Equity	11
8. Consolidated Statements of Cash Flows	12-13
9. Notes to Consolidated Financial Reports
(1) History and Organization	14
(2) Date and Procedures of Authorization of Financial Statements	14
(3) Newly Issued or Revised Standards and Interpretations	14-15
(4) Summary of Significant Accounting Policies	16-27
(5) Critical Accounting Judgments and Major Sources of Estimation Uncertainty	28
(6) Details of Significant Accounts	28-47
(7) Related Party Transactions	47-50
(8) Pledged Assets	51
(9) Significant Contingent Liabilities and Unrecognized Contract Commitments	51
(10) Significant Disaster Loss	51
(11) Significant Subsequent Events	51
(12) Others	52-57
(13) Additional Disclosures	58
(14) Segment Information	58-60

Dawushan Farm Technology Co., Ltd.
Representation Letter

The entities that are required to be included in the combined financial statements of Dawushan Farm Technology Co., Ltd. as of and for the year ended December 31, 2025, under the “Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard No. 10. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Therefore, Dawushan Farm Technology Co., Ltd. does not prepare a separate set of combined financial statements.

Very truly yours,

Dawushan Farm Technology Co., Ltd.

Feng-Chun Lin
Chairperson
March 6, 2026

Independent Auditors' Report

The Board of Directors and Shareholders
Dawushan Farm Technology Co., Ltd.

Audit opinion

We have audited the consolidated balance sheets of Dawushan Farm Technology Co., Ltd. and its subsidiaries (hereinafter referred to as "Dawushan Group") as of December 31, 2025, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and the notes to consolidated financial statements (including a summary on significant accounting policies).

In our opinion, the aforementioned consolidated financial statements present fairly, in all material respects, the consolidated financial position of Dawushan Group as of December 31, 2025, and its consolidated financial performance and cash flows for the year then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for audit opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of Dawushan Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the "Norm"), and we have fulfilled our other responsibilities in accordance with the Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter - Fire loss

As disclosed in Note 10 to the consolidated financial statements, a portion of Dawushan Group's production facilities was damaged by fire on March 12, 2025. As a result, the Group recognized a disaster loss of NT$36,470 thousand for the damage to its plant and equipment. The Group is currently in the process of filing an insurance claim, and no insurance compensation has been recognized as of the reporting date. Our audit conclusion is not modified in respect of this matter.

Emphasis of matter - Organizational restructuring

As disclosed in Note 6(26) to the consolidated financial statements, on April 1, 2025, the Dawushan Group acquired 51% equity interest in Fu Che Frozen Food Co., Ltd. from its parent company, Kuo Hsing Poultry & Livestock Feeds Co., Ltd. This transaction was an organizational restructuring under common control. The consolidated financial statements for the comparative periods have been presented as if the combination had been in effect from the beginning of those periods. In preparing the consolidated financial statements for the year ended December 31, 2025, the Dawushan Group restated the comparative consolidated financial statements on a retrospective basis. Our audit conclusion is not modified in respect of this matter.

Key audit matters

Key audit matters are ones that were of most significance in our audit of the consolidated financial statements of Dawushan Group for the year ended December 31, 2025 based on our professional

judgment. These matters have been covered during the audit of the overall consolidated financial statements and in forming the audit opinion. We will not express a separate opinion on these matters.

Key audit matters of the consolidated financial statements of Dawushan Group for the year ended December 31, 2025 are stated as follows:

Existence and occurrence of revenue recognition for fresh egg products

Description of the matter

For the accounting policies related to revenue recognition, please refer to Note 4(25) to the consolidated financial statements. For the accounting items of operating revenue, please refer to Note 6(16).

Operating revenue is one of the primary indicators used to assess management's performance and is also a matter of significant interest to users of the financial statements. As revenue from the sale of fresh egg products represents the largest proportion of the Group's total operating revenue, we identified the existence and occurrence of revenue recognition for fresh egg products as one of the key audit matters in the current year's audit.

Audit procedures performed

The primary audit procedures we performed in response to the above key audit matter include:

To understand, evaluate, and test the effectiveness of the design and implementation of internal controls over the recognition of sales revenue.
To obtain detailed listings of sales transactions and perform substantive testing by examining supporting documents, including customer orders, shipping documents, and sales invoices.
To perform external confirmations of accounts receivable.
To review significant sales returns and allowances occurring subsequent to year-end and examine the related supporting documentation.

Business combination under common control (organizational restructuring)

Description of the matter

For the accounting policies related to business combinations under common control (organizational restructuring), please refer to Note 4(28) to the consolidated financial statements. For the accounting items related to business combinations, please refer to Note 6(26).

On April 1, 2025, the Dawushan Group acquired 51% equity interest in Fu Che Frozen Food Co., Ltd. from its parent company, Kuo Hsing Poultry & Livestock Feeds Co., Ltd. This transaction was an organizational restructuring under common control. As this represented a significant transaction during the reporting period, we identified the organizational restructuring as one of the key audit matters in the current year's audit.

Audit procedures performed

The primary audit procedures we performed in response to the above key audit matter include:

To interview management in order to understand the purpose of the organizational restructuring and the basis for determining the consideration.
To review the minutes of Board meetings and the share transfer agreement, and inspect supporting documentation for the payment of the consideration.
To assess the competence and objectivity of the independent experts engaged by management and review the fairness opinion issued by those experts.

To review the accounting treatment of the transaction and evaluate the adequacy of its presentation and disclosures in the financial statements.

Other matter - scope of audit

The consolidated financial statements of Dawushan Group for the year ended December 31, 2024 prior to restatement were audited by other auditors, who issued an unqualified opinion on February 18, 2025. As disclosed in Note 6(26) to the consolidated financial statements, the Dawushan Group restated its consolidated financial statements for the year ended December 31, 2024 as a result of an organizational restructuring. We performed the necessary audit procedures on the 2024 financial statements of Fu Che Frozen Food Co., Ltd. and on the adjustment entries made in connection with the restatement of the consolidated financial statements. In our opinion, the aforementioned financial statements of Fu Che Frozen Food Co., Ltd. for the year ended December 31, 2024 and the related adjustment entries are fairly stated and have been appropriately accounted for.

Other matter - parent company only financial statements

Dawushan Farm Technology Co., Ltd. has also prepared parent company only financial statements for the years ended December 31, 2025 and 2024. We issued an auditor's report with an unqualified opinion, including emphasis of matter paragraphs and other matter paragraphs. On the 2025 financial statements, and other auditors issued an auditor's report with an unqualified opinion on the 2024 financial statements. These financial statements are presented for reference.

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

The responsibilities of management are to prepare the consolidated financial statements with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, IFRICs, and SICs endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and maintain necessary internal controls associated with the preparation in order to ensure the financial statements are free from material misstatement arising from fraud or error.

In preparing the consolidated financial statements, management is also responsible for assessing the ability of Dawushan Group in continuing as a going concern, disclosing associated matters and adopting the going concern basis of accounting unless the management intends to liquidate the Group or cease its operations, or has no realistic alternative but to do so.

Those charged with governance of Dawushan Group (including the Audit Committee) are responsible for supervising the financial reporting process.

Auditors' responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance on whether the consolidated financial statements as a whole are free from material misstatement arising from fraud or error, and to issue an independent auditors' report. 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. If those amounts of misstatements, either individually or in the aggregate, could reasonably be expected to influence the economic decisions of financial statements users, they are considered material.

We have exercised professional judgment and professional skepticism when carrying out auditing work according to the Standards on Auditing of the Republic of China. We also perform the following tasks:

Identify and assess the risks of material misstatement arising from fraud or error within the consolidated financial statements; design and execute appropriate counter-measures in response to those risks, and obtain sufficient and appropriate audit evidence to provide a basis for our

opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error.

Understand internal controls relevant to the audit in order to design appropriate audit procedures under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Dawushan Group’s internal control.
Evaluate the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and relevant disclosures made by management.
Based on the audit evidence obtained, we conclude on the appropriateness of management’s use of the going concern basis of accounting and whether a material uncertainty exists for events or conditions that may cast significant doubts on Dawushan Group’s ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we shall remind users of the consolidated financial statements to pay attention to relevant disclosures in the notes to those statements within our audit report. If such disclosures are inadequate, we need 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 result in Dawushan Group ceasing to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements (including relevant notes), and whether the consolidated financial statements adequately represent the underlying transactions and events.
Obtain sufficient and appropriate audit evidence concerning the financial information of entities within Dawushan Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the audit and the preparation of an audit opinion on the Group.

Matters communicated between us and the governance bodies include the planned scope and timing of the audit, and significant audit findings (including any significant deficiencies in internal control identified during the audit).

We also provide governance bodies with a declaration that we have complied with the Norm regarding independence, and to communicate with them all relationships and other matters that may possibly be deemed to impair our independence (including relevant preventive measures).

From the matters communicated with governance bodies, we determine the key audit matters within the audit of Dawushan Group’s consolidated financial statements for the year ended December 31, 2025. We have clearly indicated such matters in the independent auditors’ report, unless legal regulations prohibit the public disclosure of specific items, or in extremely rare cases, where we decided not to communicate over specific items in the independent auditors’ report for it could be reasonably anticipated that the negative effects of such disclosure would be greater than the public interest it brings forth.

The engagement partners on the audit resulting in this independent auditors’ report are A-Shen Liao and Chien-Chih Wu.

PricewaterhouseCoopers Taiwan

March 6, 2026

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

	Assets	Note	December 31, 2025		(Restated) December 31, 2024
			Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 187,898	5	$ 403,869	11
1136	Financial assets at amortized cost - current	6(2),8	3,640	-	9,747	-
1150	Notes receivable, net	5,6(3)	5,103	-	3,148	-
1170	Accounts receivable, net	5,6(3),7	363,642	10	299,383	8
1200	Other receivables		474	-	1,440	-
1220	Current tax assets		3,454	-	146	-
130X	Inventories	5,6(4)	98,886	3	79,851	2
1400	Biological assets - current	6(5),7	8,855	-	11,429	1
1410	Prepayments		47,092	1	23,021	1
11XX	Total current assets		719,044	19	832,034	23
Non-current assets
1600	Property, plant and equipment	6(6),8,10	2,765,458	72	2,486,329	68
1755	Right-of-use assets	6(7),7	92,572	3	46,135	1
1780	Intangible assets	6(8)	130,219	3	177,577	5
1830	Biological assets - non-current	6(5),7	91,891	2	119,402	3
1840	Deferred tax assets	6(23)	26,214	1	3,566	-
1920	Refundable deposits		5,273	-	5,597	-
1990	Other non-current assets - others		2,583	-	891	-
15XX	Total non-current assets		3,114,210	81	2,839,497	77
1XXX	Total assets		$ 3,833,254	100	$ 3,671,531	100

(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS-(Continued)

December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

	Liabilities and Equity	Note	December 31, 2025		(Restated) December 31, 2024
			Amount	%	Amount	%
Current liabilities
2100	Short-term loans	6(9),8	$ 405,000	11	$ -	-
2130	Contract liabilities - current	6(16)	614	-	3,166	-
2150	Notes payable		100	-	100	-
2170	Accounts payable		111,232	3	146,890	4
2180	Accounts payable - related parties	7	67,432	2	40,753	1
2200	Other payables	6(10),7	193,569	5	173,464	5
2230	Current tax liabilities		-	-	27,745	1
2250	Provisions - current		-	-	3,708	-
2280	Lease liabilities - current	7	20,876	-	15,441	-
2320	Current portion of long-term loans	6(11),8	336,261	9	49,753	1
21XX	Total current liabilities		1,135,084	30	461,020	12
Non-current liabilities
2540	Long-term loans	6(11),8	853,252	22	698,977	19
2570	Deferred tax liabilities	6(23)	671	-	270	-
2580	Lease liabilities - non-current	7	72,832	2	31,087	1
25XX	Total non-current liabilities		926,755	24	730,334	20
2XXX	Total liabilities		2,061,839	54	1,191,354	32
Equity
Equity attributable to owners of the parent
	Share capital	6(13)
3110	Common shares		683,450	18	683,450	19
	Capital surplus	6(14)
3200	Capital surplus		467,110	12	585,286	16
	Retained earnings	6(15)
3310	Legal reserve		64,096	1	54,616	2
3350	Unappropriated earnings		262,575	7	420,788	11
3500	Treasury shares	6(13)	( 49,013 )	( 1 )	( 36,511 )	( 1 )
31XX	Total equity attributable to owners of the parent		1,428,218	37	1,707,629	47
35XX	Predecessor interests under common control	6(26)
36XX	Non-controlling interests	4(3)	343,197	9	368,631	10
3XXX	Total equity		1,771,415	46	2,480,177	68
	Significant contingent liabilities and unrecognized contract commitments	9
	Significant disaster loss	10
3X2X	Total liabilities and equity		$ 3,833,254	100	$ 3,671,531	100

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

(Concluded)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars,
Except for earnings (loss) per share, which is expressed in New Taiwan Dollars)

Item	Note	2025		(Restated)2024
		Amount	%	Amount	%
4000 Operating revenue	6(16),7	$ 1,944,395	100	$ 1,987,639	100
5000 Operating costs	6(4,21,22),7	( 1,628,406 )	( 84 )	( 1,452,217 )	( 73 )
5850 Gain arising from initial recognition of biological assets and agricultural produce		44,508	2	21,200	1
5900 Gross profit		360,497	18	556,622	28
Operating expenses	6(8,21,22),7
6100 Sales and marketing expenses		( 188,764 )	( 10 )	( 177,718 )	( 9 )
6200 General and administrative expenses		( 110,497 )	( 5 )	( 115,757 )	( 6 )
6300 Research and development expenses		( 33,519 )	( 2 )	( 28,439 )	( 1 )
6450 Expected credit gain (loss)	12(2)	27	-	( 54 )	-
6000 Total operating expenses		( 332,753 )	( 17 )	( 321,968 )	( 16 )
6900 Operating income		27,744	1	234,654	12
Non-operating income and expenses
7100 Interest income	6(17)	2,580	-	3,852	-
7010 Other income	6(18)	31,219	2	36,763	2
7020 Other gains and losses	6(19)	( 116,286 )	( 6 )	( 29,159 )	( 1 )
7050 Finance costs	6(6,20),7	( 19,239 )	( 1 )	( 12,685 )	( 1 )
7000 Total non-operating income and expenses		( 101,726 )	( 5 )	( 1,229 )	-
7900 (Loss) income before income tax		( 73,982 )	( 4 )	233,425	12
7950 Income tax benefit (expense)	6(23)	13,837	1	( 47,552 )	( 3 )
8200 Net (loss) income		($ 60,145 )	( 3 )	$ 185,873	9
8500 Total comprehensive (loss) income		($ 60,145 )	( 3 )	$ 185,873	9
Net (loss) income attributable to:
8610 Owners of the parent		($ 80,812 )	( 4 )	$ 94,800	5
8615 Predecessor interests under common control		8,327	-	45,980	2
8620 Non-controlling interests		12,340	1	45,093	2
Total net (loss) income		($ 60,145 )	( 3 )	$ 185,873	9
Total comprehensive (loss) income attributable to:
8710 Owners of the parent		($ 80,812 )	( 4 )	$ 94,800	5
8715 Predecessor interests under common control		8,327	-	45,980	2
8720 Non-controlling interests		12,340	1	45,093	2
Total comprehensive (loss) income		($ 60,145 )	( 3 )	$ 185,873	9
(Loss) earnings per share (NT$)	6(24)
9750 Earnings per share - basic		($ 1.08 )		$ 2.17
9850 Earnings per share - diluted		($ 1.08 )		$ 2.16

