DAIYUN

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 and Independent Auditors' Review 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 reviewed 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. Independent Auditors’ Review Report	3-4
4. Consolidated Balance Sheets	5-6
5. Consolidated Statements of Comprehensive Income	7
6. Consolidated Statements of Changes in Equity	8
7. Consolidated Statements of Cash Flows	9-10
8. Notes to Consolidated Financial Statements	11-60
(1) History and Organization	11
(2) Date and Procedures of Authorization of Financial Statements	11
(3) Newly Issued or Revised Standards and Interpretations	11-12
(4) Summary of Significant Accounting Policies	13-25
(5) Critical Accounting Judgments, Estimates and Major Sources of Assumption Uncertainty	25-26
(6) Details of Significant Accounts	26-46
(7) Related Party Transactions	47-50
(8) Pledged Assets	50-51
(9) Significant Contingent Liabilities and Unrecognized Contract Commitments	51
(10) Significant Disaster Loss	51
(11) Significant Subsequent Events	51
(12) Others	52-58
(13) Additional Disclosures	58
(14) Segment Information	59-60

Independent Auditors' Review Report

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

Introduction

We have reviewed the consolidated balance sheets of Dawushan Farm Technology Co., Ltd. and its subsidiaries (hereinafter referred to as “Dawushan Group”) as of September 30, 2025, the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2025, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the notes to the consolidated financial statements (including a summary of significant accounting policies). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except for matters described in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standards on Review Engagement No. 2410 “Review of Financial Information Performed by the Independent Auditor of the Entity.” A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(3) to the consolidated financial statements, financial statements of non-material subsidiaries for the same period included in the above consolidated financial statements have not been reviewed by independent auditors. As of September 30, 2025, their total assets amounted to NT$503,316 thousand and accounted for 13.22% of total consolidated assets; and their total liabilities amounted to NT$236,924 thousand and accounted for 11.39% of total consolidated liabilities. The total comprehensive income (loss) for the three months and nine months ended September 30, 2025 amounted to NT$(3,590) thousand and NT$(3,319) thousand, respectively, and accounted for (42.80)% and 3.19% of consolidated total comprehensive income (loss).

Qualified Conclusion

Based on our reviews, except for financial statements of non-material subsidiaries stated in the Basis for Qualified Conclusion paragraph, which may result in adjustments to the consolidated financial statements if they have been reviewed by independent auditors, we did not discover matters which would lead us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Dawushan Group as of September 30, 2025, its consolidated financial performance for the three months and nine months ended September 30, 2025, and its consolidated cash flows for the nine months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Other Matters - Prior Period Reviewed by Other Independent Auditors

The consolidated financial statements of Dawushan Group for the nine months ended September 30, 2024 before restatement were reviewed by other auditors. On November 12, 2024, those auditors issued a review report with a qualified conclusion due to the fact that the financial statements of non-material subsidiaries included in the consolidated financial statements had not been reviewed by independent auditors. As disclosed in Note 6(26) to the consolidated financial statements, the Dawushan Group restated its consolidated financial statements for the nine months ended September 30, 2024, as a result of an organizational restructuring. We performed the necessary review procedures on the financial information of Fu Che Frozen Food Co., Ltd. and on the elimination entries for consolidation in the restated consolidated financial statements for the nine months ended September 30, 2024. Based on our review, nothing has come to our attention that causes us to believe that the aforementioned financial information of Fu Che Frozen Food Co., Ltd. or the related elimination entries for consolidation for the nine months ended September 30, 2024, have not been properly prepared or appropriately accounted for.

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$41,176 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 review 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 nine months ended September 30, 2025, the Dawushan Group restated the comparative consolidated financial statements on a retrospective basis. Our review conclusion is not modified in respect of this matter.

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

PricewaterhouseCoopers Taiwan

November 6, 2025

DAYUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2025, December 31, 2024 and September 30, 2024
(In Thousands of New Taiwan Dollars)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2025, December 31, 2024 and September 30, 2024
(In Thousands of New Taiwan Dollars)

	Assets	Notes	September 30, 2025		(Restated)December 31, 2024		(Restated)September 30, 2024
			Amount	%	Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 295,485	8	$ 403,869	11	$ 491,676	13
1136	Financial assets at amortized cost - current	6(2),8	740	-	9,747	-	7,844	-
1150	Notes receivable, net	5,6(3)	3,400	-	3,148	-	5,685	-
1170	Accounts receivable, net	5,6(3),7	360,799	9	299,383	8	297,647	8
1200	Other receivables		1,142	-	1,440	-	2,916	-
1220	Current income tax assets		4,832	-	146	-	121	-
130X	Inventories	5,6(4)	110,863	3	79,851	2	61,267	2
1400	Biological assets - current	6(5)	-	-	11,429	1	33,332	1
1410	Prepayments		40,119	1	23,021	1	23,967	1
11XX	Total current assets		817,380	21	832,034	23	924,455	25
Non-current assets
1535	Financial assets at amortized cost - non-current	6(2),8	-	-	-	-	4,222	-
1600	Property, plant and equipment	6(6),8,10	2,657,568	70	2,486,329	68	2,390,477	66
1755	Right-of-use assets	6(7),7	79,033	2	46,135	1	49,993	2
1780	Intangible assets	6(8)	133,809	4	177,577	5	182,821	5
1830	Biological assets - non-current	6(5),7	105,154	3	119,402	3	85,384	2
1840	Deferred income tax assets		4,546	-	3,566	-	3,920	-
1920	Refundable deposits	8	6,254	-	5,597	1	5,886	-
1990	Other non-current assets - others		4,062	-	891	-	814	-
15XX	Total non-current assets		2,990,426	79	2,839,497	78	2,723,517	75
1XXX	Total assets		$ 3,807,806	100	$ 3,671,531	101	$ 3,647,972	100

(Continued)

DAYUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS-(Continued)
September 30, 2025, December 31, 2024 and September 30, 2024
(In Thousands of New Taiwan Dollars)

	Liabilities and Equity	Notes	September 30, 2025		(Restated)December 31, 2024		(Restated)September 30, 2024
			Amount	%	Amount	%	Amount	%
Current liabilities
2100	Short-term loans	6(9),8	$ 486,000	13	$ -	-	$ 40,000	1
2130	Contract liabilities - current	6(16)	520	-	3,166	-	219	-
2150	Notes payable		100	-	100	-	100	-
2170	Accounts payable		141,184	4	146,890	4	131,217	4
2180	Accounts payable - related parties	7	59,508	2	40,753	1	38,722	1
2200	Other payables	6(10),7	167,127	4	173,464	5	163,661	5
2230	Current income tax liabilities		106	-	27,745	1	16,019	-
2250	Provisions - current		-	-	3,708	-	2,011	-
2280	Lease liabilities - current	7	18,152	-	15,441	-	16,036	-
2320	Current portion of long-term loans	6(11),8	306,393	8	49,753	1	49,739	1
21XX	Total current liabilities		1,179,090	31	461,020	12	457,724	12
Non-current liabilities
2540	Long-term loans	6(11),8	839,304	22	698,977	19	681,400	19
2570	Deferred income tax liabilities		-	-	270	-	352	-
2580	Lease liabilities - non-current	7	61,788	2	31,087	1	34,432	1
25XX	Total non-current liabilities		901,092	24	730,334	20	716,184	20
2XXX	Total liabilities		2,080,182	55	1,191,354	32	1,173,908	32
Equity
Equity attributable to owners of the parent
Share capital		6(13)
3110	Common shares		683,450	18	683,450	19	683,450	19
Capital surplus		6(14)
3200	Capital surplus		466,534	12	585,286	16	585,286	16
Retained earnings		6(15)
3310	Legal reserve		64,096	1	54,616	2	54,616	1
3350	Unappropriated earnings		219,990	6	420,788	11	403,800	11
3500	Treasury shares	6(13)	( 49,013 )	( 1 )	( 36,511 )	( 1 )	-	-
31XX	Total equity attributable to owners of the parent		1,385,057	36	1,707,629	47	1,727,152	47
35XX	Predecessor interests under common control	6(26)	-	-	403,917	11	391,330	11
36XX	Non-controlling interests	4(3)	342,567	9	368,631	10	355,582	10
3XXX	Total equity		1,727,624	45	2,480,177	68	2,474,064	68
Significant contingent liabilities and unrecognized contract commitments		9
Significant disaster loss		10
3X2X	Total liabilities and equity		$ 3,807,806	100	$ 3,671,531	100	$ 3,647,972	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 Nine Months Ended September 30, 2025 and 2024

(In Thousands of New Taiwan Dollars,

Except for earnings (loss) per share, which is expressed in New Taiwan Dollars)