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

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

	Note	Common Shares	Capital Surplus	Legal Reserve	Unappropriated Earnings	Treasury Shares	Total	Predecessor Interests under Common Control	Non-Controlling Interests	Total Equity
For the year ended December 31, 2024 (Restated)
Balance as of January 1, 2024 (Restated)		$ 607,500	$ 230,350	$ 47,408	$ 401,541	$ -	$ 1,286,799	$ 365,587	$ 284,384	$ 1,936,770
Net income for the period		-	-	-	94,800	-	94,800	45,980	45,093	185,873
Total comprehensive income for the period		-	-	-	94,800	-	94,800	45,980	45,093	185,873
Appropriation of 2023 earnings
Legal reserve		-	-	7,208	( 7,208 )	-	-	-	-	-
Cash dividends	6(15)	-	-	-	( 68,345 )	-	( 68,345 )	-	-	( 68,345 )
Issuance of common shares for cash	6(13,14)	75,950	354,940	-	-	-	430,890	-	-	430,890
Cash dividends distributed by subsidiaries before organizational restructuring		-	-	-	-	-	-	( 7,650 )	( 7,350 )	( 15,000 )
Repurchase of treasury shares	6(13)	-	-	-	-	( 36,511 )	( 36,511 )	-	-	( 36,511 )
Changes in percentage of ownership interests in subsidiaries	6(14,25)
Changes in non-controlling interests		-	( 4 )	-	-	-	( 4 )	-	4	-
Balance as of December 31, 2024 (Restated)		$ 683,450	$ 585,286	$ 54,616	$ 420,788	($ 36,511 )	$ 1,707,629	$ 403,917	$ 368,631	$ 2,480,177
For the year ended December 31, 2025
Balance as of January 1, 2025 (Restated)		$ 683,450	$ 585,286	$ 54,616	$ 420,788	($ 36,511 )	$ 1,707,629	$ 403,917	$ 368,631	$ 2,480,177
Net loss for the period		-	-	-	( 80,812 )	-	( 80,812 )	8,327	12,340	( 60,145 )
Total comprehensive loss for the period		-	-	-	( 80,812 )	-	( 80,812 )	8,327	12,340	( 60,145 )
Appropriation of 2024 earnings
Legal reserve		-	-	9,480	( 9,480 )	-	-	-	-	-
Cash dividends	6(15)	-	-	-	( 67,345 )	-	( 67,345 )	-	-	( 67,345 )
Cash distribution from capital surplus	6(14)	-	( 67,345 )	-	-	-	( 67,345 )	-	-	( 67,345 )
Repurchase of treasury shares	6(13)	-	-	-	-	( 12,502 )	( 12,502 )	-	-	( 12,502 )
Difference between the acquisition/disposal price and carrying amount of subsidiary equity interests	6(14,25)
Cash dividends distributed by subsidiaries before organizational restructuring		-	-	-	-	-	-	( 38,250 )	( 36,750 )	( 75,000 )
Effect of organizational restructuring	6(14,26)	-	( 50,831 )	-	-	-	( 50,831 )	( 373,994 )	-	( 424,825 )
Balance as of December 31, 2025		$ 683,450	$ 467,110	$ 64,096	$ 262,575	($ 49,013 )	$ 1,428,218	$ -	$ 343,197	$ 1,771,415

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

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

	Note	2025	(Restated)2024
Cash flows from operating activities
(Loss) income before income tax		($ 73,982)	$ 233,425
Adjustments
Non-cash income and expense items
Depreciation	6(5,6,7,21)	245,918	215,376
Amortization	6(8,21)	5,128	2,003
Expected credit (gain) loss	12(2)	( 27)	54
Interest expense	6(20)	19,239	12,685
Interest income	6(17)	( 2,580)	( 3,852)
Loss on disposal of property, plant and equipment	6(19)	1,156	2,602
Loss on disposal of biological assets	6(19)	60,670	15,671
Gain on lease modification	6(19)	-	( 4)
Impairment loss on non-financial assets	6(19)	-	4,739
Disaster loss	6(19)	35,970	-
Reclassification of property, plant, and equipment to expenses	6(6)	902	295
Changes in operating assets and liabilities
Net changes in operating assets
Notes receivable		( 1,955)	3,959
Accounts receivable		( 64,232)	31,399
Other receivables		966	1,517
Inventories		( 19,035)	( 1,595)
Biological assets - current		( 8,855)	( 114,307)
Prepayments		( 24,071)	( 10,871)
Net changes in operating liabilities
Contract liabilities - current		( 2,552)	2,788
Accounts payable		( 35,658)	26,839
Accounts payable - related parties		26,679	( 31,546)
Other payables		12,844	37,660
Provisions - current		-	535
Cash generated from operations		176,525	429,372
Interest received		2,580	3,877
Interest paid		( 18,728)	( 12,737)
Income tax paid		( 39,463)	( 56,652)
Net cash generated by operating activities		120,914	363,860
Cash flows from investing activities
Acquisition of financial assets at amortized cost - current		( 3,640)	( 9,747)
Disposal of financial assets at amortized cost - current		9,747	-
Acquisition of biological assets - non-current		( 138,581)	( 42,501)
Disposal of biological assets - non-current		15,335	6,542
Acquisition of property, plant and equipment	6(27)	( 439,757)	( 453,117)
Disposal of property, plant and equipment		913	18
Acquisition of intangible assets	6(8)	( 95)	( 351)
Decrease in refundable deposits		324	504
Decrease in other financial assets - current		-	119,448
(Increase) decrease in other non-current assets - others		( 1,692)	504
Net cash used in investing activities		( 557,446)	( 378,700)

(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)

For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

	Note	2025	(Restated) 2024
Cash flows from financing activities
Increase in short-term loans	6(28)	$ 1,382,000	$ 190,000
Decrease in short-term loans	6(28)	( 977,000 )	( 376,000 )
Proceeds from long-term loans	6(28)	512,000	303,120
Repayment of long-term loans	6(28)	( 71,217 )	( 480,133 )
Repayment of lease principal	6(28)	( 18,930 )	( 15,404 )
Cost of treasury shares repurchased	6(13)	( 12,502 )	( 36,511 )
Issuance of common shares for cash	6(13)	-	430,890
Changes in non-controlling interests	6(25)	( 1,600 )	46,500
Cash dividends distributed by subsidiaries before organizational restructuring		( 75,000 )	( 15,000 )
Cash paid for acquisition of subsidiary equity under organizational restructuring	6(26)	( 382,500 )	-
Distribution of cash dividends and cash distribution from capital surplus	6(14,15)	( 134,690 )	( 68,345 )
Net cash generated by (used in) financing activities		220,561	( 20,883 )
Net decrease in cash and cash equivalents		( 215,971 )	( 35,723 )
Cash and cash equivalents at beginning of period	6(1)	403,869	439,592
Cash and cash equivalents at end of period	6(1)	$ 187,898	$ 403,869

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

(Concluded)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

History and Organization

(1) Dawushan Farm Technology Co., Ltd. (the “Company”) was approved for incorporation on January 4, 2007. The Company was originally registered under the name Dawushan Livestock Products Co., Ltd. It was renamed Mountain River Livestock Products Co., Ltd. in March 2015 and Dawushan Farm Technology Co., Ltd. in January 2022. The Company primarily engages in the production and wholesale of poultry eggs as well as the manufacturing and trading of organic fertilizers.

(2) The Company’s shares were listed on the Taiwan Stock Exchange on June 13, 2024, under the stock code 6952.

(3) Please refer to Note 4(3) for main operational activities of the Company and its subsidiaries (the “Group”).

(4) Kuo Hsing Poultry & Livestock Feeds Co., Ltd. directly and indirectly holds 42.43% of the Company’s shares and is the ultimate parent company of the Group.

Date and Procedures of Authorization of Financial Statements

The consolidated financial statements for the years ended December 31, 2025 and 2024 were approved and authorized for issue in the Board of Directors’ meeting on March 6, 2026.

Newly Issued or Revised Standards and Interpretations

(1) Impact of adopting newly issued or amended International Financial Reporting Standards (IFRS) Accounting Standards endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China (FSC)

The table below summarized new, revised or amended standards and interpretations of IFRS Accounting Standards endorsed by the FSC to take effect for annual periods beginning on January 1, 2025:

New, Revised or Amended Standards and Interpretations	Effective Date Announced by International Accounting Standards Board (IASB)
Amendments to IAS 21 “Lack of Exchangeability”	January 1, 2025

Upon assessment, the Group determined that the adoption of above standards and interpretations had no material impact on its financial position and financial performance.

(2) Impact of not yet adopting new or amended IFRS Accounting Standards endorsed by the FSC

The table below summarized new, revised or amended standards and interpretations of IFRS Accounting Standards endorsed by the FSC to take effect for annual periods beginning on January 1, 2026:

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

New, Revised or Amended Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026

Upon assessment, the Group determined that the adoption of above standards and interpretations had no material impact on its financial position and financial performance.

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

The table below summarized new, revised or amended standards and interpretations of IFRS Accounting Standards issued by the IASB but not yet endorsed by the FSC:

New, Revised or Amended Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture”	Yet to be determined
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 Presentation Currency”	January 1, 2027

Note: The FSC announced in a press release dated September 25, 2025, that publicly issued companies will be required to adopt IFRS 18 beginning January 1, 2028. Furthermore, companies seeking early adoption may choose to do so, provided that the FSC has officially endorsed the Standard.

Except as described below, the Group has assessed that the above standards and interpretations have no material impact on its financial position and financial performance. The related impact amounts will be disclosed upon completion of the assessment.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 “Presentation and Disclosure in Financial Statements” replaces IAS 1 and updates the structure of the statement of comprehensive income. It also introduces new disclosure requirements for management-defined performance measures and strengthens the principles of aggregation and disaggregation in the primary financial statements and notes.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Summary of Significant Accounting Policies

Major accounting policies adopted for the preparation of the consolidated financial statements are summarized below. Unless otherwise stated, these policies are applied consistently throughout all reporting periods.

(1) Statement of compliance

The consolidated financial statements for the years ended December 31, 2025 and 2024 have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC Interpretations, and SIC Interpretations (collectively, the "IFRSs") endorsed and issued into effect by the FSC.

(2) Basis of preparation

A. Except for agricultural produce which is measured at fair value less estimated costs to sell, the consolidated financial statements have been prepared on a historical cost basis.

B. The preparation of financial statements in conformity with IFRSs requires the use of significant accounting estimates and the application of the Group's accounting policies also involves management's judgment. Please refer to Note 5 for details on items associated with a higher degree of judgement or complexity, or significant assumptions and estimates in the consolidated financial statements.

(3) Basis of consolidation

A. Preparation principle of consolidated financial statements

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

(b) Transactions, balances, and unrealized gains and losses between entities within the Group have been eliminated. The accounting policies of subsidiaries have been adjusted where necessary to be consistent with those adopted by the Group.

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

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

(e) When the Group loses control over a subsidiary, the investment retained in the former subsidiary is remeasured at fair value and is recognized as either the fair value of financial asset on initial recognition or the cost of the investment in

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

associates or joint ventures on initial recognition. The difference between the fair value and the carrying amount is recognized in profit or loss for the period. For amounts previously recognized in other comprehensive income in relation to the subsidiary, the accounting treatment is consistent with the basis used if the Group had directly disposed of the related assets or liabilities. In other words, if gains or losses previously recognized in other comprehensive income are reclassified to profit or loss upon disposal of the related assets or liabilities, such gains or losses would be reclassified from equity to profit or loss when the Group loses control over a subsidiary.

B. Subsidiaries included in the consolidated financial statements:

Investor	Subsidiary	Main Business	Ownership Percentage		Note
			2025.12.31	2024.12.31
The Company	Tai Da Eggs Technology Co., Ltd.	Manufacturing and trading of processed egg products	68.39%	68.39%
	JihShang Livestock Products Co., Ltd.	Distribution of processed products	-	100.00%	Note 3
	Mountain River Livestock Products Co., Ltd.	Distribution of processed products	-	100.00%	Note 3
	Dawushan Ise Foods Co., Ltd. (formerly ChinNungHsing Eggs Co., Ltd.)	Trading of egg products	60.00%	60.00%	Note 1
	Fu Che Frozen Food Co., Ltd.	Egg processing and frozen food processing and trading	51.21%	51.00%	Note 2

Note 1: In August 2024, Dawushan Ise Foods Co., Ltd. conducted a cash capital increase. The Group subscribed to new shares from the cash capital increase, increasing the ownership percentage from 53.50% to 60.00%.
Note 2: On April 1, 2025, the Group acquired 51% equity interest in Fu Che Frozen Food Co., Ltd. from its parent company, Kuo Hsing Poultry & Livestock Feeds Co., Ltd. This transaction was an organizational restructuring under common control. The consolidated financial statements for the comparative periods have been presented as if the combination had been in effect from the beginning of those periods. In addition, the Group purchased 0.21% equity interest from non-controlling shareholders, increasing its ownership from 51% to 51.21%.
Note 3: The filing of the dissolution and final tax settlement was completed on May 8, 2025, and the liquidation procedures were finalized on August 26, 2025.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments and treatments of subsidiaries having different accounting periods: None.
E. Major restrictions: None.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

F. Subsidiaries with non-controlling interests that are material to the Group:

As of December 31, 2025 and 2024, the Group’s total non-controlling interests amounted to NT$343,197 and NT$368,631, respectively. The following provides information on subsidiaries with non-controlling interests that are significant to the Group:

Subsidiary	Principal Place of Business	Non-Controlling Interests
		December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Dawushan Ise Foods Co., Ltd.	Taiwan	$ 92,844	40.00%	$ 92,893	40.00%
Tai Da Eggs Technology Co., Ltd.	Taiwan	8,677	31.61%	11,798	31.61%
Fu Che Frozen Food Co., Ltd.	Taiwan	241,676	48.79%	263,940	49.00%

Summarized financial information of subsidiaries:

Balance sheets

	Dawushan Ise Foods Co., Ltd.
	December 31, 2025	December 31, 2024
Current assets	$ 24,786	$ 81,662
Non-current assets	478,588	209,622
Current liabilities	(229,264)	(53)
Non-current liabilities	(42,000)	(59,000)
Total net assets	$ 232,110	$ 232,231
	Tai Da Eggs Technology Co., Ltd.
	December 31, 2025	December 31, 2024
Current assets	$ 49,220	$ 63,410
Non-current assets	13,117	16,184
Current liabilities	(34,888)	(41,205)
Non-current liabilities	-	(1,069)
Total net assets	$ 27,449	$ 37,320
	Fu Che Frozen Food Co., Ltd.
	December 31, 2025	December 31, 2024
Current assets	$ 280,894	$ 319,602
Non-current assets	903,682	846,820
Current liabilities	(329,587)	(223,696)
Non-current liabilities	(359,616)	(404,073)
Total net assets	$ 495,373	$ 538,653

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	Dawushan Ise Foods Co., Ltd.
	Years Ended December 31
	2025	2024
Revenue	$ -	$ -
Net loss before income tax	($ 121)	($ 283)
Income tax expense	-	-
Net loss	( 121)	( 283)
Total comprehensive loss	($ 121)	($ 283)
Total comprehensive loss attributable to non-controlling interests	($ 49)	($ 118)
	Tai Da Eggs Technology Co., Ltd.
	Years ended December 31
	2025	2024
Revenue	$ 80,654	$ 124,817
Net (loss) income before income tax	($ 9,871)	$ 3,273
Income tax expense	-	-
Net (loss) income	( 9,871)	3,273
Total comprehensive (loss) income	($ 9,871)	$ 3,273
Total comprehensive (loss) income attributable to non-controlling interests	($ 3,121)	$ 1,035
	Fu Che Frozen Food Co., Ltd.
	Years ended December 31
	2025	2024
Revenue	$ 868,473	$ 792,702
Net income before income tax	$ 40,239	$ 113,195
Income tax expense	( 8,519)	( 23,039)
Net income	31,720	90,156
Total comprehensive income	$ 31,720	$ 90,156
Total comprehensive income attributable to non-controlling interests	$ 15,510	$ 44,176
Dividend paid to non-controlling interests	$ 36,750	$ 7,350
	Dawushan Ise Foods Co., Ltd.
	Years ended December 31
	2025	2024
Net cash used in operating activities	($ 17,851)	($ 5,045)
Net cash used in investing activities	( 268,966)	( 160,693)
Net cash generated by financing activities	212,000	191,500

(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	Dawushan Ise Foods Co., Ltd.
	Years ended December 31
	2025	2024
Net (decrease) increase in cash and cash equivalents	($ 74,817)	$ 25,762
Cash and cash equivalents at beginning of period	76,831	51,069
Cash and cash equivalents at end of period	$ 2,014	$ 76,831
		(Concluded)
	Tai Da Eggs Technology Co., Ltd.
	Years ended December 31
	2025	2024
Net cash (used in) generated by operating activities	($ 14,432)	$ 19,284
Net cash used in investing activities	( 3,710)	( 796)
Net cash used in financing activities	( 1,139)	( 1,069)
Net (decrease) increase in cash and cash equivalents	( 19,281)	17,419
Cash and cash equivalents at beginning of period	27,755	10,336
Cash and cash equivalents at end of period	$ 8,474	$ 27,755
	Fu Che Frozen Food Co., Ltd.
	Years ended December 31
	2025	2024
Net cash generated by operating activities	$ 37,671	$ 138,596
Net cash used in investing activities	( 87,338)	( 149,143)
Net cash used in financing activities	( 13,455)	( 18,352)
Net decrease in cash and cash equivalents	( 63,122)	( 28,899)
Cash and cash equivalents at beginning of period	146,619	175,518
Cash and cash equivalents at end of period	$ 83,497	$ 146,619

(4) Foreign currency translation

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

Foreign currency transactions and balances

A. Foreign currency transactions are translated into the functional currency using the spot exchange rate at the transaction date or measurement date. Exchange differences arising from such transactions are recognized in profit or loss for the period.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

B. Monetary assets and liabilities denominated in foreign currencies are remeasured using the spot exchange rate on the balance sheet date. Exchange differences arising from the remeasurement are recognized in profit or loss for the period.

C. Foreign currency non-monetary assets and liabilities that are measured at fair value through profit or loss are remeasured using the spot exchange rate at the balance sheet date, and the resulting exchange differences are recognized in profit or loss for the period. For those measured at fair value through other comprehensive income, the exchange differences arising from remeasurement using the spot exchange rate at the balance sheet date are recognized in other comprehensive income. Non-monetary items not measured at fair value are translated using the historical exchange rate at the date of the initial transaction.

D. All exchange gains and losses are presented under “other gains and losses” in the statement of profit or loss.

(5) Classification of current and non-current assets and liabilities

A. An asset is classified as current under one of the following criteria:

(a) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

(b) It is held primarily for the purpose of trading;

(d) The asset is classified as cash or a cash equivalent, unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Assets that are not classified as current are classified as non-current.

B. A liability is classified as current under one of the following criteria:

(a) It is expected to be settled in the normal operating cycle;

(b) It is held primarily for the purpose of trading;

(d) The Group does not have the right to defer settlement of the liability for at least twelve months after the reporting period.

Liabilities that are not classified as current are classified as non-current.

(6) Cash equivalents

Cash equivalents are 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.

(7) Financial assets at amortized cost

A. Refers to financial assets that meet both of the following conditions:

(a) The financial asset is held within a business model whose objective is to hold assets to collect contractual cash flows.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

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

B. The Group applies trade date accounting for financial assets measured at amortized cost that meet the criteria of regular way purchases or sales.

C. Upon initial recognition, the Group measures such financial assets at fair value plus transaction costs. Subsequently, interest income is recognized using the effective interest method over the holding period, impairment losses are recognized as incurred, and any gain or loss on derecognition is recognized in profit or loss.

D. The Group holds time deposits that do not qualify as cash equivalents. As the holding period is short and the effect of discounting is not material, these deposits are measured at the investment amount.

(8) Accounts and notes receivable

A. Refers to notes and accounts receivable that represents an unconditional right to receive consideration in exchange for the transfer of goods or services in accordance with contractual terms.

B. For short-term, non-interest-bearing notes and accounts receivable, as the effect of discounting is immaterial, the Group measures them at the original invoice amount.

(9) Impairment of financial assets

At each balance sheet date, the Group assesses its financial assets measured at amortized cost for impairment by considering all reasonable and supportable information, including forward-looking data. For financial assets for which credit risk has not increased significantly since initial recognition, the loss allowance is measured at an amount equal to the 12-month expected credit losses. For those with a significant increase in credit risk since initial recognition, the loss allowance is measured at an amount equal to the lifetime expected credit losses. For accounts receivable or contract assets that do not contain a significant financing component, the loss allowance is measured at an amount equal to the lifetime expected credit losses.

(10) Derecognition of financial assets

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

(11) Lessor's lease transactions - Operating leases

Lease income from operating leases, net of any incentives granted to the lessee, is recognized in profit or loss on a straight-line basis over the lease term.

(12) Inventories

A. Inventories are measured at the lower of cost and net realizable value. Cost is determined using the weighted average method. The cost of finished goods and work in progress includes raw materials, direct labor, other direct costs, and production-related manufacturing overhead (allocated based on normal production capacity) and does not include borrowing costs. The comparison between cost and net realizable value is performed on an item-by-item basis. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

and the estimated costs necessary to make the sale.

B. Inventories of agricultural produce are measured at fair value less costs to sell.

(13) Biological assets

Biological assets whose fair value cannot be reliably measured shall be measured at cost less accumulated depreciation and accumulated impairment losses.

(14) Property, plant and equipment

A. Property, plant and equipment are stated at cost with borrowing costs incurred during the construction period capitalized.

B. Subsequent costs are included in the carrying amount of an asset or recognized as a separate asset only if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of replaced parts shall be derecognized. All other repair and maintenance costs are recognized in profit or loss as incurred.

C. Subsequent to initial recognition, property, plant and equipment are measured using the cost model. Except for land, which is not depreciated, depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Significant components of property, plant and equipment are depreciated separately.

D. At the end of each financial year, the Group reviews the residual values, useful lives, and depreciation methods of each asset. If there are differences between the expected residual values or useful lives compared to previous estimates, or significant changes in the consumption pattern of future economic benefits of the asset, they shall be accounted for as changes in accounting estimates in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" from the date of changes. The useful lives of various assets are as follows:

Buildings and structures	2 to 50 years
Machinery and equipment	2 to 30 years
Leasehold improvements	10 years
Other equipment	2 to 22 years

(15) Lessee's lease transactions - Right-of-use assets / Lease liabilities

A. At the commencement date, the Group recognizes a right-of-use asset and a lease liability for the lease. For leases that qualify as short-term leases or leases of low-value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

B. Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group's incremental borrowing rate. Lease payments include fixed payments less any lease incentives receivable.

Subsequently, lease liabilities are measured at amortized cost using the interest method, with interest expense recognized over the lease term. When changes in the lease term or lease payments occur that do not arise from lease modifications, the lease liability is remeasured and the corresponding adjustment is made to the right-of-use asset.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

C. Right-of-use assets are initially measured at cost, which comprises the amount of the initial measurement of the lease liability.

Subsequently, the assets are measured using the cost model and depreciated over the shorter of the lease term and the useful life of the underlying asset. When the lease liability is remeasured, the right-of-use asset is adjusted by the corresponding amount.

D. For lease modifications that decrease the scope of the lease, the lessee decreases the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease and recognizes the difference between the remeasured lease liability and the adjusted right-of-use asset in profit or loss. For all other lease modifications, the remeasured lease liability is recognized as an adjustment to the right-of-use asset.

(16) Intangible assets

A. Licenses, goodwill, and proprietary technologies acquired through business combinations are recognized at fair value on the acquisition date. Proprietary technologies are amortized on a straight-line basis over their estimated useful life of 10 years. Licenses are considered to have indefinite useful lives as they are expected to generate net cash inflows for the foreseeable future. Therefore, they are not amortized.

B. Computer software is recognized at acquisition cost and amortized on a straight-line basis over its estimated useful life of 5 years.

(17) Impairment of non-financial assets

A. At each balance sheet date, the Group assesses whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. An impairment loss is recognized if the recoverable amount is less than the carrying amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and its value in use. Except for goodwill, if the circumstances that led to the recognition of an impairment loss in prior years no longer exist or have decreased, the impairment loss is reversed. However, the increased carrying amount of an asset resulting from a reversal of an impairment loss shall not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized.

B. Goodwill and intangible assets with indefinite useful lives are subject to periodic estimation of their recoverable amounts. When the recoverable amount is less than the carrying amount, an impairment loss is recognized. Impairment losses recognized for goodwill are not reversed in subsequent periods.

C. For the purpose of impairment testing, goodwill is allocated to cash-generating units (CGUs). Such allocation is determined based on operating segments, with goodwill allocated to the CGUs or groups of CGUs that are expected to benefit from the business combination from which the goodwill arose.

(18) Loans

Loans refer to short-term and long-term borrowings from banks. At initial recognition, the Group measures these borrowings at fair value, net of transaction costs. Subsequently, any difference between the proceeds net of transaction costs and the redemption amount is

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

recognized in profit or loss as interest expense over the term of the borrowings using the effective interest method.

(19) Notes and accounts payable

A. Refers to liabilities arising from the purchase of raw materials, goods, or services on credit, as well as notes payable from both operating and non-operating activities.

B. For short-term, non-interest-bearing notes and accounts payable, as the effect of discounting is immaterial, the Group measures them at the original invoice amount.

(20) Derecognition of financial liabilities

The Group derecognizes a financial liability when the obligation specified in the contract is discharged, canceled, or expires.

(21) Employee benefits

A. Short-term employee benefits

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

B. Pension

For defined contribution plans, the amount of the retirement fund to be contributed is recognized as pension cost for the period on an accrual basis. Prepaid contributions are recognized as an asset to the extent that they represent refundable cash or reduce future payments.

C. Employee compensation and remuneration to directors

Employee compensation and remuneration to directors are recognized as expenses and liabilities when the Group has legal or constructive obligations and the amounts can be reasonably estimated. If the amount accrued differs from the amount resolved to be distributed, the difference would be recognized as changes in accounting estimate.

(22) Income tax

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

B. The Group calculates current income tax based on the tax rates that have been enacted or substantively enacted at the balance sheet date in the countries where it operates and generates taxable income. Management regularly evaluates the status of income tax filings in accordance with applicable tax regulations and recognizes tax liabilities based on the amounts expected to be paid to the tax authorities, where applicable. The income tax on undistributed earnings, levied in accordance with the Income Tax Act, is recognized in the year following the year in which the earnings are generated, upon the approval of the earnings distribution by the shareholders' meeting, based on the actual distribution of earnings.

C. Deferred income tax is accounted for using the balance sheet method, which recognizes temporary differences arising between the tax bases of assets and liabilities

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

and their carrying amounts on the consolidated balance sheet. Deferred tax liabilities arising from the initial recognition of goodwill are not recognized. Similarly, deferred income tax is not recognized if it originates from the initial recognition of assets or liabilities in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit (loss) nor gives rise to equal taxable and deductible temporary differences. Temporary differences from investments in subsidiaries are not recognized if the Group controls the timing of the reversal of these temporary differences and it is probable that the temporary differences will not be reversed in the foreseeable future. Deferred income tax is measured at the tax rates (and tax laws) that are expected to apply when the related assets are realized or the liabilities are settled, based on tax laws that have been enacted or substantively enacted at the reporting date.

D. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the temporary differences can be utilized. The Group reassesses both unrecognized and recognized deferred tax assets at each balance sheet date.

(23) Share capital

A. Common shares are classified as equity. Incremental costs directly attributable to the issuance of new shares or share options are deducted from equity, net of any related income tax effects.