Items	Notes	Three Months Ended September 30				Nine Months Ended September 30
		2025		(Restated)2024		2025		(Restated)2024
		Amount	%	Amount	%	Amount	%	Amount	%
4000 Operating revenue	6(16),7	$ 545,166	100	$ 504,191	100	$ 1,395,521	100	$ 1,489,829	100
5000 Operating costs	6(4,21,22),7	( 463,118 )	( 85 )	( 338,764 )	( 67 )	( 1,158,671 )	( 83 )	( 1,090,997 )	( 73 )
5850 Gain (loss) arising from initial recognition of biological assets and agricultural produce		15,469	3	( 22,521 )	( 5 )	1,459	-	8,049	-
5900 Gross profit		97,517	18	142,906	28	238,309	17	406,881	27
Operating expenses	6(8,21,22),7
6100 Sales and marketing expenses		( 51,825 )	( 10 )	( 53,091 )	( 11 )	( 137,459 )	( 10 )	( 136,331 )	( 9 )
6200 General and administrative expenses		( 28,865 )	( 5 )	( 32,719 )	( 6 )	( 82,538 )	( 6 )	( 89,352 )	( 6 )
6300 Research and development expenses		( 7,126 )	( 1 )	( 6,167 )	( 1 )	( 20,022 )	( 1 )	( 19,966 )	( 1 )
6450 Expected credit (loss) gain	12(2)	( 135 )	-	54	-	( 43 )	-	54	-
6000 Total operating expenses		( 87,951 )	( 16 )	( 91,923 )	( 18 )	( 240,062 )	( 17 )	( 245,595 )	( 16 )
6900 Operating income (loss)		9,566	2	50,983	10	( 1,753 )	-	161,286	11
Non-operating income and expenses
7100 Interest income	6(17)	52	-	44	-	1,678	-	2,110	-
7010 Other income	6(18)	10,768	2	12,284	2	23,036	2	29,600	2
7020 Other gains and losses	6(19)	( 3,283 )	( 1 )	3,951	1	( 108,418 )	( 8 )	( 3,123 )	-
7050 Finance costs	6(6,20),7	( 6,979 )	( 1 )	( 2,535 )	-	( 12,667 )	( 1 )	( 11,200 )	( 1 )
7000 Total non-operating income and expenses		558	-	13,744	3	( 96,371 )	( 7 )	17,387	1
7900 Income (loss) before income tax		10,124	2	64,727	13	( 98,124 )	( 7 )	178,673	12
7950 Income tax expense	6(23)	( 1,737 )	-	( 12,650 )	( 3 )	( 5,812 )	-	( 35,424 )	( 2 )
8200 Net income (loss)		$ 8,387	2	$ 52,077	10	($ 103,936 )	( 7 )	$ 143,249	10
8500 Total comprehensive income		$ 8,387	2	$ 52,077	10	($ 103,936 )	( 7 )	$ 143,249	10
Net income (loss) attributable to:
8610 Owners of the parent		$ 6,379	2	$ 19,669	4	($ 123,973 )	( 9 )	$ 77,812	5
8615 Predecessor interests under common control		-	-	15,906	3	8,327	1	33,393	3
8620 Non-controlling interests		2,008	-	16,502	3	11,710	1	32,044	2
Total net income (loss)		$ 8,387	2	$ 52,077	10	($ 103,936 )	( 7 )	$ 143,249	10
Total comprehensive income (loss) attributable to:
8710 Owners of the parent		$ 6,379	2	$ 19,669	4	($ 123,973 )	( 9 )	$ 77,812	6
8715 Predecessor interests under common control		-	-	15,906	3	8,327	1	33,393	2
8720 Non-controlling interests		2,008	-	16,502	3	11,710	1	32,044	2
Total comprehensive income (loss)		$ 8,387	2	$ 52,077	10	($ 103,936 )	( 7 )	$ 143,249	10
Basic earnings (loss) per share	6(24)
Owners of the parent		$	0.09	$	0.29	($	1.84 )	$	1.22
Predecessor interests under common control		-	-	-	0.23	-	0.12	-	0.52
9750 Basic earnings (loss) per share		$	0.09	$	0.52	($	1.72 )	$	1.74
Diluted earnings (loss) per share
Owners of the parent		$	0.09	$	0.29	($	1.84 )	$	1.22
Predecessor interests under common control		-	-	-	0.23	-	0.12	-	0.52
9850 Diluted earnings (loss) per share		$	0.09	$	0.52	($	1.72 )	$	1.74

(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 Nine Months Ended September 30, 2025 and 2024
(In Thousands of New Taiwan Dollars)

	Notes	Common Shares	Capital Surplus	Unappropriated Earnings	Legal Reserve	Treasury Shares	Total	Predecessor Interests under Common Control	Non-Controlling Interests	Total Equity
For the nine months ended September 30, 2024 (Restated)
Balance as of January 1, 2024 (Restated)		$ 607,500	$ 230,350	$ 401,541	$ 47,408	$ -	$ 1,286,799	$ 365,587	$ 284,384	$ 1,936,770
Net income for the period		-	-	77,812	-	-	77,812	33,393	32,044	143,249
Total comprehensive income for the period		-	-	77,812	-	-	77,812	33,393	32,044	143,249
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		-	-	-	-	-	-	( 7,650 )	( 7,350 )	( 15,000 )
Difference between the acquisition/disposal price and carrying amount of subsidiary equity interests	6(25)	-	( 4 )	-	-	-	( 4 )	-	4	-
Changes in non-controlling interests		-	-	-	-	-	-	-	46,500	46,500
Balance as of September 30, 2024 (Restated)		$ 683,450	$ 585,286	$ 403,800	$ 54,616	$ -	$ 1,727,152	$ 391,330	$ 355,582	$ 2,474,064
For the nine months ended September 30, 2025
Balance as of January 1, 2025 (Restated)		$ 683,450	$ 585,286	$ 420,788	$ 54,616	($ 36,511 )	$ 1,707,629	$ 403,917	$ 368,631	$ 2,480,177
Net loss for the period		-	-	( 123,973 )	-	-	( 123,973 )	8,327	11,710	( 103,936 )
Total comprehensive income for the period		-	-	( 123,973 )	-	-	( 123,973 )	8,327	11,710	( 103,936 )
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)	-	( 576 )	-	-	-	( 576 )	-	( 1,024 )	( 1,600 )
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 September 30, 2025		$ 683,450	$ 466,534	$ 219,990	$ 64,096	($ 49,013 )	$ 1,385,057	$ -	$ 342,567	$ 1,727,624

(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 Nine Months Ended September 30, 2025 and 2024
(In Thousands of New Taiwan Dollars)

| | Notes | 2025 | Nine Months Ended September 30
(Restated)
2024 |
| --- | --- | --- | --- |
| Cash flows from operating activities | | | |
| (Loss) income before income tax | | ($ 98,124) | $ 178,673 |
| Adjustments | | | |
| Non-cash income and expense items | | | |
| Depreciation | 6(5,6,7,21) | 176,791 | 159,748 |
| Amortization | 6(8,21) | 1,443 | 1,498 |
| Expected credit loss (gain) | 12(2) | 43 | ( 54 ) |
| Interest expense | 6(20) | 12,667 | 11,200 |
| Interest income | 6(17) | ( 1,678 ) | ( 2,110 ) |
| Loss on disposal of property, plant and equipment | 6(19) | 3 | - |
| Loss on disposal of biological assets | 6(19) | 60,353 | 4,838 |
| Disaster loss | 6(19) | 41,176 | - |
| Reclassification of property, plant, and equipment to expenses | 6(6) | 910 | - |
| Changes in operating assets and liabilities | | | |
| Net changes in operating assets | | | |
| Notes receivable | | ( 252 ) | 1,422 |
| Accounts receivable | | ( 61,459 ) | 33,243 |
| Other receivables | | 298 | 214 |
| Inventories | | ( 31,012 ) | 16,989 |
| Biological assets - current | | - | ( 83,690 ) |
| Prepayments | | ( 17,098 ) | ( 11,817 ) |
| Net changes in operating liabilities | | | |
| Contract liabilities - current | | ( 2,646 ) | ( 159 ) |
| Accounts payable | | ( 5,706 ) | 11,166 |
| Accounts payable - related parties | | 18,755 | ( 33,577 ) |
| Other payables | | ( 12,041 ) | 24,837 |
| Provisions - current | | - | ( 1,162 ) |
| Cash generated from operations | | 82,423 | 311,259 |
| Interest received | | 1,678 | 2,110 |
| Interest paid | | ( 12,131 ) | ( 11,793 ) |
| Income tax paid | | ( 39,387 ) | ( 56,497 ) |
| Net cash generated by operating activities | | 32,583 | 245,079 |
| Cash flows from investing activities | | | |
| Acquisition of financial assets at amortized cost - current | | ( 740 ) | ( 7,844 ) |
| Disposal of financial assets at amortized cost - current | | 9,747 | - |
| Acquisition of financial assets at amortized cost - non-current | | - | ( 4,222 ) |
| Acquisition of biological assets - non-current | | ( 112,650 ) | ( 25,746 ) |
| Disposal of biological assets - non-current | | 9,594 | 5,887 |
| Acquisition of property, plant and equipment | 6(27) | ( 307,878 ) | ( 323,195 ) |
| Disposal of property, plant and equipment | | 2,045 | 18 |
| Acquisition of intangible assets | 6(8) | - | ( 351 ) |
| (Increase) decrease in refundable deposits | | ( 657 ) | 215 |
| Decrease in other financial assets - current | | - | 119,448 |
| (Increase) decrease in other non-current assets - others | | ( 3,171 ) | 581 |
| Net cash used in investing activities | | ( 403,710 ) | ( 235,209 ) |

(Continued)

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)

For the Nine Months Ended September 30, 2025 and 2024
(In Thousands of New Taiwan Dollars)

	Notes	Nine Months Ended September 30
		2025	(Restated) 2024
Cash flows from financing activities
Increase in short-term loans	6(28)	$ 1,032,000	$ 110,000
Decrease in short-term loans	6(28)	( 546,000 )	( 256,000 )
Proceeds from long-term loans	6(28)	445,000	273,120
Repayment of long-term loans	6(28)	( 48,033 )	( 467,724 )
Repayment of lease principal	6(28)	( 13,932 )	( 11,227 )
Cost of treasury shares repurchased	6(13)	( 12,502 )	-
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 financing activities		262,743	42,214
Net (decrease) increase in cash and cash equivalents		( 108,384 )	52,084
Cash and cash equivalents at beginning of period	6(1)	403,869	439,592
Cash and cash equivalents at end of period	6(1)	$ 295,485	$ 491,676

(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 Nine Months Ended September 30, 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 nine months ended September 30, 2025 and 2024 were approved and authorized for issue in the Board of Directors' meeting on November 6, 2025.

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 IFRS 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

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 will also introduce new disclosure requirements for management-defined performance measures and strengthen 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 nine months ended September 30, 2025 and 2024 have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” 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 IFRS, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations (collectively, the "IFRSs") endorsed and issued into effect by the FSC 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.

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

(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 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
			2025.9.30	2024.12.31	2024.9.30
The Company	Tai Da Eggs Technology Co., Ltd.	Manufacturing and trading of processed egg products	68.39%	68.39%	68.39%	Note 1
	JihShang Livestock Products Co., Ltd.	Distribution of processed products	-	100.00%	100.00%	Notes 1&4
	Mountain River Livestock Products Co., Ltd.	Distribution of processed products	-	100.00%	100.00%	Notes 1&4
	Dawushan Ise Foods Co., Ltd. (formerly ChinNungHsing Eggs Co., Ltd.)	Trading of egg products	60.00%	60.00%	60.00%	Notes 1&2
	Fu Che Frozen Food Co., Ltd.	Egg processing and frozen food processing and trading	51.21%	51.00%	51.00%	Note 3

Note 1: As it does not meet the definition of a significant subsidiary, its financial statements for the nine months ended September 30, 2025 and 2024 have not been reviewed by independent auditors.
Note 2: 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 3: 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 4: The dissolution settlement was completed on May 8, 2025, and the liquidation process is currently ongoing.

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

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

As of September 30, 2025, December 31, 2024, and September 30, 2024, the Group’s total non-controlling interests amounted to NT$342,567, NT$368,631, and NT$355,582, 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
		September 30, 2025		December 31, 2024		September 30, 2024
		Amount	%	Amount	%	Amount	%
Dawushan Ise Foods Co., Ltd.	Taiwan	$ 92,854	40.00%	$ 92,893	40.00%	$ 93,118	40.00%
Tai Da Eggs Technology Co., Ltd.	Taiwan	10,829	31.61%	11,798	31.61%	10,617	31.61%
Fu Che Frozen Food Co., Ltd.	Taiwan	238,884	48.79%	263,940	49.00%	251,847	49.00%

Summarized financial information of subsidiaries:

Balance sheets

	Dawushan Ise Foods Co., Ltd.
	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 29,603	$ 81,662	$ 116,996
Non-current assets	406,775	209,622	144,908
Current liabilities	(204,243)	(53)	(109)
Non-current liabilities	-	(59,000)	(29,000)
Total net assets	$ 232,135	$ 232,231	$ 232,795
	Tai Da Eggs Technology Co., Ltd.
	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 52,014	$ 63,410	$ 50,527
Non-current assets	14,924	16,184	18,119
Current liabilities	(32,412)	(41,205)	(33,608)
Non-current liabilities	(269)	(1,069)	(1,457)
Total net assets	$ 34,257	$ 37,320	$ 33,581

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

	Fu Che Frozen Food Co., Ltd.
	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 364,585	$ 319,602	$ 356,572
Non-current assets	898,011	846,820	798,610
Current liabilities	( 401,621)	( 223,696)	( 229,528)
Non-current liabilities	( 371,325)	( 404,073)	( 411,680)
Total net assets	$ 489,650	$ 538,653	$ 513,974
		Dawushan Ise Foods Co., Ltd.
		Three Months Ended September 30
		2025	2024
Revenue		$ -	$ -
Net (loss) income before income tax		($ 94)	$ 1,458
Income tax expense		-	-
Net (loss) income		( 94)	1,458
Total comprehensive income		($ 94)	$ 1,458
Total comprehensive income attributable to non-controlling interests		($ 38)	$ 655
		Dawushan Ise Foods Co., Ltd.
		Nine Months Ended September 30
		2025	2024
Revenue		$ -	$ -
Net (loss) income before income tax		($ 96)	$ 280
Income tax expense		-	-
Net (loss) income		( 96)	$ 280
Total comprehensive income		($ 96)	$ 280
Total comprehensive income attributable to non-controlling interests		($ 39)	$ 107
		Tai Da Eggs Technology Co., Ltd.
		Three Months Ended September 30
		2025	2024
Revenue		$ 19,974	$ 29,700
Net (loss) income before income tax		($ 3,339)	$ 1,785
Income tax expense		-	-
Net (loss) income		( 3,339)	$ 1,785
Total comprehensive income		($ 3,339)	$ 1,785
Total comprehensive income attributable to non-controlling interests		($ 1,055)	$ 565

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

	Tai Da Eggs Technology Co., Ltd.
	Nine Months Ended September 30
	2025	2024
Revenue	$ 61,110	$ 92,732
Net loss before income tax	($ 3,062)	($ 465)
Income tax expense	-	-
Net loss	( 3,062)	( 465)
Total comprehensive income	($ 3,062)	($ 465)
Total comprehensive income attributable to non-controlling interests	($ 969)	($ 147)
	Fu Che Frozen Food Co., Ltd.
	Three Months Ended September 30
	2025	2024
Revenue	$ 239,892	$ 210,698
Net income before income tax	$ 7,944	$ 38,992
Income tax expense	( 1,588)	( 7,804)
Net income	6,356	31,188
Total comprehensive income	$ 6,356	$ 31,188
Total comprehensive income attributable to non-controlling interests	$ 3,101	$ 15,282
	Fu Che Frozen Food Co., Ltd.
	Nine Months Ended September 30
	2025	2024
Revenue	$ 638,771	$ 582,140
Net income before income tax	$ 33,067	$ 81,871
Income tax expense	( 7,070)	( 16,394)
Net income	25,997	65,477
Total comprehensive income	$ 25,997	$ 65,477
Total comprehensive income attributable to non-controlling interests	$ 12,718	$ 32,084
	Dawushan Ise Foods Co., Ltd.
	Nine Months Ended September 30
	2025	2024
Net cash used in operating activities	($ 14,677)	($ 4,380)
Net cash used in investing activities	( 197,153)	( 95,978)
Net cash generated by financing activities	145,000	161,500

(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.
	Nine Months Ended September 30
	2025	2024
Net (decrease) increase in cash and cash equivalents	($ 66,830)	$ 61,142
Cash and cash equivalents at beginning of period	76,831	51,069
Cash and cash equivalents at end of period	$ 10,001	$ 112,211
		(Concluded)
	Tai Da Eggs Technology Co., Ltd.
	Nine Months Ended September 30
	2025	2024
Net cash (used in) generated by operating activities	($ 15,472)	$ 5,727
Net cash generated by (used in) investing activities	418	( 706)
Net cash used in financing activities	( 875)	( 800)
Net (decrease) increase in cash and cash equivalents	( 15,929)	4,221
Cash and cash equivalents at beginning of period	27,755	10,336
Cash and cash equivalents at end of period	$ 11,826	$ 14,557
	Fu Che Frozen Food Co., Ltd.
	Nine Months Ended September 30
	2025	2024
Net cash (used in) generated by operating activities	($ 111,091)	$ 71,617
Net cash used in investing activities	( 50,674)	( 91,261)
Net cash generated by financing activities	169,227	35,851
Net increase in cash and cash equivalents	7,462	16,207
Cash and cash equivalents at beginning of period	150,519	176,518
Cash and cash equivalents at end of period	$ 157,981	$ 192,725

(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$).