B. When the Company repurchases its own issued shares, the consideration paid, including any directly attributable incremental costs, net of tax, is recognized as a deduction from equity. When such treasury shares are subsequently reissued, the difference between the consideration received, net of any directly attributable incremental costs and income tax effects, and the carrying amount is recognized as an adjustment to equity.

(24) Dividend distribution

Cash dividends for the 2023 earnings were recognized as liabilities in the financial statements upon approval by the shareholders' meeting. In accordance with the Company's Articles of Incorporation, cash dividends for the 2024 earnings are recognized as liabilities upon resolution by the Board of Directors. Stock dividends are recognized as stock dividends to be distributed upon approval by the shareholders' meeting and are reclassified to common shares on the record date for the issuance of new shares.

(25) Revenue recognition

A. The Group recognizes revenue from the sale of fresh eggs, processed egg products, prepared foods and related products when control of the product is transferred to the customer, i.e., when the product is delivered to the customer, the customer has discretion over the sales channel and price of the product, and the Group does not have any unsatisfied performance obligations that may affect the customer's acceptance of the product. The product is considered delivered when it is delivered to the designated location, the risks of obsolescence and loss have been transferred to the customer, and either the customer accepts the product according to the sales contract or there is objective evidence that all acceptance criteria have been met.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

B. Revenue from the sale of fresh eggs, processed egg products, prepared foods and related products is recognized at the contract price, net of estimated quantity discounts and sales allowances. Quantity discounts and sales allowances given to customers are usually calculated based on sales volume. The Group estimates volume discounts and sales allowances using the expected value method based on historical experience. Revenue recognition is limited to the portion of revenue where a significant reversal is highly unlikely to occur in the future, and estimates are updated at each balance sheet date. The collection terms for sales transactions are usually one to two months after the shipment date. As the period between the transfer of promised goods or services to the customer and the customer's payment does not exceed one year, the Group does not adjust the transaction price for the time value of money.

C. Accounts receivables are recognized when products are delivered to the customers, as the Group then has an unconditional right to the contract price and can collect the consideration from the customers as time passes.

(26) Government grants

Government grants are recognized at fair value when there is reasonable assurance that the Group will comply with the conditions attached to the grants and that the grants will be received. Government grants related to expenses are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes the related expenses. Government grants related to property, plant and equipment are recognized as non-current liabilities and are recognized in profit or loss on a straight-line basis over the estimated useful lives of the related assets.

(27) Operating segments

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

(28) Business combinations under common control (also referred to as organizational restructuring)

According to the Q&A issued by the Accounting Research and Development Foundation on October 26, 2018, "Accounting Treatment of Business Combinations under Common Control," as IFRS 3 Business Combinations does not provide explicit guidance for transactions under common control, the relevant interpretations issued in Taiwan shall apply. Under the book value method, the acquiring entity recognizes the assets and liabilities of the transferred entity at the carrying amounts recorded by the parent company. Any difference between the consideration paid and the carrying amount recognized is directly debited from or credited to capital surplus; if the credit balance of capital surplus is insufficient, the shortfall is adjusted against retained earnings. For the purpose of preparing consolidated financial statements for the comparative period, the combination is accounted for as if it had occurred at the beginning of the earliest period presented. When restating comparative financial statements, the portion of equity previously attributable to the parent company is presented as "predecessor interests under common control," and the share of profit or loss previously attributable to the parent company is presented as "profit (loss) attributable to predecessor interests under common control."

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Critical Accounting Judgments and Major Sources of Estimation Uncertainty

In preparing the consolidated financial statements, management has exercised judgment in determining the accounting policies to be applied and has made accounting estimates and assumptions based on the circumstances as of the balance sheet date and reasonable expectations of future events. The actual results may differ from those estimates and assumptions. Management continually evaluates these estimates and assumptions based on historical experience and other relevant factors, and adjusts them as necessary. Such estimates and assumptions involve a risk of material adjustments to the carrying amounts of assets and liabilities in the next financial year. Please refer to the following disclosures regarding significant accounting judgments, estimates, and assumption uncertainty.

(1) Significant judgments in applying accounting policies: None.
(2) Critical accounting estimates and assumptions

A. Estimated impairment of notes and accounts receivable

In assessing the impairment of notes and accounts receivable, the Group is required to apply judgment and estimates in measuring the credit risk of notes and accounts receivable in order to evaluate expected credit losses. Credit risk is affected by a number of factors, including the customer's financial condition, historical transaction records and current economic conditions, among other factors that may affect customers' credit quality. This assessment is based on reasonable expectations of expected credit losses as of the balance sheet date. However, actual results may differ from these estimates and may result in material adjustments.

As of December 31, 2025, the carrying amount of the Group's notes and accounts receivable was NT$368,745.

B. Inventory valuation

As inventories are measured at the lower of cost and net realizable value, the Group is required to exercise judgment and make estimates to determine the net realizable value of inventories as of the balance sheet date. In light of rapid technological changes, the Group assesses the amount of inventories that may be subject to normal spoilage, obsolescence, or lack of marketability as of the balance sheet date and writes down the cost of inventories to their net realizable value accordingly.

As of December 31, 2025, the carrying amount of the Group's inventories was NT$98,886.

Details of Significant Accounts

(1) Cash and cash equivalents

Cash on hand and petty cash
Checking and demand deposits
Time deposits

December 31, 2025	December 31, 2024
$ 595	$ 782
175,107	400,187
12,196	2,900
$ 187,898	$ 403,869

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

A. The Group only transacts with financial institutions with sound credit quality and it maintains relationships with several financial institutions to diversify credit risk. The probability of default is expected to be very low.

B. As of December 31, 2025 and 2024, the Group’s cash and cash equivalents restricted for performance guarantee purposes, amounting to NT$740 and NT$5,847, respectively, were classified as financial assets at amortized cost - current.

(2) Financial assets at amortized cost

Item	December 31, 2025	December 31, 2024
Financial assets at amortized cost
Current:
Time deposits with original maturities over three months	$ 2,900	$ 3,900
Pledged time deposits	740	5,847
	$ 3,640	$ 9,747

A. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk of the Group’s financial assets measured at amortized cost as of December 31, 2025 and 2024 amounted to NT$3,640 and NT$9,747, respectively.

B. For information on the pledge of financial assets measured at amortized cost as collateral, please refer to Note 8.

C. For credit risk information related to financial assets measured at amortized cost, please refer to Note 12(2). The counterparties to the Group’s time deposit investments are financial institutions with good credit quality, and the likelihood of default is considered to be very low.

(3) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 5,103	$ 3,148
Accounts receivable	$ 363,783	$ 299,551
Less: Loss allowance	( 141)	( 168)
	$ 363,642	$ 299,383

A. The aging analysis of notes and accounts receivable was as follows:

	December 31, 2025		December 31, 2024
	Notes Receivable	Accounts Receivable	Notes Receivable	Accounts Receivable
Not past due	$ 5,103	$ 361,934	$ 3,148	$ 294,348
Past due:
1 to 30 days	-	1,311	-	4,047
31 to 90 days	-	433	-	1,092
Over 91 days	-	105	-	64
	$ 5,103	$ 363,783	$ 3,148	$ 299,551

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

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

B. As of December 31, 2025 and 2024, the balance of notes and accounts receivable was derived from customer contracts. The outstanding receivables from customer contracts as of January 1, 2024 amounted to NT$338,070.

C. Without considering any collateral held or other credit enhancements, the maximum exposure to credit risk of the Group’s notes receivable as of December 31, 2025 and 2024 amounted to NT$5,103 and NT$3,148, respectively; and the maximum exposure to credit risk of accounts receivable was NT$363,642 and NT$299,383, respectively.

D. The Group has not pledged any notes or accounts receivable as collateral.

E. For credit risk information related to accounts receivable and notes receivable, please refer to Note 12(2).

(4) Inventories

	December 31, 2025
	Cost	Allowance for Inventory Valuation Losses	Carrying Amount
Raw materials	$ 45,222	($ 2,580)	$ 42,642
Work in progress	19,205	( 178)	19,027
Finished goods	37,687	( 470)	37,217
	$ 102,114	($ 3,228)	$ 98,886
	December 31, 2024
	Cost	Allowance for Inventory Valuation Losses	Carrying Amount
Raw materials	$ 32,446	($ 1,754)	$ 30,692
Work in progress	17,018	( 146)	16,872
Finished goods	32,683	( 396)	32,287
	$ 82,147	($ 2,296)	$ 79,851
		December 31, 2025	December 31, 2024
Inventories measured at fair value less costs to sell		$ 18,849	$ 18,448

Inventory costs recognized as expense for the period by the Group were as follows:

	Years ended December 31
	2025	2024
Cost of inventories sold	$ 1,606,468	$ 1,445,246
Sale of consumable biological assets	-	6,499
Inventory write-downs	932	1,144
Loss on physical inventory	1,812	463
		(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	Years ended December 31
	2025	2024
Obsolescence	$ 11,390	$ 853
Idle capacity	8,824	-
Revenue from sale of scrap and waste materials	( 1,020)	( 1,988)
	$ 1,628,406	$ 1,452,217
		(Concluded)

(5) Biological assets

A. Details of biological assets

	December 31, 2025	December 31, 2024
Biological assets - current
Consumable biological assets	$ 8,855	$ 11,429
Biological assets - non-current
Bearer biological assets	$ 178,747	$ 182,856
Bearer biological assets - accumulated depreciation	( 86,856)	( 63,454)
	$ 91,891	$ 119,402

Consumable biological assets are ones that are to be harvested as agricultural produce or sold as biological assets. Bearer biological assets refer to biological assets other than consumable biological assets.

B. Reconciliation of the carrying amount of biological assets

	Years Ended December 31
	2025	2024
Balance as of January 1	$ 130,831	$ 88,369
Additions through purchases	9,037	25,781
Costs and expenses incurred	138,399	137,526
Decreases due to sale and write-offs	( 76,005)	( 22,213)
Depreciation	( 101,516)	( 92,133)
Transferred to inventories	-	( 6,499)
Balance as of December 31	$ 100,746	$ 130,831

C. Biological assets of the Group mainly consist of chicks, pullets, and layer hens. Due to the difficulty in obtaining direct market prices for chicks and pullets during their raising period, the short production cycle of layer hens, and the impact of external factors such as climate and disease on the reliability of discounted cash flow estimates, these biological assets are measured at cost less accumulated depreciation and accumulated impairment. The cost of biological assets includes all costs incurred during the growth cycle, such as the purchase costs of livestock, poultry and feed, and farm-related expenses. The cost of bearer biological assets is amortized on a straight-line basis over their productive period, which is approximately 12 to 16 months for

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

layer hens. For the years ended December 31, 2025 and 2024, the depreciation expenses of biological assets amounted to NT$101,516 and NT$92,133, respectively.

D. Estimated quantity of biological assets

	December 31, 2025	December 31, 2024
Livestock:
Quantity of biological assets (Thousand heads)	985	1,001

E. Financial risk management strategies

The Group's financial risk primarily arises from fluctuations in egg prices. The Group does not anticipate a significant decline in egg prices in the foreseeable future; therefore, no derivative contracts have been executed. The Group regularly reviews its expectations of egg prices to assess the necessity of adopting proactive financial risk management measures.

(6) Property, plant and equipment

	2025
	Land	Buildings and Structures	Machinery and Equipment	Leasehold Improvement	Other Equipment	Construction in Progress and Equipment Awaiting Inspection	Total
Balance as of January 1
Cost	$ 470,880	$ 887,090	$ 981,592	$ 18,103	$ 80,913	$ 833,800	$ 3,272,378
Accumulated depreciation	-	( 206,623)	( 529,735)	( 13,649)	( 36,042)	-	( 786,049)
	$ 470,880	$ 680,467	$ 451,857	$ 4,454	$ 44,871	$ 833,800	$ 2,486,329
Balance as of January 1	$ 470,880	$ 680,467	$ 451,857	$ 4,454	$ 44,871	$ 833,800	$ 2,486,329
Additions	1,752	29,370	68,038	-	20,185	323,454	442,799
Disposals	-	-	( 3)	-	-	( 2,066)	( 2,069)
Write-off due to fire damage	-	( 23,979)	( 11,964)	-	( 27)	-	( 35,970)
Reclassifications	49,312	390,123	170,700	-	16,037	( 626,172)	-
Transferred to expenses	-	-	-	-	-	( 902)	( 902)
Depreciation	-	( 37,939)	( 72,456)	( 1,743)	( 12,591)	-	( 124,729)
Balance as of December 31	$ 521,944	$ 1,038,042	$ 606,172	$ 2,711	$ 68,475	$ 528,114	$ 2,765,458
Balance as of December 31
Cost	$ 521,944	$ 1,270,960	$ 1,108,493	$ 18,103	$ 116,798	$ 528,114	$ 3,564,412
Accumulated depreciation	-	( 232,918)	( 502,321)	( 15,392)	( 48,323)	-	( 798,954)
	$ 521,944	$ 1,038,042	$ 606,172	$ 2,711	$ 68,475	$ 528,114	$ 2,765,458
	2024
	Land	Buildings and Structures	Machinery and Equipment	Leasehold Improvement	Other Equipment	Construction in Progress and Equipment Awaiting Inspection	Total
Balance as of January 1
Cost	$ 449,310	$ 882,661	$ 963,436	$ 18,545	$ 53,683	$ 475,368	$ 2,843,003
Accumulated depreciation	-	( 177,034)	( 479,658)	( 12,203)	( 29,002)	-	( 697,897)
	$ 449,310	$ 705,627	$ 483,778	$ 6,342	$ 24,681	$ 475,368	$ 2,145,106
Balance as of January 1	$ 449,310	$ 705,627	$ 483,778	$ 6,342	$ 24,681	$ 475,368	$ 2,145,106
Additions	36	4,429	8,413	-	3,438	435,428	451,744
Disposals	-	-	( 2,602)	-	( 18)	-	( 2,620)
Reclassifications	21,534	-	30,681	-	24,486	( 76,701)	-
Transferred to expenses	-	-	-	-	-	( 295)	( 295)
Depreciation	-	( 29,589)	( 68,413)	( 1,888)	( 7,716)	-	( 107,606)
Balance as of December 31	$ 470,880	$ 680,467	$ 451,857	$ 4,454	$ 44,871	$ 833,800	$ 2,486,329
Balance as of December 31
Cost	$ 470,880	$ 887,090	$ 981,592	$ 18,103	$ 80,913	$ 833,800	$ 3,272,378
Accumulated depreciation	-	( 206,623)	( 529,735)	( 13,649)	( 36,042)	-	( 786,049)
	$ 470,880	$ 680,467	$ 451,857	$ 4,454	$ 44,871	$ 833,800	$ 2,486,329

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

A. For the years ended December 31, 2025 and 2024, the amounts of borrowing costs capitalized to property, plant and equipment by the Group were NT$6,025 and NT$3,664, respectively. The capitalization interest rates ranged from 0.885% to 2.095% and from 0.885% to 2.095%, respectively.