A. 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.

(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

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

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 receivables that represent 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 receivables, 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

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 and the estimated costs necessary to make the sale.

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

(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 interests incurred during construction or acquisition 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
Lease improvements	10 years
Miscellaneous 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 effective 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.

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

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

Subsequently, the assets are measured using the cost model and depreciated over the shorter of the lease term or 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 and goodwill 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 but are tested for impairment annually.

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

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. 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 due to 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.

(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 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.

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

(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 income 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 and their carrying amounts on the consolidated balance sheet. Deferred income 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.

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

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.

E. Income tax expense for interim periods is calculated by applying the estimated annual average effective tax rate to the pre-tax profit or loss for the interim period, and related information is disclosed in accordance with the aforementioned policies.

(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, egg products 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.

B. Revenue from the sale of fresh eggs and egg 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

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

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) 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.

(27) 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.”

Critical Accounting Judgments, Estimates and Major Sources of Assumption 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 sources of estimation uncertainty.

(1) Significant judgments in applying accounting policies: None.

(2) Critical accounting estimates and assumptions

A. Estimated impairment of notes and accounts receivables

The estimated impairment of accounts receivables is based on the Group’s assumptions regarding default rates and expected loss rates. The Group considers historical experience, current market conditions, and forward-looking information to make assumptions and determines inputs for impairment assessment.

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

Less-than-expected future cash flows could result in significant impairment losses.

As of September 30, 2025, the carrying amount of the Group’s notes and accounts receivables was NT$364,199.

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 wear and tear, 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 September 30, 2025, the carrying amount of the Group’s inventories was NT$110,863.

6. Details of Significant Accounts

(1) Cash and cash equivalents

	September 30, 2025	December 31, 2024	September 30, 2024
Cash on hand and petty cash	$ 415	$ 782	$ 1,498
Checking and demand deposits	288,096	400,187	484,378
Time deposits	6,974	2,900	5,800
	$ 295,485	$ 403,869	$ 491,676

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 September 30, 2025, December 31, 2024, and September 30, 2024, the Group’s cash and cash equivalents restricted for borrowing collateral purposes, amounting to NT$740, NT$5,847, and NT$6,844, respectively, were classified as financial assets at amortized cost - current, and amounts of NT$0, NT$0, and NT$4,222, respectively, were classified as financial assets at amortized cost - non-current.

(2) Financial assets at amortized cost

Items	September 30, 2025	December 31, 2024	September 30, 2024
Financial assets at amortized cost
Current:
Time deposits with original maturities over three months	$ -	$ 3,900	$ 1,000
Pledged time deposits	740	5,847	5,844
Repayment reserve account	-	-	1,000
	$ 740	$ 9,747	$ 7,844
Non-current:
Repayment reserve account	$ -	$ -	$ 4,222

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

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 September 30, 2025, December 31, 2024, and September 30, 2024 amounted to NT$740, NT$9,747, and NT$12,066, 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 receivables

	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable	$ 3,400	$ 3,148	$ 5,685
Accounts receivable	$ 361,010	$ 299,551	$ 297,707
Less: Loss allowance	( 211)	( 168)	( 60)
	$ 360,799	$ 299,383	$ 297,647

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

	September 30, 2025		December 31, 2024		September 30, 2024
	Notes Receivable	Accounts Receivable	Notes Receivable	Accounts Receivable	Notes Receivable	Accounts Receivable
Not past due	$ 3,400	$ 355,348	$ 3,148	$ 294,348	$ 5,685	$ 294,832
Past due:
1 to 30 days	-	5,099	-	4,047	-	2,836
31 to 90 days	-	467	-	1,092	-	32
Over 91 days	-	96	-	64	-	7
	$ 3,400	$ 361,010	$ 3,148	$ 299,551	$ 5,685	$ 297,707

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

B. As of September 30, 2025, December 31, 2024, and September 30, 2024, the balances of notes and accounts receivables were all 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 September 30, 2025, December 31, 2024, and September 30, 2024 amounted to NT$3,400, NT$3,148, and NT$5,685, respectively; and the maximum exposure to credit risk of accounts receivable was NT$360,799, NT$299,383, and NT$297,647, 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).

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

(4) Inventories

	September 30, 2025
	Cost	Allowance for Inventory Valuation Losses	Carrying Amount
Raw materials	$ 48,026	($ 2,054)	$ 45,972
Work in progress	24,824	( 145)	24,679
Finished goods	41,536	( 1,324)	40,212
	$ 114,386	($ 3,523)	$ 110,863
	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
	September 30, 2024
	Cost	Allowance for Inventory Valuation Losses	Carrying Amount
Raw materials	$ 30,740	($ 1,642)	$ 29,098
Work in progress	13,236	( 73)	13,163
Finished goods	19,301	( 295)	19,006
	$ 63,277	($ 2,010)	$ 61,267

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

	Three Months Ended September 30
	2025	2024
Cost of inventories sold	$ 459,566	$ 338,472
Sale of consumable biological assets	-	-
Inventory write-downs	197	158
Loss on physical inventory	800	448
Obsolescence	2,607	128
Revenue from sale of scrap and waste materials	( 52)	( 442)
	$ 463,118	$ 338,764

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

	Nine Months Ended September 30
	2025	2024
Cost of inventories sold	$ 1,152,205	$ 1,086,837
Sale of consumable biological assets	-	3,511
Inventory write-downs	1,227	858
Loss on physical inventory	1,302	1,370
Obsolescence	4,699	409
Revenue from sale of scrap and waste materials	( 762)	( 1,988)
	$ 1,158,671	$ 1,090,997

(5) Biological assets

A. Details of biological assets

	September 30, 2025	December 31, 2024	September 30, 2024
Biological assets - current
Consumable biological assets	$ -	$ 11,429	$ 33,332
Biological assets - non-current
Bearer biological assets	$ 173,897	$ 182,856	$ 151,951
Bearer biological assets - accumulated depreciation	( 68,743)	( 63,454)	( 66,567)
	$ 105,154	$ 119,402	$ 85,384

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

	2025	2024
Balance as of January 1	$ 130,831	$ 88,369
Additions through purchases	9,037	14,895
Costs and expenses incurred	103,613	98,052
Decreases due to sale and write-offs	( 69,947)	( 10,873)
Depreciation	( 68,380)	( 68,216)
Transferred to inventories	-	( 3,511)
Balance as of September 30	$ 105,154	$ 118,716

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

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

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 layer hens. For the three months and nine months ended September 30, 2025 and 2024, the depreciation expenses of biological assets amounted to NT$28,199, NT$24,273, NT$68,380 and NT$68,216, respectively.

D. Estimated quantity of biological assets

	September 30, 2025	December 31, 2024	September 30, 2024
Livestock:
Quantity of biological assets (Thousand heads)	962	1,001	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	Lease Improvement	Miscellaneous 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	22,997	37,286	-	13,564	233,239	308,838
Disposals	-	-	( 3)	-	-	( 2,045)	( 2,048)
Write-off due to fire damage	-	( 28,685)	( 11,964)	-	( 27)	-	( 40,676)
Reclassifications	49,312	382,688	133,572	-	14,313	( 579,885)	-
Transferred to expenses	-	-	-	-	-	( 910)	( 910)
Depreciation	-	( 30,684)	( 53,283)	( 1,307)	( 8,691)	-	( 93,965)
Balance as of September 30	$ 521,944	$ 1,026,783	$ 557,465	$ 3,147	$ 64,030	$ 484,199	$ 2,657,568
Balance as of September 30
Cost	$ 521,944	$ 1,250,140	$ 1,041,209	$ 18,103	$ 107,976	$ 484,199	$ 3,423,571
Accumulated depreciation	-	( 223,357)	( 483,744)	( 14,956)	( 43,946)	-	( 766,003)
	$ 521,944	$ 1,026,783	$ 557,465	$ 3,147	$ 64,030	$ 484,199	$ 2,657,568
	2024
	Land	Buildings and Structures	Machinery and Equipment	Lease Improvement	Miscellaneous 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

(Continued)