B. Major components of buildings and structures include the main buildings and various improvement projects, which are depreciated over 32 to 50 years.

C. For information regarding property, plant and equipment pledged as collateral, please refer to Note 8.

D. As of December 31, 2025 and 2024, a portion of the Group’s land holdings, amounting to NT$101,539 and NT$51,205, respectively, was designated for agricultural and livestock use and, due to legal restrictions, could not be registered under the Company’s name and was temporarily registered under individuals’ names. To protect its rights, the Group has completed mortgage registrations in its favor as a safeguard.

E. For information on property, plant and equipment losses recognized due to fire incidents during the current period, please refer to Notes 6(19) and 10.

(7) Lease transactions - Lessee

A. The Group’s leased assets include livestock facilities and equipment, buildings, and transportation equipment. Lease terms generally range from 1.5 to 10 years. Lease contracts are individually negotiated and contain a variety of terms and conditions. Except for restrictions that prohibit the leased assets from being used as collateral, there are no other limitations imposed.

B. The lease terms for the Group’s Taipei office, warehouse, and executive vehicles do not exceed 12 months.

C. The carrying amounts of right-of-use assets and the related depreciation expenses were as follows:

	December 31, 2025	December 31, 2024
	Carrying Amount	Carrying Amount
Livestock facilities and equipment	$ 21,063	$ 30,784
Land	7,036	9,382
Buildings	63,461	4,686
Transportation equipment	1,012	1,283
	$ 92,572	$ 46,135

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	Years ended December 31
	2025	2024
	Depreciation	Depreciation
Livestock facilities and equipment	$ 9,721	$ 8,101
Land	2,346	2,346
Buildings	6,515	2,696
Transportation equipment	1,091	2,494
	$ 19,673	$ 15,637

D. Additions to right-of-use assets for the years ended December 31, 2025 and 2024 were NT$66,110 and NT$40,164, respectively.

E. The following amounts related to lease contracts were recognized in profit or loss:

	Years ended December 31
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 1,551	$ 989
Expense for short-term leases	11,450	9,233
Expense for leases of low-value assets	200	118
Gain on lease modification	-	4

F. Total cash outflows for leases for the years ended December 31, 2025 and 2024 amounted to NT$32,132 and NT$25,744, respectively.

(8) Intangible assets

	2025
	Licenses	Goodwill	Proprietary Technology	Computer Software	Total
Balance as of January 1
Cost	$ 23,810	$ 150,703	$ 8,571	$ 5,737	$ 188,821
Accumulated amortization and impairment	-	( 4,739)	( 2,857)	( 3,648)	( 11,244)
	$ 23,810	$ 145,964	$ 5,714	$ 2,089	$ 177,577
Balance as of January 1	$ 23,810	$ 145,964	$ 5,714	$ 2,089	$ 177,577
Additions - acquired separately	-	-	-	95	95
Decreases	( 23,810)	( 16,761)	( 1,754)	-	( 42,325)
Amortization	-	-	( 3,960)	( 1,168)	( 5,128)
Balance as of December 31	$ -	$ 129,203	$ -	$ 1,016	$ 130,219
Balance as of December 31
Cost	$ -	$ 129,203	$ -	$ 5,832	$ 135,035
Accumulated amortization and impairment	-	-	-	( 4,816)	( 4,816)
	$ -	$ 129,203	$ -	$ 1,016	$ 130,219

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	2024
	Licenses	Goodwill	Proprietary Technology	Computer Software	Total
Balance as of January 1
Cost	$ 23,810	$ 150,703	$ 8,571	$ 5,386	$ 188,470
Accumulated amortization and impairment	-	-	( 2,000)	( 2,502)	( 4,502)
	$ 23,810	$ 150,703	$ 6,571	$ 2,884	$ 183,968
Balance as of January 1	$ 23,810	$ 150,703	$ 6,571	$ 2,884	$ 183,968
Additions - acquired separately	-	-	-	351	351
Amortization	-	-	( 857)	( 1,146)	( 2,003)
Impairment	-	( 4,739)	-	-	( 4,739)
Balance as of December 31	$ 23,810	$ 145,964	$ 5,714	$ 2,089	$ 177,577
Balance as of December 31
Cost	$ 23,810	$ 150,703	$ 8,571	$ 5,737	$ 188,821
Accumulated amortization and impairment	-	( 4,739)	( 2,857)	( 3,648)	( 11,244)
	$ 23,810	$ 145,964	$ 5,714	$ 2,089	$ 177,577

A. The details of amortization of intangible assets were as follows:

	Years ended December 31
	2025	2024
General and administrative expenses	$ 5,128	$ 2,003

B. The Group's intangible assets were not pledged.

(9) Short-term loans

Nature of Loans	December 31, 2025	Interest Rate Range	Collateral
Bank loans
Secured loans	$ 170,000	1.980%	Land, buildings and structures
Credit loans	235,000	1.880%~1.990%	None
	$ 405,000

As of December 31, 2024: None.

For collateral of aforementioned short-term loans, please refer to Note 8 for details.

(10) Other payables

Item	December 31, 2025	December 31, 2024
Accrued payroll and bonuses	$ 53,511	$ 58,623
Sales discounts and allowances payable	15,666	11,462
Accrued freight expense	20,114	16,224
Accrued employee compensation and director remuneration	6,701	28,975
		(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	December 31, 2025	December 31, 2024
Accrued channel fees	$ 3,628	$ 2,988
Payable for equipment	3,375	333
Accrued unused vacation bonus	3,025	-
Interest payable	1,064	553
Others	86,485	54,306
	$ 193,569	$ 173,464

(11) Long-term loans

Nature of Loans	Loan Term and Repayment Method	Interest Rate Range	Collateral	December 31, 2025
Long-term bank loans
Secured loans	From November 30, 2011 to May 20, 2044; principal and interest repaid as scheduled	0.885%~2.095%	Land, buildings and structures, machinery and equipment, small and medium enterprise credit guarantee fund	$ 910,933
Credit loans	From June 16, 2025 to June 15, 2032; principal and interest repaid as scheduled	2.00%	None	278,580
Less: Current portion				1,189,513
				( 336,261)
				$ 853,252
Nature of Loans	Loan Term and Repayment Method	Interest Rate Range	Collateral	December 31, 2024
Long-term bank loans
Secured loans	From November 30, 2011 to May 20, 2044; principal and interest repaid as scheduled	0.885%~2.095%	Land, buildings and structures, machinery and equipment, small and medium enterprise credit guarantee fund	$ 748,730
Less: Current portion				( 49,753)
				$ 698,977

Please refer to Note 8 for collateral of aforementioned long-term loans.

(12) Pension

The Company and its domestic subsidiaries have adopted a defined contribution retirement plan in accordance with the Labor Pension Act, applicable to employees of ROC nationality. For employees who elect to participate in the pension scheme under the Labor Pension Act, the Company and its domestic subsidiaries contribute 6% of the employees' monthly wages to their individual pension accounts with the Bureau of Labor Insurance. Pension benefits

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

are paid either in monthly installments or as a lump sum, based on the balance in each employee’s personal pension account, including accumulated returns. For the years ended December 31, 2025 and 2024, the pension costs recognized by the Group under this plan amounted to NT$13,877 and NT$11,314, respectively.

(13) Share capital

A. As of December 31, 2025, the Company’s authorized capital was NT$1,000,000, divided into 100,000 thousand shares with a par value of NT$10 per share. The paid-in capital amounted to NT$683,450. Of the authorized capital, NT$50,000 (equivalent to 5,000 thousand shares) was reserved for the issuance of employee stock options. The Board of Directors may be authorized, in accordance with applicable laws, to issue the reserved shares in installments. All proceeds from issued shares have been fully received.

Reconciliation of the Company’s outstanding common shares (in thousands) at the beginning and end of the period was as follows:

	Years Ended December 31
	2025	2024
Balance as of January 1	67,600	60,750
Issuance of common shares for cash	-	7,595
Shares repurchased	( 255)	( 745)
Balance as of December 31	67,345	67,600

On March 29, 2024, the Company’s Board of Directors resolved to increase capital by issuing 7,595 thousand new shares, each with a par value of NT$10, at a premium of approximately NT$57.13 per share. Following this capital increase, the paid-in capital amounted to NT$683,450. The record date was set on June 11, 2024 and the registration of the cash capital increase was completed.

B. Treasury shares

(a) Purpose and quantity of repurchased shares:

		December 31, 2025
Holding Entity	Purpose of Repurchase	Number of Shares	Carrying Amount
The Company	For transfer to employees	1,000,000	$ 49,013
		December 31, 2024
Holding Entity	Purpose of Repurchase	Number of Shares	Carrying Amount
The Company	For transfer to employees	745,000	$ 36,511

(b) According to the Securities and Exchange Act, the total number of shares a company may repurchase shall not exceed 10% of the total number of issued shares, and the total amount of repurchase shall not exceed the sum of retained earnings, share premium, and realized capital surplus.

(c) Treasury shares held by the Company may not be pledged and shall not carry shareholder rights before being transferred, in accordance with the Securities and Exchange Act.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(d) Pursuant to the Securities and Exchange Act, shares repurchased for the purpose of transferring to employees shall be transferred within five years from the date of repurchase. Any portion not transferred within this period shall be deemed unissued shares of the Company and shall be cancelled through amendment registration. In addition, shares repurchased for the purpose of safeguarding the Company’s credit standing and shareholders’ interests shall be cancelled through amendment registration within six months from the date of repurchase.

(14) Capital surplus

A. According to the Company Act, capital surplus arising from shares issued at premium or from endowments may be used to offset a deficit. If the Company has no accumulated deficits, such capital surplus may be distributed as stock or cash dividends in proportion to shareholders’ original holdings. Furthermore, pursuant to relevant regulations under the Securities and Exchange Act, when the said capital surplus is used for capital increases, the total amount capitalized each year shall not exceed 10% of the paid-in capital. The Company shall not use capital surplus to offset losses unless the retained earnings are insufficient to cover the losses.

	2025
	Share premium	Changes in percentage of ownership interests in subsidiaries	Employee stock options expired	Others	Total
Balance as of January 1	$ 542,949	$ 6	$ 6	$ 42,325	$ 585,286
Cash distribution from capital surplus	( 67,345)	-	-	-	( 67,345)
Effect of organizational restructuring	( 8,506)	-	-	( 42,325)	( 50,831)
Balance as of December 31	$ 467,098	$ 6	$ 6	$ -	$ 467,110
	2024
	Share premium	Changes in percentage of ownership interests in subsidiaries	Employee stock options expired	Others	Total
Balance as of January 1	$ 188,009	$ 10	$ 6	$ 42,325	$ 230,350
Issuance of common shares for cash	354,940	-	-	-	354,940
Changes in percentage of ownership interests in subsidiaries	-	( 4)	-	-	( 4)
Balance as of December 31	$ 542,949	$ 6	$ 6	$ 42,325	$ 585,286

B. On May 20, 2025, the shareholders’ meeting approved a cash distribution of NT$67,345 from capital surplus (NT$1 per common share).

(15) Retained earnings

A. Pursuant to the Company’s Articles of Incorporation, when the Company generates profits for the current year, it shall first provide for taxes, offset accumulated losses and then set aside 10% of the remaining balance as legal reserve, unless the legal reserve has equaled the Company’s paid-in capital. Next, the Company shall appropriate or reverse a special reserve based on the Company’s operational needs and applicable laws and regulations. The Board of Directors would then draft an earning distribution proposal based on the remaining profit, if any, together with cumulative

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

undistributed earnings. Where the aforementioned earnings are to be distributed in the form of cash, such distribution shall be resolved by the Board of Directors and reported to the shareholders' meeting pursuant to Paragraph 5, Article 240 of the Company Act.

B. The Company's dividend policy is designed to align with current and future development plans, while taking into account the investment environment, funding needs, and domestic and international competitions, as well as the interests of shareholders. At least 10% of the distributable earnings for the year shall be allocated to shareholder dividends. However, if the accumulated distributable earnings are less than 10% of the paid-in capital, the Company may elect not to distribute dividends. Dividends may be distributed in the form of cash or stock, and cash dividend shall not be less than 10% of the total dividends.

C. Legal reserve may not be used except to offset deficits or to be distributed as new shares or cash in proportion to shareholders' original holdings. However, the distributions of new shares or cash are limited to the portion of the reserve that exceeds 25% of the paid-in capital.

D. In accordance with applicable laws and regulations, when distributing earnings, the Company is required to appropriate a special reserve from the current year's earnings to the extent of any debit balance in other equity items as of the balance sheet date. When such debit balances are subsequently reversed, the reversed amount may be included in distributable earnings.

E. On May 31, 2024, the shareholders' meeting resolved to distribute a cash dividend of NT$1 per common share from the 2023 earnings, totaling NT$68,345.

F. On February 18, 2025, the Board of Directors resolved to distribute a cash dividend of NT$1 per common share from the 2024 earnings, totaling NT$67,345, which was reported in the shareholders' meeting on May 20, 2025.

(16) Operating revenue

A. All of the Group's operating revenue is derived from customer contracts for goods transferred at a point in time, as detailed below:

	Year ended December 31, 2025
	Dawushan BU			Tai Da BU		Fu Che BU		Others
	Fresh Eggs	Processed Egg Products	Others	Processed Egg Products	Processed Egg Products	Prepared Foods	Others	Processed Egg Products	Total
Segment revenue	$1,004,760	$141,197	$844	$80,654	$556,204	$269,336	$42,933	($7)	$2,095,921
Inter-segment revenue	(121,494)	(30)	-	(29,829)	(173)	-	-	-	(151,526)
Revenue from external customer contracts	$883,266	$141,167	$844	$50,825	$556,031	$269,336	$42,933	($7)	$1,944,395
Timing of revenue recognition
Revenue recognized at a point in time	$883,266	$141,167	$844	$50,825	$556,031	$269,336	$42,933	($7)	$1,944,395
	Year ended December 31, 2024
	Dawushan BU			Tai Da BU		Fu Che BU		Others
	Fresh Eggs	Processed Egg Products	Others	Processed Egg Products	Processed Egg Products	Prepared Foods	Others	Processed Egg Products	Total
Segment revenue	$1,058,259	$119,661	$7,287	$124,817	$505,181	$244,146	$43,375	$1,463	$2,104,189
Inter-segment revenue	(85,517)	(1,278)	-	(26,411)	(3,344)	-	-	-	(116,550)
Revenue from external customer contracts	$972,742	$118,383	$7,287	$98,406	$501,837	$244,146	$43,375	$1,463	$1,987,639
Timing of revenue recognition
Revenue recognized at a point in time	$972,742	$118,383	$7,287	$98,406	$501,837	$244,146	$43,375	$1,463	$1,987,639

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

B. Contract liabilities

The Group recognized the following contract liabilities related to revenue from contracts with customers:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities	$ 614	$ 3,166	$ 378

Revenue recognized in the current period from contract liabilities at the beginning of the period

	Years ended December 31
	2025	2024
Revenue from sale of goods	$ 3,091	$ 325
(17) Interest income
	Years ended December 31
	2025	2024
Interest on bank deposits	$ 1,940	$ 3,743
Other interest income	640	109
	$ 2,580	$ 3,852
(18) Other income
	Years ended December 31
	2025	2024
Rental income	$ 249	$ 389
Income from selling electricity	17,090	18,552
Government grants	9,468	15,600
Others	4,412	2,222
	$ 31,219	$ 36,763
(19) Other gains and losses
	Years ended December 31
	2025	2024
Loss on disposal of biological assets	($ 60,670)	($ 15,671)
Loss on disposal of property, plant and equipment	( 1,156)	( 2,602)
Gain on lease modification	-	4
Impairment loss on intangible assets	-	( 4,739)
Depreciation and maintenance expenses of power generation equipment	( 8,981)	( 7,110)
Foreign exchange gain, net	274	1,125
		(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	Years ended December 31
	2025	2024
Disaster loss
- Property, plant and equipment	($ 35,970)	$ -
- Compensation loss	( 500)	-
Compensation loss	( 8,840)	-
Others	( 443)	( 166)
	($ 116,286)	($ 29,159)
		(Concluded)

(20) Finance costs

	Years ended December 31
	2025	2024
Interest expenses
Bank loans	$ 23,713	$ 15,360
Lease liabilities	1,551	989
	25,264	16,349
Less: Amount capitalized for qualifying assets	( 6,025)	( 3,664)
	$ 19,239	$ 12,685

(21) Additional information on the nature of expenses

	Years ended December 31
	2025	2024
Employee benefits expense	$ 397,428	$ 372,642
Depreciation of property, plant and equipment	124,729	107,606
Depreciation of right-of-use assets	19,673	15,637
Depreciation of biological assets	101,516	92,133
Amortization expense	5,128	2,003

(22) Employee benefits expense

	Years ended December 31
	2025	2024
Payroll	$ 321,177	$ 285,371
Labor and health insurance	36,567	29,044
Pension	13,877	11,314
Remuneration to directors	3,851	12,918
Other personnel expenses	21,956	33,995
	$ 397,428	$ 372,642

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

A. In accordance with the Company's Articles of Incorporation, in the event that the Company reports a profit for a fiscal year (profit being defined as pre-tax income before deducting compensation to employees and remuneration to directors), remuneration to directors and compensation to employees shall be appropriated by the following percentages: 1) Remuneration to directors: shall not exceed 4% of profit and 2) Compensation to employees: shall be between 4% and 10% of profit, provided that no less than 2% of profit shall be allocated to compensation to non-executive employees. However, if the Company has accumulated losses, an amount sufficient to cover such losses shall be reserved first, and the allocation of compensation to employees and remuneration to directors shall then be made according to the percentages stated above.

B. For the years ended December 31, 2025 and 2024, the Company accrued compensation to employees of NT$0 and NT$5,130, respectively, and remuneration to directors of NT$0 and NT$3,847, respectively. These amounts were recognized under payroll expenses.

As the Company incurred a loss before tax for the year ended December 31, 2025, no compensation to employees or remuneration to directors was accrued. On March 6, 2026, the Board of Directors resolved not to distribute any compensation to employees or remuneration to directors, which is consistent with the 2025 financial statements.

The amounts of compensation to employees and remuneration to directors for 2024, as resolved by the Board of Directors on February 18, 2025, are consistent with those recognized in the 2024 financial statements.

Relevant information on compensation to employees and remuneration to directors approved by the Board of Directors is available on the Market Observation Post System.

(23) Income tax

A. Components of income tax (benefit) expense:

	Years ended December 31
	2025	2024
Current income tax:
Income tax for the current period	$ 8,174	$ 46,404
Under-provision of income tax in prior years	236	72
Tax levied on undistributed earnings	-	421
Total current income tax	8,410	46,897
Deferred income tax:
Origination and reversal of temporary differences	( 22,247)	655
Income tax (benefit) expense	($ 13,837)	$ 47,552

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

B. Reconciliation of income tax (benefit) expense and accounting profit

	Years ended December 31
	2025	2024
Income tax calculated at the statutory tax rate on profit (loss) before tax (Note)	($ 14,617)	$ 46,710
Effect of adjustments in accordance with tax regulations	( 1,085)	969
Unrecognized deferred tax assets for tax losses	1,629	-
Under-provision of income tax in prior years	236	72
Tax levied on undistributed earnings	-	421
Changes in the realizability assessment of deferred tax assets	-	( 620)
Income tax (benefit) expense	($ 13,837)	$ 47,552

Note: The applicable tax rate is calculated based on the statutory tax rates of the relevant jurisdictions.

C. The amounts of deferred tax assets and liabilities arising from temporary differences and tax losses were as follows:

	Year Ended December 31, 2025
	January 1	Recognized in Profit or Loss	December 31
Deferred tax assets:
- Temporary differences:
Unused vacation bonus	$ 680	($ 150)	$ 530
Loss on investments accounted for using the equity method	2,221	1,359	3,580
Unrealized impairment loss	151	( 151)	-
Estimated insurance claim income	-	7,194	7,194
Unrealized loss	-	1,768	1,768
Others	514	222	736
Tax losses	-	12,406	12,406
Subtotal	$ 3,566	$ 22,648	$ 26,214
Deferred tax liabilities:
Valuation gain on agricultural produce included in inventories	( 270)	( 389)	( 659)
Unrealized foreign exchange gain	-	( 12)	( 12)
Subtotal	($ 270)	($ 401)	($ 671)
Total	$ 3,296	$ 22,247	$ 25,543

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	Year Ended December 31, 2024
	January 1	Recognized in Profit or Loss	December 31
Deferred tax assets:
- Temporary differences:
Unused vacation bonus	$ 583	$ 97	$ 680
Loss on investments accounted for using the equity method	2,635	(414)	2,221
Unrealized impairment loss	602	(451)	151
Others	436	78	514
Subtotal	$ 4,256	($ 690)	$ 3,566
Deferred tax liabilities:
Valuation gain on agricultural produce included in inventories	(292)	22	(270)
Unrealized foreign exchange gain	(13)	13	-
Subtotal	($ 305)	$ 35	($ 270)
Total	$ 3,951	($ 655)	$ 3,296

D. The expiry dates of the Group's unused tax losses and the related amounts of unrecognized deferred tax assets were as follows:

December 31, 2025
Year of Occurrence	Filing / Assessed Amount	Unused Amount	Unrecognized Deferred Tax Assets	Expiry Year
The Company: 2025	Estimated filing	$ 62,033	$ -	2035
Subsidiaries: 2017	Assessed	6,990	6,990	2027
2018	Assessed	15,788	15,788	2028
2019	Assessed	5,549	5,549	2029
2020	Assessed	1,723	1,723	2030
2021	Assessed	1,528	1,528	2031
2022	Assessed	12,720	12,720	2032
2023	Assessed	34	34	2033
2024	Filed	234	234	2034
2025	Estimated filing	8,145	8,145	2035
December 31, 2024
---	---	---	---	---
Year of Occurrence	Filing / Assessed Amount	Unused Amount	Unrecognized Deferred Tax Assets	Expiry Year
The Company:	None
Subsidiaries:
2017	Assessed	$ 6,990	$ 6,990	2027
2018	Assessed	15,788	15,788	2028
				(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

December 31, 2024

Year of Occurrence	Filing / Assessed Amount	Unused Amount	Unrecognized Deferred Tax Assets	Expiry Year
2019	Assessed	$ 5,549	$ 5,549	2029
2020	Assessed	1,723	1,723	2030
2021	Assessed	1,528	1,528	2031
2022	Assessed	12,720	12,720	2032
2023	Filed	34	34	2033
2024	Estimated filing	234	234	2034
				(Concluded)

E. Deductible temporary differences for which deferred tax assets have not been recognized

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 438	$ 343

F. The Company's profit-seeking enterprise income tax returns were assessed and approved up to 2023.

(24) (Loss) earnings per share

	Year ended December 31, 2025
	After-tax	Weighted average no. of common shares outstanding (In thousand shares)	Loss per share (NT$)
Basic and diluted loss per share
Net loss attributable to common shareholders	($ 72,485)	67,355	($ 1.08)
	Year ended December 31, 2024
	After-tax	Weighted average no. of common shares outstanding (In thousand shares)	Earnings per share (NT$)
Basic earnings per share
Net income attributable to common shareholders	$ 140,780	64,914	$ 2.17
Diluted earnings per share
Net income attributable to common shareholders	$ 140,780	64,914
Effects of dilutive potential common shares
Employee compensation	-	135
Net income attributable to common shareholders and effect of potential common shares	$ 140,780	65,049	$ 2.16

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(25) Transactions with non-controlling interests

A. Subsidiary’s cash capital increase not subscribed to in proportion to the Group’s ownership

Dawushan Ise Foods Co., Ltd. conducted a cash capital increase in August 2024, during which the Group did not subscribe in proportion to its ownership, resulting in an increase of 6.5% in shareholding. This transaction increased non-controlling interests by NT$46,504 and decreased equity attributable to owners of the parent by NT$4. The effect of changes in Dawushan Ise Foods Co., Ltd.’s equity on the equity attributable to owners of the parent for 2024 was as follows:

	2024
Cash	$ 46,500
Increase in carrying amount of non-controlling interests	( 46,504)
Capital surplus - recognition of changes in ownership interests in subsidiaries	($ 4)

B. Acquisition of additional equity interests in a subsidiary

On April 1, 2025, the Group acquired an additional 0.21% of the issued shares of Fu Che Frozen Food Co., Ltd. for cash consideration of NT$1,600. The carrying amount of the non-controlling interests at the acquisition date was NT$1,024. This transaction resulted in a decrease in non-controlling interests of $1,024 and a decrease in equity attributable to owners of the parent of NT$576. The effect of the changes in the Group’s ownership interest in the subsidiary on equity attributable to owners of the parent for the year ended December 31, 2025 was summarized as follows:

	2025
Carrying amount of non-controlling interests acquired	$ 1,024
Consideration paid to non-controlling interests	( 1,600)
Retained earnings	($ 576)

(26) Business combinations under common control (also referred to as organizational restructuring)

A. On March 24, 2025, the Board of Directors resolved that the Company would acquire 51% of the equity interests in Fu Che Frozen Food Co., Ltd. held by the parent company, Kuo Hsing Poultry & Livestock Feeds Co., Ltd., for NT$382,500. The acquisition was completed on April 1, 2025, after which Fu Che Frozen Food Co., Ltd. was included in the Company’s consolidated financial statements.

B. As this transaction constitutes an organizational restructuring, it is accounted for as a combination from the beginning of the period and is measured using the book value method. The difference between the acquisition cost and the net assets of Fu Che Frozen Food Co., Ltd., amounting to NT$8,506, was offset against capital surplus - share premium.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

C. As the combination was accounted for as if it had been in effect from the beginning, the balance of “predecessor interests under common control” attributable to Fu Che Frozen Food Co., Ltd., amounting to NT$373,994, was derecognized upon completion of the above transaction.

(27) Supplementary information on cash flows

Investing activities with partial cash payments only:

	Years ended December 31
	2025	2024
Acquisition of property, plant and equipment	$ 442,799	$ 451,744
Add: Beginning balance of payable for equipment	333	1,706
Less: Ending balance of payable for equipment	( 3,375)	( 333)
Cash paid for acquisition of property, plant and equipment	$ 439,757	$ 453,117

(28) Changes in liabilities arising from financing activities

	January 1, 2025	Changes from Financing Cash Flows	Non-cash Movements	December 31, 2025
Short-term loans	$ -	$ 405,000	$ -	$ 405,000
Long-term loans	748,730	440,783	-	1,189,513
Lease liabilities	46,528	( 18,930)	66,110	93,708
Total liabilities from financing activities	$ 795,258	$ 826,853	$ 66,110	$ 1,688,221
	January 1, 2024	Changes from Financing Cash Flows	Non-cash Movements	December 31, 2024
Short-term loans	$ 186,000	($ 186,000)	$ -	$ -
Long-term loans	925,743	( 177,013)	-	748,730
Lease liabilities	22,019	( 15,404)	39,913	46,528
Total liabilities from financing activities	$ 1,133,762	($ 378,417)	$ 39,913	$ 795,258

Related Party Transactions

(1) Parent company and the ultimate controlling party

The Company is controlled by Kuo Hsing Poultry & Livestock Feeds Co., Ltd., a company incorporated in the Republic of China, which directly and indirectly holds 42.43% of the Company's shares. The remaining 57.57% is held by public shareholders. The Company's ultimate parent and controlling party is Kuo Hsing Poultry & Livestock Feeds Co., Ltd.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(2) Names and relationships of related parties

Name	Relationship
Kuo Hsing Poultry & Livestock Feeds Co., Ltd. (Kuo Hsing)	Parent company
Feng-Chun Lin	Chairman of the Company
Ever Light Oil Industrial Co., Ltd.	The entity has the same Chairman as the Company
Hsing Chin Food Co., Ltd.	Sister company
Kuo Hsing Frozen Meat Co., Ltd.	Sister company
Kuo Nong Egg Products Marketing Co., Ltd. (Kuo Nong)	Sister company

(3) Material transactions with related parties

A. Operating revenue

	Years ended December 31
	2025	2024
Sale of goods:
Kuo Nong	$ 3,628	$ -
Kuo Hsing	2,883	4,651
Others	326	292
	$ 6,837	$ 4,943

The Group's selling prices to related parties are mutually agreed upon by both parties. The transaction prices and collection terms are not significantly different from those of general customers.