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

	2024
	Land	Buildings and Structures	Machinery and Equipment	Lease Improvement	Miscellaneous Equipment	Construction in Progress and Equipment Awaiting Inspection	Total
Balance as of January 1	$ 449,310	$ 705,627	$ 483,778	$ 6,342	$ 24,681	$ 475,368	$ 2,145,106
Additions	36	4,429	11,771	-	5,685	303,462	325,383
Disposals	-	-	-	-	( 18)	-	( 18)
Reclassifications	21,534	-	24,610	-	8,648	( 54,792)	-
Depreciation	-	( 22,188)	( 50,874)	( 1,335)	( 5,597)	-	( 79,994)
Balance as of September 30	$ 470,880	$ 687,868	$ 469,285	$ 5,007	$ 33,399	$ 724,038	$ 2,390,477
Balance as of September 30
Cost	$ 470,880	$ 887,090	$ 998,939	$ 18,545	$ 67,322	$ 724,038	$ 3,166,814
Accumulated depreciation	-	( 199,222)	( 529,654)	( 13,538)	( 33,923)	-	( 776,337)
	$ 470,880	$ 687,868	$ 469,285	$ 5,007	$ 33,399	$ 724,038	$ 2,390,477

A. For the nine months ended September 30, 2025 and 2024, the amounts of borrowing costs capitalized to property, plant and equipment by the Group were NT$4,591 and NT$1,671, respectively. The capitalization interest rates ranged from 0.885% to 2.10% and from 0.89% to 2.28%, 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 September 30, 2025, December 31, 2024, and September 30, 2024, a portion of the Group's land holdings, amounting to NT$101,539, NT$51,205, 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:

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

	September 30, 2025	December 31, 2024	September 30, 2024
	Carrying Amount	Carrying Amount	Carrying Amount
Livestock facilities and equipment	$ 67,691	$ 30,784	$ 33,214
Land	7,623	9,382	9,968
Buildings	2,547	4,686	5,100
Transportation equipment	1,172	1,283	1,711
	$ 79,033	$ 46,135	$ 49,993
	Three Months Ended September 30
---	---	---
	2025	2024
	Depreciation	Depreciation
Livestock facilities and equipment	$ 3,594	$ 2,431
Land	586	587
Buildings	713	672
Transportation equipment	199	668
	$ 5,092	$ 4,358
	Nine Months Ended September 30
	2025	2024
	Depreciation	Depreciation
Livestock facilities and equipment	$ 9,617	$ 5,671
Land	1,759	1,760
Buildings	2,139	2,041
Transportation equipment	931	2,066
	$ 14,446	$ 11,538

D. Additions to right-of-use assets for the three months and nine months ended September 30, 2025 and 2024 were NT$820, NT$571, NT$47,344 and NT$39,676, respectively.
E. The following amounts related to lease contracts were recognized in profit or loss:

	Three Months Ended September 30
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 425	$ 274
Expense for short-term leases	3,243	2,052
Expense for leases of low-value assets	29	29

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

	Nine Months Ended September 30
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 1,107	$ 739
Expense for short-term leases	8,818	7,082
Expense for leases of low-value assets	122	88

F. Total cash outflows for leases for the three months and nine months ended September 30, 2025 and 2024 amounted to NT$8,572, NT$6,594, NT$23,979 and NT$19,136, 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
Decreases	( 23,810)	( 16,761)	( 1,754)	-	( 42,325)
Amortization	-	-	( 572)	( 871)	( 1,443)
Balance as of September 30	$ -	$ 129,203	$ 3,388	$ 1,218	$ 133,809
Balance as of September 30
Cost	$ -	$ 129,203	$ 6,817	$ 5,737	$ 141,757
Accumulated amortization	-	-	( 3,429)	( 4,519)	( 7,948)
	$ -	$ 129,203	$ 3,388	$ 1,218	$ 133,809
	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	-	-	( 643)	( 855)	( 1,498)
Balance as of September 30	$ 23,810	$ 150,703	$ 5,928	$ 2,380	$ 182,821
Balance as of September 30
Cost	$ 23,810	$ 150,703	$ 8,571	$ 5,737	$ 188,821
Accumulated amortization and impairment	-	-	( 2,643)	( 3,357)	( 6,000)
	$ 23,810	$ 150,703	$ 5,928	$ 2,380	$ 182,821

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

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

	Three Months Ended September 30
	2025	2024
General and administrative expenses	$ 434	$ 506
	Nine Months Ended September 30
	2025	2024
General and administrative expenses	$ 1,443	$ 1,498

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

(9) Short-term loans

Nature of Loans	September 30, 2025	Interest Rate Range	Collateral
Bank loans
Secured loans	$ 320,000	1.98%~2.075%	Land, buildings and structures
Credit loans	166,000	1.90%~2.070%	None
	$ 486,000
Nature of Loans	September 30, 2024	Interest Rate Range	Collateral
Bank loans
Secured loans	$ 40,000	2.05%~2.07%	Financial assets at amortized cost

As of December 31, 2024: None.

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

(10) Other payables

Items	September 30, 2025	December 31, 2024	September 30, 2024
Accrued payroll and employee benefits	$ 57,335	$ 58,623	$ 46,647
Compensation of employees and remuneration of directors	5,861	28,975	25,166
Accrued freight expense	10,061	16,224	8,276
Sales discounts and allowances payable	12,498	11,462	10,735
Accrued unused vacation bonus	3,844	-	-
Accrued channel fees	5,826	2,988	3,251
Interest payable	1,089	553	293
Payable for acquisition of equipment	1,293	333	3,894
Others	69,320	54,306	65,399
	$ 167,127	$ 173,464	$ 163,661

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

(11) Long-term loans

Nature of Loans	Loan Term and Repayment Method	Interest Rate Range	Collateral	September 30, 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, structures, machinery, equipment and repayment reserve account	$ 1,145,697
Less: Current portion				( 306,393)
				$ 839,304
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, structures, machinery and equipment	$ 748,730
Less: Current portion				( 49,753)
				$ 698,977
Nature of Loans	Loan Term and Repayment Method	Interest Rate Range	Collateral	September 30, 2024
Long-term bank loans
Secured loans	From November 30, 2011 to May 20, 2044; principal and interest repaid as scheduled	0.885%~ 2.275%	Land, buildings, structures, machinery and equipment	$ 731,139
Less: Current portion				( 49,739)
				$ 681,400

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

(12) Pension

Since July 1, 2005, 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 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 three months and nine months ended September 30, 2025 and 2024, the pension costs recognized by the Group under this plan amounted to NT$3,731, NT$2,867, NT$10,245 and NT$8,254, respectively.

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

(13) Share capital

A. As of September 30, 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:

	2025	2024
Balance as of January 1	67,600	60,750
Issuance of common shares for cash	-	7,595
Shares repurchased	( 255)	-
Balance as of September 30	67,345	68,345

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:

Name of Holding Entity	Purpose of Repurchase	September 30, 2025
		Number of Shares	Carrying Amount
The Company	For transfer to employees	1,000,000	$ 49,013
		December 31, 2024
Name of Holding Entity	Purpose of Repurchase	Number of Shares (thousand)	Carrying Amount
The Company	For transfer to employees	745,000	$ 36,511

There were no such transactions as of September 30, 2024.

(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.

(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

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

unissued shares of the Company and shall be cancelled through amendment registration. In addition, shares repurchased for the purpose of maintaining the Company's credit and shareholders' equity 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	Difference between the acquisition/disposal price and carrying amount of subsidiary equity interests	Employee stock options expired	Others	Total
January 1	$ 542,949	$ 6	$ 6	$ 42,325	$ 585,286
Cash distribution from capital surplus	( 67,345)	-	-	-	( 67,345)
Difference between the acquisition/disposal price and carrying amount of subsidiary equity interests	-	( 576)	-	-	( 576)
Effect of organizational restructuring	( 8,506)	-	-	( 42,325)	( 50,831)
September 30	$ 467,098	($ 570)	$ 6	$ -	$ 466,534
	2024
	Share premium	Difference between the acquisition/disposal price and carrying amount of subsidiary equity interests	Employee stock options expired	Others	Total
January 1	$ 188,009	$ 10	$ 6	$ 42,325	$ 230,350
Issuance of common shares for cash	354,940	-	-	-	354,940
Difference between the acquisition/disposal price and carrying amount of subsidiary equity interests	-	( 4)	-	-	( 4)
September 30	$ 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).