B. Purchases

	Years ended December 31
	2025	2024
Purchase of goods
Kuo Hsing	$ 307,628	$ 296,527
Feng-Chun Lin	-	16,051
Others	3,387	2,733
	$ 311,015	$ 315,311

The Group's purchase prices from related parties are mutually agreed upon by both parties. The transaction prices and payment terms are not significantly different from those of general suppliers.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

C. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
Kuo Nong	$ 1,427	$ -
Kuo Hsing	-	1,656
	$ 1,427	$ 1,656

Amounts due from related parties primarily arise from sales transactions, which are due one month after the date of sale. These receivables are unsecured and non-interest bearing. No loss allowance has been recognized for amounts due from related parties.

D. Payables to related parties

	December 31, 2025	December 31, 2024
Accounts payable:
Kuo Hsing	$ 66,327	$ 39,670
Others	1,105	1,083
	$ 67,432	$ 40,753
Other payables:
Kuo Hsing	$ 253	$ 405
	$ 67,685	$ 41,158

Amounts due to related parties primarily arise from purchase transactions and are payable two months after the purchase date. These payables are non-interest bearing.

E. Property transaction

(a) Acquisition of biological assets:

	Financial Statement Account	Years ended December 31
		2025	2024
		Acquisition Cost	Acquisition Cost
Feng-Chun Lin	Bearer biological assets	$ -	$ 4,061

(b) Business combinations under common control (also referred to as organizational restructuring)

On March 24, 2025, the Board of Directors resolved that the Company would acquire 51% of the equity interests in Fu Che Frozen Food Co., Ltd. held by Kuo Hsing for NT$382,500. Please refer to Note 6(26) for details.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

F. Lease transactions - Lessee

(a) The Group leases buildings from Kuo Hsing. The lease term runs from 2024 to 2028, with rental payments made on a monthly basis.

(b) Acquisition of right-of-use assets

	Years ended December 31
	2025	2024
Kuo Hsing	$ -	$ 38,885
(c) Lease liabilities
i. Ending balance
	December 31, 2025	December 31, 2024
Kuo Hsing	$ 21,462	$ 31,047
ii. Interest expense
	Years ended December 31
	2025	2024
Kuo Hsing	$ 552	$ 610

G. Operating expenses

	Years ended December 31
	2025	2024
Kuo Hsing	$ 2,091	$ 7,919
Feng-Chun Lin	-	26
Others	123	294
	$ 2,214	$ 8,239

These were mainly outsourcing fees and miscellaneous expenses.

(4) Compensation to key management

	Years ended December 31
	2025	2024
Short-term employee benefits	$ 21,247	$ 20,923
Post-employment benefits	468	442
	$ 21,715	$ 21,365

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Pledged Assets

Details of assets pledged as collateral by the Group were as follows:

Asset Item	Carrying Amount		Purpose
	December 31, 2025	December 31, 2024
Financial assets at amortized cost - current	$ 740	$ 5,847	Performance bond
Land	423,548	430,066	Short and long-term loans
Buildings and structures	803,628	578,295	Short and long-term loans
Machinery and equipment	280,411	217,529	Long-term loans
	$1,508,327	$1,231,737

Significant Contingent Liabilities and Unrecognized Contract Commitments

(1) Contingent event

None.

(2) Commitments

A. As of December 31, 2025 and 2024, the guarantee notes provided to banks by the Group for loans amounted to NT$251,000 and NT$91,000, respectively.

B. As of December 31, 2025 and 2024, the unused letters of credit amounted to JPY140,000 thousand and JPY280,000 thousand, respectively.

C. Capital expenditure commitments

	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 347,093	$ 374,614

Significant Disaster Loss

On March 12, 2025, a fire occurred at the Company's Pingtung facility, damaging several poultry houses and rendering certain buildings, structures and equipment unusable. The Company recognized a total disaster loss of NT$36,470. Details were as follows:

Item	Amount	Description
Property, plant and equipment	$ 35,970	Carrying amount of Layer Farm Phase 1, poultry houses 2, 3, and 4 at the Pingtung facility
Compensation for losses	500	Compensation paid for damage to nearby agricultural crops
	$ 36,470

The Company has property insurance in place and is currently in the process of filing an insurance claim. As of the reporting date, no insurance compensation has been recognized.

Significant Subsequent Events

None.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Others

(1) Capital management

The objective of the Group’s capital management is to ensure the Group’s ability to continue as a going concern, maintain an optimal capital structure to minimize the cost of capital, and provide returns to shareholders.

Given the need to support the expansion and enhancement of its plants and equipment, the Group’s capital management focuses on ensuring the availability of necessary financial resources and operational plans to meet funding requirements over the next twelve months, including working capital, capital expenditures, research and development expenses, and debt repayments.

(2) Financial instruments

A. Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$ 187,898	$ 403,869
Financial assets at amortized cost	3,640	9,747
Notes receivable	5,103	3,148
Accounts receivable	363,642	299,383
Other receivables	474	1,440
Refundable deposits	5,273	5,597
	$ 566,030	$ 723,184
Financial liabilities
Financial liabilities at amortized cost
Short-term loans	$ 405,000	$ -
Notes payable	100	100
Accounts payable (including related parties)	178,664	187,643
Other payables	193,569	173,464
Long-term loans (including current portion)	1,189,513	748,730
	$ 1,966,846	$ 1,109,937
Lease liabilities	$ 93,708	$ 46,528

B. Risk management policies

The Group’s daily operations are affected by various financial risks, including market risk (such as exchange rate risk, interest rate risk, and price risk), credit risk, and liquidity risk. To mitigate these financial risks, the Group is committed to identifying, assessing, and avoiding market uncertainties in order to reduce the potential adverse impacts of market fluctuations on the Company’s financial performance.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Important financial activities of the Group are reviewed by the Board of Directors in accordance with relevant rules and internal control systems. During the execution of financial plans, the Group must adhere strictly to the financial operating procedures related to the overall financial risk management and the division of responsibilities.

C. Nature and extent of significant financial risks

(a) Market risk

Exchange rate risk

i. The Group's management has established policies requiring each entity within the Group to manage exchange rate risks relative to its functional currency. Each entity is required to hedge its overall foreign exchange exposure through the Group's Finance Department.

ii. As the Group engages in business transactions involving non-functional currencies, it is subject to the effects of exchange rate fluctuations. The information on foreign currency-denominated assets with material exposure to exchange rate volatility was as follows:

	December 31, 2025
	Foreign Currency (In Thousands)	Exchange Rate	Book Value (NT$)
(Foreign currency: Functional currency)
Financial assets
Monetary items
JPY:NTD	$ 1,006	0.20	$ 202
USD:NTD	147	31.43	4,566
EUR:NTD	27	36.90	978
	December 31, 2024
	Foreign Currency (In Thousands)	Exchange Rate	Book Value (NT$)
(Foreign currency: Functional currency)
Financial assets
Monetary items
JPY:NTD	$ 7,615	0.22	$ 1,696

iii. For the years ended December 31, 2025 and 2024, the total foreign exchange gains, including both realized and unrealized, arising from significant foreign exchange fluctuations on monetary items amounted to NT$274 and NT$1,125, respectively.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

iv. The Group’s foreign currency risk arising from significant exchange rate fluctuations is analyzed as follows:

	Years ended December 31, 2025
	Sensitivity Analysis
	Changes	Impact on Profit or Loss	Impact on Other Comprehensive Income
(Foreign currency: Functional currency)
Financial assets
Monetary items
JPY:NTD	1%	$ 2	$ -
USD:NTD	1%	46	-
EUR:NTD	1%	10	-
	Years ended December 31, 2024
	Sensitivity Analysis
	Changes	Impact on Profit or Loss	Impact on Other Comprehensive Income
(Foreign currency: Functional currency)
Financial assets
Monetary items
JPY:NTD	1%	$ 17	$ -

Price risk

The Group is not exposed to any commodity price risk.

Cash flow and fair value interest rate risk

i. The Group’s interest rate risk primarily arises from short-term and long-term loans issued at variable interest rates, which expose the Group to cash flow interest rate risk. For the years ended December 31, 2025 and 2024, the Group’s borrowings at variable interest rates were mainly denominated in New Taiwan dollars.

ii. Assuming all other variables remain constant, a 1% increase or decrease in borrowing rates would have resulted in a decrease or increase in profit before tax by NT$15,945 and NT$7,487, respectively, for the years ended December 31, 2025 and 2024. This change is mainly attributable to fluctuations in interest expenses arising from loans at variable interest rates.

(b) Credit risk

Credit risk refers to the risk of financial loss to the Group arising from a customer or counterparty to a financial instrument failing to meet its contractual obligations. The primary sources of credit risk are trade receivables where counterparties fail to settle amounts in accordance with agreed terms, and contractual cash flows classified as measured at amortized cost. The Group manages this risk internally by assessing the credit quality of customers, taking into account their financial condition, past experience, and other relevant factors.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Cash and cash equivalents and financial assets at amortized cost

The Group’s trading policy stipulates that transactions are conducted only with counterparties of good credit standing. In recent periods, there have been no significant defaults on cash and cash equivalents and financial assets at amortized cost.

Notes and accounts receivable

i. In accordance with the Group’s internally defined credit policy, management and credit risk assessments are required for each new customer before setting payment and delivery terms and conditions. Internal risk control evaluates the customer’s credit quality by taking into account their financial condition, past experience, and other relevant factors.

ii. The Group considers a financial asset to have experienced a significant increase in credit risk if the contractual payment is more than 30 days past due. A default is deemed to have occurred if the payment is more than 90 days past due.

iii. The Group evaluates the credit quality of customers by customer type, taking into account multiple factors that may affect their ability to pay, including financial condition, historical transaction records, and prevailing economic conditions. A simplified approach is adopted, using a provision matrix to estimate expected credit losses.

iv. After pursuing collection efforts, the Group writes off the portion of financial assets that are no longer reasonably expected to be recoverable. However, the Group will continue to take legal action to preserve its rights.

v. The expected loss rates for notes and accounts receivable from customers as of December 31, 2025 and 2024 were as follows:

December 31, 2025	Not Past Due	1 to 30 Days	31 to 90 Days	Over 91 Days	Total
Notes receivable
Expected loss rate	0%	3%	5%	50%~100%
Gross carrying amount	$ 5,103	$ -	$ -	$ -	$ 5,103
Loss allowance	$ -	$ -	$ -	$ -	$ -
Accounts receivable
Expected loss rate	0%	2%~3%	2%~10%	10%~100%
Gross carrying amount	$361,934	$ 1,311	$ 433	$ 105	$363,783
Loss allowance	$ -	$ 26	$ 14	$ 101	$ 141
December 31, 2024	Not Past Due	1 to 30 Days	31 to 90 Days	Over 91 Days	Total
Notes receivable
Expected loss rate	0%	3%	5%	50%~100%
Gross carrying amount	$ 3,148	$ -	$ -	$ -	$ 3,148
Loss allowance	$ -	$ -	$ -	$ -	$ -
					(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

December 31, 2024	Not Past Due	1 to 30 Days	31 to 90 Days	Over 91 Days	Total
Accounts receivable
Expected loss rate	0%	2%~3%	2%~10%	10%~100%
Gross carrying amount	$294,348	$ 4,047	$ 1,092	$ 64	$299,551
Loss allowance	$ -	$ 111	$ 25	$ 32	$ 168
					(Concluded)

vi. Movements in the loss allowance for notes and accounts receivable under the simplified approach were as follows:

	2025		2024
	Notes Receivable	Accounts Receivable	Notes Receivable	Accounts Receivable
As of January 1 (Reversal of)	$ -	$ 168	$ -	$ 124
impairment loss	-	( 27)	-	54
Write-offs	-	-	-	( 10)
As of December 31	$ -	$ 141	$ -	$ 168

i. The objective of the Group's liquidity risk management is to maintain sufficient cash and bank deposits, highly liquid marketable securities, and adequate bank credit facilities to meet operational needs and ensure financial flexibility.

ii. The Group's Finance Department invests surplus funds in interest-bearing demand deposits, checking deposits and time deposits, selecting instruments with appropriate maturities or sufficient liquidity to meet the aforementioned forecasts and maintain an adequate liquidity buffer. As of December 31, 2025 and 2024, the Group held money market instruments of NT$190,203 and NT$406,987, respectively, which are expected to readily generate cash flows for managing liquidity risk.

iii. Bank loans represent a significant source of liquidity for the Group. The Group's unused short-term and long-term bank borrowing facilities were as follows:

	December 31, 2025	December 31, 2024
Unsecured bank borrowing facilities
Unused facilities	$ 377,600	$ 390,000
Secured bank borrowing facilities
Unused facilities	471,223	415,223
	$ 848,823	$ 805,223

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

iv. The following table presents an analysis of the Group’s non-derivative financial liabilities based on the remaining contractual maturity as of the balance sheet date. The disclosed contractual cash flows are presented on an undiscounted basis.

December 31, 2025	Within 6 Months	6 Months to 1 Year	1 to 2 Years	2 to 5 Years	Over 5 Years
Non-derivative financial liabilities:
Short-term loans	$366,161	$40,068	$ -	$ -	$ -
Notes payable	100	-	-	-	-
Accounts payable (including related parties)	178,664	-	-	-	-
Other payables	190,544	3,025	-	-	-
Lease liabilities	11,484	11,236	21,127	25,773	30,663
Long-term loans (including current portion)	61,571	293,573	134,098	415,322	376,476
Derivative financial liabilities: None.
December 31, 2024	Within 6 Months	6 Months to 1 Year	1 to 2 Years	2 to 5 Years	Over 5 Years
Non-derivative financial liabilities:
Notes payable	$ 100	$ -	$ -	$ -	$ -
Accounts payable (including related parties)	187,643	-	-	-	-
Other payables	167,052	6,412	-	-	-
Lease liabilities	8,540	7,766	14,509	17,417	-
Long-term loans (including current portion)	27,496	27,380	128,265	244,040	361,779

(3) Fair value information

A. The definitions of the fair value hierarchy levels for the valuation techniques applied to financial and non-financial instruments are as follows:

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

Level 2: Observable inputs, either directly or indirectly, other than quoted prices included in Level 1, for the asset or liability.

Level 3: Unobservable inputs for the asset or liability.

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

B. The carrying amounts of the Group’s financial instruments not measured at fair value, such as cash and cash equivalents, financial assets measured at amortized cost, notes receivable, accounts receivable, other receivables, refundable deposits, short-term loans, notes payable, accounts payable, other payables, lease liabilities, and long-term loans, approximate their fair values.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Additional Disclosures

(1) Information on significant transactions
A. Financing provided to others: None.
B. Endorsement/guarantee provided: Table 1.
C. Material marketable securities held at the end of period (excluding investments in subsidiaries, associates and joint ventures): None.
D. Related party transactions with purchase or sales amount of at least NT$100 million or 20 percent of the paid-in capital: Table 2.
E. Receivables from related parties of at least NT$100 million or 20 percent of the paid-in capital: None.
F. Intercompany relationships and significant intercompany transactions: Table 3.

(2) Information on investees
The names, locations, and other relevant information of investee companies (excluding investees located in mainland China): Table 4.

(3) Information on investments in mainland China
A. Basic information: None.
B. Significant transactions with investee companies in mainland China, either directly or indirectly through a third party: None.

Segment Information

(1) General information
The Group’s management has identified reportable segments based on the information used by the chief operating decision maker in making decisions. The Group’s chief operating decision maker divides operating units by business units (BUs) into the following reportable segments:
A. Dawushan BU: Primarily engages in the production and wholesale of poultry eggs, as well as the manufacturing and trading of organic fertilizers.
B. Tai Da BU: Primarily engages in the processing and manufacturing of egg products.
C. Fu Che BU: Primarily engages in the processing and manufacturing of egg and frozen food products.
D. Others: Distribution of processed products.

(2) Segment information
The Group’s chief operating decision maker evaluates the performance of the operating segments based on revenue and income (loss) before income tax. The reportable segment information provided to the chief operating decision maker was as follows:

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Year Ended December 31, 2025

	Dawushan BU	Tai Da BU	Fu Che BU	Others	Adjustment and Elimination	Total
External revenue	$1,025,277	$50,825	$868,300	($7)	$-	$1,944,395
Inter-segment revenue	121,524	29,829	173	-	(151,526)	-
Segment revenue	$1,146,801	$80,654	$868,473	($7)	($151,526)	$1,944,395
Segment income (loss)	$3,119	($9,938)	$34,120	($269)	$712	$27,744
Interest income	1,524	99	823	134	-	2,580
Other income	20,134	-	11,778	-	(693)	31,219
Other gains and losses	(116,330)	(1)	212	(148)	(19)	(116,286)
Finance costs	(12,514)	(30)	(6,695)	-	-	(19,239)
Share of profit or loss of associates and joint ventures accounted for using the equity method	9,226	-	-	-	(9,226)	-
Loss before income tax	(94,841)	(9,870)	40,238	(283)	(9,226)	(73,982)
Income tax benefit (expense)	22,356	-	(8,519)	-	-	13,837
Net loss	($72,485)	($9,870)	$31,719	($283)	($9,226)	($60,145)
Segment assets	$1,471,018	$13,086	$898,381	$476,561	$129,203	$2,988,249
Corporate assets						845,005
Total assets						$3,833,254
Depreciation and amortization	$205,043	$6,777	$39,226	$-	$-	$251,046
Capital expenditures	$78,612	$3,800	$93,449	$266,938	$-	$442,799
Segment liabilities	$1,133,286	$34,888	$689,203	$271,265	($66,803)	$2,061,839

Year Ended December 31, 2024

	Dawushan BU	Tai Da BU	Fu Che BU	Others	Adjustment and Elimination	Total
External revenue	$1,098,412	$98,406	$789,358	$1,463	$-	$1,987,639
Inter-segment revenue	86,795	26,411	3,344	-	(116,550)	-
Segment revenue	$1,185,207	$124,817	$792,702	$1,463	($116,550)	$1,987,639
Segment income (loss)	$130,942	$3,271	$100,398	($471)	$514	$234,654
Interest income	2,215	81	1,237	319	-	3,852
Other income	22,438	133	14,706	-	(514)	36,763
Other gains and losses	(29,153)	(161)	199	(44)	-	(29,159)
Finance costs	(9,289)	(52)	(3,344)	-	-	(12,685)
Share of profit or loss of associates and joint ventures accounted for using the equity method	48,088	-	-	-	(48,088)	-
Income before income tax	165,241	3,272	113,196	(196)	(48,088)	233,425
Income tax expense	(24,461)	-	(23,039)	(52)	-	(47,552)
Net income	140,780	3,272	$90,157	($248)	($48,088)	$185,873
Segment assets	$1,513,513	$16,064	$841,639	$209,622	$129,203	$2,710,041
Corporate assets						961,490
Total assets						$3,671,531
Depreciation and amortization	$191,914	$6,841	$18,624	$-	$-	$217,379
Capital expenditures	$132,149	$582	$158,320	$160,693	$-	$451,744
Segment liabilities	$515,180	$42,274	$627,768	$59,062	($52,930)	$1,191,354

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

(3) Reconciliation of segment income or loss

The total amounts of the reportable segments disclosed in item (2) above, as well as other significant items, are consistent with the corresponding amounts presented in the Group’s financial statements and are measured on the same basis.

(4) Information about products and services

Please refer to Note 6(16).

(5) Geographical information

The Group has not established operating entities overseas.

(6) Information about major customers

Information about the Group’s major customers for the years ended December 31, 2025 and 2024 was as follows:

	Years Ended December 31
	2025	2024
	Revenue	Revenue
Customer A	$ 434,153	$ 398,671
Customer B	238,152	183,002
Customer C	193,521	166,084
Customer D	184,998	189,862
Customer E	115,007	89,744

Table 1

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

Dawushan Farm Technology Co., Ltd.
Endorsement/Guarantee Provided
For the Year Ended December 31, 2025

No. (Note 1)	Endorser/ Guarantor	Name	Relationship (Note 2)	Limit on Endorsement/ Guarantee Given to Each Party (Note 3)	Maximum Amount Endorsed/ Guaranteed During the Period (Note 4)	Outstanding Endorsement/ Guarantee at the End of the Period (Note 5)	Actual Amount Drawn (Note 6)	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements	Aggregate Endorsement/ Guarantee Limit (Note 3)	Endorsement/ Guarantee Given by Parent to Subsidiaries (Note 7)	Endorsement/ Guarantee Given by Subsidiaries to Parent (Note 7)	Endorsement/ Guarantee Given to Companies in Mainland China (Note 7)	Note
0	Dawushan Farm Technology Co., Ltd.	Fu Che Frozen Food Co., Ltd.	2	$ 699,826	$ 150,000	$ 150,000	$ 95,000	-	10.50%	$ 699,826	Y	N	N

Note 1: Companies are coded as follows:
(1) Dawushan Farm Technology Co., Ltd. (the Company) is coded "0."
(2) The investees are coded from "1" in the order presented in the table above.

Note 2: The relationships between endorser/guarantor and endorsee/guarantee are categorized into the following seven types. Please specify the type.
(1) A company that has business relationships with the Company.
(2) A company in which the Company directly or indirectly holds over 50% of the voting rights.
(3) A company that directly or indirectly holds over 50% of the Company's voting rights.
(4) Endorsements/guarantees between companies in which the Company directly or indirectly holds over 90% of the voting rights.
(5) Mutual endorsements/guarantees between companies in the same industry or between joint builders which are provided in accordance with contractual terms for construction projects.
(6) Endorsements/guarantees provided by each shareholder for their jointly invested company in proportion to their shareholding percentages.
(7) Joint and several security between companies in the same industry for performance guarantees of pre-construction homes under the Consumer Protection Act.

Note 3: Pursuant to the Company's Procedures for Endorsements and Guarantees, the aggregate amount of guarantees and endorsements provided shall not exceed 49% of the Company's net worth. Furthermore, the amount of guarantees and endorsements provided to any single entity shall also not exceed 49% of the net worth. The aforementioned net worth shall be based on the latest financial statements audited or reviewed by independent auditors.

Note 4: The maximum endorsement/guarantee balance for the current period.

Note 5: This refers to amounts approved by the Board of Directors. However, where the authority has been delegated by the Board to the Chairman in accordance with Subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, this would be the amounts approved by the Chairman.

Note 6: Please enter the actual amount drawn of the endorsee/guarantee within the approved limit of endorsement and guarantee.

Note 7: Fill in "Y" for endorsements/guarantees provided by listed parent companies to subsidiaries and vice versa, and for ones provided to companies in mainland China.

Table 2

Dawushan Farm Technology Co., Ltd.
Related Party Transactions With Purchase or Sales Amount of at Least NT$100 Million or 20 Percent of the Paid-in Capital
For the Year Ended December 31, 2025

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

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable or Payable		Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Dawushan Farm Technology Co., Ltd.	Kuo Hsing Poultry & Livestock Feeds Co., Ltd.	Parent company	Purchases	$ 307,628	44.59%	1 to 2 months	-	-	($ 66,327)	( 53.94)

Table 3

Dawushan Farm Technology Co., Ltd.
Intercompany Relationships and Significant Intercompany Transactions
For the Year Ended December 31, 2025

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

No. (Note 1)	Company Name	Counterparty	Relationship	Intercompany Transactions
				Financial Statements Account	Amount	Terms	Percentage to Consolidated Net Revenue or Total Assets (Note 3)
0	Dawushan Farm Technology Co., Ltd.	Tai Da Eggs Technology Co., Ltd.	1	Sales revenue	$ 44,110	Collections in 1 to 2 months after shipment, Note 5	2%
0	Dawushan Farm Technology Co., Ltd.	Tai Da Eggs Technology Co., Ltd.	1	Accounts receivable	26,356	Collections in 1 to 2 months after shipment	1%
0	Dawushan Farm Technology Co., Ltd.	Fu Che Frozen Food Co., Ltd.	1	Sales revenue	77,414	Collections in 1 to 2 months after shipment	4%
0	Dawushan Farm Technology Co., Ltd.	Fu Che Frozen Food Co., Ltd.	1	Accounts receivable	18,843	Collections in 1 to 2 months after shipment	0%
1	Tai Da Eggs Technology Co., Ltd.	Dawushan Farm Technology Co., Ltd.	2	Processing revenue	29,829	Collections in 1 to 2 months after shipment, Note 5	2%
1	Tai Da Eggs Technology Co., Ltd.	Dawushan Farm Technology Co., Ltd.	2	Accounts receivable	21,323	Collections in 1 to 2 months after shipment	1%

Note 1: Transaction information between the parent company and its subsidiaries shall be disclosed in the No. column by codes below:
(1) The parent company is coded "0."
(2) The subsidiaries are coded from "1" in the order presented in the table above.

Note 2: Relationships are categorized into the following three types. Please specify the type. (If the transaction is between a parent and its subsidiary, or between subsidiaries, duplicate disclosure is not required. For example, if a transaction between the parent and a subsidiary has already been disclosed by the parent, the subsidiary does not need to disclose it again. Similarly, if a transaction between two subsidiaries has been disclosed by one of them, the other is not required to repeat the disclosure.)
(1) From the parent company to a subsidiary.
(2) From a subsidiary to the parent company.
(3) Between subsidiaries.

Note 3: Regarding the percentage of transaction amount to consolidated net revenue or total assets, it is computed based on the ending balance to the consolidated total assets for balance sheet items; and based on the cumulative transaction amount relative to consolidated net revenue for profit or loss items.

Note 4: The significant transactions presented in this table refer to individual transactions with an amount of NT$10,000 or more.

Note 5: Tai Da Eggs Technology Co., Ltd. purchases raw materials from Dawushan Farm Technology Co., Ltd., processes them, and sells the finished goods back to Dawushan Farm Technology Co., Ltd. These transactions are accounted for as processing arrangements, with no purchases or sales recognized.

Table 4
Dawushan Farm Technology Co., Ltd.
The Names, Locations, and Other Relevant Information of Investee Companies (Excluding Investees Located in Mainland China)
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Investor	Investee	Business Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of Investee	Share of Profit/Loss	Note
				December 31, 2025	December 31, 2024	Shares	Ownership Percentage	Carrying Amount
Dawushan Farm Technology Co., Ltd.	Tai Da Eggs Technology Co., Ltd.	Taiwan	Manufacturing and trading of processed egg products	$ 37,380	$ 37,380	3,761,200	68.39	$ 18,772	($ 9,871)	($ 6,750)
Dawushan Farm Technology Co., Ltd.	JihShang Livestock Products Co., Ltd.	Taiwan	Distribution of processed products	-	1,000	-	-	-	( 161)	( 161)	Note
Dawushan Farm Technology Co., Ltd.	Mountain River Livestock Products Co., Ltd.	Taiwan	Distribution of processed products	-	1,000	-	-	-	-	-	Note
Dawushan Farm Technology Co., Ltd.	Dawushan Ise Foods Co., Ltd.	Taiwan	Trading of egg products	139,500	139,500	13,950,000	60.00	139,266	( 121)	( 73)
Dawushan Farm Technology Co., Ltd.	Fu Che Frozen Food Co., Ltd.	Taiwan	Manufacturing and trading of processed egg products and frozen food	373,994	-	15,364,000	51.21	382,436	31,720	16,210

Note: The filing of the dissolution and final tax settlement was completed on May 8, 2025, and the liquidation procedures were finalized on August 26, 2025.

AI assistant

DWS Audit Report / Information 2025

52674_rns_2026-04-14_21978afb-bd2c-452b-9f25-45bc39063797.pdf

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Notice to Readers

Audit opinion

Basis for audit opinion

Emphasis of matter - Fire loss

Emphasis of matter - Organizational restructuring

Key audit matters

Existence and occurrence of revenue recognition for fresh egg products

Description of the matter

Audit procedures performed

Business combination under common control (organizational restructuring)

Description of the matter

Audit procedures performed

Other matter - scope of audit

Other matter - parent company only financial statements

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

Auditors' responsibilities for the audit of the consolidated financial statements

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(23) Income tax

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

F. Lease transactions - Lessee

G. Operating expenses

(4) Compensation to key management

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

AI assistant

DWS — Audit Report / Information 2025

52674_rns_2026-04-14_21978afb-bd2c-452b-9f25-45bc39063797.pdf

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Notice to Readers

Audit opinion

Basis for audit opinion

Emphasis of matter - Fire loss

Emphasis of matter - Organizational restructuring

Key audit matters

Existence and occurrence of revenue recognition for fresh egg products

Description of the matter

Audit procedures performed

Business combination under common control (organizational restructuring)

Description of the matter

Audit procedures performed

Other matter - scope of audit

Other matter - parent company only financial statements

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

Auditors' responsibilities for the audit of the consolidated financial statements

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(23) Income tax

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

F. Lease transactions - Lessee

G. Operating expenses

(4) Compensation to key management

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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