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

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

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:

	Three Months Ended September 30, 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	$ 290,652	$ 39,406	$ 95	$ 19,974	$ 150,258	$ 75,279	$ 14,355	$ -	$ 590,019
Inter-segment revenue	(37,498)	-	-	(7,353)	(2)	-	-	-	(44,853)
Revenue from external customer contracts	$ 253,154	$ 39,406	$ 95	$ 12,621	$ 150,256	$ 75,279	$ 14,355	$ -	$ 545,166
Timing of revenue recognition
Revenue recognized at a specific point in time	$ 253,154	$ 39,406	$ 95	$ 12,621	$ 150,256	$ 75,279	$ 14,355	$ -	$ 545,166

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

	Three Months Ended September 30, 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	$ 258,744	$ 26,312	$ 59	$ 29,700	$ 135,639	$ 63,135	$ 11,924	$ 72	$ 525,585
Inter-segment revenue	( 14,657)	( 45)	-	( 6,692)	-	-	-	-	( 21,394)
Revenue from external customer contracts	$ 244,087	$ 26,267	$ 59	$ 23,008	$ 135,639	$ 63,135	$ 11,924	$ 72	$ 504,191
Timing of revenue recognition
Revenue recognized at a specific point in time	$ 244,087	$ 26,267	$ 59	$ 23,008	$ 135,639	$ 63,135	$ 11,924	$ 72	$ 504,191
	Nine Months Ended September 30, 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	$ 694,612	$ 107,637	$ 730	$ 61,110	$ 410,268	$ 194,659	$ 33,844	($ 7)	$1,502,853
Inter-segment revenue	( 83,149)	-	-	( 24,181)	( 2)	-	-	-	( 107,332)
Revenue from external customer contracts	$ 611,463	$ 107,637	$ 730	$ 36,929	$ 410,266	$ 194,659	$ 33,844	($ 7)	$1,395,521
Timing of revenue recognition
Revenue recognized at a specific point in time	$ 611,463	$ 107,637	$ 730	$ 36,929	$ 410,266	$ 194,659	$ 33,844	($ 7)	$1,395,521
	Nine Months Ended September 30, 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	$ 800,281	$ 95,083	$ 3,250	$ 92,732	$ 372,984	$ 177,524	$ 31,632	$ 1,450	$1,574,936
Inter-segment revenue	( 62,096)	( 1,282)	-	( 18,385)	( 3,344)	-	-	-	( 85,107)
Revenue from external customer contracts	$ 738,185	$ 93,801	$ 3,250	$ 74,347	$ 369,640	$ 177,524	$ 31,632	$ 1,450	$1,489,829
Timing of revenue recognition
Revenue recognized at a specific point in time	$ 738,185	$ 93,801	$ 3,250	$ 74,347	$ 369,640	$ 177,524	$ 31,632	$ 1,450	$1,489,829

B. Contract liabilities

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

	September 30, 2025	December 31, 2024	September 30, 2024	January 1, 2024
Contract liabilities	$ 520	$ 3,166	$ 219	$ 378

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

	Three Months Ended September 30
	2025	2024
Revenue from sale of goods	$ -	$ 3
	Nine Months Ended September 30
	2025	2024
Revenue from sale of goods	$ 3,087	$ 325

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

(17) Interest income

	Three Months Ended September 30
	2025	2024
Interest on bank deposits	$ 29	$ 33
Other interest income	23	11
	$ 52	$ 44
	Nine Months Ended September 30
	2025	2024
Interest on bank deposits	$ 1,058	$ 2,068
Other interest income	620	42
	$ 1,678	$ 2,110

(18) Other income

	Three Months Ended September 30
	2025	2024
Rental income	$ 51	$ 89
Income from selling electricity	4,702	7,002
Government grants	3,516	4,767
Others	2,499	426
	$ 10,768	$ 12,284
	Nine Months Ended September 30
	2025	2024
Rental income	$ 197	$ 294
Income from selling electricity	14,110	13,803
Government grants	5,443	13,637
Others	3,286	1,866
	$ 23,036	$ 29,600

(19) Other gains and losses

	Three Months Ended September 30
	2025	2024
Loss on disposal of biological assets	($ 1,157)	($ 2,265)
Loss on disposal of property, plant and equipment	-	-
Depreciation and maintenance expenses of electricity distribution and sales equipment	( 2,068)	-
Foreign exchange gain, net	104	6,216
		(Continued)

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

	Three Months Ended September 30
	2025	2024
Disaster loss
- Property, plant and equipment	$ -	$ -
- Compensation loss	-	-
Others	(162)	-
	($ 3,283)	($ 3,951)
		(Concluded)
	Nine Months Ended September 30
	2025	2024
Loss on disposal of biological assets	($ 60,353)	($ 4,838)
Loss on disposal of property, plant and equipment	(3)	-
Depreciation and maintenance expenses of electricity distribution and sales equipment	(6,537)	-
Foreign exchange gain, net	86	1,866
Disaster loss
- Property, plant and equipment	(40,676)	-
- Compensation loss	(500)	-
Others	(435)	(151)
	($ 108,418)	($ 3,123)
(20) Finance costs
	Three Months Ended September 30
	2025	2024
Interest expenses
Bank loans	$ 7,474	$ 2,900
Lease liabilities	425	274
	7,899	3,174
Less: Amount capitalized for qualifying assets	(920)	(639)
	$ 6,979	$ 2,535
	Nine Months Ended September 30
	2025	2024
Interest expenses
Bank loans	$ 16,151	$ 12,132
Lease liabilities	1,107	739
	17,258	12,871
Less: Amount capitalized for qualifying assets	(4,591)	(1,671)
	$ 12,667	$ 11,200

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

(21) Additional information on the nature of expenses

	Three Months Ended September 30
	2025	2024
Employee benefits expense	$ 107,399	$ 93,207
Depreciation of property, plant and equipment	34,636	28,680
Depreciation of right-of-use assets	5,092	4,358
Depreciation of biological assets	28,199	24,273
Amortization expense	434	506
	Nine Months Ended September 30
	2025	2024
Employee benefits expense	$ 306,677	$ 270,724
Depreciation of property, plant and equipment	93,965	79,994
Depreciation of right-of-use assets	14,446	11,538
Depreciation of biological assets	68,380	68,216
Amortization expense	1,443	1,498

(22) Employee benefits expense

	Three Months Ended September 30
	2025	2024
Payroll	$ 87,253	$ 75,085
Labor and health insurance	9,600	7,170
Pension	3,731	2,867
Remuneration to directors	701	3,571
Other personnel expenses	6,114	4,514
	$ 107,399	$ 93,207
	Nine Months Ended September 30
	2025	2024
Payroll	$ 248,409	$ 217,444
Labor and health insurance	26,893	21,350
Pension	10,245	8,254
Remuneration to directors	3,154	9,469
Other personnel expenses	17,976	14,207
	$ 306,677	$ 270,724

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

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

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 three months and nine months ended September 30, 2025 and 2024, the Company accrued compensation to employees of NT$0, NT$1,055, NT$0 and NT$4,163, respectively, and remuneration to directors of NT$0, NT$792, NT$0 and NT$3,123, respectively. These amounts were recognized under payroll expenses and were estimated based on the profitability of the respective periods and the percentages specified in the Articles of Incorporation.

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 expense:

	Three Months Ended September 30
	2025	2024
Current income tax:
Income tax for the current period	$ 1,589	$ 11,475
Underestimation of income tax in prior years	-	-
Tax levied on undistributed earnings	-	-
Total current income tax	1,589	11,475
Deferred income tax:
Origination and reversal of temporary differences	148	1,175
Income tax expense	$ 1,737	$ 12,650
	Nine Months Ended September 30
	2025	2024
Current income tax:
Income tax for the current period	$ 6,826	$ 34,921
Underestimation of income tax in prior years	236	73
Tax levied on undistributed earnings	-	46
Total current income tax	7,062	35,040
Deferred income tax:
Origination and reversal of temporary differences	( 1,250)	384
Income tax expense	$ 5,812	$ 35,424

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

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

(24) Earnings (loss) per share

	Three Months Ended September 30, 2025
	After-tax	Weighted average no. of common shares outstanding (In thousand shares)	Earnings per share (NT$)
Basic and diluted earnings per share
Net income attributable to common shareholders of the parent	$ 6,379	67,345	$ 0.09
	Three Months Ended September 30, 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
Owners of the parent	$ 19,669		$ 0.29
Predecessor interests under common control	15,906		0.23
	$ 35,575	68,345	$ 0.52
Diluted earnings per share
Net income attributable to common shareholders	$ 35,575	68,345
Effects of dilutive potential common shares
Employee compensation	-	83
Net income attributable to common shareholders and effect of potential common shares	$ 35,575	68,428	$ 0.52
Owners of the parent	$ 19,669		$ 0.29
Predecessor interests under common control	15,906		0.23
	$ 35,575	68,428	$ 0.52
	Nine Months Ended September 30, 2025
	After-tax	Weighted average no. of common shares outstanding (In thousand shares)	Loss per share (NT$)
Basic and diluted loss per share
Net loss attributable to common shareholders
Owners of the parent	($ 123,973)		($ 1.84)
Predecessor interests under common control	8,327		0.12
	($ 115,646)	67,359	($ 1.72)

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

	Nine Months Ended September 30, 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
Owners of the parent	$ 77,812		$ 1.22
Predecessor interests under common control	33,393		0.52
	$ 111,205	63,855	$ 1.74
Diluted earnings per share
Net income attributable to common shareholders	$ 111,205	63,855
Effects of dilutive potential common shares
Employee compensation	-	124
Net income attributable to common shareholders and effect of potential common shares	$ 111,205	63,979	$ 1.74
Owners of the parent	$ 77,812		$ 1.22
Predecessor interests under common control	33,393		0.52
	$ 111,205	63,979	$ 1.74

(25) Transactions with non-controlling interests

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 is 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)

(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.

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

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.

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

A. Investing activities with partial cash payments only:

	Nine Months Ended September 30
	2025	2024
Acquisition of property, plant and equipment	$ 308,838	$ 325,383
Add: Beginning balance of payable for acquisition of equipment	333	1,706
Less: Ending balance of payable for acquisition of equipment	( 1,293)	( 3,894)
Cash paid for acquisition of property, plant and equipment	$ 307,878	$ 323,195

(28) Changes in liabilities arising from financing activities

	January 1, 2025	Changes from Financing Cash Flows	Non-cash Movements	September 30, 2025
Short-term loans	$ -	$ 486,000	$ -	$ 486,000
Long-term loans	748,730	396,967	-	1,145,697
Lease liabilities	46,528	( 13,932)	47,344	79,940
Total liabilities from financing activities	$ 795,258	$ 869,035	$ 47,344	$ 1,711,637
	January 1, 2024	Changes from Financing Cash Flows	Non-cash Movements	September 30, 2024
Short-term loans	$ 186,000	($ 146,000)	$ -	$ 40,000
Long-term loans	925,743	( 194,604)	-	731,139
Lease liabilities	22,019	( 11,227)	39,676	50,468
Total liabilities from financing activities	$ 1,133,762	($ 351,831)	$ 39,676	$ 821,607

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

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.

(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

(3) Material transactions with related parties

A. Operating revenue

	Three Months Ended September 30
	2025	2024
Sale of goods:
Kuo Hsing	$ 1,968	$ 2,242
Others	-	158
	$ 1,968	$ 2,400
	Nine Months Ended September 30
	2025	2024
Sale of goods:
Kuo Hsing	$ 2,829	$ 3,053
Others	326	292
	$ 3,155	$ 3,345

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

	Three Months Ended September 30
	2025	2024
Purchase of goods
Kuo Hsing	$ 87,769	$ 63,817
		(Continued)

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

	Three Months Ended September 30
	2025	2024
Feng-Chun Lin	$ -	$ -
Others	755	742
	$ 88,524	$ 64,559
		(Concluded)
	Nine Months Ended September 30
	2025	2024
Purchase of goods
Kuo Hsing	$ 210,376	$ 239,382
Feng-Chun Lin	-	16,051
Others	1,900	1,144
	$ 212,276	$ 256,577

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.

C. Receivables from related parties

	September 30, 2025	December 31, 2024	September 30, 2024
Accounts receivable:
Kuo Hsing	$ 2,051	$ 1,656	$ 2,343
Others	-	-	52
	$ 2,051	$ 1,656	$ 2,395

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

	September 30, 2025	December 31, 2024	September 30, 2024
Accounts payable:
Kuo Hsing	$ 59,188	$ 39,670	$ 38,075
Others	320	1,083	647
	59,508	40,753	38,722
Other payables:
Kuo Hsing	-	405	-
	$ 59,508	$ 41,158	$ 38,722

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.

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

E. Property transaction

(a) Acquisition of biological assets:

		Three Months Ended September 30
		2025	2024
	Financial Statement Account	Acquisition Cost	Acquisition Cost
Feng-Chun Lin	Bearer biological assets	$ -	$ -
		Nine Months Ended September 30
		2025	2024
	Financial Statement Account	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 the parent company, Kuo Hsing Poultry & Livestock Feeds Co., Ltd., for NT$382,500. Please refer to Note 6(26) for details.

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

	Three Months Ended September 30
	2025	2024
Kuo Hsing	$ -	$ -
	Nine Months Ended September 30
	2025	2024
Kuo Hsing	$ -	$ 38,885

i. Ending balance

	September 30, 2025	December 31, 2024	September 30, 2024
Kuo Hsing	$ 23,877	$ 31,047	$ 33,413

ii. Interest expense

	Three Months Ended September 30
	2025	2024
Kuo Hsing	$ 132	$ 181

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

	Nine Months Ended September 30
	2025	2024
Kuo Hsing	$ 433	$ 441
G. Operating expenses
	Three Months Ended September 30
	2025	2024
Kuo Hsing	$ 132	$ 3,035
Feng-Chun Lin	-	-
Others	1	126
	$ 133	$ 3,161
	Nine Months Ended September 30
	2025	2024
Kuo Hsing	$ 1,096	$ 6,133
Feng-Chun Lin	-	26
Others	110	258
	$ 1,206	$ 6,417

These were mainly outsourcing fees and miscellaneous expenses.

(4) Compensation to key management

	Three Months Ended September 30
	2025	2024
Short-term employee benefits	$ 7,361	$ 5,093
Post-employment benefits	103	115
	$ 7,464	$ 5,208
	Nine Months Ended September 30
	2025	2024
Short-term employee benefits	$ 17,620	$ 18,542
Post-employment benefits	309	328
	$ 17,929	$ 18,870

Pledged Assets

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

Asset Items	Carrying Amount
	September 30, 2025	December 31, 2024	September 30, 2024	Purpose
Financial assets at amortized cost - current	$ 740	$ 5,847	$ 6,844	Short-term loans and performance bond deposit (Continued)

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

Asset Items	Carrying Amount			Purpose
	September 30, 2025	December 31, 2024	September 30, 2024
Financial assets at amortized cost - non-current	$ -	$ -	$ 4,222	Long-term loans and performance bond deposit
Refundable deposits	2,000	2,000	2,000	Gas utility deposit
Land	423,548	430,066	381,818	Short and long-term loans
Buildings and structures	806,003	578,295	580,879	Short and long-term loans
Machinery and equipment	285,677	217,529	183,597	Long-term loans
	$ 1,517,968	$ 1,233,737	$ 1,159,360

Significant Contingent Liabilities and Unrecognized Contract Commitments

(1) Contingent event

None.

(2) Commitments

A. As of September 30, 2025, December 31, 2024 and September 30, 2024, the guarantee notes provided to banks by the Group for loans amounted to NT$251,000, NT$91,000 and NT$91,000, respectively.
B. As of September 30, 2025, December 31, 2024 and September 30, 2024, the unused letters of credit amounted to JPY280,000 thousand, JPY280,000 thousand and JPY0, respectively.
C. Capital expenditure commitments

(Concluded)

	September 30, 2025	December 31, 2024	September 30, 2024
Property, plant and equipment	$ 439,372	$ 374,614	$ 455,229

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$41,176. Details are as follows:

Item	Amount	Description
Property, plant and equipment	$ 40,676	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
	$ 41,176

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

	September 30, 2025	December 31, 2024	September 30, 2024
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$ 295,485	$ 403,869	$ 491,676
Financial assets at amortized cost	740	9,747	12,066
Notes receivable	3,400	3,148	5,685
Accounts receivable	360,799	299,383	297,647
Other receivables	1,142	1,440	2,916
Refundable deposits	6,254	5,597	5,886
	$ 667,820	$ 723,184	$ 815,876
	September 30, 2025	December 31, 2024	September 30, 2024
Financial liabilities
Financial liabilities at amortized cost
Short-term loans	$ 486,000	$ -	$ 40,000
Notes payable	100	100	100
Accounts payable (including related parties)	200,692	187,643	169,939
Other payables	167,127	173,464	163,661
Long-term loans (including current portion)	1,145,697	748,730	731,139
	$ 1,999,616	$ 1,109,937	$ 1,104,839
Lease liabilities	$ 79,940	$ 46,528	$ 50,468

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

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.

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:

	September 30, 2025
	Foreign Currency (In Thousands)	Exchange Rate	Book Value (NT$)
(Foreign currency: Functional currency)
Financial assets
Monetary items
JPY:NTD	$ 2,516	0.206	$ 518
USD:NTD	156	30.45	4,735
	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

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

	September 30, 2024
	Foreign Currency (In Thousands)	Exchange Rate	Book Value (NT$)
(Foreign currency: Functional currency)
Financial assets
Monetary items
JPY:NTD	$ 190,352	0.222	$ 42,315
USD:NTD	49	31.65	1,547

iii. Foreign exchange gains, including both realized and unrealized, of monetary items with significant influence due to exchange rate fluctuations amounted to NT$104, NT$6,216, NT$86 and NT$1,866 for the three months and nine months ended September 30, 2025 and 2024, respectively.

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

	Nine Months Ended September 30, 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%	$ 5	$ -
USD:NTD	1%	47	-
	Nine Months Ended September 30, 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%	$ 423	$ -
USD:NTD	1%	15	-

Price risk

The Group is not exposed to any commodity price risk.

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

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 nine months ended September 30, 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$12,238 and NT$5,783, respectively, for the nine months ended September 30, 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.

Cash and cash equivalents, financial assets at amortized cost, and other financial assets

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, financial assets at amortized cost, and other financial assets.

Notes and accounts receivables

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.

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

v. The expected loss rates for notes and accounts receivables from customers as of September 30, 2025, December 31, 2024, and September 30, 2024 were as follows:

September 30, 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	$ 3,400	$ -	$ -	$ -	$ 3,400
Loss allowance	$ -	$ -	$ -	$ -	$ -
Accounts receivable
Expected loss rate	0%	2%~3%	2%~10%	10%~100%
Gross carrying amount	$355,348	$ 5,099	$ 467	$ 96	$361,010
Loss allowance	$ -	$ 103	$ 44	$ 64	$ 211
	Not Past Due	1 to 30 Days	31 to 90 Days	Over 91 Days	Total
December 31, 2024
Notes receivable
Expected loss rate	0%	3%	5%	50%~100%
Gross carrying amount	$ 3,148	$ -	$ -	$ -	$ 3,148
Loss allowance	$ -	$ -	$ -	$ -	$ -
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
	Not Past Due	1 to 30 Days	31 to 90 Days	Over 91 Days	Total
September 30, 2024
Notes receivable
Expected loss rate	0%	3%	5%	50%~100%
Gross carrying amount	$ 5,685	$ -	$ -	$ -	$ 5,685
Loss allowance	$ -	$ -	$ -	$ -	$ -
Accounts receivable
Expected loss rate	0%	2%~3%	2%~10%	10%~100%
Gross carrying amount	$294,832	$ 2,836	$ 32	$ 7	$297,707
Loss allowance	$ -	$ 58	$ 2	$ 1	$ 61

vi. The movements in the loss allowance for notes and accounts receivables under the simplified approach were as follows:

	2025		2024
	Notes Receivable	Accounts Receivable	Notes Receivable	Accounts Receivable
January 1	$ -	$ 168	$ -	$ 124
Impairment loss recognized (reversed)	-	43	-	( 54)
Write-offs	-	-	-	( 10)
September 30	$ -	$ 211	$ -	$ 60

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

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 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.

September 30, 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	$398,268	$91,636	$ -	$ -	$ -
Notes payable	100	-	-	-	-
Accounts payable (including related parties)	200,692	-	-	-	-
Other payables	163,283	3,844	-	-	-
Lease liabilities	9,920	9,820	18,024	18,179	29,607
Long-term loans (including current portion)	56,119	268,931	130,380	390,645	391,643
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
Derivative financial liabilities: None.
September 30, 2024	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	$ 40,121	$ -	$ -	$ -	$ -
Notes payable	100	-	-	-	-
Accounts payable (including related parties)	169,939	-	-	-	-
Other payables	156,375	7,286	-	-	-
Lease liabilities	8,632	8,248	14,590	20,787	-
Long-term loans (including current portion)	27,521	27,479	93,350	242,352	382,007
Derivative financial liabilities: None.

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

(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 September 30, 2025, December 31, 2024, and September 30, 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.

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.

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

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:

	Three Months Ended September 30, 2025
	Dawushan BU	Tai Da BU	Fu Che BU	Others	Adjustment and Elimination	Total
External revenue	$ 292,655	$ 12,621	$ 239,890	$ -	$ -	$ 545,166
Inter-segment revenue	37,498	7,353	2	-	( 44,853)	-
Segment revenue	$ 330,153	$ 19,974	$ 239,892	$ -	($ 44,853)	$ 545,166
Segment income (loss)	$ 7,097	($ 3,332)	$ 5,781	($ 94)	$ 114	$ 9,566
Non-operating income and expenses						558
Income before income tax						10,124
Income tax expense						( 1,737)
Net income						$ 8,387
	Three Months Ended September 30, 2024
---	---	---	---	---	---	---
	Dawushan BU	Tai Da BU	Fu Che BU	Others	Adjustment and Elimination	Total
External revenue	$ 270,413	$ 23,008	$ 210,698	$ 72	$ -	$ 504,191
Inter-segment revenue	14,702	6,692	-	-	( 21,394)	-
Segment revenue	$ 285,115	$ 29,700	$ 210,698	$ 72	($ 21,394)	$ 504,191
Segment income (loss)	$ 15,114	$ 1,799	$ 34,386	($ 444)	$ 128	$ 50,983
Non-operating income and expenses						13,744
Income before income tax						64,727
Income tax expense						( 12,650)
Net income						$ 52,077

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

	Nine Months Ended September 30, 2025
	Dawushan BU	Tai Da BU	Fu Che BU	Others	Adjustment and Elimination	Total
External revenue	$ 719,830	$ 36,929	$ 638,769	($ 7)	$ -	$1,395,521
Inter-segment revenue	83,149	24,181	2	-	( 107,332)	-
Segment revenue	$ 802,979	$ 61,110	$ 638,771	($ 7)	($ 107,332)	$1,395,521
Segment income (loss)	($ 29,852)	($ 3,093)	$ 30,781	($ 168)	$ 579	($ 1,753)
Non-operating income and expenses						( 96,371)
Loss before income tax						( 98,124)
Income tax expense						( 5,812)
Net loss						($ 103,936)
Segment assets						$3,807,806
Segment liabilities						$2,080,182
	Nine Months Ended September 30, 2024
	Dawushan BU	Tai Da BU	Fu Che BU	Others	Adjustment and Elimination	Total
External revenue	$ 835,236	$ 74,347	$ 578,796	$ 1,450	$ -	$1,489,829
Inter-segment revenue	63,378	18,385	3,344	-	( 85,107)	-
Segment revenue	$ 898,614	$ 92,732	$ 582,140	$ 1,450	($ 85,107)	$1,489,829
Segment income (loss)	$ 91,833	($ 431)	$ 69,889	($ 390)	$ 385	$ 161,286
Non-operating income and expenses						17,387
Income before income tax						178,673
Income tax expense						( 35,424)
Net income						$ 143,249
Segment assets						$3,647,972
Segment liabilities						$1,173,908

(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.

Table 1
Dawushan Farm Technology Co., Ltd.
Endorsement/Guarantee Provided
For the Nine Months Ended September 30, 2025
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

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 Borrowing Amount (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	$ 678,677	$ 150,000	$ 150,000	$ 95,000	-	10.83	$ 678,677	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 borrowing amount 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 Nine Months Ended September 30, 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	$ 210,376	42.84	1 to 2 months	-	-	($ 59,188)	( 48.46)

Table 3

Dawushan Farm Technology Co., Ltd.
Intercompany Relationships and Significant Intercompany Transactions
For the Nine Months Ended September 30, 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	$ 31,524	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	24,661	Collections in 1 to 2 months after shipment	1%
0	Dawushan Farm Technology Co., Ltd.	Fu Che Frozen Food Co., Ltd.	1	Sales revenue	51,626	Collections in 1 to 2 months after shipment	4%
0	Dawushan Farm Technology Co., Ltd.	Fu Che Frozen Food Co., Ltd.	1	Accounts receivable	18,682	Collections in 1 to 2 months after shipment	0%
1	Tai Da Eggs Technology Co., Ltd.	Dawushan Farm Technology Co., Ltd.	2	Processing revenue	24,181	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	21,207	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 Nine Months Ended September 30, 2025
(In Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Investor	Investee	Business Location	Main Businesses and Products	Original Investment Amount		Balance as of September 30, 2025			Net Income (Loss) of Investee	Share of Profit/Loss	Note
				September 30, 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	$ 23,428	($ 3,062)	($ 2,093)
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	139,281	( 96)	( 58)
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	379,427	25,996	13,279

Note: The dissolution settlement was completed on May 8, 2025, and the liquidation process is currently ongoing.

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DWS Interim / Quarterly Report 2025

52674_rns_2026-04-14_47e56781-08c4-4eaa-85f3-083209f52688.pdf

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Notice to Readers

Other Matters - Prior Period Reviewed by Other Independent Auditors

Emphasis of Matter - Fire Loss

Emphasis of Matter - Organizational Restructuring

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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)

B. Inventory valuation

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Financial assets at amortized cost

B. Contract liabilities

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Cash flow and fair value interest rate risk

(b) Credit risk

Cash and cash equivalents, financial assets at amortized cost, and other financial assets

Notes and accounts receivables

AI assistant

DWS — Interim / Quarterly Report 2025

52674_rns_2026-04-14_47e56781-08c4-4eaa-85f3-083209f52688.pdf

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Notice to Readers

Other Matters - Prior Period Reviewed by Other Independent Auditors

Emphasis of Matter - Fire Loss

Emphasis of Matter - Organizational Restructuring

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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B. Inventory valuation

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Financial assets at amortized cost

B. Contract liabilities

DAWUSHAN FARM TECHNOLOGY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Cash flow and fair value interest rate risk

(b) Credit risk

Cash and cash equivalents, financial assets at amortized cost, and other financial assets

Notes and accounts receivables

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